Universal Display Corporation Reports Strong Q2’23 Financial Performance

Universal Display Corporation (UDC) has released its financial statement for Q2’23, demonstrating robust growth in revenue and income compared to Q2’22. UDC’s total revenue for Q2’23 reached $146.6 million, marking a significant increase from $136.6 million in Q2’22. This impressive growth was primarily driven by a surge in material sales, which amounted to $77.1 million, up from $71.9 million in Q2’22. The company attributed this positive trend to higher sales volumes of their emitter material.

The revenue from royalty and license fees also contributed to the company’s strong performance, amounting to $64.4 million in Q2’23, compared to $60.3 million in Q2’22. This increase was mainly the result of higher sales volume of material. Despite a slight decline in the total gross margin, from 80% in Q2’22 to 78% in Q2’23, UDC’s operating income demonstrated growth, reaching $58.6 million in Q2’23, up from $53.3 million in Q2’22. The company’s net income also showfd improvement, with $49.7 million in Q2’23, compared to $41.5 million in Q2’22.

UDC’s financial highlights for the first half of 2023 revealed a slight decrease in total revenue. The first half of 2023 saw total revenue amounting to $277.0 million, compared to $287.0 million in 1H22. However, the company’s operating income remained resilient at $104.0 million in 1H23. The total gross margin for 1H23 was 76%, down from 79% in 1H22. This decrease was primarily due to Shannon facility costs of $8.6 million and an inventory provision of $4.1 million.

While navigating through margin pressures, UDC’s net income for 1H23 amounted to $89.5 million. Looking ahead, UDC has revised its guidance for the full year of 2023, projecting revenue to be in the range of $560 million to $600 million. This upward adjustment in revenue guidance demonstrates the company’s optimism in its future growth prospects.

(in thousands of $)Q2’23Q2’22% Change1H231H22% Change
Material sales$77,107$71,8697.28%$147,297$158,560-7.08%
Royalty and license fees$64,399$60,2786.84%$119,609$120,080-0.39%
Contract research services$5,059$4,41414.66%$10,126$8,39120.67%
Total revenue$146,565$136,5617.34%$277,032$287,031-3.48%
Cost of Materials
Material sales$77,107$71,8697.28%$147,297$158,560-7.28%
Cost of material sales$28,570$25,02214.16%$58,058$54,9425.68%
Gross margin on material sales$48,537$46,8473.61%$89,239$103,618-13.87%
Gross margin as a % of material sales63%65%61%65%