Organic light emitting diode (OLED) technologies and materials maker, Universal Display Corporation (NASDAQ: PANL) reported stronger profit and better revenue for the fiscal second quarter as sales of materials and license fees soared.
Although both earnings per share and revenue missed analysts’ expectations a thin margin, shares gained as the Company maintained its outlook on full-year earnings.
The New Jersey-based Company reported on Thursday that net income stood at $11 million for the second quarter, up from $3.3 million in the year earlier quarter. After excluding onetime expenses, earnings per share came at $0.23 cents, compared to a loss per share of $0.03 in the corresponding period of last quarter.
Analysts polled by Thomson Reuters forecasted earnings of $0.24 a share, after omitting expenses.
Commenting over the results, Company’s CFO Sidney Rosenblatt said, “We are pleased to report the best quarterly financial results in our Company’s history. The significant increase in licensing revenue and a near doubling of material sales in the quarter reflect the growth of our OLED technology.”
Meanwhile, revenue for the second quarter almost jumped three time to $29 million, from year earlier quarter’s $11.25 million.
The company said sharp rise in material sales and soaring revenue from license fees thanks to growing commercial agreements with bigger customers, helped revenue to leapfrog.
For the quarter, the company said $15 million in revenue was made from Samsung Display Corp or SDC under a licensing agreement (formerly known as Samsung Mobile Display). According to the agreement, SDC is required to pay Universal Display Corporation $15 million in each of the second and fourth quarters of 2012.
The company reported that operating expenses for the quarter rose to $17.07 million up from $12.32 million in the year earlier quarter. The Company attributed higher operating cost to rising prices of materials and other expenses.
For the fiscal year 2012, the company is expecting revenues in the range of $90 million to $110 million, while Wall Street’s analysts are expecting at $101.09 million.
“We believe our financial performance illustrates our success in leveraging our proprietary technology and materials and OLED industry leadership to provide attractive returns for our shareholders,” added Rosenblatt.
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