Universal Display Corp (OLED) Q3 2023 Earnings: Revenue Declines by 12. ...
Universal Display Corp (NASDAQ:OLED) reported Q3 2023 total revenue of $141.1 million, a decrease of 12.1% from $160.6 million in Q3 2022.
Net income for Q3 2023 was $51.5 million, slightly lower than $53.5 million in Q3 2022.
Revenue from material sales increased by 9.8% YoY, while revenue from royalty and license fees decreased by 35.8% YoY.
The company revised its 2023 revenue guidance to be in the range of $565 million to $590 million.
Universal Display Corp (NASDAQ:OLED) released its Q3 2023 earnings report on November 2, 2023. The company reported a decrease in total revenue and net income compared to the same period last year. However, the company saw an increase in revenue from material sales, driven by greater sales volumes and improved product mix.
Financial Performance
Universal Display Corp (NASDAQ:OLED) reported total revenue of $141.1 million in Q3 2023, a decrease from $160.6 million in Q3 2022. Revenue from material sales was $92.5 million, an increase from $84.2 million in Q3 2022. This increase was primarily due to greater sales volumes of the company's emitter material and improved product mix. However, revenue from royalty and license fees decreased to $45.9 million in Q3 2023 from $71.5 million in Q3 2022, primarily due to changes in customer mix and a decrease in the cumulative catch-up adjustments between periods.
Net income for Q3 2023 was $51.5 million or $1.08 per diluted share, slightly lower than $53.5 million or $1.12 per diluted share in Q3 2022. The company's total gross margin was 76% in Q3 2023, slightly lower than 77% in Q3 2022. Operating income was $48.4 million in Q3 2023, a decrease from $68.5 million in Q3 2022.
2023 Revised Guidance and Dividend Announcement
The company revised its 2023 revenue guidance, now expecting it to be in the range of $565 million to $590 million. Additionally, Universal Display Corp (NASDAQ:OLED) announced a fourth quarter cash dividend of $0.35 per share on the companys common stock, payable on December 29, 2023 to all shareholders of record as of the close of business on December 15, 2023.
Company Outlook
Despite the decrease in total revenue and net income, the company remains optimistic about the future. Brian Millard, Vice President and Chief Financial Officer of Universal Display Corporation, stated,
As we approach the end of 2023, our performance for the year remains on course. Looking ahead, we believe that multiple market verticals are driving the OLED industrys long-term growth path."
He further highlighted the emergence of OLEDs in the automotive market, especially with electric vehicles, and the company's commitment to advancing its OLED materials and technology leadership.
Explore the complete 8-K earnings release (here) from Universal Display Corp for further details.
This article first appeared on GuruFocus.
