Core Viewpoint - Universal Display (NASDAQ: OLED) has been monitored for a considerable time, but its shares have consistently appeared overpriced, and the technology is not yet ready for mass adoption [1] Company Summary - Universal Display is involved in the development of display technologies, particularly organic light-emitting diodes (OLED) [1] - The company has a long position in its shares, indicating confidence in its future performance [1] Industry Summary - The OLED technology market is still in a phase where mass adoption has not been achieved, suggesting potential growth opportunities as technology matures [1]

Have you assessed how the international operations of Universal Display Corp. (OLED) performed in the quarter ended March 2025? For this organic light-emitting diode technology company, possessing an expansive global footprint, parsing the trends of international revenues could be critical to gauge its financial resilience and growth prospects.In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health an ...

Financial Performance - Universal Display Corporation (OLED) reported net income of $64.4 million or $1.35 per share in Q1 2025, an increase from $56.9 million or $1.19 in the same quarter last year, with a bottom line that beat the Zacks Consensus Estimate by $0.28 [3] - Revenues for the company reached $166.3 million, slightly up from $165.3 million year-over-year, surpassing the consensus estimate of $155 million [3] - Material sales contributed $86.2 million to revenues, down from $93.3 million in the prior-year quarter, while revenues from green emitter sales declined to $64 million from $71 million [4] - Revenues from royalties and license fees increased to $73.6 million from $68.3 million year-over-year, exceeding the estimate of $58.7 million [5] - Quarterly gross profit was $128.1 million, with a gross margin of 77%, down from 78% a year ago [6] Operational Insights - The company is focusing on improving operational and strategic infrastructure to maintain its leadership position in the OLED industry [2] - Cash generated from operating activities in Q1 was $30.6 million, a decrease from $72.2 million in the previous year [7] - As of March 31, 2025, OLED had $157.5 million in cash and cash equivalents [7] Future Outlook - For 2025, OLED expects revenues to be in the range of $640 million to $700 million, with a predicted gross margin of 76-77% [8] - Management remains optimistic about long-term growth potential despite near-term uncertainties, citing increasing OLED usage in various consumer electronics and IT applications as a key growth driver [9]

Core Insights - Universal Display Corp. reported revenue of $166.28 million for the quarter ended March 2025, reflecting a year-over-year increase of 0.6% and exceeding the Zacks Consensus Estimate of $154.85 million by 7.38% [1] - The company's EPS for the quarter was $1.35, up from $1.19 in the same quarter last year, representing a surprise of 26.17% compared to the consensus estimate of $1.07 [1] Revenue Breakdown - Material sales generated $86.16 million, which was below the three-analyst average estimate of $90.21 million, marking a year-over-year decline of 7.6% [4] - Contract research services revenue was reported at $6.55 million, significantly exceeding the average estimate of $3.61 million, and showing a substantial year-over-year increase of 76.8% [4] - Royalty and license fees amounted to $73.57 million, surpassing the average estimate of $61.45 million, with a year-over-year growth of 7.8% [4] Stock Performance - Over the past month, Universal Display's shares have declined by 9.6%, contrasting with a 0.7% decrease in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1: Earnings Performance - Universal Display Corp. reported quarterly earnings of $1.35 per share, exceeding the Zacks Consensus Estimate of $1.07 per share, and up from $1.19 per share a year ago [1] - The earnings surprise for this quarter was 26.17%, following a previous surprise of 14.02% when earnings were $1.22 per share against an expectation of $1.07 [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [2] Group 2: Revenue Performance - The company posted revenues of $166.28 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.38%, and slightly up from $165.26 million year-over-year [3] - Universal Display has topped consensus revenue estimates two times over the last four quarters [3] Group 3: Stock Performance and Outlook - Universal Display shares have declined approximately 14.1% since the beginning of the year, compared to a decline of 5.3% for the S&P 500 [4] - The company's current consensus EPS estimate for the upcoming quarter is $1.07 on revenues of $158.08 million, and for the current fiscal year, it is $4.69 on revenues of $667.29 million [8] Group 4: Industry Context - Universal Display operates within the Zacks Electronics - Miscellaneous Components industry, which is currently ranked in the bottom 42% of over 250 Zacks industries [9] - Research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9]

Universal Display (OLED) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants Darice Liu - Senior Director of Investor Relations & Corporate CommunicationsSteven Abramson - President, Chief Executive Officer & DirectorBrian Millard - VP, CFO & TreasurerTyler Bisset - Equity Research Associate Conference Call Participants James Ricchiuti - Senior AnalystMehdi Hosseini - Senior Equity Research AnalystScott Searle - Managing Director, Senior Research AnalystNam Hyung Kim - Senior AnalystNone - A ...

Financial Data and Key Metrics Changes - First quarter 2025 revenue was $166 million, slightly up from $165 million in the first quarter of 2024 [13] - Operating profit for the first quarter was $70 million, with a net income of $64 million or $1.35 per diluted share, compared to $57 million or $1.19 per diluted share in the same period last year [6][16] - Total gross margins were 77% in the first quarter of 2025, down from 78% in the prior year [14] - Operating expenses decreased to $58 million from $65 million year-over-year, primarily due to reorganization and reduced stock compensation [15] Business Line Data and Key Metrics Changes - Total material sales in Q1 2025 were $86 million, down from $93 million in Q1 2024 [13] - Green emitter sales were $64 million, compared to $71 million in the previous year [13] - Red emitter sales were $21 million, consistent with the previous year [14] - Royalty and license fees increased to $74 million from $68 million year-over-year [14] Market Data and Key Metrics Changes - OLED smartphone units are forecasted to grow by 6% year-over-year to 848 million units [10] - OLED IT units, including tablets and laptops, are expected to increase by 16% year-over-year to 27 million units [10] - OLED TV units are projected to grow by 4.5% year-over-year to 7.1 million units [10] Company Strategy and Development Direction - The company is focused on innovation and operational agility to navigate market volatility [8] - Plans to continue diversifying the supply chain and expanding global manufacturing capabilities [8] - The long-term trajectory of the OLED market is positive, driven by diverse product roadmaps and applications [9] Management's Comments on Operating Environment and Future Outlook - Management noted an uptick in orders in April, attributed to ongoing tariff developments, but stated that the business remains largely unaffected [7] - The company expects revenue for 2025 to be in the range of $640 million to $700 million [13] - Management emphasized the importance of energy efficiency and advanced features in OLED technology [10] Other Important Information - The company ended the quarter with approximately $918 million in cash and investments [16] - A quarterly dividend of $0.45 was approved, to be paid on June 30, 2025 [17] - A $100 million share repurchase authorization was announced [18] Q&A Session Summary Question: Update on blue phosphorescent OLED commercialization - Management expressed satisfaction with LG Display's announcement regarding the commercialization of blue phosphorescent OLED panels, indicating it as a positive step forward [22][23] Question: Impact of LG's announcement on other customers - Management noted that multiple customers are working on blue development, and the announcement may accelerate progress [25] Question: Stability of blue fluorescence materials - Management explained that blue fluorescence has been established in the market for decades, contributing to its stability [32] Question: Expectations for gross margin improvement - Management maintained guidance for total gross margin at 76% to 77% for the year, indicating variability based on customer mix [40] Question: Revenue impact from tariff-related orders - Management confirmed heightened orders in April but did not quantify the impact, maintaining revenue guidance for the year [48][75] Question: Development revenue for blue materials - Blue development revenues in Q1 were approximately $1.1 million, covering both host and emitter sales [76] Question: Overall communication strategy for customer announcements - Management stated that future announcements regarding customer progress will likely come from the customers themselves [70]

Financial Data and Key Metrics Changes - In Q1 2025, revenue was $166 million, operating profit was $70 million, and net income was $64 million or $1.35 per diluted share, showing a year-over-year increase in net income of over 13% from $57 million or $1.19 per diluted share in Q1 2024 [5][14] - Total material sales were $86 million in Q1 2025, down from $93 million in Q1 2024, while royalty and license fees increased to $74 million from $68 million in the prior year [11][12] - Operating income increased to $70 million with an operating margin of 42%, compared to $63 million and 38% in the prior year [13] Business Line Data and Key Metrics Changes - Green emitter sales were $64 million in Q1 2025, down from $71 million in Q1 2024, while red emitter sales remained at $21 million [11][12] - Adesis' revenue in Q1 2025 was $6.6 million, compared to $3.7 million in Q1 2024, indicating growth in this segment [12] Market Data and Key Metrics Changes - OLED smartphone units are forecasted to grow by 6% year-over-year to 848 million units, OLED IT units are expected to increase by 16% to 27 million units, and OLED TVs are projected to grow by 4.5% to 7.1 million units [8] - The overall OLED market is expected to see mid-single-digit growth in 2025, driven by diverse product roadmaps and applications [7] Company Strategy and Development Direction - The company is focused on innovation and operational agility, with a commitment to advancing OLED technology and materials [7][16] - The long-term trajectory of the OLED market is viewed positively, with expectations for new generation OLED capacity to come online in 2026 [7] Management's Comments on Operating Environment and Future Outlook - Management noted a solid start to 2025, with an uptick in orders in April attributed to ongoing tariff developments, although the business remains largely unaffected by these uncertainties [6][5] - The company maintains a revenue guidance range of $640 million to $700 million for the year, despite ongoing uncertainties [11][45] Other Important Information - The company ended the quarter with approximately $918 million in cash and investments and announced a $0.45 quarterly dividend [14][15] - A $100 million share repurchase authorization was also announced, reflecting confidence in continued positive cash flow generation [15] Q&A Session Summary Question: Update on blue phosphorescent OLED commercialization - Management expressed satisfaction with LG Display's announcement regarding the commercialization of blue phosphorescent OLED panels, indicating that specific timelines for product introduction are up to customers and OEMs [19][20] Question: Impact of LG's announcement on other customers - Management noted that multiple customers have been working on blue materials for years, and the announcement may accelerate development but specifics depend on each customer's program [22] Question: Stability of blue fluorescence materials - Management explained that blue fluorescence has been established in the market for decades, which contributes to its stability compared to new phosphorescent materials [28] Question: Expectations for gross margin improvement - The guidance for total gross margin remains at 76% to 77%, with variations based on customer mix and new contracts [38] Question: Revenue from blue development - Blue development revenues in Q1 were approximately $1.1 million, encompassing both host and emitter sales [74] Question: OpEx expectations for the year - Management expects total operating expenses to be flat compared to 2024, despite a lower level in Q1 due to various factors [76] Question: Shift towards tandem architectures - Management indicated that tandem structures are primarily used in IT applications for their benefits, but the majority of smartphones are expected to remain single-layer [83]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ___________ Commission File Number 1-12031 UNIVERSAL DISPLAY CORPORATION (Exact name of registrant as specified in its charter) | Pennsylvania ...

Exhibit 99.1 Press Release Universal Display Contact: Darice Liu investor@oled.com media@oled.com +1 609-964-5123 Universal Display Corporation Announces First Quarter 2025 Financial Results EWING, N.J. – May 1, 2025 – Universal Display Corporation (Nasdaq: OLED), enabling energy-efficient displays and lighting with its UniversalPHOLED® technology and materials, today reported financial results for the first quarter ended March 31, 2025. "We began 2025 on a solid financial note and continue to remain confid ...