Universal Display(US:OLED)2025-05-01 20:10Revenue Performance - Total revenue for the three months ended March 31, 2025, was $166.3 million, a slight increase of 0.6% compared to $165.3 million for the same period in 2024[173]. - Material sales decreased by 8% to $86.2 million for the three months ended March 31, 2025, down from $93.3 million in 2024, with a corresponding 8% decrease in unit material volume[174]. - Revenue from royalty and license fees increased by 8% to $73.6 million for the three months ended March 31, 2025, compared to $68.3 million in 2024, primarily due to changes in customer mix[177]. - Contract research services revenue rose by 77% to $6.6 million for the three months ended March 31, 2025, up from $3.7 million in 2024, driven by increased demand at Adesis[179]. Expenses - Gross margin for the three months ended March 31, 2025, decreased to 77% from 78% in 2024, with a gross margin amount of $128.1 million compared to $128.3 million[180]. - Research and development expenses decreased to $34.9 million for the three months ended March 31, 2025, down from $38.0 million in 2024, mainly due to the closure of the OVJP Corp facility[181]. - Selling, general and administrative expenses decreased to $17.0 million for the three months ended March 31, 2025, compared to $19.3 million in 2024, primarily due to lower performance-based stock compensation expenses[182]. - The closure of the OVJP Corp facility in California resulted in $602,000 of restructuring costs for the three months ended March 31, 2025[170]. - Amortization of acquired technology and other intangible assets was $4.5 million for both Q1 2025 and Q1 2024[183]. - Patent costs decreased to $1.9 million in Q1 2025 from $2.0 million in Q1 2024, reflecting lower internal prosecution costs[184]. - Royalty and license expense decreased significantly to $114,000 in Q1 2025 from $1.7 million in Q1 2024, due to a one-time expense in the prior year[185]. Income and Cash Flow - Interest income increased to $10.1 million in Q1 2025 from $9.6 million in Q1 2024, attributed to higher average investment balances[186]. - Cash provided by operating activities was $30.6 million in Q1 2025, down from $72.2 million in Q1 2024, primarily due to changes in operating assets and liabilities[190][191]. - Cash provided by investing activities was $58.2 million in Q1 2025, compared to cash used of $64.2 million in Q1 2024, driven by net proceeds from investments[192]. - Cash used in financing activities increased to $30.2 million in Q1 2025 from $25.9 million in Q1 2024, due to higher tax payments and dividend payouts[193]. Working Capital and Tax - Working capital increased to $905.3 million as of March 31, 2025, from $774.4 million as of December 31, 2024, mainly due to increases in cash and short-term investments[194]. - The effective income tax rate was 19.6% for Q1 2025, slightly up from 19.4% in Q1 2024, with tax expenses recorded at $15.7 million and $13.6 million respectively[188]. Future Outlook - Company anticipates sufficient cash and short-term investments to meet obligations for at least the next twelve months based on internal forecasts[195]. - The company entered into a new commercial patent license agreement with Samsung Display Co., Ltd. effective January 1, 2023, lasting through the end of 2027, with an additional two-year extension option[160]. - The new manufacturing site in Shannon, Ireland, is expected to double production capacity for phosphorescent emitters when fully operational[171].