Universal Display(US:OLED) ZACKSยท2025-08-01 16:20Financial Performance - Universal Display Corporation (OLED) reported second-quarter 2025 net income of $67.3 million or $1.41 per share, an increase from $52.3 million or $1.10 in the same quarter last year, beating the Zacks Consensus Estimate by 23 cents [3] - Revenues for the quarter reached $171.8 million, up from $158.5 million year over year, exceeding the consensus estimate of $162 million, driven by higher royalty and licensing revenues [4][10] - Material sales contributed $88.6 million to revenues, a decrease from $95.4 million in the prior-year quarter, while revenues from green emitter sales declined to $64 million from $72 million [5] Revenue Breakdown - Revenues from royalties and license fees were $75.7 million, up from $59.6 million in the year-ago quarter, surpassing the estimate of $64.4 million [6] - Contract research services generated $7.4 million in revenues, compared to $3.5 million in the prior-year quarter, beating the estimate of $3.6 million [6] Operational Metrics - Quarterly gross profit was $132.6 million, compared to $120.2 million in the prior-year quarter, with a gross margin of 77%, up from 76% a year ago [7] - Operating income was $68.5 million with a margin of 40%, compared to $56.4 million and 36% in the year-ago quarter [7] Cash Flow and Liquidity - In the first half of fiscal 2025, OLED generated $82.5 million in cash from operating activities, down from $139.2 million in the year-ago period [8] - As of June 30, 2025, the company had $95.8 million in cash and cash equivalents [8] Guidance and Market Outlook - For 2025, OLED upgraded its revenue guidance to a range of $650-700 million, up from the previous forecast of $640-700 million, with a predicted gross margin of 76-77% [9][10] - The company remains optimistic about long-term growth potential, driven by increasing OLED adoption in consumer electronics and automotive sectors [11]