UNIVERSAL DISPLAY CORP \PA\ Q1 FY2025 earnings call

• First quarter 2025 revenue was $166 million, operating profit $70 million, and net income $64 million or $1.35 per diluted share. • Saw uptick in orders in April likely due to tariff developments, but business remains largely unaffected. • Long-term OLED market trajectory positive with growth in smartphones, IT units, and TVs. • Innovation in OLED technologies with eight-fold improvement in external quantum efficiency and 60,000-fold increase in material lifetime. • LG Display's success with phosphorescent blue panels is a positive step. • Board approved $0.45 quarterly dividend and $100 million share repurchase authorization. • SID Display Week kicks off in San Jose on May 11th.

In the first quarter of 2025, total material sales were $86 million, compared to $93 million in the first quarter of 2024. Green emitter sales (including yellow-green emitters) were $64 million in Q1 2025, down from $71 million in Q1 2024. Red emitter sales remained $21 million in both Q1 2025 and 2024. Royalty and license fees were $74 million in Q1 2025, up from $68 million in the prior year. Adesis first quarter revenue was $6.6 million, compared to $3.7 million in Q1 2024.

• Revenue expected to be in the range of $640 million to $700 million. • Effective tax rate for the year expected to be approximately 19%. • Board approved $0.45 quarterly dividend payable on June 30, 2025. • Announced $100 million share repurchase authorization.

Q: On the blue update from LG Display, how should we think about the timeline for commercial device and pricing?

A: Specific plans and timeline for product introduction by customers; in constant dialogue with customers on blue pricing.

Q: With LG's announcement, how does it impact other customers' blue development?

A: Customers have their own blue development programs.

Q: LG release talks about hybrid solution, where are we with pure phosphorescent GV solution?

A: Positive step forward in using material in commercial application, supporting customers' blue development efforts.

Q: LG talked about stability of blue fluorescence, how does it relate to your materials?

A: Blue fluorescence is established with more stability, phosphorescent material has different characteristics.

Q: Expectation on low power consumption advantage of phosphorescence?

A: Depends on customer, LG's approach is highlighted, but different customers may have different solutions.

Q: Market development with LG's announcement, bridge or mass adoption?

A: Positive step in commercial application use of material, ultimate product up to customers.

Q: Material gross margin guidance?

A: Total gross margin expected to be 76% to 77%.

Q: Blue implementation with LG, correct on commercial specs and material per device?

A: LG's release shows material performing at commercial levels, material consumption per square inch dependent on customer recipe.

Q: Geographic mix, revenue in China up, seeing pull ins ahead of tariffs?

A: Heightened Chinese sales in Q1, saw heightened orders in April in response to tariffs, still expect full year guidance of $640 million to $700 million.

Q: Blue host material use in LG's panel?

A: Can't comment specifically on LG's recipe; selling blue host and emitter to various customers.

Q: Blue commercial OLED panel from LG, use of host material?

A: Can't specify, but selling host and emitter to customers.

Q: Technical hurdles for LG's product to be commercial?

A: Question more for LG as it's their product.

Q: Communication strategy on other customers' announcements?

A: Other customers may release information, not driven by Universal Display.

Q: Blue development milestones before product shipping?

A: Progress from customers as they communicate their efforts.

Q: Quantify orders related to tariffs?

A: Heightened orders in April, but full year guidance remains.

Q: OpEx guidance for full year?

A: OpEx expected to be flat compared to 2024, SG&A slightly up, R&D flat.

Q: Tandem architectures trend?

A: Tandem has benefits for IT products in lifetime, mix of tandem and single layer expected in markets.