Universal Display Corporation

Good day, ladies and gentlemen, and welcome to Universal Display Corporation's second quarter 2023 earnings conference call. My name is Sherry, and I will be your conference moderator for today's call. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded for replay purposes. I would now like to turn the call over to Darius Liu, Senior Director of Investor Relations. Please proceed.

Thank you and good afternoon, everyone. Welcome to Universal Display's second quarter earnings conference call. Joining me on the call today are Steve Abramson, President and Chief Executive Officer, and Brian Millard, Vice President and Chief Financial Officer. Before Steve begins, let me remind you that today's call is a property of Universal Display. Any redistribution, retransmission, or rebroadcast of any portion of this call in any form without the express written consent of Universal Display is strictly prohibited. Further, this call is being webcast live and will be made available for a period of time on Universal Display's website. This call contains time-sensitive information that is accurate only as of date of the live webcast of this call, August 3, 2023. During this call, we may make forward-looking statements based on current expectations. These statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. These risks and uncertainties are discussed in the company's periodic reports, followed with the SEC and should be referenced by anyone considering making any investments in the company's securities. Universal Display disclaims any obligation to update any of these statements. Now, I would like to turn the call over to Steve Abramson.

Thanks, Daris, and welcome to everyone on today's call. For the second quarter of 2023, We reported revenue of $147 million, operating profit of $59 million, and net income was $50 million, or $1.04 per diluted share. As we move into the second half of the year, we expect this solid momentum to continue. For the year, we are narrowing our revenue guidance range to $560 to $600 million. The OLED industry continues to lay the groundwork for promising growth in 2024 and beyond as a significant new OLED adoption cycle for the IT market is poised to commence. Market research firm Omdia recently forecast that OLED tablet and laptop panel demand on an area basis could grow at 34% CAGR by 2030. As a key enabler in the ecosystem, we are continuing to support the OLED market's growth by leveraging our nearly three decades of pioneering discoveries and know-how, investing in our infrastructure, innovation, engine, and people, and delivering increasing value to our customers. On the infrastructure front, we celebrated the opening of our Shannon, Ireland facility in the second quarter, along with our longstanding partner of more than two decades, PPG. This new site, which is designed to produce red, green, and blue phosphorescent materials, represents a major infrastructure investment for the future of the OLED industry and demonstrates our commitment to supporting our customers' needs. As a pioneering leader in the OLED ecosystem, we push boundaries to redefine what is possible and forge paths that drive us forward. Our innovation engine is a collaborative symphony of inventiveness, ingenuity, and imagination that bridges the gap between vision and reality. Our steadfast focus on R&D has led to breakthrough technologies and cutting-edge advancements, including our high-performing, energy-efficient, phosphorescent OLED materials. Our brilliant team of scientists, engineers, and technicians are working together to invent, develop, and commercialize new and next-generation reds, greens, yellows, and hosts. With respect to blue, we continue to make excellent progress in our ongoing development work for a commercial phosphorescent blue emissive system. We continue to believe that we are on track to introduce our all phosphorescent RGB stack into the commercial market in 2024. We believe that the introduction of our full suite of red, green, and blue phosphorescent emissive materials will unlock a vast array of opportunities for higher energy efficiency and higher performance across a broad range of OLED applications. At SID Display Week in late May, we exhibited our latest advancement in red, green, and blue FOLOs with groundbreaking narrow emission spectral line shape. The narrow spectral emission is important to achieving next generation energy efficiency and color gamut product roadmaps, including BT2020. Regarding OVJP, our novel maskless dry printing platform, we continue to make meaningful progress. We are pleased to announce today another OVJP milestone with the world's first ever fully printed high-resolution RGB side-by-side full-length stack with comparable performance to vacuum thermal evaporation. This significant achievement positions OVJP to be a complete deposition solution for OLED TVs. Printing all the layers with OVJP, meaning the red, green, and blue OLED prime and common layers, paves the way for a faster throughput, smaller footprint, and cost-effective manufacturing platform for OLED TVs. One of UDC's primary missions is to enable and support our customers. We are continuously engaging with our partners, listening to their needs, anticipating their challenges, and working tirelessly to deliver solutions to meet their ever-changing and ever-evolving requirements. Most recently, UDC received BOE's highest supplier award, the Diamond Award, and also received TCL China Star's Hand-in-Hand Strategic Partner Award. These prestigious recognitions are wonderful testaments to our relentless innovation commitment to excellence, and collaborative spirit is also a reflection of the unwavering dedication and hard work of our outstanding global team. Coming off the heels of last week's Samsung unpacking event, foldables are another segment of increasing consumer interest. In recent years, the consumer electronics industry has witnessed a revolutionary paradigm shift with the introduction of foldable devices. Capturing the interest and imagination of many, Foldables offer a seamless blend of portability and functionality. OLEDs are enabling this revolutionary form factor. According to CounterPoint Research, shipment of foldable smartphones are forecasted to quadruple to approximately 55 million units by 2025. As someone who bought the first Galaxy Fold and now has the Fold 3, I have never looked back. On that note, let me turn the call over to Brian.