Universal Display Corporation

Good day, ladies and gentlemen, and welcome to Universal Display Corporation's first quarter 2025 earnings conference call. My name is Sherry, and I will be your conference moderator for today's call. If anyone needs operator assistance, 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 first quarter earnings conference call. Joining me on the call today are Steve Abramson, President and Chief Executive Officer, and Brian Millard, Chief Financial Officer and Treasurer. 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 the date of the live webcast of this call, May 1, 2025. 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. 2025 began on a solid note. First quarter 2025 revenue was $166 million, operating profit was $70 million, and net income was $64 million, or $1.35 per diluted share. Looking ahead, we continue to see tremendous growth opportunities in the OLED market. At the same time, we're operating in a global environment that is increasingly dynamic and complex. In April, we saw an uptick in orders, which we believe was largely in response to ongoing tariff developments. That said, we are taking a measured approach in assessing how this may evolve over coming quarters. Thus far, our business remains largely unaffected. Uncertainty is not new to us. We built this company to be resilient and have shown time and again that we can navigate through challenging times. Our innovation engine, strong balance sheet, robust supply chain, and operational agility position us well to navigate through periods of volatility. In the past years, we have diversified our supply chain, expanded our global manufacturing footprint to now include Shannon, Ireland, and optimized our inventory and production mix. This ensures our flexibility to respond, adapt, and lead while staying ahead of the curve with the continued invention, development, and delivery of state-of-the-art OLED technologies and materials for our customers and the industry. The long-term trajectory of the OLED market is positive and strong, driven by increasingly diverse product roadmaps featuring an expanding range of OLED offerings, with IT, automotive, and foldable, alongside other applications slated to drive demand in the near term. As panel makers and OEMs prepare for new Gen 8.6 OLED capacity to start coming online in 2026, recently published Omnia market research forecasts that 2025 OLED growth will be in the mid-single digits. Looking into three largest consumer electronic end markets, OLED smartphones are forecasted to grow by 6% year over year to 848 million units. OLED IT units, which encompasses tablets, laptops, and monitors, are expected to increase by 16% year over year to 27 million units. And OLED TVs are expected to grow by 4.5% year over year to 7.1 million units. As consumers increase their use time and products continue to evolve with advanced features such as connectivity and artificial intelligence, the energy efficiency of our materials and technology are ever more essential. Our unyielding focus on advancing OLED technology and empowering our customers remains a cornerstone of our strong leadership position. We are innovators. advancing our portfolio of highly efficient, high performing phosphorescent reds, greens, yellows, and forthcoming blues to support the market of today and tomorrow. Since 1998, our team of world-class scientists, engineers, and technicians have been driving continuous breakthroughs across critical performance metrics, boosting efficiency, extending lifetime, and enhancing color points. Over the years, we've achieved an impressive eight-fold improvement in external quantum efficiency, significantly advancing OLED energy efficiency and overall device performance. At the same time, we've delivered an extraordinary 60,000-fold increase in material lifetime, setting new industry benchmarks. Our expanding portfolio of OLED technologies and universal OLED materials enables customers to realize greater power savings, extend battery life, reduce device size and support next generation features like 5G and AI across a range of consumer OLED products. Regarding Blue, the journey has been challenging as all trailblazing breakthroughs are, and our teams continue to work tirelessly. We are excited about the strides we are making and are pleased by the news release this morning from LG Display announcing that they have successfully verified the commercialization level performance of blue phosphorescent OLED panels. We believe that our phosphorescent blue will be a game changer for our customers, the industry, consumers, and for us. And on that note, let me turn the call over to Brian.