Universal Display Corporation (UDC) reported a total revenue of $647.7 million for the fiscal year ending December 31, 2024, marking a 12.3% increase from $576.4 million in 2023. The growth was driven by a 13% rise in material sales, which reached $365.4 million, and a 12% increase in royalty and license fees, totaling $266.8 million. The company's net income also saw an increase, rising to $222.1 million from $203.0 million in the previous year, resulting in a diluted earnings per share of $4.65, compared to $4.24 in 2023.
In terms of operational developments, UDC's customer base remains heavily concentrated in the Asia-Pacific region, with significant revenue contributions from major clients such as Samsung Display Co., LG Display, and BOE Technology Group. The company has established long-term agreements with these manufacturers, which include minimum purchase commitments for its proprietary phosphorescent OLED materials. As of December 31, 2024, UDC had 468 employees, a slight increase from the previous year, reflecting its ongoing investment in research and development.
Strategically, UDC has made notable advancements, including the acquisition of over 550 OLED-related patents from Merck KGaA for $66 million in April 2023, which is expected to enhance its technology portfolio. Additionally, the company has been expanding its manufacturing capabilities, having purchased a facility in Shannon, Ireland, which is anticipated to double its production capacity. UDC also announced the closure of its OVJP Corporation facility in California, relocating operations to Singapore, which resulted in a restructuring cost of $8.9 million.
The company’s financial performance was supported by a gross margin of 77%, consistent with the previous year, despite an increase in operating expenses, which rose to $260.4 million from $223.9 million in 2023. This increase was primarily attributed to higher research and development costs, reflecting UDC's commitment to innovation in OLED technologies. Looking ahead, UDC anticipates continued growth driven by the increasing adoption of OLED technologies in various applications, including mobile devices, televisions, and automotive displays, while also navigating potential market challenges and competition from alternative display technologies.
About UNIVERSAL DISPLAY CORP \PA\
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