Universal Display Corporation (PANL) has reported 42.74 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $25.82 million, or $0.55 a share in the quarter, compared with $18.09 million, or $0.39 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $25.82 million, or $0.55 a share compared with $18.09 million or $0.39 a share, a year ago.
Revenue during the quarter grew 19.68 percent to $74.58 million from $62.31 million in the previous year period. Gross margin for the quarter contracted 212 basis points over the previous year period to 80.49 percent. Total expenses were 53.39 percent of quarterly revenues, down from 57.28 percent for the same period last year. This has led to an improvement of 389 basis points in operating margin to 46.61 percent.
Operating income for the quarter was $34.76 million, compared with $26.62 million in the previous year period.
However, the adjusted operating income for the quarter stood at $34.76 million compared to $26.62 million in the prior year period. At the same time, adjusted operating margin improved 389 basis points in the quarter to 46.61 percent from 42.72 percent in the last year period.
"We are pleased to report that 2016 finished on a strong note," said Sidney D. Rosenblatt, executive Vice president and chief financial officer of Universal Display. "In the fourth quarter, total emitter sales increased 25% sequentially, the adoption of next-generation emitters commenced, and with the robust activity for new UniversalPHOLED materials in the pipeline, we embarked on our next expansion phase with PPG Industries to double our phosphorescent emitter production capacity."
Universal Display Corporation Pa projects revenue to be in the range of $230 million to $250 million for financial year 2017.
Operating cash flow drops significantlyUniversal Display Corporation Pa has generated cash of $80.34 million from operating activities during the year, down 29.29 percent or $33.27 million, when compared with the last year. The company has spent $38.47 million cash to meet investing activities during the year as against cash outgo of $58.57 million in the last year.
The company has spent $0.01 million cash to carry out financing activities during the year as against cash outgo of $2.95 million in the last year period.
Cash and cash equivalents stood at $139.36 million as on Dec. 31, 2016, up 42.92 percent or $41.85 million from $97.51 million on Dec. 31, 2015.
Working capital declines
Universal Display Corporation Pa has witnessed a decline in the working capital over the last year. It stood at $345.16 million as at Dec. 31, 2016, down 16.46 percent or $68.01 million from $413.17 million on Dec. 31, 2015. Current ratio was at 9.58 as on Dec. 31, 2016, down from 12.97 on Dec. 31, 2015.
Cash conversion cycle (CCC) has increased to 45 days for the quarter from 43 days for the last year period. Days sales outstanding went down to 15 days for the quarter compared with 18 days for the same period last year.
Days inventory outstanding was almost stable at 55 days for the quarter, when compared with the last year period. At the same time, days payable outstanding went down to 26 days for the quarter from 29 for the same period last year.
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