Universal Display (NASDAQ: OLED) reported Q1 EPS of $0.80, $0.13 better than the analyst estimate of $0.67. Revenue for the quarter came in at $112.3 million versus the consensus estimate of $98.64 million.

“In these extraordinarily challenging times due to the COVID-19 pandemic, we have been able to keep our employees safe, maintain our business operations and continue our strategic growth programs. During the first quarter, we activated crisis management and business continuity plans to safeguard our people and to ensure our ability to continue our R&D programs, and manufacture and ship to customers our energy-efficient, high-performing UniversalPHOLED materials. Our primary focus remains on the safety and well-being of our employees, customers, partners and community,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. “Our first quarter revenues were $112.3 million, which included the full recognition of the safety stock purchased in the fourth quarter of 2019 by a China-based customer due to trade-related concerns, as well as some estimated advanced customer material purchases due to COVID-19 uncertainties. In this evolving environment of a global health crisis, the ultimate scope and duration of which are unknown, it is challenging to make forecasts about future results and as such, we believe it is prudent to withdraw our 2020 guidance.”

Rosenblatt continued, “As we look ahead, we believe that the long-term growth path of OLEDs remains strong, though timing of adoption may shift due to macroeconomic factors. During this time of high uncertainty, we are continuing our R&D initiatives, OLED material shipments and strategic programs to drive further innovation and novel solutions, and to capitalize on the opportunities in the OLED market. With a robust balance sheet of approximately $640 million in cash, a lean operating model and no debt, we plan to continue to invest in our leadership position in the OLED ecosystem and expect to emerge from the current environment even stronger to further enable our customers and the industry.”

GUIDANCE:

As a result of the ongoing uncertainty regarding both the scope and duration of the COVID-19 global pandemic, the Company is withdrawing its previously issued 2020 revenue guidance, issued on February 20, 2020. Since February 20, the impact of COVID-19 has rapidly expanded globally across Asia, Europe and the United States. The Company anticipates material disruption to industries that utilize OLEDs as a result of the evolving pandemic and its impact on the macroeconomic environment.

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