Universal Display raises forecast on higher LED demand

Reuters News
Posted: Aug 08, 2013 4:51 PM

(Reuters) - LED supplier Universal Display Corp said it expects full-year results near the high-end of its previous forecast helped by higher license fees and more orders from flat panel display makers such as Samsung Display Corp.

Shares of the company were up 20 percent in after-hours trading after closing at $29.37 on the Nasdaq on Thursday.

Universal Display, whose second-quarter results were well above analysts' estimates, said that it expects full-year revenue from its license agreement with Samsung Display to reach $40 million.

The company, whose OLED screens currently feature in Samsung's flagship Galaxy smartphones, recognized $20 million in revenue from Samsung in the second quarter, boosting license fees by more than a third to $21.2 million.

The company narrowed its full-year revenue forecast to the upper end of its previous forecast of $110 million to $125 million.

Analysts on average expect the company to earn a revenue of 118.8 million, according to Thomson Reuters I/B/E/S.

For the second quarter the company earned $15.4 million, or 33 cents per share, compared with $11 million, or 23 cents per share, a year ago.

Revenue rose 65 percent to $49.4 million, as sales of the company's products more than doubled.

Analysts were expecting the company to earn 27 cents per share on revenue of $37.9 million.

(Reporting by Supantha Mukherjee and Aditya Kondalamahanty in Bangalore; Editing by Akshay Lodaya)