Oct 28, 2026 earnings call — NovaJet launch and OLED technology advances
Launched NovaJet and reported third quarter revenue of $160 million.
Revenue $0.2B (est $0.2B) · EPS $1.23 (est $1.13)
Key quotes
"Foldables, IT, TVs and automotive each address different markets. And together, they are expanding OLED's reach across a broader set of products, applications and customers."
"Put simply, phosphorescence creates the photons and OLEDX helps make every photon count."
"Beyond our core business, our equipment subsidiary, UVJC, recently launched NovaJet, the first commercial system and a significant milestone for a technology platform UDC has spent years developing."
Analyst Q&A 3
Gross margin and blue/UVJC updates
Q (Brian Lee · Goldman Sachs): Analyst asked why materials gross margin stayed at 50% and whether it will recover to ~60% by 4Q. He also asked for updates on blue phosphorescent commercialization and the NovaJet/UVJC milestones and partners.
A: Management said the gross margin outcome reflects changes in customer and product mix, and they still expect to be within their total gross margin guidance of 74% to 76% but toward the lower end. They said blue development is ongoing with customers, the team is expanding and AI is helping invent molecules, and the UVJC/Novajet platform was pivoted to focus on research tools and new markets like life sciences and semiconductors.
"So as you heard in my remarks, we are now expecting still to be within the range of our total gross margin guidance of 74% to 76%, but toward the lower end of that range." — Brian Millard (CFO)
Q4 revenue ramp and blue development revenue
Q (Mehdi Hosseini · SIG): Analyst asked if reaching the low end of calendar '26 revenue requires a big Q4 ramp and whether that ramp depends on current sell-through. He also asked why there is no development revenue from blue despite ongoing customer engagement.
A: Management said they expect momentum from several products launched in the second half to continue into the fourth quarter and that some products that launch in Q1 drive buying and production in Q4, so they believe hitting the prior low-end revenue plan is achievable. On blue, management said customers still have blue materials in progress and that the strategic transition to next-generation phosphorescent blue can reduce development revenue quarter-to-quarter, so blue revenue should remain lower during this period.
"So we expect that momentum to continue into the fourth quarter." — Brian Millard (CFO)
PSF value and pricing vs volume pressure
Q (Martin Yang · Oppenheimer & Company): Analyst asked how UDC's value changes when its role is a sensitizer for PSF versus an emitter—more, equal, or less value. He also asked why volumes grew but revenue fell, implying year-over-year pricing pressure.
A: Management said PSF is new but so far looks to occupy the same range as pure phosphorescence in economic terms and doping percentages. On volume versus pricing, management said two factors drive the decline: customer mix differences across agreements and a cumulative catch-up that "was about a $4.8 million swing from Q3 of '25 to Q3 this year," much of which hit the materials line; normalizing for that reduces the gap, leaving some discrepancy from customer mix changes.
"Martin, at this point, we're kind of seeing it in the same range of pure phosphorescence." — Steven V. Abramson (CEO)