Universal
Display Corporation (Nasdaq: OLED), enabling energy-efficient
displays and lighting with its UniversalPHOLED®
technology and materials, today announced its results for the fourth
quarter and year ended December 31, 2015.
For the full year 2015, the Company reported revenues of $191.0 million,
essentially flat compared to the prior year. Operating income decreased
to $32.3 million for the year, down 45% from $58.6 million for 2014. The
Company reported net income of $14.7 million, or $0.31 per diluted
share, for the full year 2015, compared to net income of $41.9 million,
or $0.90 per diluted share, for 2014. The 2015 net income figure
reflects a $33.0 million write-down of inventory in the second quarter,
primarily of an existing host material and associated work-in-process,
resulting from a customer's faster-than-expected reduction in demand for
this material. Excluding this item and its associated $2.8 million
reduction in income tax expense, non-GAAP net income for 2015 was $44.8
million, or $0.94 per diluted share (see "reconciliation of Non-GAAP
Measures" for further discussion of the non-GAAP measures).
“Our fourth quarter results were less-than-anticipated, which we believe
was primarily due to year-end inventory management by our customers and
product mix weighing more to our lower priced emitters,” said Sidney D.
Rosenblatt, Executive Vice President and Chief Financial Officer of
Universal Display. “As we have noted in the past, short-term forecasting
in this emerging OLED market environment is difficult, even though we
are confident that this is a long-term growth market. While 2015
revenues were flat year-over-year, we are pleased to report that our
commercial emitter sales increased 16% and our royalty and licensing
revenues grew 23% year-over-year. We also generated $113.6 million of
cash from operations, more than doubling 2014's operating cash flow of
$47.3 million."
Rosenblatt continued, "We believe that 2016 is poised to be a year in
which the OLED industry builds meaningful new capacity for the continued
proliferation of OLEDs in the marketplace. This groundwork is paving the
foundation for the next wave of expansion in OLED mass production, which
we believe is set to commence in 2017. As noted by a number of companies
in the ecosystem, the OLED design pipeline is growing robustly, and we
anticipate that this will drive new capacity plans for 2017, 2018 and
beyond. As a key enabler and partner in the OLED industry, we expect
these additional capacity plans to result in new revenue opportunities,
and overall, a positive growth trajectory for the industry."
Fourth Quarter Results
Revenues for the fourth quarter of 2015 were $62.3 million, up 11%
compared to revenues of $56.2 million for the same quarter of 2014.
Material sales were $27.8 million, down 1% compared to the fourth
quarter of 2014, primarily due to a $5.3 million decline in host
material sales. This decline was offset by an increase of $4.9 million
in emitter sales. Royalty and license fees were $34.4 million in the
fourth quarter of 2015, up 23% compared to $28.0 million in the same
quarter of 2014. The Company recognized $30 million in SDC licensing
revenue in the fourth quarter of 2015, up from $25 million in the same
quarter of 2014.
The Company reported operating income of $26.6 million for the fourth
quarter of 2015, up 56% compared to operating income of $17.1 million
for the fourth quarter of 2014. Operating expenses were $35.7 million,
compared to $39.1 million in the fourth quarter of 2014, and cost of
materials was $8.1 million, compared to $12.1 million in the fourth
quarter of 2014.
Net income for the fourth quarter of 2015 was $18.1 million, or $0.39
per diluted share, compared to $13.1 million, or $0.28 per diluted
share, for the fourth quarter of 2014.
Full Year 2015 Results
Revenues for the full year 2015 were $191.0 million, essentially flat
compared to 2014. Material sales were $113.1 million, down 11% from
$126.8 million compared to 2014, primarily due to a $29.0 million
decline in host material sales, partially offset by a $15.1 million
increase in emitter sales. Royalty and license fees were $77.8 million,
up 23% from $63.2 million for the prior year.
The Company reported operating income of $32.3 million for the full year
2015, compared to $58.6 million in 2014. The 2015 figures include a
$33.0 million write-down of inventory taken in the second quarter.
Excluding the write-down, non-GAAP operating income for 2015 was $65.3
million. For the full year 2015, the Company reported net income of
$14.7 million, or $0.31 per diluted share, compared to $41.9 million, or
$0.90 per diluted share, for the same period in 2014. Net income for
2015 included the aforementioned inventory write-down. Excluding this
item, non-GAAP net income for 2015 was $44.8 million, or $0.94 per
diluted share.
The Company’s balance sheet remained strong, with cash and cash
equivalents and short-term investments of $395.5 million as of December
31, 2015. For the full year 2015, the Company generated $113.6 million
in operating cash flow, compared to $47.3 million of operating cash flow
in 2014.
2016 Guidance
Although the OLED industry is still at an early state where many
variables can have a material impact on its growth, and the Company thus
caveats its financial guidance accordingly, the Company believes that
its 2016 revenues will increase 15% year-over-year, plus or minus 5%, as
compared to 2015.
Conference Call Information
In conjunction with this release, Universal Display will host a
conference call on Thursday, February 25, 2016 at 5:00 p.m. Eastern
Time. The live webcast of the conference call can be accessed under the events
portion of the Company's website. Those wishing to participate in the
live call should dial 1-800-406-5356 (toll-free) or 1-913-981-5510, and
reference conference ID 4956978. Please dial in 5-10 minutes prior to
the scheduled conference call time.
About Universal Display Corporation
Universal Display Corporation (Nasdaq: OLED) is a leader in developing
and delivering state-of-the-art, organic light emitting diode (OLED)
technologies, materials and services to the display and lighting
industries. Founded in 1994, the Company currently owns or has
exclusive, co-exclusive or sole license rights with respect to more than
3,600 issued and pending patents worldwide. Universal Display licenses
its proprietary technologies, including its breakthrough high-efficiency
UniversalPHOLED® phosphorescent OLED technology, that can enable the
development of low power and eco-friendly displays and white lighting.
The Company also develops and offers high-quality, state-of-the-art
UniversalPHOLED materials that are recognized as key ingredients in the
fabrication of OLEDs with peak performance. In addition, Universal
Display delivers innovative and customized solutions to its clients and
partners through technology transfer, collaborative technology
development and on-site training.
Based in Ewing, New Jersey, with international offices in Ireland, South
Korea, Hong Kong, Japan and Taiwan, Universal Display works and partners
with a network of world-class organizations, including Princeton
University, the University of Southern California, the University of
Michigan, and PPG Industries, Inc. The Company has also established
relationships with companies such as AU Optronics Corporation, BOE
Technology, DuPont Displays, Inc., Innolux Corporation, Kaneka
Corporation, Konica Minolta Technology Center, Inc., LG Display Co.,
Ltd., Lumiotec, Inc., OLEDWorks LLC., Pioneer Corporation, Samsung
Display Co., Ltd., Sumitomo Chemical Company, Ltd. and Tohoku Pioneer
Corporation. To learn more about Universal Display, please visit http://www.udcoled.com.
Universal Display Corporation and the Universal Display logo are
trademarks or registered trademarks of Universal Display Corporation.
All other company, brand or product names may be trademarks or
registered trademarks.
All statements in this document that are not historical, such as
those relating to Universal Display Corporation’s technologies and
potential applications of those technologies, the Company’s expected
results as well as the growth of the OLED market and the Company’s
opportunities in that market, are forward-looking financial statements
within the meaning of the Private Securities Litigation Reform Act of
1995. You are cautioned not to place undue reliance on any
forward-looking statements in this document, as they reflect Universal
Display Corporation’s current views with respect to future events and
are subject to risks and uncertainties that could cause actual results
to differ materially from those contemplated. These risks and
uncertainties are discussed in greater detail in Universal Display
Corporation’s periodic reports on Form 10-K and Form 10-Q filed with the
Securities and Exchange Commission, including, in particular, the
section entitled “Risk Factors” in Universal Display Corporation’s
annual report on Form 10-K for the year ended December 31, 2015.
Universal Display Corporation disclaims any obligation to update any
forward-looking statement contained in this document.
Follow Universal Display Corporation
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(OLED-C)
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2015
|
|
2014
|
|
ASSETS
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
97,513
|
|
|
$
|
45,418
|
|
|
Short-term investments
|
|
297,981
|
|
|
243,088
|
|
|
Accounts receivable
|
|
24,729
|
|
|
22,075
|
|
|
Inventories
|
|
12,748
|
|
|
37,109
|
|
|
Deferred income taxes
|
|
12,326
|
|
|
18,459
|
|
|
Other current assets
|
|
2,387
|
|
|
4,356
|
|
|
Total current assets
|
|
447,684
|
|
|
370,505
|
|
|
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $27,897
and $24,813
|
|
22,407
|
|
|
19,922
|
|
|
ACQUIRED TECHNOLOGY, net of accumulated amortization of $54,837 and
$43,838
|
|
72,015
|
|
|
83,014
|
|
|
INVESTMENTS
|
|
2,187
|
|
|
3,047
|
|
|
DEFERRED INCOME TAXES
|
|
14,945
|
|
|
12,934
|
|
|
OTHER ASSETS
|
|
174
|
|
|
425
|
|
|
TOTAL ASSETS
|
|
$
|
559,412
|
|
|
$
|
489,847
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
|
$
|
6,849
|
|
|
$
|
9,260
|
|
|
Accrued expenses
|
|
17,387
|
|
|
14,986
|
|
|
Deferred revenue
|
|
10,107
|
|
|
2,466
|
|
|
Other current liabilities
|
|
167
|
|
|
111
|
|
|
Total current liabilities
|
|
34,510
|
|
|
26,823
|
|
|
DEFERRED REVENUE
|
|
35,543
|
|
|
3,366
|
|
|
RETIREMENT PLAN BENEFIT LIABILITY
|
|
22,594
|
|
|
10,916
|
|
|
Total liabilities
|
|
92,647
|
|
|
41,105
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’ EQUITY:
|
|
|
|
|
|
Preferred Stock, par value $0.01 per share, 5,000,000 shares
authorized, 200,000 shares of Series A Nonconvertible Preferred
Stock issued and outstanding (liquidation value of $7.50 per share
or $1,500)
|
|
2
|
|
|
2
|
|
|
Common Stock, par value $0.01 per share, 100,000,000 shares
authorized, 48,132,223 and 47,061,826 shares issued at December 31,
2015 and 2014, respectively
|
|
482
|
|
|
471
|
|
|
Additional paid-in capital
|
|
589,885
|
|
|
581,114
|
|
|
Accumulated deficit
|
|
(73,627
|
)
|
|
(88,305
|
)
|
|
Accumulated other comprehensive loss
|
|
(9,819
|
)
|
|
(4,382
|
)
|
|
Treasury stock, at cost (1,357,863 shares at December 31, 2015 and
2014)
|
|
(40,158
|
)
|
|
(40,158
|
)
|
|
Total shareholders’ equity
|
|
466,765
|
|
|
448,742
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
559,412
|
|
|
$
|
489,847
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(in thousands, except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
REVENUE:
|
|
|
|
|
|
Material sales
|
|
$
|
27,796
|
|
|
$
|
28,139
|
|
|
Royalty and license fees
|
|
34,441
|
|
|
27,992
|
|
|
Technology development and support revenue
|
|
75
|
|
|
42
|
|
|
Total revenue
|
|
62,312
|
|
|
56,173
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
Cost of material sales
|
|
8,085
|
|
|
12,079
|
|
|
Research and development
|
|
12,643
|
|
|
12,540
|
|
|
Selling, general and administrative
|
|
8,902
|
|
|
8,535
|
|
|
Patent costs and amortization of acquired technology
|
|
4,255
|
|
|
4,486
|
|
|
Royalty and license expense
|
|
1,807
|
|
|
1,458
|
|
|
Total operating expenses
|
|
35,692
|
|
|
39,098
|
|
|
Operating income
|
|
26,620
|
|
|
17,075
|
|
|
INTEREST INCOME
|
|
244
|
|
|
179
|
|
|
INTEREST EXPENSE
|
|
(22
|
)
|
|
(15
|
)
|
|
INCOME BEFORE INCOME TAXES
|
|
26,842
|
|
|
17,239
|
|
|
INCOME TAX EXPENSE
|
|
(8,754
|
)
|
|
(4,113
|
)
|
|
NET INCOME
|
|
$
|
18,088
|
|
|
$
|
13,126
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE:
|
|
|
|
|
|
BASIC
|
|
$
|
0.39
|
|
|
$
|
0.29
|
|
|
DILUTED
|
|
$
|
0.39
|
|
|
$
|
0.28
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON
SHARE:
|
|
|
|
|
|
BASIC
|
|
46,675,225
|
|
|
45,903,917
|
|
|
DILUTED
|
|
46,864,535
|
|
|
46,350,851
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF INCOME
|
|
(in thousands, except share and per share data)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
REVENUE:
|
|
|
|
|
|
Material sales
|
|
$
|
113,066
|
|
|
$
|
126,885
|
|
|
Royalty and license fees
|
|
77,773
|
|
|
63,192
|
|
|
Technology development and support revenue
|
|
207
|
|
|
954
|
|
|
Total revenue
|
|
191,046
|
|
|
191,031
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
Cost of material sales
|
|
62,997
|
|
|
41,315
|
|
|
Research and development
|
|
44,641
|
|
|
41,154
|
|
|
Selling, general and administrative
|
|
29,046
|
|
|
28,135
|
|
|
Patent costs and amortization of acquired technology
|
|
16,716
|
|
|
17,288
|
|
|
Royalty and license expense
|
|
5,370
|
|
|
4,519
|
|
|
Total operating expenses
|
|
158,770
|
|
|
132,411
|
|
|
Operating income
|
|
32,276
|
|
|
58,620
|
|
|
INTEREST INCOME
|
|
837
|
|
|
777
|
|
|
INTEREST EXPENSE
|
|
(54
|
)
|
|
(70
|
)
|
|
INCOME BEFORE INCOME TAXES
|
|
33,059
|
|
|
59,327
|
|
|
INCOME TAX EXPENSE
|
|
(18,381
|
)
|
|
(17,473
|
)
|
|
NET INCOME
|
|
$
|
14,678
|
|
|
$
|
41,854
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE:
|
|
|
|
|
|
BASIC
|
|
$
|
0.31
|
|
|
$
|
0.90
|
|
|
DILUTED
|
|
$
|
0.31
|
|
|
$
|
0.90
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON
SHARE:
|
|
|
|
|
|
BASIC
|
|
46,816,394
|
|
|
46,252,960
|
|
|
DILUTED
|
|
47,494,188
|
|
|
46,685,145
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2015
|
|
2014
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
|
$
|
14,678
|
|
|
$
|
41,854
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Amortization of deferred revenue
|
|
(8,994
|
)
|
|
(4,274
|
)
|
|
Depreciation
|
|
3,086
|
|
|
2,077
|
|
|
Amortization of intangibles
|
|
10,999
|
|
|
10,997
|
|
|
Inventory write-down
|
|
33,000
|
|
|
3,900
|
|
|
Amortization of premium and discount on investments, net
|
|
(697
|
)
|
|
(531
|
)
|
|
Stock-based compensation to employees
|
|
9,173
|
|
|
7,278
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
1,291
|
|
|
995
|
|
|
Deferred income tax expense (benefit)
|
|
7,137
|
|
|
9,108
|
|
|
Retirement plan benefit expense
|
|
3,354
|
|
|
1,679
|
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
Accounts receivable
|
|
(2,654
|
)
|
|
(6,418
|
)
|
|
Inventories
|
|
(8,639
|
)
|
|
(30,414
|
)
|
|
Other current assets
|
|
1,969
|
|
|
2,267
|
|
|
Other assets
|
|
251
|
|
|
(183
|
)
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
790
|
|
|
3,055
|
|
|
Other current liabilities
|
|
56
|
|
|
87
|
|
|
Deferred revenue
|
|
48,812
|
|
|
5,793
|
|
|
Net cash provided by operating activities
|
|
113,612
|
|
|
47,270
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Purchases of property and equipment
|
|
(5,103
|
)
|
|
(6,153
|
)
|
|
Additions to intangibles
|
|
—
|
|
|
—
|
|
|
Purchases of investments
|
|
(691,876
|
)
|
|
(408,974
|
)
|
|
Proceeds from sale of investments
|
|
638,411
|
|
|
372,818
|
|
|
Net cash used in investing activities
|
|
(58,568
|
)
|
|
(42,309
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
354
|
|
|
328
|
|
|
Repurchase of common stock
|
|
—
|
|
|
(29,500
|
)
|
|
Proceeds from the exercise of common stock options
|
|
2,034
|
|
|
1,887
|
|
|
Payment of withholding taxes related to stock-based compensation to
employees
|
|
(5,337
|
)
|
|
(2,844
|
)
|
|
Net cash used in financing activities
|
|
(2,949
|
)
|
|
(30,129
|
)
|
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
52,095
|
|
|
(25,168
|
)
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
45,418
|
|
|
70,586
|
|
|
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
97,513
|
|
|
$
|
45,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
|
The following table details our reconciliation of non-GAAP measures
to the most directly comparable GAAP measures:
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data)
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Operating Results:
|
|
|
|
|
|
|
|
|
|
Cost of material sales
|
|
|
|
|
|
$
|
8,085
|
|
|
$
|
12,079
|
|
Operating expenses
|
|
|
|
|
|
35,692
|
|
|
39,098
|
|
Operating Income
|
|
|
|
|
|
26,620
|
|
|
17,075
|
|
Income before income taxes
|
|
|
|
|
|
26,842
|
|
|
17,239
|
|
Net income
|
|
|
|
|
|
18,088
|
|
|
13,126
|
|
Net income per common share, basic
|
|
|
|
|
|
$
|
0.39
|
|
|
$
|
0.29
|
|
Net income per common share, diluted
|
|
|
|
|
|
$
|
0.39
|
|
|
$
|
0.28
|
|
Non-GAAP Reconciling Items:
|
|
|
|
|
|
|
|
|
|
Inventory write-down
|
|
|
|
|
|
—
|
|
|
—
|
|
Tax impact of inventory write-down
|
|
|
|
|
|
—
|
|
|
—
|
|
Non-GAAP Measures:
|
|
|
|
|
|
|
|
|
|
Cost of material sales
|
|
|
|
|
|
8,085
|
|
|
12,079
|
|
Operating expenses
|
|
|
|
|
|
35,692
|
|
|
39,098
|
|
Operating Income
|
|
|
|
|
|
26,620
|
|
|
17,075
|
|
Income before income taxes
|
|
|
|
|
|
26,842
|
|
|
17,239
|
|
Net income
|
|
|
|
|
|
18,088
|
|
|
13,126
|
|
Net income per common share, basic*
|
|
|
|
|
|
$
|
0.39
|
|
|
$
|
0.29
|
|
Net income per common share, diluted*
|
|
|
|
|
|
$
|
0.39
|
|
|
$
|
0.28
|
|
_______________________________________________
|
|
|
|
*
|
The non-GAAP net income per common share, basic and diluted is
derived from dividing non-GAAP net income by the number of
weighted average shares used in computing basic and diluted net
income per common share.
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Measures
|
|
|
|
The following table details our reconciliation of non-GAAP measures
to the most directly comparable GAAP measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
Operating Results:
|
|
|
|
|
|
|
|
(Unaudited)
|
|
Cost of material sales
|
|
|
|
|
|
|
|
$
|
62,997
|
|
|
$
|
41,315
|
|
Operating expenses
|
|
|
|
|
|
|
|
158,770
|
|
|
132,411
|
|
Operating Income
|
|
|
|
|
|
|
|
32,276
|
|
|
58,620
|
|
Income before income taxes
|
|
|
|
|
|
|
|
33,059
|
|
|
59,327
|
|
Net income
|
|
|
|
|
|
|
|
14,678
|
|
|
41,854
|
|
Net income per common share, basic
|
|
|
|
|
|
|
|
$
|
0.31
|
|
|
$
|
0.90
|
|
Net income per common share, diluted
|
|
|
|
|
|
|
|
$
|
0.31
|
|
|
$
|
0.90
|
|
Non-GAAP Reconciling Items:
|
|
|
|
|
|
|
|
|
|
|
|
Inventory write-down
|
|
|
|
|
|
|
|
33,000
|
|
|
—
|
|
Tax impact of inventory write-down
|
|
|
|
|
|
|
|
(2,836
|
)
|
|
—
|
|
Non-GAAP Measures:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of material sales
|
|
|
|
|
|
|
|
29,997
|
|
|
41,315
|
|
Operating expenses
|
|
|
|
|
|
|
|
125,770
|
|
|
132,411
|
|
Operating Income
|
|
|
|
|
|
|
|
65,276
|
|
|
58,620
|
|
Income before income taxes
|
|
|
|
|
|
|
|
66,059
|
|
|
59,327
|
|
Net income*
|
|
|
|
|
|
|
|
44,842
|
|
|
41,854
|
|
Net income per common share, basic**
|
|
|
|
|
|
|
|
$
|
0.96
|
|
|
$
|
0.90
|
|
Net income per common share, diluted**
|
|
|
|
|
|
|
|
$
|
0.94
|
|
|
$
|
0.90
|
|
_______________________________________________
|
|
|
|
*
|
|
Non-GAAP net income assumes an effective tax rate of 32% for the
year ended December 31, 2015, based on excluding the impact of the
inventory write down of $33.0 million in the second quarter of 2015
and its related impact on our effective tax rate.
|
|
|
|
**
|
|
The adjusted net income per common share, basic and diluted is
derived from dividing adjusted net income by the number of
weighted average shares used in computing basic and diluted net
income per common share.
|
|
|
|
|
|
|
Non-GAAP Measures
To supplement our selected financial data presented in accordance with
U.S. generally accepted accounting principles (GAAP), we use certain
non-GAAP measures. These non-GAAP measures include adjusted net income,
adjusted net income per common share, basic and adjusted income per
common share, diluted. Reconciliation to the most directly comparable
GAAP measures of all non-GAAP measures included in the presentation can
be found within the table detailing the reconciliation of non-GAAP
measures to GAAP measures above.
The Company has provided these non-GAAP measures to enhance investors'
overall understanding of our current financial performance, and as a
means to evaluate period-to-period comparisons. The Company believes
that these non-GAAP measures provide meaningful supplemental information
regarding the Company's financial performance by excluding the inventory
charge and related tax effect that may not be indicative of recurring
core business operating results. The Company believes that the non-GAAP
measures that exclude the inventory charge, when viewed with GAAP
results, enhance the comparability of results against prior periods and
allow for greater transparency of financial results. The presentation of
non-GAAP measures is not intended to be considered in isolation or as a
substitute for, or superior to, the financial information prepared and
presented in accordance with GAAP.
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