Universal Display Corp (OLED) 2024 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to Universal Display Corporation's third-quarter earnings conference call. My name is Sherry, and I will be your conference moderator for today's call. (Operator Instructions)

美好的一天，女士們、先生們，歡迎參加環球顯示公司第三季財報電話會議。我叫雪莉，我將擔任今天電話會議的會議主持人。（操作員說明）

As a reminder, this conference call is being recorded for replay purposes. I would now like to turn the call over to Darice Liu, Director of Investor Relations. Please proceed.

謹此提醒，本次電話會議正在錄音以供重播之用。我現在想把電話轉給投資者關係總監 Darice Liu。請繼續。

Thank you and good afternoon, everyone. Welcome to Universal Display's third-quarter earnings conference call. Joining me on the call today are Steve Abramson, President and Chief Executive Officer; and Brian Millard, Vice President and Chief Financial Officer.

謝謝大家，大家下午好。歡迎參加Universal Display 第三季財報電話會議。今天與我一起參加電話會議的是總裁兼執行長 Steve Abramson；以及副總裁兼財務長布萊恩·米勒德 (Brian Millard)。

Before Steve begins, let me remind you today's call is a property of Universal Display. Any redistribution, retransmission or rebroadcast of any portion of this call in any form without the express written consent of Universal Display is strictly prohibited.

在史蒂夫開始之前，讓我提醒您今天的電話會議是Universal Display 的財產。未經 Universal Display 明確書面同意，嚴禁以任何形式重新分發、轉發或轉播本次通話的任何部分。

Further, this call is being webcast live and will be made available for a period of time on Universal Display's website. This call contains time-sensitive information that is accurate only as of the date of the live webcast of this call, October 30, 2024.

此外，本次電話會議正在進行網路直播，並將在Universal Display 的網站上提供一段時間。本次電話會議包含時間敏感訊息，僅截至本次電話會議網路直播之日（2024 年 10 月 30 日）準確。

During this call, we may make forward-looking statements based on current expectations. These statements are subject to a number of significant risks and uncertainties, and our actual results may differ materially. These risks and uncertainties are discussed in the company's periodic report filed with the SEC and should be referenced by anyone considering making any investments in the company's securities. Universal Display disclaims any obligation to update any of these statements.

在這次電話會議中，我們可能會根據目前的預期做出前瞻性陳述。這些陳述面臨許多重大風險和不確定性，我們的實際結果可能存在重大差異。這些風險和不確定性在公司向美國證券交易委員會提交的定期報告中進行了討論，任何考慮對公司證券進行投資的人都應參考。Universal Display 不承擔更新任何這些聲明的義務。

Now, I'd like to turn the call over to Steve Abramson.

現在，我想將電話轉給史蒂夫·艾布拉姆森。

Thanks, Darice, and welcome to everyone on today's call.

謝謝達里斯，歡迎大家參加今天的電話會議。

Our third-quarter revenue was $162 million. Operating profit and net income were $67 million, and earnings per diluted share was $1.40. 2024 is another year of growth, growth that positions us for record revenues and record profits.

我們第三季的營收為 1.62 億美元。營業利潤和淨利潤為 6700 萬美元，稀釋後每股收益為 1.40 美元。 2024 年是另一個成長的一年，這種成長使我們的收入和利潤創下歷史新高。

The rate of growth, though, is expected to be more modest than previously projected. The first half of the year started off on a strong note, but as we approach the end of the third quarter, customers lowered their forecast for Q4. Given the downward trend of forecast revisions, we are revising our 2024 revenue forecast range to $625 million to $645 million.

不過，預計成長率將比之前預測的要溫和。今年上半年開局強勁，但隨著第三季末的臨近，客戶降低了對第四季的預測。鑑於預測修正的下降趨勢，我們將 2024 年營收預測範圍修正為 6.25 億美元至 6.45 億美元。

While lower-than-expected fourth-quarter sales have tampered this year's pace of growth, we continue to believe in the tremendous trajectory of the OLED market as activity across the consumer electronics landscape expands with new OLED AR/VR devices, smartwatches, smartphones, IT, automotive, and TVs. Near term, we expect the IT market to be the primary driver of growth.

雖然低於預期的第四季度銷售影響了今年的成長速度，但我們仍然相信 OLED 市場的巨大發展軌跡，因為消費性電子領域的活動隨著新的 OLED AR/VR 設備、智慧手錶、智慧型手機、 IT 、汽車和電視。短期內，我們預期 IT 市場將成為成長的主要動力。

OMNIA forecasts that mobile OLED PCs are expected to grow to 69 million units in 2028, up more than 150% from an estimated 26 million units in 2024. This growth momentum is driving a new multi-year CapEx cycle geared for the medium-sized OLED market.

OMNIA 預測，行動 OLED PC 預計到 2028 年將成長到 6,900 萬台，比 2024 年預計的 2,600 萬台成長 150% 以上。這種成長動能正在推動中型 OLED 市場新的多年資本支出週期。

During the quarter, Visionox broke ground on its new $7.7 billion Gen 8.6 OLED facility in Hefei. Similar to BOE's $9 billion Greenfield Gen 8.6 OLED plant, Visionox's new fab will be designed with a monthly capacity of 32,000 plates per month. Add that to Samsung displays $3 billion, 15,000 plate per month Gen 8.6 OLED IT facility, that brings a current total investment for new Gen 8.6 OLED facilities to approximately $20 billion. And we believe further investments are in the works.

本季度，維信諾在合肥投資 77 億美元新建的第 8.6 代 OLED 工廠破土動工。與京東方耗資90億美元的綠地Gen 8.6 OLED工廠類似，維信諾新廠的設計產能為每月32,000片板材。再加上三星展示價值 30 億美元、每月 15,000 塊板材的第 8.6 代 OLED IT 設施，這使得目前新第 8.6 代 OLED 設施的總投資達到約 200 億美元。我們相信進一步的投資正在進行中。

New OLED module factories are also on the rise. According to reports, Visionox completed the construction of its new $1.6 billion Gen 6 flexible OLED module factory in August, and Samsung display recently decided to invest $1.8 billion to build a new OLED module production line in Vietnam, mostly to produce IT and automotive OLED modules.

新的OLED模組工廠也不斷出現。據報道，維信諾於8月完成了其耗資16億美元的新建第六代柔性OLED模組工廠的建設，三星顯示器最近決定投資18億美元在越南新建OLED模組生產線，主要用於生產IT和汽車OLED模組。

Speaking of OLED and automotive, during the quarter, myriad automotive makers including Ali, Lotus, Zeekr, and Hongqi unveiled new car models with OLED screens. Some of those models were designed with both OLED displays and OLED taillights. From OLED's low power consumption, enabled by our phosphorescent materials and technology, to OLEDs being lighter, thinner, and inherently conformable, bendable, and rollable, as well as numerous other benefits, OLEDs are enabling greater design flexibility and energy efficiency with brilliant picture quality and fast refresh in the automotive market.

說到OLED與汽車，本季阿里、路特斯、Zeekr、紅旗等眾多汽車廠商都推出了搭載OLED螢幕的新車。其中一些車型同時設計了 OLED 顯示器和 OLED 尾燈。從我們的磷光材料和技術實現的OLED 低功耗，到OLED 更輕、更薄、固有的順應性、可彎曲和可捲曲以及眾多其他優點，OLED 正在實現更大的設計靈活性和能源效率以及出色的圖像品質以及汽車市場的快速刷新。

OLEDs continue to push the form factor and boundaries of consumer electronics products. During the quarter, the world's first trifold, the Mate XT, was launched to much fanfare as the first device that transforms from a 6.4-inch smartphone size screen into a full 10.2-inch tablet.

OLED 不斷推動消費性電子產品的外形尺寸和邊界發展。本季度，全球首款三折手機 Mate XT 大張旗鼓地推出，成為第一款從 6.4 吋智慧型手機尺寸螢幕轉變為全 10.2 吋平板電腦的裝置。

Tri-foldables are not the only form factor broadening the definition of what a consumer product can be. According to reports, Samsung is progressing with its rollable OLED development project and plans to launch its first rollable smartphone next year. These reports note that Samsung's rollable phone, when fully open, will support a large 12.4-inch display. UBI Research forecasted by 2028, foldable phones will make up almost 10% of total OLED smartphone shipments, up from 5% today.

三折疊式產品並不是唯一擴大消費產品定義的外型因素。據報道，三星正在推進其可捲曲 OLED 開發項目，並計劃明年推出首款可捲曲智慧型手機。這些報導指出，三星的可捲曲手機在完全打開時將支援 12.4 吋大顯示器。UBI Research 預測，到 2028 年，可折疊手機將佔 OLED 智慧型手機總出貨量的近 10%，高於目前的 5%。

On the R&D front, we continue to collaborate closely with our customers and are developing new OLED materials and technologies to support their growing product roadmaps. We are continuously discovering, developing, and delivering next-generation reds, greens, yellows, and hosts to meet the ever-changing and ever-evolving specifications for color point, energy efficiency, and lifetime.

在研發方面，我們繼續與客戶密切合作，正在開發新的 OLED 材料和技術，以支援他們不斷發展的產品路線圖。我們不斷發現、開發和提供下一代紅色、綠色、黃色和主色，以滿足不斷變化和發展的色點、能源效率和壽命規範。

Regarding blue, we continue to make excellent progress on our ongoing development work for a commercial phosphorescent blue emissions system. We continue to believe that the additional time needed to introduce a commercial phosphorescent blue into the marketplace will be measured in months and not years. When our commercial phosphorescent blue is adopted in an OLED device, we believe that the benefits will be significant for the industry, for consumers, and for us.

關於藍色，我們在商業磷光藍色發射系統的持續開發工作中繼續取得出色進展。我們仍然相信，將商業磷光藍色引入市場所需的額外時間將是幾個月而不是幾年。當我們的商用磷光藍被應用於 OLED 設備時，我們相信這對產業、消費者和我們來說都將帶來巨大的好處。

With OVJP, we continue to make progress. We believe that enabling red, green, and blue side-by-side manufacturing of OLED TVs efficiently and with fast [hack type] can revolutionize the large area OLED landscape.

憑藉 OVJP，我們不斷取得進步。我們相信，以高效、快速的[駭客類型]實現紅色、綠色、藍色並排製造 OLED 電視可以徹底改變大面積 OLED 景觀。

On that note, let me turn the call over to Brian.

關於這一點，讓我把電話轉給布萊恩。

Thank you, Steve, and again, thank you everyone for joining our call today. As Steve shared, we are on track for record revenue and record earnings for this year.

謝謝史蒂夫，再次感謝大家今天加入我們的電話會議。正如史蒂夫分享的那樣，我們今年有望創下創紀錄的收入和創紀錄的利潤。

Our revenue through Q3 is $485 million, up 16% from the same period last year. And our net income for the first nine months reached $176 million, up 25% year over year from the first nine months of 2023.

截至第三季度，我們的營收為 4.85 億美元，比去年同期成長 16%。我們前 9 個月的淨利潤達到 1.76 億美元，較 2023 年前 9 個月年增 25%。

For the third quarter of 2024, revenue was $162 million compared to $141 million in the third quarter of 2023. Material sales were $83 million in the third quarter compared to material sales of $92 million in the third quarter of 2023.

2024 年第三季的營收為 1.62 億美元，而 2023 年第三季的營收為 1.41 億美元。第三季的材料銷售額為 8,300 萬美元，而 2023 年第三季的材料銷售額為 9,200 萬美元。

Green emitter sales, which include our yellow-green emitters, were $62.6 million. This compares to $68.9 million in the third quarter of 2023. Red emitter sales were $20.1 million. This compares to $22.1 million in the third quarter of 2023.

綠色發射器銷售額（包括我們的黃綠色發射器）為 6,260 萬美元。相比之下，2023 年第三季的銷售額為 6,890 萬美元。紅色發射器銷售額為 2,010 萬美元。相比之下，2023 年第三季的銷售額為 2,210 萬美元。

As it has been discussed in the past, material buying patterns can vary quarter to quarter. Third-quarter royalty and license fees were $75 million compared to the prior-year period of $46 million. The year-over-year increase was due to customer mix and cumulative catch-up adjustment of $5 million.

正如過去所討論的那樣，材料購買模式可能會因季度而異。第三季特許權使用費和授權費為 7,500 萬美元，而去年同期為 4,600 萬美元。同比成長歸因於客戶組合和累積 500 萬美元的追趕調整。

For the full year, we now expect the ratio of materials for royalty and license fees to be in the ballpark of 1.4:1.

就全年而言，我們現在預計特許權使用費和許可費的材料比例約為 1.4:1。

Adesis' third-quarter revenue was $3.6 million compared to the $2.7 million from the comparable period in 2023. Third-quarter cost of sales was $36 million, translating into total gross margins of 78%. This compares to $34 million and total gross margins of 76% in the third quarter of 2023. We continue to believe our full-year total gross margins will be in the range of 76% to 77%.

Adesis 第三季營收為 360 萬美元，而 2023 年同期營收為 270 萬美元。第三季銷售成本為 3,600 萬美元，總毛利率為 78%。相較之下，2023 年第三季的銷售額為 3,400 萬美元，總毛利率為 76%。我們仍然相信全年總毛利率將在 76% 至 77% 之間。

Third quarter operating expenses, excluding cost of sales, were $59 million. In the third quarter of 2023, it was $58 million. We expect our 2024 OpEx to be within our guidance range of a 10% to 15% year-over-year increase.

第三季營運費用（不包括銷售成本）為 5,900 萬美元。2023年第三季為5800萬美元。我們預計 2024 年營運支出將在年增 10% 至 15% 的指導範圍內。

Operating income was $67 million in the third quarter, translating to an operating margin of 41%. This compares to the prior-year period of $48 million and 34% operating margin. We continue to believe our full-year operating margins will be in the range of 35% to 40%.

第三季營業收入為 6,700 萬美元，營業利益率為 41%。相較之下，去年同期為 4,800 萬美元，營業利潤率為 34%。我們仍然相信全年營業利潤率將在 35% 至 40% 之間。

The income tax rate was 18% in the third quarter of 2024. We now expect our effective tax rate for the year to be approximately 19%. Third-quarter 2024 net income was $67 million, or $1.40 per diluted share. This compares to $52 million, or $1.8 per diluted share, in the comparable period in 2023.

2024年第三季所得稅稅率為18%。我們現在預計今年的有效稅率約為 19%。2024 年第三季淨利為 6,700 萬美元，或攤薄後每股收益 1.40 美元。相比之下，2023 年同期為 5,200 萬美元，即稀釋後每股 1.8 美元。

We ended the quarter with approximately $930 million in cash, cash equivalents, and investments.

本季結束時，我們擁有約 9.3 億美元的現金、現金等價物和投資。

Regarding guidance, as Steve discussed earlier, we now expect our 2024 revenues will be in the range of $625 million to $645 million. And lastly, our Board of Directors approved a $0.40 quarterly dividend, which will be paid on December 31, 2024, to stockholders of record as we close the business on December 17, 2024. The dividend reflects our expected continued positive cash flow generation and commitment to return capital to our shareholders.

關於指導，正如史蒂夫之前討論的那樣，我們現在預計 2024 年的收入將在 6.25 億美元至 6.45 億美元之間。最後，我們的董事會批准了 0.40 美元的季度股息，將於 2024 年 12 月 31 日向我們於 2024 年 12 月 17 日關閉業務時在冊的股東支付。股利反映了我們預期持續產生正現金流以及向股東返還資本的承諾。

With that, I'll turn the call back to Steve.

說完，我會把電話轉回給史蒂夫。

Thanks, Brian. As a pioneer and leader in OLED ecosystem, we believe that innovation is the cornerstone of progress. Our significant investments in research and development are a testament to our belief in the power of science to transform lives and industries.

謝謝，布萊恩。作為OLED生態系統的先驅和領導者，我們相信創新是進步的基石。我們在研發方面的大量投資證明了我們對科學改變生活和產業的力量的信念。

Last month, we announced the Sherwin I. Seligsohn Innovation Award. In tribute to our late Founder, this award was created to inspire and encourage innovation in organic electronics and to recognize groundbreaking advancements in that field. With the founding of this award, we are deepening our commitment to support and nurture the thriving community of scientists and researchers around the world.

上個月，我們宣布了 Sherwin I. Seligsohn 創新獎。為了向我們已故的創辦人致敬，該獎項的設立是為了激發和鼓勵有機電子領域的創新，並表彰該領域的突破性進步。隨著該獎項的設立，我們正在加深對支持和培育世界各地蓬勃發展的科學家和研究人員社群的承諾。

2024 marks a significant milestone in the OLED industry as the beginning of a new OLED adoption cycle for medium-sized displays, namely IT and automotive, with leading tablet, notebook, monitor, as well as auto OEM, expected to broaden their product roadmaps for OLEDs, significant investments in new OLED facilities are being deployed for these nascent market segments. We are here to enable and support this long runway of growth.

2024 年標誌著 OLED 行業的一個重要里程碑，因為中型顯示器（即 IT 和汽車）將迎來新的 OLED 採用週期，領先的平板電腦、筆記型電腦、顯示器以及汽車 OEM 預計將拓寬其產品路線圖OLED，正在為這些新興細分市場部署對新OLED 設施的大量投資。我們來這裡是為了實現和支持這條漫長的成長之路。

Our world-class technology continues to set industry standards and global partnerships continue to expand and deepen, and we continue to leverage our own parallel expertise of 30 years. Our company's future is bright, and we are excited for the path ahead.

我們的世界級技術不斷制定行業標準，全球合作夥伴關係不斷擴大和深化，我們繼續利用我們自己 30 年的並行專業知識。我們公司的未來是光明的，我們對未來的道路感到興奮。

In closing, I would like to thank each of our employees for their drive, desire, dedication, and heart in elevating and shaping Universal Display's accomplishments and advancements. We are committed to being a leader in the OLED ecosystem, achieving superior long-term growth and delivering cutting-edge technologies and materials for the industry, for our customers, and for our shareholders.

最後，我要感謝我們的每一位員工在提升和塑造 Universal Display 的成就和進步方面所表現出的動力、渴望、奉獻精神和熱情。我們致力於成為 OLED 生態系統的領導者，實現卓越的長期成長，並為產業、客戶和股東提供尖端技術和材料。

And with that, operator, let's start the Q&A.

那麼，接線員，讓我們開始問答吧。

(Operator Instructions) Martin Yang, Oppenheimer & Co.

（操作員說明）Martin Yang，Oppenheimer & Co.

Can you give us more context for the order cuts? Is it from a single customer, a multiple customer? And what are the exposures or reasons for their cuts? Thank you.

您能否為我們提供更多有關訂單削減的背景資訊？是來自單一客戶還是多個客戶？其減產的風險或原因為何？謝謝。

Yeah, hi Martin. Yeah, so as we mentioned in Steve's remarks, as we approached the end of the third quarter, clearly, we had a very strong first half of the year and even Q3. But as we got toward the end of the third quarter, we did see customers lower their forecast for Q4, and it was really across the board, not any one particular customer.

是的，嗨馬丁。是的，正如我們在史蒂夫的演講中提到的，當我們接近第三季末時，顯然，我們今年上半年甚至第三季都表現非常強勁。但當我們接近第三季末時，我們確實看到客戶降低了第四季度的預測，而且這確實是全面的，而不是任何特定的客戶。

A number of things that could be driving that. One is certainly certain models and the sales of those essentially being different than prior expectations as well as certain geographies in the world having some consumer sentiment and macroeconomic concerns.

有很多因素可能會推動這一趨勢。其中之一肯定是某些車型及其銷售與先前預期的不同，以及世界上某些地區存在一些消費者情緒和宏觀經濟擔憂。

And then lastly, as we approach year end, some of our customers also reevaluate their inventory levels and what they're carrying of our materials. So it's a combination of things. We can't point to any one thing, but we did see across the customer base changes in forecasts as we ended Q3.

最後，隨著年底的臨近，我們的一些客戶也會重新評估他們的庫存水準以及他們攜帶的材料。所以這是多種因素的結合。我們無法指出任何一件事，但在第三季結束時，我們確實看到了整個客戶群的預測變化。

Got it. Thank you. Can you also -- is there any more details you can share about the material gross margin in the quarter? It feels a little light compared to previous quarters. Any more context to share with us?

知道了。謝謝。您是否還可以分享有關本季材料毛利率的更多詳細資訊？與前幾季相比，感覺有點輕。還有更多背景資訊可以與我們分享嗎？

Yeah, really just customer mix and product mix is really the primary drivers. And as we've talked about before, we also believe that total gross margin is a much more useful way of evaluating the profitability of the business because when we negotiate pricing with customers, we look at really the combined pricing between the licensed side as well as the materials. So total gross margin continues to be within the range that we expect for the year, 76% to 77%.

是的，實際上，客戶組合和產品組合才是主要驅動力。正如我們之前討論過的，我們還相信總毛利率是評估業務盈利能力的一種更有用的方法，因為當我們與客戶協商定價時，我們實際上也會考慮許可方之間的綜合定價作為材料。因此，今年的總毛利率繼續處於我們預期的範圍內，即 76% 至 77%。

Got it. That's it for me. Thank you, Brian.

知道了。對我來說就是這樣。謝謝你，布萊恩。

Thanks, Martin.

謝謝，馬丁。

Scott Searle, ROTH Capital Partners.

史考特‧塞爾，羅仕資本合夥人。

Brian, Steve, I know this is kind of hard to quantify, but with some of the customer slowdowns, I'm wondering how far out your visibility is as we start to think about early 2025 and seasonality into the March quarter. Do you have a good idea of what elevated inventory levels might look like across some of the customer base? Because it seems like it's a little contradictory to what we're seeing in some of the end markets today.

Brian、Steve，我知道這有點難以量化，但隨著一些客戶成長放緩，我想知道當我們開始考慮 2025 年初和 3 月季度的季節性時，你們的能見度有多遠。您是否清楚某些客戶群的庫存水準可能會升高到什麼程度？因為這似乎與我們今天在一些終端市場看到的情況有點矛盾。

You're starting to hear more about small panels starting to recover with smartphones that have gone through inventory corrections. Maybe less so on the TV front, but that seems to be more incremental. So I'm wondering what the early thoughts are in terms of, I'll call it seasonality and normalizing inventory.

您開始聽到更多關於小型面板開始隨著經歷了庫存調整的智慧型手機而復甦的消息。也許在電視方面不那麼明顯，但這似乎是漸進的。所以我想知道早期的想法是什麼，我稱之為季節性和庫存正常化。

Yeah. So firstly, we don't believe that this adjustment that we're making to guidance is really indicative of any persistent trend. And as it relates to 2025, we're still going through our planning process right now for 2025, so we'll have more to share once we get to the February call. But we really think this is just temporary adjustments as we close out the year, as well as I mentioned earlier, some impact from certain OLED models.

是的。因此，首先，我們認為我們對指導意見所做的調整併真正表明任何持續的趨勢。由於與 2025 年相關，我們現在仍在進行 2025 年的規劃流程，因此，一旦我們召開 2 月的電話會議，我們將有更多資訊可以分享。但我們確實認為這只是今年結束時的臨時調整，以及我之前提到的某些 OLED 型號的一些影響。

Okay, fair enough. And if I could follow up on blue, Steve. Look, we're getting closer, again, the comment months, not years. But I'm wondering if you could calibrate the timing and what your expectations are once we get to the point of go, where we've got all the commercial metrics for blue. How long is it into that process before we see some material sales? Does it take another 9 to 12 months from a design standpoint for that to become material?

好吧，很公平。如果我能跟進藍色的話，史蒂夫。看，我們再次距離評論的時間越來越近了，幾個月而不是幾年。但我想知道您是否可以調整時間，以及一旦我們達到目標，您的期望是什麼，我們已經獲得了藍色的所有商業指標。在我們看到一些材料銷售之前，這個過程需要多長時間？從設計的角度來看，是否還需要 9 到 12 個月才能成為材料？

And I guess looking out further on the horizon, what's success two years out? Is it 20% of your customers adopting some form of blue? And is there a timeline that you're comfortable talking about when blue could possibly get to parity with green? Thanks.

我想進一步展望未來，兩年後的成功是什麼？您的客戶中有 20% 採用某種藍色嗎？您是否有一個可以輕鬆談論藍色何時可以與綠色平起平坐的時間表？謝謝。

Scott, all good questions. My answer is going to be that we're working closely with our customers to commercialize our phosphorescent blue and it is an iterative process. And as we get closer, I may be able to shed more color on your very important questions.

斯科特，所有的問題都很好。我的答案是，我們正在與客戶密切合作，將我們的磷光藍色商業化，這是一個迭代過程。隨著我們越來越接近，我也許能夠對你的非常重要的問題提供更多的見解。

Yeah, and I think Scott, it's important to note, we're continuing to work on blue development projects with a number of customers and making good progress with that, as Steve mentioned in his remarks earlier. And once we do hit commercial specs and performance, that will then kick off a cycle of designing that in and ultimately getting to mass production and having it introduced into a device.

是的，我認為斯科特，值得注意的是，我們正在繼續與許多客戶合作進行藍色開發項目，並取得良好進展，正如史蒂夫在早些時候的演講中提到的那樣。一旦我們確實達到了商業規格和性能，就會啟動一個設計週期，最終進入批量生產並將其引入設備中。

And to your question on adoption rates, certainly, we believe there's significant interest in our blue material from our customers as well as the OEM community as well because of the benefits that it will bring to the device. But we're really focused at this point on getting to commercial specs and performance. And then that enables adoption from there. So it's really hard to predict the slope of an adoption curve as we sit here today.

至於您關於採用率的問題，當然，我們相信我們的客戶以及 OEM 社群對我們的藍色材料非常感興趣，因為它會為設備帶來好處。但我們目前真正關注的是商業規格和性能。然後就可以從那裡開始採用。因此，當我們今天坐在這裡時，很難預測採用曲線的斜率。

Got you. Fair enough. I'll get back in the queue. Thanks.

明白你了。很公平。我會回到隊列中。謝謝。

Thanks, Scott.

謝謝，斯科特。

(Operator Instructions) Nam Kim.

（操作員指示）Nam Kim。

According to a news article in August, I think a few months ago, LG Display successfully developed all that panel using blue phosphorescent material. I try to understand what it means. Here, does it mean your blue material meets certain customers back and ready to ramp once they start mass production? I just try to understand what these articles mean to Universal Display. Thank you.

根據八月的一篇新聞文章，我想幾個月前，LG Display 成功開發了所有使用藍色磷光材質的面板。我試著理解這意味著什麼。這是否意味著您的藍色材料會回饋某些客戶，並準備好在他們開始大量生產後進行量產？我只是嘗試了解這些文章對 Universal Display 意味著什麼。謝謝。

Yeah. So as you said, Nam, there was an article back in August alluding to LG Display using our material for some development. We've been working with them as well as others in blue development projects. And I think it's just indicative of progress.

是的。正如您所說，Nam，八月有一篇文章提到 LG Display 使用我們的材料進行一些開發。我們一直在與他們以及其他人合作進行藍色開發專案。我認為這只是進步的體現。

And we obviously can't comment on your rumors and speculation that might be out there. But it shows that customers are using our material in a variety of different ways and applications. And we view any use of our material as being a positive one. And it was good to see that result that was published.

我們顯然無法對您可能存在的謠言和猜測發表評論。但這表明客戶正在以各種不同的方式和應用使用我們的材料。我們認為對我們材料的任何使用都是正面的。很高興看到這項結果的發表。

Okay, thank you.

好的，謝謝。

Thanks, Kim.

謝謝，金。

Thank you. This will conclude our question-and-answer session. I would like to turn the program back to Brian Millard for any additional closing remarks.

謝謝。我們的問答環節到此結束。我想將節目轉回給布萊恩·米勒德（Brian Millard），讓他聽聽更多的結束語。

Thank you for your time today. We appreciate your interest and support.

感謝您今天抽出時間。我們感謝您的關注與支持。

Thank you. This concludes today's conference. You may now disconnect.

謝謝。今天的會議到此結束。您現在可以斷開連線。