For the full year 2014, the Company reported revenues of $191.0 million, up 30% compared to revenues of $146.6 million for 2013. Operating income increased to $58.6 million for the year, up 53% from $38.2 million for 2013. The Company reported net income of $41.9 million, or $0.90 per diluted share, for the full year 2014, compared to net income of $74.1 million, or $1.59 per diluted share, for 2013. (The 2013 net income included a total deferred income tax benefit of $41.4 million. Excluding this item, 2013 adjusted net income was $32.6 million, or $0.70 per diluted share. Please refer to the "Reconciliation of Non-GAAP Measures" below for further discussion of the non-GAAP measures).

"We are pleased to report another year of record results," said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. "As we embark on 2015, we anticipate it to be an exciting year, a growth year and a bit of a transitional year. During the year, our customers are scheduled to begin ramping new commercial OLED TV and flexible display panel production, while new mobile product introductions are expected to help drive OLED fab utilization rates after experiencing some headwinds in 2014. The specific timing of these events is not clear, and will impact our revenue growth for 2015. As a result of these highly dynamic variables, we will approach our guidance differently this year and provide a baseline revenue forecast, which we believe will have limited downside risk and a favorable amount of upside potential. Our current 2015 base revenue forecast is $200 million, which we believe has a downside range of approximately 5% and an upside potential of approximately 15%. This forecast includes our license fee from Samsung Display, which will be $60 million this year, and also factors in the quarter lag in earned royalties from LG Display."

Rosenblatt continued, "The key takeaway is that we believe this transitional year of strategic capacity investment and product expansion in the OLED industry will set the framework for the next wave of market growth, which we anticipate to more fully materialize in 2016 and beyond. The OLED revolution is gaining momentum, and so are we. We see our trajectory, top line and bottom, as poised to be exceedingly positive over the long-term. We are excited about the opportunities that lie ahead as the evolution of the OLED industry continues to gain traction and result in new capacity, new products and new OEM adopters."

Fourth Quarter Results

Revenues for the fourth quarter of 2014 were $56.2 million compared to revenues of $49.5 million for the same quarter of 2013. Growth in fourth quarter revenues was led by a 10% increase in material sales, which rose to $28.1 million, up from $25.5 million in the fourth quarter of 2013, reflecting strong volume growth in green and red emitter material sales. Royalty and license fees were $28.0 million in the fourth quarter of 2014 compared to $23.1 million in the same quarter of 2013. The Company recognized $25 million in SDC licensing revenue in the fourth quarter of 2014, up from $20 million in the same quarter of 2013.

Operating expenses for the fourth quarter of 2014 were $39.1 million compared to $30.1 million in the same quarter of 2013. Cost of materials for the fourth quarter of 2014 was $12.1 millioncompared to $7.7 million in the fourth quarter of 2013, reflecting an increase in the quantity of material shipped, changes in product mix and an inventory write-down of $3.9 million.

The Company reported operating income of $17.1 million for the fourth quarter of 2014, compared to $19.4 million for the fourth quarter of 2013. Net income for the fourth quarter of 2014 was$13.1 million, or $0.28 per diluted share, compared to $57.9 million, or $1.24 per diluted share, for the fourth quarter of 2013. Net income for the fourth quarter of 2013 included a total deferred income tax benefit of $41.4 million. Excluding the net effect of this item, adjusted net income for the fourth quarter of 2013 was $16.5 million, or $0.35 per diluted share.

Full Year 2014 Results

For the full year 2014, the Company reported revenues of $191.0 million, a 30% increase from the $146.6 million generated in 2013. Material sales for 2014 were $126.9 million, a 33% increase from $95.7 million in 2013. Operating income was $58.6 million compared to $38.2 million in 2013. The Company reported net income of $41.9 million, or $0.90 per diluted share, for the full year of 2014, compared to $74.1 million, or $1.59 per diluted share, for 2013. Net income for 2013 included the aforementioned tax item of $41.4 million. Excluding this item, adjusted net income for 2013 was $32.6 million, or $0.70 per diluted share.

The Company's balance sheet remained strong, with cash and cash equivalents and short-term investments of $288.5 million as of December 31, 2014. For the full year 2014, the Company generated $47.3 million in operating cash flow, compared to $45.0 million of operating cash flow in 2013.