EWING, N.J.--(BUSINESS WIRE)--Universal Display Corporation (NASDAQ:PANL), a key innovator behind
tomorrow’s displays and lighting through its
phosphorescent OLED technology, today announced its results for the
fourth quarter and the year-end 2006.
“We’re pleased with
the rise in revenue year-over-year, as our sales mix continued to
transition to royalty and licensing and chemical sales associated with
the commercialization of our phosphorescent OLED technology”
For the year ended December 31, 2006, Universal Display had revenue of
$11,921,292, compared to $10,147,995 for the year 2005, a 17% increase
year-over-year. Revenue growth was driven by increases in commercial
chemical sales and license fee revenues. The Company’s
revenue mix continues to shift as its PHOLED technology transitions to
commercial applications. Revenue components for 2006, when compared to
2005 were: commercial chemical sales revenue of $1,876,071, compared to
$31,395; royalty and license fee revenue of $2,400,179, compared to
$233,555; technology development revenue of $2,166,288, compared to
$1,725,379; development chemical sales revenue of $1,656,851, compared
to $3,503,685; and contract research revenue of $3,821,903, compared to
$4,653,981.
For 2006, the Company reported a net loss attributable to common
shareholders of $15,186,804 or $(0.49) per diluted share, versus a net
loss of $15,801,612 or $(0.56) per diluted share for 2005.
Net cash used in operating activities was $4,703,792 for the year ended
December 31, 2006, compared to $345,059 for the year ended December 31,
2005. The increase in cash used in operating activities was primarily
due to increased recognition in 2006 of previously deferred revenue, for
which the Company received the cash in prior years, and to the timing of
receipts and payments. The Company had no significant change in cash,
cash equivalents, short-term and long-term investments during the year,
with $49,098,055 as of December 31, 2006, compared to $49,673,199 as of
December 31, 2005.
For the three months ended December 31, 2006, Universal Display had
revenue of $2,544,282, compared to $2,296,062 for the fourth quarter of
2005. For the fourth quarter of 2006, the Company reported a net loss
attributable to common shareholders of $4,408,826 or $(0.14) per diluted
share, versus a net loss of $4,641,591, or $(0.17) per diluted share for
the fourth quarter of 2005. In the fourth quarter 2006, Universal
Display was cash flow positive from operations, with net cash provided
from operating activities of $982,219.
“We’re pleased with
the rise in revenue year-over-year, as our sales mix continued to
transition to royalty and licensing and chemical sales associated with
the commercialization of our phosphorescent OLED technology,”
said Sidney D. Rosenblatt, Chief Financial Officer of Universal Display. “For
2007, we expect this trend to continue as our technology gains further
commercial adoption. We’ve already begun to
see products in the marketplace that utilize commercial active-matrix
OLED displays from one of our major licensees. Our financial position
remains strong and we continue to focus on prudent use of our capital as
we pursue new licensees for our technology for both display and lighting
applications in 2007.”
Universal Display will host a conference call, followed by a question
and answer session, today at 5:00 p.m. Eastern Time. Interested parties
may participate by calling 973-582-2839 at 4:55 p.m. Eastern Time and
referencing conference PIN 8460662. A taped replay of the conference
call will be available within two hours of the conclusion of the call
and will remain available through Thursday, March 29, 2007. The number
to call for the taped replay is 973-341-3080 and the conference PIN is
8460662.
The conference call will be simultaneously broadcast live over the
Internet through a webcast on the Universal Display website. To access
the call, please visit the website at http://www.universaldisplay.com/investors.htm.
An online archive of the webcast will be available within two hours of
the conclusion of the call.
About Universal Display Corporation
Universal Display Corporation is a world leader in developing and
commercializing innovative OLED technologies and materials for use in
the electronic flat panel display, lighting, electronic communications,
and other opto-electronic devices. Universal Display is working with a
network of world-class organizations, including Princeton University,
the University of Southern California, the University of Michigan and
PPG Industries, Inc. Universal Display has also established more
numerous development programs and other similar relationships with
companies such as Tohoku Pioneer Corporation; Samsung SDI Co.; DuPont
Displays, Inc.; Konica Minolta Technology Center, Inc.; Seiko Epson
Corporation; Sony Corporation; Toyota Industries Corporation; Nippon
Steel Chemical Company; Mitsubishi Chemical Company and Idemitsu Kosan
Co. Ltd. Universal Display currently owns or has exclusive or sole
rights in more than 750 issued and pending patents worldwide.
Universal Display is located in the Princeton Crossroads Corporate
Center in Ewing, New Jersey, minutes away from its research partner at
Princeton University. Universal Display’s
state-of-the-art facility is designed to further technology and
materials development, technology transfer to manufacturing partners and
work with customers to develop OLED products that meet their needs.
Visit Universal Display on the Web at www.universaldisplay.com.
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, are
forward-looking 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, 2006.
Universal Display Corporation disclaims any obligation to update any
forward-looking statement contained in this document.
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
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CONDENSED CONSOLIDATED BALANCE SHEETS
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December 31,
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2006
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2005
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ASSETS
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CURRENT ASSETS:
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|
|
|
|
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Cash and cash equivalents
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$
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31,097,533
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$
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30,654,249
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Short-term investments
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17,957,752
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17,190,242
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Accounts receivable
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2,113,263
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1,944,099
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Inventory
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|
30,598
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|
|
36,431
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Other current assets
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606,267
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497,746
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|
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Total current assets
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51,805,413
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50,322,767
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PROPERTY AND EQUIPMENT, net
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14,074,093
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13,553,611
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ACQUIRED TECHNOLOGY, net
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6,319,488
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8,014,559
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INVESTMENTS
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42,770
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1,828,708
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OTHER ASSETS
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89,772
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99,772
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|
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|
|
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|
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$
|
72,331,536
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$
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73,819,417
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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CURRENT LIABILITIES:
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Accounts payable
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1,808,869
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1,249,576
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Accrued expenses
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5,245,536
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5,168,223
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Deferred license fees
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7,178,268
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3,478,267
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Deferred revenue
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150,000
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2,078,788
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|
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|
|
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Total current liabilities
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14,382,673
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11,974,854
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DEFERRED LICENSE FEES
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2,966,500
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3,478,100
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DEFERRED REVENUE
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|
600,000
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|
750,000
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Total liabilities
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17,949,173
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16,202,954
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COMMITMENTS
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SHAREHOLDERS’ EQUITY:
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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 $1,500,000), 300,000 shares of Series B Convertible Preferred
Stock authorized and none outstanding, 5,000 shares of Series C-1
Convertible Preferred Stock authorized and none outstanding, 5,000
shares of Series D Convertible Preferred Stock authorized and none
outstanding
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2,000
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2,000
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Common Stock, par value $0.01 per share, 50,000,000 shares
authorized, 31,385,408 and 29,545,471 shares issued and
outstanding at December 31, 2006 and 2005, respectively
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313,854
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|
|
295,455
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Additional paid-in-capital
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199,665,232
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187,609,407
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Deferred compensation
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|
(159,251)
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|
—
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Unrealized loss on available for sale securities
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|
(82,846)
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|
|
(120,577)
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Accumulated deficit
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|
|
(145,356,626)
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|
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(130,169,822)
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|
|
|
|
|
|
|
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Total shareholders’ equity
|
|
|
54,382,363
|
|
|
57,616,463
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|
|
|
|
|
|
|
|
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$
|
72,331,536
|
|
$
|
73,819,417
|
|
|
|
|
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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Year Ended
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Year Ended
|
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December 31, 2006
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December 31, 2005
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REVENUE:
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|
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Contract research revenue
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|
$
|
3,821,903
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|
$
|
4,653,981
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Development chemical revenue
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|
|
1,656,851
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|
|
3,503,685
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Commercial chemical revenue
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|
1,876,071
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|
|
31,395
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Royalty and license revenue
|
|
|
2,400,179
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|
|
233,555
|
|
Technology development revenue
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|
|
2,166,288
|
|
|
1,725,379
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|
|
|
|
|
|
|
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Total revenue
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|
|
11,921,292
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|
|
10,147,995
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|
|
|
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OPERATING EXPENSES:
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|
|
|
|
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Cost of chemicals sold
|
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|
356,567
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|
|
109,781
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|
Research and development
|
|
|
19,864,944
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|
|
19,183,390
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|
General and administrative
|
|
|
8,902,462
|
|
|
7,704,931
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|
Royalty and license expense
|
|
|
687,436
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|
|
610,098
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
29,811,409
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|
|
27,608,200
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|
|
|
|
|
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Operating loss
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|
|
(17,890,117)
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|
|
(17,460,205)
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INTEREST INCOME
|
|
|
2,168,933
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|
|
1,419,858
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INTEREST EXPENSE
|
|
|
(10,187)
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|
|
(185,472)
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OTHER REVENUE
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—
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—
|
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LOSS BEFORE INCOME TAX BENEFIT
|
|
|
(15,731,371)
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|
|
(16,225,819)
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INCOME TAX BENEFIT
|
|
|
544,567
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|
|
424,207
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|
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|
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NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
|
$
|
(15,186,804)
|
|
$
|
(15,801,612)
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|
|
|
|
|
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BASIC AND DILUTED NET LOSS PER COMMON SHARE
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|
$
|
(0.49)
|
|
$
|
(0.56)
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|
|
|
|
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WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET LOSS
PER COMMON SHARE
|
|
|
30,855,297
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|
|
28,462,925
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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Three Months Ended December 31,
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2006
|
|
2005
|
|
|
|
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REVENUE:
|
|
|
|
|
|
|
|
Contract research revenue
|
|
$
|
1,056,204
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|
$
|
884,505
|
|
Development chemical revenue
|
|
|
192,148
|
|
|
626,043
|
|
Commercial chemical revenue
|
|
|
940,000
|
|
|
—
|
|
Royalty and license revenue
|
|
|
127,900
|
|
|
67,900
|
|
Technology development revenue
|
|
|
228,030
|
|
|
717,614
|
|
|
|
|
|
|
|
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Total revenue
|
|
|
2,544,282
|
|
|
2,296,062
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|
|
|
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|
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OPERATING EXPENSES:
|
|
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
151,556
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|
|
25,834
|
|
Research and development
|
|
|
5,061,378
|
|
|
5,292,286
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|
General and administrative
|
|
|
2,704,314
|
|
|
2,309,677
|
|
Royalty and license expense
|
|
|
165,082
|
|
|
147,829
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
8,082,330
|
|
|
7,775,626
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(5,538,048)
|
|
|
(5,479,564)
|
|
INTEREST INCOME
|
|
|
584,655
|
|
|
454,562
|
|
INTEREST EXPENSE
|
|
|
—
|
|
|
(40,796)
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAX BENEFIT
|
|
|
(4,953,393)
|
|
|
(5,065,798)
|
|
INCOME TAX BENEFIT
|
|
|
544,567
|
|
|
424,207
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS
|
|
$
|
(4,408,826)
|
|
$
|
(4,641,591)
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.14)
|
|
$
|
(0.17)
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET LOSS
PER COMMON SHARE
|
|
|
31,180,059
|
|
|
28,952,333
|
|
|
|
|
|
|
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
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|
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|
December 31, 2006
|
|
December 31, 2005
|
|
CASH FLOWS USED IN OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(15,186,804)
|
|
$
|
(15,801,612)
|
|
Non-cash charges to statement of operations:
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,828,551
|
|
|
1,654,826
|
|
Amortization of intangibles
|
|
|
1,695,072
|
|
|
1,695,072
|
|
Amortization of premium and discount on investments
|
|
|
(158,182)
|
|
|
(112,747)
|
|
Issuance of common stock to employees
|
|
|
2,442,149
|
|
|
17,446
|
|
Issuance of common stock options and warrants for services
|
|
|
105,011
|
|
|
(4,225)
|
|
Issuance of common stock, options and warrants in connection with
the Development Agreement
|
|
|
2,946,158
|
|
|
3,886,150
|
|
Issuance of common stock to Board of Directors and Scientific
Advisory Board
|
|
|
509,600
|
|
|
726,004
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(169,164)
|
|
|
644,180
|
|
Inventory
|
|
|
5,833
|
|
|
(16,490)
|
|
Other current assets
|
|
|
(108,521)
|
|
|
(259,819)
|
|
Other assets
|
|
|
10,000
|
|
|
5,586
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
266,891
|
|
|
3,218,749
|
|
Deferred license fees
|
|
|
3,188,401
|
|
|
2,089,700
|
|
Deferred revenue
|
|
|
(2,078,788)
|
|
|
1,912,121
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(4,703,793)
|
|
|
(345,059)
|
|
|
|
|
|
|
|
|
CASH FLOWS (USED IN) PROVIDED BY INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(2,349,033)
|
|
|
(5,656,905)
|
|
Purchases of investments
|
|
|
(24,374,659)
|
|
|
(22,791,027)
|
|
Proceeds from sale of investments
|
|
|
25,589,000
|
|
|
32,393,001
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by investing activities
|
|
|
(1,134,692)
|
|
|
3,945,069
|
|
|
|
|
|
|
|
|
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Net proceeds from issuance of common stock
|
|
|
—
|
|
|
—
|
|
Proceeds from loan
|
|
|
—
|
|
|
—
|
|
Repayment of loan
|
|
|
—
|
|
|
(4,500,000)
|
|
Restricted cash
|
|
|
—
|
|
|
4,200,000
|
|
Proceeds from the exercise of common stock options and warrants
|
|
|
6,281,769
|
|
|
8,423,658
|
|
Principal payments on capital lease
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
6,281,769
|
|
|
8,123,658
|
|
|
|
|
|
|
|
|
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
443,284
|
|
|
11,723,668
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
|
30,654,249
|
|
|
18,930,581
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
31,097,533
|
|
$
|
30,654,249
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
—
|
|
$
|
181,686
|
|
|
|
|
|
|
|
Contacts
Universal Display Corporation
Dean Ledger, 800-599-4426
or
Gregory
FCA Communications
Investor contact:
Paul Johnson,
610-642-8253 (x115)
paul@gregoryfca.com
or
Media
contact:
Matt McLoughlin, 610-642-8253 (x129)
matt@gregoryfca.com