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
second quarter ended June 30, 2007.
“While we continue to experience a shift in
our revenue mix as our technology is commercialized, we have and expect
to continue to experience fluctuations in revenues as the market for our
OLED technology continues to develop”
Revenues for the three months and six months ended June 30, 2007 were
$2,315,170 and $5,329,800, respectively, compared to $3,009,316 and
$6,280,722 for the same periods in 2006. Revenue components for the
second quarter and first six months of 2007 were as follows:
Commercial chemical revenues were $229,631 and $1,542,631, for the three
months and six months ended June 30, 2007, respectively, compared to
$336,365 and $734,844 for the same periods in 2006. Commercial chemical
revenue for the first six months of 2007 was positively impacted by
material shipments almost entirely to Samsung SDI. In 2006, commercial
chemical revenue was mainly from material shipments to AU Optronics.
Royalty and license revenues were $163,295 and $291,195 for three months
and six months ended June 30, 2007, respectively, compared to $807,185
and $1,738,031 for the same periods in 2006. Royalty and license revenue
decreased in both periods of 2007 due to AU Optronics discontinuing its
purchase of materials for which in 2006 we recognized both commercial
chemical and license revenue, unlike the agreement with Samsung SDI for
which royalties will be recorded after Samsung SDI sells the products.
Technology development revenues were $250,000 and $500,000 for the three
months and six months ended June 30, 2007, compared to $667,613 and
$1,397,727 for the same periods in 2006. The decrease was due to the
completion of work on certain technology development agreements.
Development chemical revenues were $366,998 and $576,204 for the three
months and six months ended June 30, 2007, compared to $296,624 and
$972,530 for the same periods in 2006. The decrease for the six month
period was primarily attributable to the transition of Samsung SDI from
development to commercial chemical sales.
Contract research revenues were $1,305,246 and $2,419,770 for the three
months and six months ended June 30, 2007, compared to $901,529 and
$1,437,590 for same periods in 2006. The growth in contract research
revenue reflects additional activity under government contracts with the
U.S. Departments of Defense and Energy for flexible OLED displays and
OLEDs for lighting and the timing of payments received under existing
government contracts.
Operating expenses totalled $8,313,675 and $16,497,065 for the three
months and six months ended June 30, 2007, compared to $7,862,488 and
$15,126,218 for the same periods in 2006. Operating expenses are
consistent with the Company’s expectations on
a quarter-to-quarter basis, and encompass increased research and
development staffing, and operating expenses associated with the Company’s
expanded facility in Ewing, New Jersey.
For the second quarter of 2007, the Company reported a net loss of
$5,175,371 or $(0.16) per diluted share, versus a net loss of $4,312,651
or $(0.14) per diluted share for the second quarter of 2006. The Company’s
net loss for the six month period was $9,759,172, or ($0.30) per diluted
share, compared to a net loss of $7,834,691, or ($0.26) per diluted
share, for the same period in 2006.
Net cash used in operating activities was $6,874,526 for the six months
ended June 30, 2007, compared to $5,615,675 for the comparable
prior-year period. The increased usage was mainly attributable to
decreased revenues and increased operating expenses.
The Company had a strong balance sheet at quarter end, with cash, cash
equivalents, short-term and long-term investments of $84,339,097 as of
June 30, 2007, compared to $49,098,055 as of December 31, 2006. The
increase in the cash position reflects proceeds from the Company’s
offering of 2.8 million shares of its common stock at a price of $14.50
per share during the second quarter.
“While we continue to experience a shift in
our revenue mix as our technology is commercialized, we have and expect
to continue to experience fluctuations in revenues as the market for our
OLED technology continues to develop,” said
Sidney D. Rosenblatt, Chief Financial Officer of Universal Display. “The
next year will be an important time for Universal Display as we continue
to advance our PHOLED technology for displays and lighting applications,
and as display manufacturers continue to incorporate our OLED technology
and materials into their commercial products. We believe that the
Company is in a strong technological and financial position as it enters
a new era in display technology.”
In conjunction with this release, Universal Display will host a
conference call, followed by a question and answer session, today
(Thursday, August 9th) at 5:00 p.m. Eastern
Time. Interested parties may participate by calling 973-321-1024 at 4:55
p.m. Eastern Time and referencing conference PIN 9030705. 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,
August 23, 2007. The number to call for the taped replay is 973-341-3080
and the conference PIN is 9030705.
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
flat panel displays, solid-state lighting products, 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 numerous commercial relationships with companies such as Chi
Mei EL Corporation, DuPont Displays, Inc., Konica Minolta Technology
Center, Inc., Samsung SDI Co., Seiko Epson Corporation, Sony
Corporation, Tohoku Pioneer Corporation and Toyota Industries
Corporation. Universal Display currently owns or has exclusive,
co-exclusive or sole license rights with respect to more than 800 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.
|
|
|
(Tables Follow)
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
|
|
2007
|
|
2006
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
61,495,627
|
|
|
$
|
31,097,533
|
|
|
Short-term investments
|
|
|
22,747,530
|
|
|
|
17,957,752
|
|
|
Accounts receivable
|
|
|
1,837,673
|
|
|
|
2,113,263
|
|
|
Inventory
|
|
|
2,209
|
|
|
|
30,598
|
|
|
Other current assets
|
|
|
739,044
|
|
|
|
606,267
|
|
|
Total current assets
|
|
|
86,822,083
|
|
|
|
51,805,413
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
13,474,034
|
|
|
|
14,074,093
|
|
|
ACQUIRED TECHNOLOGY, net
|
|
|
5,471,952
|
|
|
|
6,319,488
|
|
|
INVESTMENTS
|
|
|
95,940
|
|
|
|
42,770
|
|
|
OTHER ASSETS
|
|
|
94,772
|
|
|
|
89,772
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
105,958,781
|
|
|
$
|
72,331,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,800,554
|
|
|
$
|
1,808,869
|
|
|
Accrued expenses
|
|
|
3,039,027
|
|
|
|
5,245,536
|
|
|
Deferred license fees
|
|
|
7,178,267
|
|
|
|
7,178,268
|
|
|
Deferred revenue
|
|
|
650,000
|
|
|
|
150,000
|
|
|
Total current liabilities
|
|
|
12,667,848
|
|
|
|
14,382,673
|
|
|
DEFERRED LICENSE FEES
|
|
|
2,710,700
|
|
|
|
2,966,500
|
|
|
DEFERRED REVENUE
|
|
|
568,605
|
|
|
|
600,000
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
15,947,153
|
|
|
|
17,949,173
|
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
Preferred Stock, par value $.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
|
|
|
2,000
|
|
|
|
2,000
|
|
|
Common Stock, par value $.01 per share, 50,000,000 shares
authorized, 34,875,962 and 31,385,408 shares issued and
outstanding at March 31, 2007 and December 31,2006, respectively
|
|
|
348,760
|
|
|
|
313,854
|
|
|
Additional paid-in capital
|
|
|
244,821,277
|
|
|
|
199,505,981
|
|
|
Unrealized loss on available for sale securities
|
|
|
(44,611
|
)
|
|
|
(82,846
|
)
|
|
Accumulated deficit
|
|
|
(155,115,798
|
)
|
|
|
(145,356,626
|
)
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
90,011,628
|
|
|
|
54,382,363
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
105,958,781
|
|
|
$
|
72,331,536
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
|
2007
|
|
2006
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
Contract research revenue
|
|
$
|
1,305,246
|
|
|
$
|
901,529
|
|
|
Development chemical revenue
|
|
|
366,998
|
|
|
|
296,624
|
|
|
Commercial chemical revenue
|
|
|
229,631
|
|
|
|
336,365
|
|
|
Royalty and license revenue
|
|
|
163,295
|
|
|
|
807,185
|
|
|
Technology development revenue
|
|
|
250,000
|
|
|
|
667,613
|
|
|
Total revenue
|
|
|
2,315,170
|
|
|
|
3,009,316
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
165,039
|
|
|
|
72,473
|
|
|
Research and development
|
|
|
5,543,824
|
|
|
|
5,388,686
|
|
|
General and administrative
|
|
|
2,568,217
|
|
|
|
2,234,535
|
|
|
Royalty and license expense
|
|
|
36,595
|
|
|
|
166,794
|
|
|
Total operating expenses
|
|
|
8,313,675
|
|
|
|
7,862,488
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(5,998,505
|
)
|
|
|
(4,853,172
|
)
|
|
INTEREST INCOME
|
|
|
823,739
|
|
|
|
544,626
|
|
|
INTEREST EXPENSE
|
|
|
(605
|
)
|
|
|
(4,105
|
)
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(5,175,371
|
)
|
|
$
|
(4,312,651
|
)
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.16
|
)
|
|
$
|
(0.14
|
)
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
|
|
|
33,143,347
|
|
|
|
30,982,309
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
2007
|
|
2006
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
Contract research revenue
|
|
$
|
2,419,770
|
|
|
$
|
1,437,590
|
|
|
Development chemical revenue
|
|
|
576,204
|
|
|
|
972,530
|
|
|
Commercial chemical revenue
|
|
|
1,542,631
|
|
|
|
734,844
|
|
|
Royalty and license revenue
|
|
|
291,195
|
|
|
|
1,738,031
|
|
|
Technology development revenue
|
|
|
500,000
|
|
|
|
1,397,727
|
|
|
Total revenue
|
|
|
5,329,800
|
|
|
|
6,280,722
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
446,588
|
|
|
|
308,810
|
|
|
Research and development
|
|
|
10,997,153
|
|
|
|
10,231,862
|
|
|
General and administrative
|
|
|
4,921,731
|
|
|
|
4,232,227
|
|
|
Royalty and license expense
|
|
|
131,593
|
|
|
|
353,319
|
|
|
Total operating expenses
|
|
|
16,497,065
|
|
|
|
15,126,218
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(11,167,265
|
)
|
|
|
(8,845,496
|
)
|
|
INTEREST INCOME
|
|
|
1,408,698
|
|
|
|
1,019,016
|
|
|
INTEREST EXPENSE
|
|
|
(605
|
)
|
|
|
(8,211
|
)
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(9,759,172
|
)
|
|
$
|
(7,834,691
|
)
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.30
|
)
|
|
$
|
(0.26
|
)
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
|
|
|
32,338,358
|
|
|
|
30,508,972
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
2007
|
|
2006
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(9,759,172
|
)
|
|
$
|
(7,834,691
|
)
|
|
Non-cash charges to statement of operations:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
920,179
|
|
|
|
902,613
|
|
|
Amortization of intangibles
|
|
|
847,536
|
|
|
|
847,535
|
|
|
Amortization of premium and discount on investments
|
|
|
(116,351
|
)
|
|
|
(71,031
|
)
|
|
Stock-based employee compensation
|
|
|
555,687
|
|
|
|
430,882
|
|
|
Stock-based non-employee compensation
|
|
|
9,497
|
|
|
|
105,011
|
|
|
Non-cash expense under a Development Agreement
|
|
|
536,102
|
|
|
|
1,955,101
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
|
228,911
|
|
|
|
-
|
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
275,590
|
|
|
|
(589,484
|
)
|
|
Inventory
|
|
|
28,389
|
|
|
|
(61,556
|
)
|
|
Other current assets
|
|
|
(132,777
|
)
|
|
|
(203,435
|
)
|
|
Other assets
|
|
|
(5,000
|
)
|
|
|
(5,000
|
)
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
(475,921
|
)
|
|
|
(275,593
|
)
|
|
Deferred license fees
|
|
|
(255,801
|
)
|
|
|
494,200
|
|
|
Deferred revenue
|
|
|
468,605
|
|
|
|
(1,310,227
|
)
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(6,874,526
|
)
|
|
|
(5,615,675
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(320,120
|
)
|
|
|
(1,569,252
|
)
|
|
Purchases of investments
|
|
|
(17,548,363
|
)
|
|
|
(11,300,639
|
)
|
|
Proceeds from sale of investments
|
|
|
12,860,000
|
|
|
|
7,753,000
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(5,008,483
|
)
|
|
|
(5,116,891
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
38,029,023
|
|
|
|
-
|
|
|
Proceeds from exercise of common stock option and warrants
|
|
|
4,252,080
|
|
|
|
5,273,300
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
42,281,103
|
|
|
|
5,273,300
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
30,398,094
|
|
|
|
(5,459,266
|
)
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
31,097,533
|
|
|
|
30,654,249
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
61,495,627
|
|
|
$
|
25,194,983
|
|
|
|
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