EWING, N.J.--(BUSINESS WIRE)--Universal Display Corporation (NASDAQ:PANL), a major force behind today’s
evolving displays and lighting with its PHOLED™
phosphorescent OLED technology, today announced its results for the
quarter ended September 30, 2007.
“Universal Display is in a solid financial
position as our revenue mix reflects momentum in the commercialization
of our PHOLED technology”
For the third quarter of 2007, the Company reported a net loss of
$2,960,565 or $(0.08) per diluted share, versus a net loss of $2,943,287
or $(0.09) per diluted share for the third quarter of 2006. The Company’s
net loss for the nine-month period ended September 30, 2007 was
$12,719,737 or ($0.38) per diluted share, compared to a net loss of
$10,777,978, or ($0.35) per diluted share, for the same period in 2006.
“Universal Display is in a solid financial
position as our revenue mix reflects momentum in the commercialization
of our PHOLED technology,” said Sidney D.
Rosenblatt, Chief Financial Officer of Universal Display. “While
revenues and net loss were about the same for the third quarters of 2006
and 2007, sequentially, we saw a significant increase in our commercial
chemical revenue for the third quarter of 2007 compared to the second
quarter. Revenue increased from $2,315,170 in the second quarter to
$3,077,281 in the third quarter, and our net loss was reduced from
$5,175,371 in the second quarter to $2,960,565 in the third quarter, as
our PHOLED technology and materials continue to be incorporated into
more commercial products. The OLED industry is closer than ever to
realizing broad commercialization of OLED technology in personal
electronics, TV’s and other display
applications.”
Revenues for the three months and nine months ended September 30, 2007
were $3,077,281 and $8,407,081, respectively, compared to $3,096,288 and
$9,377,010 for the same periods in 2006. Revenue components for the
third quarter and first nine months of 2007 were as follows:
Commercial chemical revenues were $1,185,050 and $2,727,681,
respectively, for the three months and nine months ended September 30,
2007, compared to $201,227 and $936,071 for the same periods in 2006.
Commercial chemical revenue for the quarter ended September 30, 2007 and
the first nine months of 2007 was positively impacted by material
shipments almost entirely to Samsung SDI. Comparatively, material
shipments to AU Optronics comprised the bulk of commercial chemical
revenue for the same periods of 2006.
Royalty and license revenues were $183,151 and $474,346, respectively,
for three months and nine months ended September 30, 2007, compared to
$534,248 and $2,272,279 for the same periods in 2006. The decrease in
royalty and license revenue is attributable to a suspension of OLED
display production by a major customer, AU Optronics, as well as
structural differences in the Company’s
licensing arrangements with AU Optronics and Samsung SDI. Under the
arrangement with AU Optronics, license revenues were earned when the
Company sold materials to AU Optronics, while under the arrangement with
Samsung SDI, corresponding royalty revenues are not earned until
products incorporating the Company’s
materials are sold by Samsung SDI.
Technology development revenues were $250,000 and $750,000,
respectively, for the three months and nine months ended September 30,
2007, compared to $540,531 and $1,938,258 for the same periods in 2006.
The decrease is attributable to the completion of work under certain
technology development agreements during 2006.
Development chemical revenues were $229,774 and $805,978, respectively,
for the three months and nine months ended September 30, 2007, compared
to $492,173 and $1,464,703 for the same periods in 2006. The decrease
for the nine month period is primarily attributable to the transition of
Samsung SDI from development to commercial chemical sales.
Contract research revenues were $1,229,306 and $3,649,076, respectively,
for the three months and nine months ended September 30, 2007, compared
to $1,328,109 and $2,765,699 for the same periods in 2006. Fluctuations
in these revenues reflect the timing of services provided under
government contracts.
Operating expenses totalled $7,150,030 and $23,647,095, respectively,
for the three months and nine months ended September 30, 2007, compared
to $6,602,861 and $21,729,079 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, materials development performed in
conjunction with PPG Industries, and operating expenses resulting from
the expansion of the Company’s facility in
Ewing, New Jersey.
Net cash used in operating activities was $9,450,432 for the nine months
ended September 30, 2007, compared to $5,686,012 for the comparable
prior-year period. The increase is mainly attributable to decreased
revenues and increased operating expenses, as well as a decrease in the
receipt of deferred license fees and deferred revenue. The increased use
of cash is offset to some extent by proceeds from warrant and option
exercises during the nine months ended September 30, 2007.
The Company’s balance sheet at quarter-end
was strong, with cash, cash equivalents and investments of $83,663,809
as of September 30, 2007, compared to $49,098,055 as of December 31,
2006.
In conjunction with this release, Universal Display will host a
conference call, followed by a question and answer session, today,
Thursday, November 8th, 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 9323308. 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,
November 22, 2007. The number to call for the taped replay is
973-341-3080 and the conference PIN is 9323308.
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., LG.Philips LCD Co., Ltd., 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)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2007
|
|
2006
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
60,605,836
|
|
|
$
|
31,097,533
|
|
|
Short-term investments
|
|
|
23,057,973
|
|
|
|
17,957,752
|
|
|
Accounts receivable
|
|
|
2,489,838
|
|
|
|
2,113,263
|
|
|
Inventory
|
|
|
2,209
|
|
|
|
30,598
|
|
|
Other current assets
|
|
|
745,936
|
|
|
|
606,267
|
|
|
Total current assets
|
|
|
86,901,792
|
|
|
|
51,805,413
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
13,388,135
|
|
|
|
14,074,093
|
|
|
ACQUIRED TECHNOLOGY, net
|
|
|
5,048,184
|
|
|
|
6,319,488
|
|
|
INVESTMENTS
|
|
|
-
|
|
|
|
42,770
|
|
|
OTHER ASSETS
|
|
|
82,272
|
|
|
|
89,772
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
105,420,383
|
|
|
$
|
72,331,536
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,233,927
|
|
|
$
|
1,808,869
|
|
|
Accrued expenses
|
|
|
3,703,177
|
|
|
|
5,245,536
|
|
|
Deferred license fees
|
|
|
7,178,268
|
|
|
|
7,178,268
|
|
|
Deferred revenue
|
|
|
550,000
|
|
|
|
150,000
|
|
|
Total current liabilities
|
|
|
12,665,372
|
|
|
|
14,382,673
|
|
|
DEFERRED LICENSE FEES
|
|
|
2,582,800
|
|
|
|
2,966,500
|
|
|
DEFERRED REVENUE
|
|
|
552,554
|
|
|
|
600,000
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
15,800,726
|
|
|
|
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, 35,117,615 and 31,385,408 shares issued and
outstanding at September 30, 2007 and December 31,2006,
respectively
|
|
|
|
|
|
|
|
351,176
|
|
|
|
313,854
|
|
|
Additional paid-in capital
|
|
|
247,359,526
|
|
|
|
199,505,981
|
|
|
Unrealized loss on available for sale securities
|
|
|
(16,682
|
)
|
|
|
(82,846
|
)
|
|
Accumulated deficit
|
|
|
(158,076,363
|
)
|
|
|
(145,356,626
|
)
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
89,619,657
|
|
|
|
54,382,363
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
105,420,383
|
|
|
$
|
72,331,536
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
|
|
2007
|
|
2006
|
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
Contract research revenue
|
|
$
|
1,229,306
|
|
|
$
|
1,328,109
|
|
|
Development chemical revenue
|
|
|
229,774
|
|
|
|
492,173
|
|
|
Commercial chemical revenue
|
|
|
1,185,050
|
|
|
|
201,227
|
|
|
Royalty and license revenue
|
|
|
183,151
|
|
|
|
534,248
|
|
|
Technology development revenue
|
|
|
250,000
|
|
|
|
540,531
|
|
|
Total revenue
|
|
|
3,077,281
|
|
|
|
3,096,288
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
281,062
|
|
|
|
136,393
|
|
|
Research and development
|
|
|
4,568,299
|
|
|
|
4,331,512
|
|
|
General and administrative
|
|
|
2,209,537
|
|
|
|
1,965,921
|
|
|
Royalty and license expense
|
|
|
91,132
|
|
|
|
169,035
|
|
|
Total operating expenses
|
|
|
7,150,030
|
|
|
|
6,602,861
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(4,072,749
|
)
|
|
|
(3,506,573
|
)
|
|
INTEREST INCOME
|
|
|
1,114,769
|
|
|
|
565,262
|
|
|
INTEREST EXPENSE
|
|
|
(2,585
|
)
|
|
|
(1,976
|
)
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(2,960,565
|
)
|
|
$
|
(2,943,287
|
)
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON
|
|
|
|
|
|
SHARE
|
|
$
|
(0.08
|
)
|
|
$
|
(0.09
|
)
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN
|
|
|
|
|
|
COMPUTING BASIC AND DILUTED NET LOSS
|
|
|
|
|
|
PER COMMON SHARE
|
|
|
34,985,918
|
|
|
|
31,151,052
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2007
|
|
2006
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
Contract research revenue
|
|
$
|
3,649,076
|
|
|
$
|
2,765,699
|
|
|
Development chemical revenue
|
|
|
805,978
|
|
|
|
1,464,703
|
|
|
Commercial chemical revenue
|
|
|
2,727,681
|
|
|
|
936,071
|
|
|
Royalty and license revenue
|
|
|
474,346
|
|
|
|
2,272,279
|
|
|
Technology development revenue
|
|
|
750,000
|
|
|
|
1,938,258
|
|
|
Total revenue
|
|
|
8,407,081
|
|
|
|
9,377,010
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
727,650
|
|
|
|
445,203
|
|
|
Research and development
|
|
|
15,565,452
|
|
|
|
14,563,374
|
|
|
General and administrative
|
|
|
7,131,268
|
|
|
|
6,198,148
|
|
|
Royalty and license expense
|
|
|
222,725
|
|
|
|
522,354
|
|
|
Total operating expenses
|
|
|
23,647,095
|
|
|
|
21,729,079
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(15,240,014
|
)
|
|
|
(12,352,069
|
)
|
|
INTEREST INCOME
|
|
|
2,523,467
|
|
|
|
1,584,278
|
|
|
INTEREST EXPENSE
|
|
|
(3,190
|
)
|
|
|
(10,187
|
)
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(12,719,737
|
)
|
|
$
|
(10,777,978
|
)
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.38
|
)
|
|
$
|
(0.35
|
)
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
|
|
|
33,230,574
|
|
|
|
30,725,351
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
|
2007
|
|
2006
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(12,719,737
|
)
|
|
$
|
(10,777,978
|
)
|
|
Non-cash charges to statement of operations:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,347,549
|
|
|
|
1,364,378
|
|
|
Amortization of intangibles
|
|
|
1,271,304
|
|
|
|
1,271,303
|
|
|
Amortization of premium and discount on investments
|
|
|
(189,306
|
)
|
|
|
(115,156
|
)
|
|
Stock-based employee compensation
|
|
|
803,693
|
|
|
|
696,135
|
|
|
Stock-based non-employee compensation
|
|
|
9,497
|
|
|
|
105,011
|
|
|
Non-cash expense under a Development Agreement
|
|
|
745,453
|
|
|
|
2,550,392
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
|
318,997
|
|
|
|
-
|
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(376,575
|
)
|
|
|
(1,797,022
|
)
|
|
Inventory
|
|
|
28,389
|
|
|
|
5,833
|
|
|
Other current assets
|
|
|
(139,669
|
)
|
|
|
(173,632
|
)
|
|
Other assets
|
|
|
7,500
|
|
|
|
(2,500
|
)
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
(526,381
|
)
|
|
|
(28,319
|
)
|
|
Deferred license fees
|
|
|
(383,700
|
)
|
|
|
3,066,301
|
|
|
Deferred revenue
|
|
|
352,554
|
|
|
|
(1,850,758
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(9,450,432
|
)
|
|
|
(5,686,012
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(661,591
|
)
|
|
|
(2,015,804
|
)
|
|
Purchases of investments
|
|
|
(27,344,981
|
)
|
|
|
(15,136,785
|
)
|
|
Proceeds from sale of investments
|
|
|
22,543,000
|
|
|
|
16,139,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(5,463,572
|
)
|
|
|
(1,013,589
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
|
38,000,023
|
|
|
|
-
|
|
|
Proceeds from exercise of common stock option and warrants
|
|
|
6,422,284
|
|
|
|
5,505,298
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
44,422,307
|
|
|
|
5,505,298
|
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
|
|
29,508,303
|
|
|
|
(1,194,303
|
)
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
31,097,533
|
|
|
|
30,654,249
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
60,605,836
|
|
|
$
|
29,459,946
|
|
|
|
|
|
|
|
|
|
|
|
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