EWING, N.J.--(BUSINESS WIRE)--Universal Display Corporation (NASDAQ:PANL), a major force behind today’s
evolving displays and lighting with its Universal PHOLED™
phosphorescent OLED technology, today announced its results for the
quarter ended March 31, 2008.
“However, total revenues
for the quarter decreased due to lower developmental revenue, but this
is to be expected as AMOLED manufacturer’s
transition from development to commercial activities.”
For the first quarter of 2008, the Company reported a net loss of
$4,193,385, or $(0.12) per diluted share, versus a net loss of
$4,583,801, or $(0.15) per diluted share, for the first quarter of 2007.
Revenues for the first quarter of 2008 were $2,716,819, compared to
$3,014,630 for the first quarter of 2007. Commercial revenue, which
includes commercial chemical revenue, license fees and royalty income,
increased to $1,555,065 for the first quarter of 2008, from $1,440,900
for the first quarter of 2007. Developmental revenue, which includes
contract research revenue, technology development revenue and
development chemical sales, decreased for the first quarter of 2008 to
$1,161,754, compared to $1,573,730 for the first quarter of 2007.
Universal Display believes these revenue categories, which now combine
accounts previously reported separately, better reflect the Company’s
business strategies and activities.
“Our licensee, Samsung SDI, has achieved
volume production of AMOLED displays and reports that it will increase
output in 2008 and again in 2009. This should drive a further increase
in our commercial revenue,” said Sidney D.
Rosenblatt, Executive Vice President and Chief Financial Officer of
Universal Display. “However, total revenues
for the quarter decreased due to lower developmental revenue, but this
is to be expected as AMOLED manufacturer’s
transition from development to commercial activities.”
Mr. Rosenblatt, continued, “We expect our
financial results to be impacted positively as an increasing number of
AMOLED displays are sold and integrated into the marketplace through
customers such as Chi Mei EL, LG Display and Samsung SDI. As the year
progresses, we will look to maintain our operating expenses at current
levels, while continuing to generate new innovations and commercial
opportunities for our OLED technologies and materials, including in the
areas of white OLED lighting and flexible OLED displays. In all, we
believe that Universal Display is well positioned to benefit from the
accelerated growth being forecast for the OLED market.”
Although total revenue declined, the Company’s
net loss decreased during the first quarter of 2008 to $4,193,385,
compared to $4,583,801 for the same quarter in 2007. Operating expenses
for the first quarter of 2008 were $7,823,731, compared to $8,183,390
for the same period of 2007. Net cash used in operating activities for
the first quarter of 2008 was $3,372,401, compared to $3,294,814 for the
same quarter of 2007.
The Company’s balance sheet was strong at
quarter end, with cash, cash equivalents and investments totalling
$82,165,411 as of March 31, 2008, compared to $83,659,657 as of
December 31, 2007.
In conjunction with this release, Universal Display will host a
conference call, followed by a question and answer session, today,
Thursday, May 8th, at 5:00 p.m. Eastern Time.
Interested parties may participate by calling 706-634-1395 at 4:55 p.m.
Eastern Time and referencing conference PIN 46116468. A
taped replay of the conference call will be available within two hours
of the conclusion of the call and will remain available through Sunday,
June 8, 2008. The number to call for the taped replay is 800-642-1687
and the conference PIN is 46116468.
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://tinyurl.com/47vem2.
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 Display 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
825 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, 2007.
Universal Display Corporation disclaims any obligation to update any
forward-looking statement contained in this document.
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
2008
|
|
2007
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
Commercial revenue
|
|
$
|
1,555,065
|
|
|
$
|
1,440,900
|
|
|
Developmental revenue
|
|
|
1,161,754
|
|
|
|
1,573,730
|
|
|
Total revenue
|
|
|
2,716,819
|
|
|
|
3,014,630
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
195,476
|
|
|
|
281,549
|
|
|
Research and development
|
|
|
5,151,524
|
|
|
|
5,453,329
|
|
|
General and administrative
|
|
|
2,373,546
|
|
|
|
2,353,514
|
|
|
Royalty and license expense
|
|
|
103,185
|
|
|
|
94,998
|
|
|
Total operating expenses
|
|
|
7,823,731
|
|
|
|
8,183,390
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(5,106,912
|
)
|
|
|
(5,168,760
|
)
|
|
INTEREST INCOME
|
|
|
919,194
|
|
|
|
584,959
|
|
|
INTEREST EXPENSE
|
|
|
(5,667
|
)
|
|
|
-
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(4,193,385
|
)
|
|
$
|
(4,583,801
|
)
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.12
|
)
|
|
$
|
(0.15
|
)
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
|
|
|
35,770,641
|
|
|
|
31,523,070
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2008
|
|
2007
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
12,702,080
|
|
|
$
|
33,870,696
|
|
|
Short-term investments
|
|
|
69,463,331
|
|
|
|
49,788,961
|
|
|
Accounts receivable
|
|
|
2,314,768
|
|
|
|
2,395,416
|
|
|
Inventory
|
|
|
41,165
|
|
|
|
41,165
|
|
|
Other current assets
|
|
|
583,406
|
|
|
|
673,931
|
|
|
Total current assets
|
|
|
85,104,750
|
|
|
|
86,770,169
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
13,299,355
|
|
|
|
13,525,714
|
|
|
ACQUIRED TECHNOLOGY, net
|
|
|
4,200,648
|
|
|
|
4,624,416
|
|
|
OTHER ASSETS
|
|
|
77,272
|
|
|
|
79,772
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
102,682,025
|
|
|
$
|
105,000,071
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,029,672
|
|
|
$
|
861,428
|
|
|
Accrued expenses
|
|
|
3,088,965
|
|
|
|
4,578,147
|
|
|
Deferred license fees
|
|
|
7,177,457
|
|
|
|
7,178,268
|
|
|
Deferred revenue
|
|
|
150,000
|
|
|
|
172,688
|
|
|
Total current liabilities
|
|
|
11,446,094
|
|
|
|
12,790,531
|
|
|
DEFERRED LICENSE FEES
|
|
|
2,327,000
|
|
|
|
2,454,900
|
|
|
DEFERRED REVENUE
|
|
|
450,000
|
|
|
|
538,683
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
14,223,094
|
|
|
|
15,784,114
|
|
|
|
|
|
|
|
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)
|
|
|
2,000
|
|
|
|
2,000
|
|
|
Common Stock, par value $.01 per share, 50,000,000 shares
authorized, 35,847,455 and 35,563,201 shares issued and
outstanding at December 31, 2007 and 2006, respectively
|
|
|
358,475
|
|
|
|
355,632
|
|
|
Additional paid-in capital
|
|
|
253,590,921
|
|
|
|
250,240,994
|
|
|
Unrealized loss on available for sale securities
|
|
|
33,387
|
|
|
|
(50,202
|
)
|
|
Accumulated deficit
|
|
|
(165,525,852
|
)
|
|
|
(161,332,467
|
)
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
88,458,931
|
|
|
|
89,215,957
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
102,682,025
|
|
|
$
|
105,000,071
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
|
Quarter Ended March 31,
|
|
|
2008
|
|
2007
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net Loss
|
|
$
|
(4,193,385
|
)
|
|
$
|
(4,583,801
|
)
|
|
Non-cash charges to statement of operations:
|
|
|
|
|
|
Depreciation
|
|
|
445,937
|
|
|
|
466,139
|
|
|
Amortization of intangibles
|
|
|
423,768
|
|
|
|
423,768
|
|
|
Amortization of premium and discount on investments
|
|
|
(438,296
|
)
|
|
|
(45,650
|
)
|
|
Stock-based employee compensation
|
|
|
352,512
|
|
|
|
278,611
|
|
|
Stock-based non-employee compensation
|
|
|
4,119
|
|
|
|
-
|
|
|
Non-cash expense under a Development Agreement
|
|
|
241,901
|
|
|
|
37,072
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
|
116,628
|
|
|
|
109,533
|
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
Accounts receivable
|
|
|
80,648
|
|
|
|
342,412
|
|
|
Inventory
|
|
|
-
|
|
|
|
5,333
|
|
|
Other current assets
|
|
|
90,525
|
|
|
|
(33,409
|
)
|
|
Other assets
|
|
|
2,500
|
|
|
|
(7,500
|
)
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
(259,176
|
)
|
|
|
(909,422
|
)
|
|
Deferred license fees
|
|
|
(128,711
|
)
|
|
|
(127,900
|
)
|
|
Deferred revenue
|
|
|
(111,371
|
)
|
|
|
750,000
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(3,372,401
|
)
|
|
|
(3,294,814
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(219,578
|
)
|
|
|
(175,865
|
)
|
|
Purchases of investments
|
|
|
(30,074,485
|
)
|
|
|
(8,601,461
|
)
|
|
Proceeds from sale of investments
|
|
|
10,922,000
|
|
|
|
4,345,000
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(19,372,063
|
)
|
|
|
(4,432,326
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from exercise of common stock option and warrants
|
|
|
1,575,848
|
|
|
|
1,153,785
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
1,575,848
|
|
|
|
1,153,785
|
|
|
|
|
|
|
|
DECREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(21,168,616
|
)
|
|
|
(6,573,355
|
)
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
|
33,870,696
|
|
|
|
31,097,533
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
12,702,080
|
|
|
$
|
24,524,178
|
|
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