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 June 30, 2008.
“The second quarter continued the trend of
revenues transitioning toward the commercial side”
For the second quarter of 2008, the Company reported a net loss of
$5,205,790, or $(0.15) per diluted share, versus a net loss of
$5,175,371, or $(0.16) per diluted share, for the second quarter of
2007. For the six months ended June 30, 2008, net loss totaled
$9,399,175, or $(0.26) per diluted share, versus a net loss of
$9,759,172, or $(0.30) per diluted share for the same period of 2007.
Revenues for the second quarter of 2008 were $2,145,598, compared to
$2,315,170 for the second quarter of 2007. Commercial revenue, which
includes commercial chemical revenue, license fees and royalty income,
increased to $1,395,487 for the quarter, from $392,926 for the second
quarter of 2007. Developmental revenue, which includes contract research
revenue, technology development revenue and development chemical sales,
decreased to $750,111 for the quarter, compared to $1,922,244 for the
second quarter of 2007.
For the six-months ended June 30, 2008, the company reported revenues of
$4,862,417, compared to $5,329,800 for the same period of 2007.
Commercial revenue for the first six months of 2008 increased to
$2,950,552, compared to $1,833,826 for the same period of 2007.
Developmental revenue for the first six months of the year decreased to
$1,911,865, compared to $3,495,974 for the same period of 2007.
“The second quarter continued the trend of
revenues transitioning toward the commercial side,”
said Sidney D. Rosenblatt, Executive Vice President and Chief Financial
Officer of Universal Display. “Though
government contracts and other developmental work continue to be an
important part of our revenue makeup, the volume production and sales of
AMOLED displays produced by our licensees, like Samsung SDI, are making
up a larger portion of our total revenues. We expect this to continue in
coming quarters as production capacity is increased on a number of
AMOLED display lines, display manufacturers begin producing new
larger-area displays, and the demand for AMOLED displays continues to
rise.”
Mr. Rosenblatt continued, “As AMOLED displays
continue to gain commercial traction and acceptance, we are also excited
about the potential for white OLED lighting products. Recently, we
announced that our Universal PHOLED™
phosphorescent OLED technology had achieved a record-breaking power
efficacy for a white OLED of 102 lumens per watt (lm/W) at 1000 cd/m2.
We also announced a new contract with the U.S. Department of Energy, and
Armstrong World Industries, Inc. as a subcontractor, to develop a
ceiling-based OLED lighting system for possible commercial application.
Our Universal PHOLED™ technology is not only
important for the future of displays and lighting, but now it is being
applied more broadly in the present as well.”
Operating expenses for the second quarter of 2008 were $8,075,543,
compared to $8,313,675 for the same period of 2007. Net cash used in
operating activities for the second quarter of 2008 was $6,278,728,
compared to $6,874,526 for the same quarter of 2007.
The Company’s balance sheet remains strong at
quarter end, with cash, cash equivalents and investments totalling
$79,889,236 as of June 30, 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, August 7, at 5:00 p.m. (Eastern Time). Interested parties may
participate by calling 706-634-1395 at 4:55 p.m.ET and referencing
conference PIN 57531315. 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, September 7, 2008. The number
to call for the taped replay is 800-642-1687 and the conference PIN is
57531315.
The conference call will be simultaneously broadcast live over the
Internet via webcast accessible through 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., Kyocera Corporation, LG Display Co., Ltd., Samsung SDI
Co., Ltd., 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 850 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.
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(tables follow)
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
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CONSOLIDATED BALANCE SHEETS
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(UNAUDITED)
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June 30,
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December 31,
|
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2008
|
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2007
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ASSETS
|
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CURRENT ASSETS:
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Cash and cash equivalents
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$
|
39,540,102
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$
|
33,870,696
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Short-term investments
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40,349,134
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49,788,961
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Accounts receivable
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1,729,665
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|
|
2,395,416
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Inventory
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|
2,209
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|
|
|
41,165
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Other current assets
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741,257
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|
|
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673,931
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Total current assets
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82,362,367
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86,770,169
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PROPERTY AND EQUIPMENT, net
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13,080,957
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13,525,714
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ACQUIRED TECHNOLOGY, net
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3,776,880
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|
4,624,416
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OTHER ASSETS
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74,772
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|
79,772
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TOTAL ASSETS
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$
|
99,294,976
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$
|
105,000,071
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Accounts payable
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$
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1,461,456
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|
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$
|
861,428
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Accrued expenses
|
|
|
3,458,367
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|
|
|
4,578,147
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Deferred license fees
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7,178,268
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|
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|
7,178,268
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Deferred revenue
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150,000
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|
|
|
172,688
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Total current liabilities
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|
|
12,248,091
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|
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12,790,531
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DEFERRED LICENSE FEES
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2,199,100
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|
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2,454,900
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DEFERRED REVENUE
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|
300,000
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|
|
|
538,683
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|
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|
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Total liabilities
|
|
|
14,747,191
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|
|
|
15,784,114
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|
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|
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COMMITMENTS AND CONTINGENCIES
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SHAREHOLDERS' EQUITY:
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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)
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2,000
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|
|
2,000
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|
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Common Stock, par value $.01 per share, 50,000,000 shares
authorized, 35,968,937 and 35,563,201 shares issued and
outstanding at June 30, 2008 and December 31, 2007, respectively
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359,689
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|
|
|
355,632
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|
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Additional paid-in capital
|
|
|
254,953,573
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|
|
|
250,240,994
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|
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Unrealized loss on available for sale securities
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|
|
(35,835
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)
|
|
|
(50,202
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)
|
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Accumulated deficit
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|
|
(170,731,642
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)
|
|
|
(161,332,467
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)
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|
|
|
|
|
|
|
|
|
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Total shareholders' equity
|
|
|
84,547,785
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|
|
|
89,215,957
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|
|
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|
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|
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|
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|
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
99,294,976
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|
|
$
|
105,000,071
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|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(UNAUDITED)
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|
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Three Months Ended June 30,
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2008
|
|
2007
|
|
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REVENUE
|
|
|
|
|
|
|
|
|
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Commercial revenue
|
|
$
|
1,395,487
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$
|
392,926
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|
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Developmental revenue
|
|
|
750,111
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|
|
|
1,922,244
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|
|
Total revenue
|
|
|
2,145,598
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|
|
|
2,315,170
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|
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OPERATING EXPENSES:
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|
|
|
|
|
|
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|
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Cost of chemicals sold
|
|
|
246,962
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|
|
|
165,039
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|
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Research and development
|
|
|
5,053,353
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|
|
|
5,543,824
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|
|
General and administrative
|
|
|
2,679,944
|
|
|
|
2,568,217
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|
|
Royalty and license expense
|
|
|
95,284
|
|
|
|
36,595
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|
|
Total operating expenses
|
|
|
8,075,543
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|
|
|
8,313,675
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|
|
|
|
|
|
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|
|
|
|
Operating loss
|
|
|
(5,929,945
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)
|
|
|
(5,998,505
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)
|
|
INTEREST INCOME
|
|
|
737,368
|
|
|
|
823,739
|
|
|
INTEREST EXPENSE
|
|
|
(13,213
|
)
|
|
|
(605
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)
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(5,205,790
|
)
|
|
$
|
(5,175,371
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)
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.15
|
)
|
|
$
|
(0.16
|
)
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
|
|
|
35,900,554
|
|
|
|
33,143,347
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|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
2008
|
|
2007
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
Commercial revenue
|
|
$
|
2,950,552
|
|
|
$
|
1,833,826
|
|
|
Developmental revenue
|
|
|
1,911,865
|
|
|
|
3,495,974
|
|
|
Total revenue
|
|
|
4,862,417
|
|
|
|
5,329,800
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
442,438
|
|
|
|
446,588
|
|
|
Research and development
|
|
|
10,204,877
|
|
|
|
10,997,153
|
|
|
General and administrative
|
|
|
5,053,490
|
|
|
|
4,921,731
|
|
|
Royalty and license expense
|
|
|
198,469
|
|
|
|
131,593
|
|
|
Total operating expenses
|
|
|
15,899,274
|
|
|
|
16,497,065
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(11,036,857
|
)
|
|
|
(11,167,265
|
)
|
|
INTEREST INCOME
|
|
|
1,656,562
|
|
|
|
1,408,698
|
|
|
INTEREST EXPENSE
|
|
|
(18,880
|
)
|
|
|
(605
|
)
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(9,399,175
|
)
|
|
$
|
(9,759,172
|
)
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.26
|
)
|
|
$
|
(0.30
|
)
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
|
|
|
35,835,600
|
|
|
|
32,338,358
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARY
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period Ended June 30,
|
|
|
2008
|
|
2007
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(9,399,175
|
)
|
|
$
|
(9,759,172
|
)
|
|
Non-cash charges to statement of operations:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
926,330
|
|
|
|
920,179
|
|
|
Amortization of intangibles
|
|
|
847,536
|
|
|
|
847,536
|
|
|
Amortization of premium and discount on investments
|
|
|
(827,330
|
)
|
|
|
(116,351
|
)
|
|
Stock-based employee compensation
|
|
|
596,432
|
|
|
|
555,687
|
|
|
Stock-based non-employee compensation
|
|
|
4,119
|
|
|
|
9,497
|
|
|
Non-cash expense under a Development Agreement
|
|
|
558,035
|
|
|
|
536,102
|
|
|
Stock-based compensation to Board of Directors and
|
|
|
|
|
|
|
|
|
|
Scientific Advisory Board
|
|
|
233,613
|
|
|
|
228,911
|
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
665,751
|
|
|
|
275,590
|
|
|
Inventory
|
|
|
38,956
|
|
|
|
28,389
|
|
|
Other current assets
|
|
|
(67,326
|
)
|
|
|
(132,777
|
)
|
|
Other assets
|
|
|
5,000
|
|
|
|
(5,000
|
)
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
656,502
|
|
|
|
(475,921
|
)
|
|
Deferred license fees
|
|
|
(255,800
|
)
|
|
|
(255,801
|
)
|
|
Deferred revenue
|
|
|
(261,371
|
)
|
|
|
468,605
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(6,278,728
|
)
|
|
|
(6,874,526
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(481,573
|
)
|
|
|
(320,120
|
)
|
|
Purchases of investments
|
|
|
(50,542,476
|
)
|
|
|
(17,548,363
|
)
|
|
Proceeds from sale of investments
|
|
|
60,824,000
|
|
|
|
12,860,000
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) investing activities
|
|
|
9,799,951
|
|
|
|
(5,008,483
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds from the issuance of common stock
|
|
|
-
|
|
|
|
38,029,023
|
|
|
Proceeds from exercise of common stock option and warrants
|
|
|
2,148,183
|
|
|
|
4,252,080
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
2,148,183
|
|
|
|
42,281,103
|
|
|
|
|
|
|
|
|
|
|
|
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
5,669,406
|
|
|
|
30,398,094
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
|
33,870,696
|
|
|
|
31,097,533
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
39,540,102
|
|
|
$
|
61,495,627
|
|
|
|
|
|
|
|
|
|
|
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