EWING, N.J.--(BUSINESS WIRE)--Universal Display Corporation (NASDAQ:PANL), a key innovator behind
today’s and tomorrow’s evolving displays and lighting with its Universal
PHOLED™ phosphorescent OLED technology, today announced its results for
the quarter ended March 31, 2009.
“We are pleased that revenues in the first quarter of 2009 saw modest
gains quarter-over-quarter”
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For the first quarter of 2009, the Company reported a net loss of
$5,569,599 or $(0.15) per diluted share, versus a net loss of
$4,193,385, or $(0.12) per diluted share, for the first quarter of 2008.
The increase in net loss was primarily due to an increase in operating
expenses and a decrease in interest income.
Revenues for the first quarter of 2009 were $2,833,858, compared to
$2,716,819 for the first quarter of 2008. Commercial revenue, which
includes commercial chemical revenue, license and royalty revenues, and
commercialization assistance revenue, was $1,369,137 for the quarter,
compared to $1,555,065 for the first quarter of 2008. Developmental
revenue, which includes development chemical revenue, contract research
revenue, and technology development revenue, was $1,464,721 for the
quarter, compared to $1,161,754 for the first quarter of 2008.
Operating expenses were $8,827,456 for the first quarter of 2009,
compared to $7,823,731 for the same quarter of 2008. Operating expenses
for the quarter were consistent with expectations and included an
increase quarter-over-quarter in R&D spending associated with the scale
up and acquisition of long-lead time raw materials for the Company’s
OLED material business. Selling, general and administrative expenses
remained relatively consistent over the corresponding periods.
“We are pleased that revenues in the first quarter of 2009 saw modest
gains quarter-over-quarter,” said Sidney D. Rosenblatt, Executive Vice
President and Chief Financial Officer of Universal Display. “While the
economy continues to see its share of challenges, our licensees and
partners remained focused on manufacturing and selling OLED displays on
a global scale. Our technology continues to be a key differentiator for
the next generation of consumer electronics. Right now, these products
are primarily personal electronic devices like MP3 players and cell
phones. However, the industry has larger area displays, including TVs
and computer monitors, in its sights for 2010.”
Cash used in operating activities was $4,505,171 for the three months
ended March 31, 2009, compared to $2,645,283 for the same period in
2008. The increase in cash used in operating activities was due mainly
to an increased loss for the first quarter of 2009, compared to the same
period in 2008. In addition, cash used in operating activities increased
as a result of reducing accounts payable and accrued expenses during the
first quarter of 2009.
The Company’s balance sheet remained strong at quarter end, with cash,
cash equivalents and short-term investments totalling $72,181,005 as of
March 31, 2009, compared to $77,454,200 as of December 31, 2008.
In conjunction with this release, Universal Display will host a
conference call, followed by a question and answer session, on Thursday,
May 7th, 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 97172983. 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 7th, 2009. The number to call
for the taped replay is 800-642-1687 and the conference PIN is
97172983.
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/5cvkxg.
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 Mobile Display 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 940 issued and pending patents worldwide.
Universal Display is located in the Princeton Crossroads Corporate
Center in Ewing, New Jersey. 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, 2008, as
amended. Universal Display Corporation disclaims any obligation to
update any forward-looking statement contained in this document.
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(UNAUDITED)
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March 31,
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December 31,
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2009
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2008
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ASSETS
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CURRENT ASSETS:
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Cash and cash equivalents
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$
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6,064,487
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$
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28,321,581
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Short-term investments
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66,116,518
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49,132,619
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Accounts receivable
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1,813,358
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2,450,444
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Inventory
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2,209
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2,209
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Other current assets
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483,896
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462,908
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Total current assets
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74,480,468
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80,369,761
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PROPERTY AND EQUIPMENT, net
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12,437,957
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12,859,628
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ACQUIRED TECHNOLOGY, net
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2,505,576
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2,929,344
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OTHER ASSETS
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83,491
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69,772
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TOTAL ASSETS
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$
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89,507,492
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$
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96,228,505
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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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1,311,724
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$
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1,585,015
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Accrued expenses
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3,498,595
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5,296,433
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Deferred license fees
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6,148,267
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6,148,267
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Deferred revenue
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2,350,723
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2,739,790
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Total current liabilities
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13,309,309
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15,769,505
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DEFERRED LICENSE FEES
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3,236,637
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3,407,037
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DEFERRED REVENUE
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300,000
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337,500
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STOCK WARRANT LIABILITY
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2,515,868
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-
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Total liabilities
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19,361,814
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19,514,042
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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)
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2,000
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2,000
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Common Stock, par value $0.01 per share, 50,000,000 shares
authorized, 36,328,665 and 36,131,981 shares issued and
outstanding at March 31, 2009 and December 31, 2008, respectively
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363,287
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361,320
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Additional paid-in capital
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251,812,110
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256,696,849
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Unrealized gain on available-for-sale securities
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141,265
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126,497
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Accumulated deficit
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(182,172,984
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)
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(180,472,203
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)
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Total shareholders' equity
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70,145,678
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76,714,463
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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$
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89,507,492
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$
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96,228,505
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(UNAUDITED)
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Three Months Ended March 31,
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2009
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2008
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REVENUE:
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Commercial revenue
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$
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1,369,137
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$
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1,555,065
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Developmental revenue
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1,464,721
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1,161,754
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Total revenue
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2,833,858
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2,716,819
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OPERATING EXPENSES:
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Cost of chemicals sold
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170,987
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195,476
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Research and development
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5,219,062
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4,440,139
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Selling, general and administrative
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2,622,945
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2,373,546
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Patent costs
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731,531
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711,385
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Royalty and license expense
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82,931
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103,185
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Total operating expenses
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8,827,456
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7,823,731
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Operating loss
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(5,993,598
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(5,106,912
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INTEREST INCOME
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253,400
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919,194
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INTEREST EXPENSE
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(2,643
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(5,667
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GAIN ON STOCK WARRANT LIABILITY
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173,242
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-
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NET LOSS
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$
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(5,569,599
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$
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(4,193,385
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BASIC AND DILUTED NET LOSS PER COMMON SHARE
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$
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(0.15
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$
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(0.12
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WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
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36,299,967
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35,770,641
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(UNAUDITED)
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Three Months Ended March 31,
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2009
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2008
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net loss
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$
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(5,569,599
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$
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(4,193,385
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Non-cash charges to statement of operations:
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Depreciation
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517,472
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445,937
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Amortization of intangibles
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423,768
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423,768
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Amortization of premium and discount on investments, net
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(144,887
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(438,296
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Stock-based employee compensation
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551,489
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534,767
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Stock-based non-employee compensation
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1,998
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4,119
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Non-cash expense under a Development Agreement
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309,375
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241,901
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Stock-based compensation to Board of Directors and Scientific
Advisory Board
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71,524
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116,628
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Gain on stock warrant liability
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(173,242
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)
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-
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(Increase) decrease in assets:
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Accounts receivable
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637,086
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80,648
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Other current assets
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(20,988
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)
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90,525
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Other assets
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(13,719
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2,500
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Increase (decrease) in liabilities:
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Accounts payable and accrued expenses
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(498,481
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)
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285,687
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Deferred license fees
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(170,400
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)
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(128,711
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Deferred revenue
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(426,567
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)
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(111,371
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)
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Net cash used in operating activities
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(4,505,171
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(2,645,283
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CASH FLOWS FROM INVESTING ACTIVITIES:
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Purchases of property and equipment
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(95,801
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)
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(219,578
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)
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Purchases of short-term investments
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(36,479,245
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(30,074,485
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Proceeds from sale of short-term investments
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19,655,000
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10,922,000
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Net cash used in investing activities
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(16,920,046
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(19,372,063
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CASH FLOWS FROM FINANCING ACTIVITIES:
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Proceeds from the exercise of common stock options and warrants
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-
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1,575,848
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Payment of withholding taxes related to stock-based employee
compensation
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(831,877
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)
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(727,118
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)
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Net cash (used in) provided by financing activities
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(831,877
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)
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848,730
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DECREASE IN CASH AND CASH EQUIVALENTS
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(22,257,094
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)
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(21,168,616
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CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
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28,321,581
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|
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33,870,696
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CASH AND CASH EQUIVALENTS, END OF PERIOD
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$
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6,064,487
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$
|
12,702,080
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Contacts
Universal Display Corporation
Dean Ledger, 800-599-4426
Investor
contact:
Gregory FCA Communications
Paul Johnson, 610-642-8253
x115
paul@gregoryfca.com
Media
contact:
Gregory FCA Communications
Matt McLoughlin,
610-642-8253 x129
matt@gregoryfca.com