Company Reports Record Quarterly Revenues of $3.6 Million for Fourth
Quarter of 2008
EWING, N.J.--(BUSINESS WIRE)--Universal Display Corporation (NASDAQ:PANL), a key innovator behind
today’s evolving displays and lighting with its Universal PHOLED™
phosphorescent OLED technology, today announced its results for the
quarter and year ended December 31, 2008.
“As our PHOLED technology continues to gain increased commercial
adoption, we expect revenue to trend much as it did in 2008”
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For the fourth quarter of 2008, the Company reported a net loss of
$4,437,578 or $(0.11) per diluted share, versus a net loss of
$3,256,104, or $(0.08) per diluted share, for the fourth quarter of 2007.
Revenues for the fourth quarter of 2008 were $3,587,168, compared to
$2,898,826 for the fourth quarter of 2007. Commercial revenue, which
includes commercial chemical revenue, license and royalty revenues, and
commercialization assistance revenue, was $1,355,282 for the quarter,
compared to $1,226,021 for the fourth quarter of 2007. Developmental
revenue, which includes development chemical revenue, contract research
revenue, and technology development revenue, was $2,231,886 for the
quarter, compared to $1,672,805 for the fourth quarter of 2007.
Operating expenses were $9,380,361 for the fourth quarter of 2008,
compared to $8,030,670 for the same quarter of 2007.
“This was a good quarter for Universal Display,” said Sidney D.
Rosenblatt, Executive Vice President and Chief Financial Officer of
Universal Display. “While the net loss increased quarter-over-quarter,
primarily due to expanding our technical team in anticipation of the
growth of the OLED industry, we are encouraged by the trends we are
seeing on the revenue side. Revenues for the fourth quarter of 2008 were
the highest quarterly revenues in the Company’s history.”
For the year ended December 31, 2008, the net loss totaled $19,139,736,
or $(0.53) per diluted share, versus a net loss of $15,975,841, or
$(0.47) per diluted share, for 2007.
For the year ended December 31, 2008, the Company reported revenues of
$11,075,224, compared to revenues of $11,305,907 for 2007. Commercial
revenue for 2008 increased to $5,630,758, compared to $4,428,048 for
2007. Developmental revenue for 2008 decreased to $5,444,466, compared
to $6,877,859 for 2007. Commercial revenue has steadily increased as
customers transition from OLED development activities to sales of
commercial OLED products.
“As our PHOLED technology continues to gain increased commercial
adoption, we expect revenue to trend much as it did in 2008,” continued
Mr. Rosenblatt. “While it is difficult to predict revenues on a
quarter-to-quarter basis, we are encouraged by the commercial OLED
activities of our licensees and technology partners. We believe that
Universal Display remains well-positioned as OLED products gain market
acceptance. As this occurs over the coming quarters, we will continue to
manage our resources prudently.”
Operating expenses were $33,738,138 for the year ended December 31,
2008, compared to $31,677,765 for 2007. Operating expenses for the year
were consistent with the Company’s expectations and included an increase
in research and development spending associated with higher patent
costs, as well as increased personnel and operating costs at Universal
Display’s Ewing facility. During 2008, the Company increased the size of
its team by 25%.
Cash used in operating activities was $7,785,164 for the year ended
December 31, 2008, compared to $10,439,279 for the same period in 2007.
The reduction in cash used in operating activities for the year 2008 was
primarily attributable to $3.7 million in fees received by the Company
from customers for licenses, technical assistance and joint development
work. These fees have been recorded as deferred revenue, and the Company
began to recognize them as revenue in the third and fourth quarters of
2008.
The Company’s balance sheet remained strong at quarter end, with cash,
cash equivalents and short-term investments totalling $77,454,200 as of
December 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, on Thursday,
March 12th, 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 89008427. 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, April 12th,
2009. The number to call for the taped replay is 800-642-1687 and the
conference PIN is 89008427.
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 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
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.
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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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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$
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28,321,581
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$
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33,870,696
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Short-term investments
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49,132,619
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49,788,961
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Accounts receivable
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2,450,444
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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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462,908
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673,931
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Total current assets
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80,369,761
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86,770,169
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PROPERTY AND EQUIPMENT, net
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12,859,628
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13,525,714
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ACQUIRED TECHNOLOGY, net
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2,929,344
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4,624,416
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OTHER ASSETS
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69,772
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|
79,772
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TOTAL ASSETS
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$
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96,228,505
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$
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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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1,585,015
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$
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861,428
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Accrued expenses
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5,296,433
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4,578,147
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Deferred license fees
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6,148,267
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7,178,268
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Deferred revenue
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2,739,790
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172,688
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Total current liabilities
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15,769,505
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12,790,531
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DEFERRED LICENSE FEES
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3,407,037
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2,454,900
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DEFERRED REVENUE
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337,500
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|
|
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538,683
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Total liabilities
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19,514,042
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15,784,114
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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, 36,131,981 and 35,563,201 shares issued and
outstanding at December 31, 2008 and December 31, 2007,
respectively
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361,320
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355,632
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Additional paid-in capital
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256,696,849
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|
250,240,994
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Unrealized gain (loss) on available-for-sale securities
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|
|
126,497
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|
|
|
(50,202
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)
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Accumulated deficit
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|
|
(180,472,203
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)
|
|
|
(161,332,467
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)
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Total shareholders' equity
|
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|
76,714,463
|
|
|
|
89,215,957
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
96,228,505
|
|
|
$
|
105,000,071
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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 December 31,
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2008
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2007
|
|
|
|
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REVENUE:
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Commercial revenue
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$
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1,355,282
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$
|
1,226,021
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Developmental revenue
|
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2,231,886
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|
|
|
1,672,805
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Total revenue
|
|
|
3,587,168
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|
|
|
2,898,826
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|
|
|
|
|
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OPERATING EXPENSES:
|
|
|
|
|
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Cost of chemicals sold
|
|
|
203,093
|
|
|
|
165,626
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|
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Research and development
|
|
|
6,302,396
|
|
|
|
5,343,810
|
|
|
General and administrative
|
|
|
2,774,141
|
|
|
|
2,438,113
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|
|
Royalty and license expense
|
|
|
100,731
|
|
|
|
83,121
|
|
|
Total operating expenses
|
|
|
9,380,361
|
|
|
|
8,030,670
|
|
|
|
|
|
|
|
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Operating loss
|
|
|
(5,793,193
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)
|
|
|
(5,131,844
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)
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INTEREST INCOME
|
|
|
405,774
|
|
|
|
1,075,762
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|
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INTEREST EXPENSE
|
|
|
(12,637
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)
|
|
|
(5,002
|
)
|
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LOSS BEFORE INCOME TAX BENEFIT
|
|
|
(5,400,056
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)
|
|
|
(4,061,084
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)
|
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INCOME TAX BENEFIT
|
|
|
962,478
|
|
|
|
804,980
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|
|
|
|
|
|
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NET LOSS
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|
$
|
(4,437,578
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)
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|
$
|
(3,256,104
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)
|
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|
|
|
|
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BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.11
|
)
|
|
$
|
(0.08
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)
|
|
|
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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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|
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Year Ended December 31,
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2008
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2007
|
|
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REVENUE:
|
|
|
|
|
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Commercial revenue
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$
|
5,630,758
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|
$
|
4,428,048
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|
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Developmental revenue
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|
5,444,466
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|
|
|
6,877,859
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Total revenue
|
|
|
11,075,224
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|
|
|
11,305,907
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|
|
|
|
|
|
|
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OPERATING EXPENSES:
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|
|
|
|
|
Cost of chemicals sold
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|
|
912,094
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|
|
|
893,276
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|
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Research and development
|
|
|
22,257,634
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|
|
|
20,909,262
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|
|
General and administrative
|
|
|
10,170,593
|
|
|
|
9,569,381
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|
|
Royalty and license expense
|
|
|
397,817
|
|
|
|
305,846
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|
|
Total operating expenses
|
|
|
33,738,138
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|
|
|
31,677,765
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|
|
|
|
|
|
|
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Operating loss
|
|
|
(22,662,914
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)
|
|
|
(20,371,858
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)
|
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INTEREST INCOME
|
|
|
2,607,897
|
|
|
|
3,599,229
|
|
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INTEREST EXPENSE
|
|
|
(47,197
|
)
|
|
|
(8,192
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)
|
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LOSS BEFORE INCOME TAX BENEFIT
|
|
|
(20,102,214
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)
|
|
|
(16,780,821
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)
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INCOME TAX BENEFIT
|
|
|
962,478
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|
|
|
804,980
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|
|
|
|
|
|
|
|
NET LOSS
|
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$
|
(19,139,736
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)
|
|
$
|
(15,975,841
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)
|
|
|
|
|
|
|
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BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.53
|
)
|
|
$
|
(0.47
|
)
|
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|
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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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|
|
|
|
|
|
Year Ended December 31,
|
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2008
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2007
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CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net Loss
|
|
$
|
(19,139,736
|
)
|
|
$
|
(15,975,841
|
)
|
|
Non-cash charges to statement of operations:
|
|
|
|
|
|
Depreciation
|
|
|
1,943,184
|
|
|
|
1,774,236
|
|
|
Amortization of intangibles
|
|
|
1,695,072
|
|
|
|
1,695,072
|
|
|
Amortization of premium and discount on investments
|
|
|
(1,044,499
|
)
|
|
|
(311,613
|
)
|
|
Stock-based employee compensation
|
|
|
3,663,575
|
|
|
|
3,391,394
|
|
|
Stock-based non-employee compensation
|
|
|
5,110
|
|
|
|
23,336
|
|
|
Non-cash expense under Development and License Agreements
|
|
|
1,232,668
|
|
|
|
926,582
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
|
745,016
|
|
|
|
754,711
|
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
Accounts receivable
|
|
|
(55,028
|
)
|
|
|
(282,153
|
)
|
|
Inventory
|
|
|
38,956
|
|
|
|
(10,567
|
)
|
|
Other current assets
|
|
|
211,023
|
|
|
|
(67,664
|
)
|
|
Other assets
|
|
|
10,000
|
|
|
|
10,000
|
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
621,440
|
|
|
|
(1,816,543
|
)
|
|
Deferred license fees
|
|
|
(77,864
|
)
|
|
|
(511,600
|
)
|
|
Deferred revenue
|
|
|
2,365,919
|
|
|
|
(38,629
|
)
|
|
Net cash used in operating activities
|
|
|
(7,785,164
|
)
|
|
|
(10,439,279
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(1,277,098
|
)
|
|
|
(1,225,857
|
)
|
|
Purchases of investments
|
|
|
(96,859,458
|
)
|
|
|
(61,336,182
|
)
|
|
Proceeds from sale of investments
|
|
|
98,737,000
|
|
|
|
29,892,000
|
|
|
Net cash provided by (used in) investing activities
|
|
|
600,444
|
|
|
|
(32,670,039
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Net proceeds from issuance of common stock
|
|
|
-
|
|
|
|
38,000,023
|
|
|
Proceeds from the exercise of common stock options and warrants
|
|
|
2,407,160
|
|
|
|
8,539,943
|
|
|
Payment of withholding taxes related to stock-based employee
compensation
|
|
|
(771,555
|
)
|
|
|
(657,485
|
)
|
|
Net cash provided by financing activities
|
|
|
1,635,605
|
|
|
|
45,882,481
|
|
|
|
|
|
|
|
|
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(5,549,115
|
)
|
|
|
2,773,163
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
|
33,870,696
|
|
|
|
31,097,533
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
28,321,581
|
|
|
$
|
33,870,696
|
|
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