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
UniversalPHOLED™ phosphorescent OLED technology and materials, today
announced its results for the second quarter and six months ended June
30, 2009.
“We are pleased with the continued growth in our revenues as the global
economic environment begins to show signs of recovery”
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For the second quarter of 2009, the Company reported a net loss of
$6,415,178 or $(0.18) per diluted share, versus a net loss of
$5,205,790, or $(0.15) per diluted share, for the second quarter of
2008. The increase in net loss was primarily due to an increase in
operating expenses and a decrease in interest income. The operating loss
for the second quarter of 2009 was $6,310,763, compared to an operating
loss of $5,929,945 for the second quarter of 2008. For the six months
ended June 30, 2009, net loss totaled $11,984,777, or $(0.33) per
diluted share, versus a net loss of $9,399,175, or $(0.26) per diluted
share, for the same period in 2008. The operating loss for the six
months ended June 30, 2009 was $12,304,361, compared to an operating
loss of $11,036,857 for the same period in 2008.
Revenues for the second quarter of 2009 were $2,956,354, compared to
$2,145,598 for the second quarter of 2008. Commercial revenue, which
includes commercial chemical revenue, license and royalty revenues, and
commercialization assistance revenue, was $1,239,056 for the quarter,
compared to $1,395,487 for the second quarter of 2008. Developmental
revenue, which includes development chemical revenue, contract research
revenue, and technology development revenue, was $1,717,298 for the
quarter, compared to $750,111 for the second quarter of 2008.
For the six months ended June 30, 2009, the Company reported revenues of
$5,790,212, compared to $4,862,417 for the same period in 2008.
Commercial revenue for the first six months of 2009 totaled $2,608,193,
compared to $2,950,552 for the same period in 2008. Developmental
revenue for the first six months of 2009 totaled $3,182,019, compared to
$1,911,865 for the same period in 2008.
“We are pleased with the continued growth in our revenues as the global
economic environment begins to show signs of recovery,” said Sidney D.
Rosenblatt, Executive Vice President and Chief Financial Officer of
Universal Display. “Our partners continue to highlight AMOLED displays
as an area of growth for their own companies, and we expect their
production to increase as financial conditions improve. As this trend
continues, we will continue with research and development of new and
innovative applications for our OLED technologies and materials,
including white lighting and flexible displays, and position ourselves
for increased investment and interest as the OLED marketplace expands.”
Operating expenses were $9,267,117 for the second quarter of 2009,
compared to $8,075,543 for the second quarter of 2008. Operating
expenses for the quarter were consistent with expectations.
Cash used in operating activities was $8,798,154 for the six months
ended June 30, 2009, compared to $5,528,958 for the same period in 2008.
The increase in cash used in operating activities was due mainly to an
increased loss for the six months ended June 30, 2009, as compared to
the same period in 2008.
The Company’s balance sheet remained strong at quarter-end, with cash,
cash equivalents and short-term investments totaling $68,130,048 as of
June 30, 2009. This compared to cash, cash equivalents and short-term
investments totaling $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 Monday,
August 10th, 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 22465669. 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, September 10th,
2009. The number to call for the taped replay is 800-642-1687 and the
conference PIN is 22465669.
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 www.universaldisplay.com.
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 or sole license rights with respect to more than 960
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.
Forward-Looking Statements: 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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|
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CONSOLIDATED BALANCE SHEETS
|
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(UNAUDITED)
|
|
|
|
|
|
|
|
June 30,
|
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December 31,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
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ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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CURRENT ASSETS:
|
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|
|
|
|
|
|
|
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Cash and cash equivalents
|
|
$
|
9,881,422
|
|
|
$
|
28,321,581
|
|
|
Short-term investments
|
|
|
58,248,626
|
|
|
|
49,132,619
|
|
|
Accounts receivable
|
|
|
1,760,763
|
|
|
|
2,450,444
|
|
|
Inventory
|
|
|
1,330
|
|
|
|
2,209
|
|
|
Other current assets
|
|
|
560,464
|
|
|
|
462,908
|
|
|
Total current assets
|
|
|
70,452,605
|
|
|
|
80,369,761
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
11,949,755
|
|
|
|
12,859,628
|
|
|
ACQUIRED TECHNOLOGY, net
|
|
|
2,081,808
|
|
|
|
2,929,344
|
|
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OTHER ASSETS
|
|
|
236,908
|
|
|
|
69,772
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
84,721,076
|
|
|
$
|
96,228,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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LIABILITIES AND SHAREHOLDERS' EQUITY
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|
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|
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|
|
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|
|
|
|
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CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
1,542,610
|
|
|
$
|
1,585,015
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|
|
Accrued expenses
|
|
|
3,889,312
|
|
|
|
5,296,433
|
|
|
Deferred license fees
|
|
|
6,148,267
|
|
|
|
6,148,267
|
|
|
Deferred revenue
|
|
|
2,002,450
|
|
|
|
2,739,790
|
|
|
Total current liabilities
|
|
|
13,582,639
|
|
|
|
15,769,505
|
|
|
DEFERRED LICENSE FEES
|
|
|
3,066,238
|
|
|
|
3,407,037
|
|
|
DEFERRED REVENUE
|
|
|
262,500
|
|
|
|
337,500
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|
|
STOCK WARRANT LIABILITY
|
|
|
2,808,578
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
19,719,955
|
|
|
|
19,514,042
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|
|
|
|
|
|
|
|
|
|
|
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SHAREHOLDERS' EQUITY:
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|
|
|
|
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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)
|
|
|
2,000
|
|
|
|
2,000
|
|
|
Common Stock, par value $0.01 per share, 50,000,000 shares
authorized, 36,441,975 and 36,131,981 shares issued and
outstanding at June 30, 2009 and December 31, 2008, respectively
|
|
|
364,420
|
|
|
|
361,320
|
|
|
Additional paid-in capital
|
|
|
253,117,552
|
|
|
|
256,696,849
|
|
|
Unrealized gain on available-for-sale securities
|
|
|
105,311
|
|
|
|
126,497
|
|
|
Accumulated deficit
|
|
|
(188,588,162
|
)
|
|
|
(180,472,203
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
65,001,121
|
|
|
|
76,714,463
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
84,721,076
|
|
|
$
|
96,228,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
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|
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CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Three Months Ended June 30,
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|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
Commercial revenue
|
|
$
|
1,239,056
|
|
|
$
|
1,395,487
|
|
|
Developmental revenue
|
|
|
1,717,298
|
|
|
|
750,111
|
|
|
Total revenue
|
|
|
2,956,354
|
|
|
|
2,145,598
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
318,191
|
|
|
|
246,962
|
|
|
Research and development
|
|
|
5,324,695
|
|
|
|
4,377,329
|
|
|
Selling, general and administrative
|
|
|
2,715,071
|
|
|
|
2,679,944
|
|
|
Patent costs
|
|
|
823,729
|
|
|
|
676,024
|
|
|
Royalty and license expense
|
|
|
85,431
|
|
|
|
95,284
|
|
|
Total operating expenses
|
|
|
9,267,117
|
|
|
|
8,075,543
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(6,310,763
|
)
|
|
|
(5,929,945
|
)
|
|
INTEREST INCOME
|
|
|
188,593
|
|
|
|
737,368
|
|
|
INTEREST EXPENSE
|
|
|
(298
|
)
|
|
|
(13,213
|
)
|
|
LOSS ON STOCK WARRANT LIABILITY
|
|
|
(292,710
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(6,415,178
|
)
|
|
$
|
(5,205,790
|
)
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.18
|
)
|
|
$
|
(0.15
|
)
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
|
|
|
36,383,255
|
|
|
|
35,900,554
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
Commercial revenue
|
|
$
|
2,608,193
|
|
|
$
|
2,950,552
|
|
|
Developmental revenue
|
|
|
3,182,019
|
|
|
|
1,911,865
|
|
|
Total revenue
|
|
|
5,790,212
|
|
|
|
4,862,417
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
489,178
|
|
|
|
442,438
|
|
|
Research and development
|
|
|
10,543,757
|
|
|
|
8,817,467
|
|
|
Selling, general and administrative
|
|
|
5,338,016
|
|
|
|
5,053,490
|
|
|
Patent costs
|
|
|
1,555,260
|
|
|
|
1,387,410
|
|
|
Royalty and license expense
|
|
|
168,362
|
|
|
|
198,469
|
|
|
Total operating expenses
|
|
|
18,094,573
|
|
|
|
15,899,274
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(12,304,361
|
)
|
|
|
(11,036,857
|
)
|
|
INTEREST INCOME
|
|
|
441,993
|
|
|
|
1,656,562
|
|
|
INTEREST EXPENSE
|
|
|
(2,941
|
)
|
|
|
(18,880
|
)
|
|
LOSS ON STOCK WARRANT LIABILITY
|
|
|
(119,468
|
)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(11,984,777
|
)
|
|
$
|
(9,399,175
|
)
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
$
|
(0.33
|
)
|
|
$
|
(0.26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
|
|
|
36,341,840
|
|
|
|
35,835,600
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
|
|
2009
|
|
2008
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(11,984,777
|
)
|
|
$
|
(9,399,175
|
)
|
|
Non-cash charges to statement of operations:
|
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
1,036,126
|
|
|
|
926,330
|
|
|
Amortization of intangibles
|
|
|
847,536
|
|
|
|
847,536
|
|
|
Amortization of premium and discount on investments, net
|
|
|
(266,946
|
)
|
|
|
(827,330
|
)
|
|
Stock-based employee compensation
|
|
|
989,611
|
|
|
|
801,339
|
|
|
Stock-based non-employee compensation
|
|
|
6,518
|
|
|
|
4,119
|
|
|
Non-cash expense under a development agreement
|
|
|
582,301
|
|
|
|
558,035
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
|
176,511
|
|
|
|
233,613
|
|
|
Loss on stock warrant liability
|
|
|
119,468
|
|
|
|
-
|
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
689,681
|
|
|
|
665,751
|
|
|
Inventory
|
|
|
879
|
|
|
|
38,956
|
|
|
Other current assets
|
|
|
(97,556
|
)
|
|
|
(67,326
|
)
|
|
Other assets
|
|
|
(167,136
|
)
|
|
|
5,000
|
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
422,769
|
|
|
|
1,201,365
|
|
|
Deferred license fees
|
|
|
(340,799
|
)
|
|
|
(255,800
|
)
|
|
Deferred revenue
|
|
|
(812,340
|
)
|
|
|
(261,371
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities
|
|
|
(8,798,154
|
)
|
|
|
(5,528,958
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
(126,253
|
)
|
|
|
(481,573
|
)
|
|
Purchases of short-term investments
|
|
|
(52,014,248
|
)
|
|
|
(50,542,476
|
)
|
|
Proceeds from sale of short-term investments
|
|
|
43,144,000
|
|
|
|
60,824,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by investing activities
|
|
|
(8,996,501
|
)
|
|
|
9,799,951
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
Proceeds from the exercise of common stock options and warrants
|
|
|
198,970
|
|
|
|
2,148,183
|
|
|
Payment of withholding taxes related to stock-based employee
compensation
|
|
|
(844,474
|
)
|
|
|
(749,770
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by financing activities
|
|
|
(645,504
|
)
|
|
|
1,398,413
|
|
|
|
|
|
|
|
|
|
|
|
|
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(18,440,159
|
)
|
|
|
5,669,406
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
28,321,581
|
|
|
|
33,870,696
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
9,881,422
|
|
|
$
|
39,540,102
|
|
|
|
|
|
|
|
|
|
|
|
Contacts
For:
Universal Display Corporation
For more information
contact:
Dean Ledger
800-599-4426
From:
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