EWING, N.J.--(BUSINESS WIRE)--Universal Display Corporation (NASDAQ: PANL), enabling energy-efficient displays and lighting with its UniversalPHOLED™ technology and materials, today announced its results for the quarter ended June 30, 2010.

“We are pleased to report a significant improvement in our second quarter 2010 financial performance”

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For the second quarter of 2010, the Company reported a net loss of $4,436,095, or $(0.12) per basic and diluted share, compared to a net loss of $6,415,178, or $(0.18) per basic and diluted share, for the second quarter of 2009. Net loss and loss per share for the second quarter of 2010 included a $2,582,428 non-cash loss on stock warrant liability. Operating loss for the second quarter of 2010 was reduced to $1,909,144 from $6,310,763 for the second quarter of 2009. The improvement in the operating loss was attributable to a significant increase in revenues, partially offset by higher operating expenses.

Revenues for the second quarter of 2010 were $8,446,829, compared to revenues of $2,956,354 for the second quarter of 2009. Commercial revenue, which includes commercial chemical revenue, license and royalty revenues, and commercialization assistance revenue, was $1,951,892 for the quarter, compared to $1,239,056 for the second quarter of 2009. Developmental revenue, which includes development chemical revenue, contract research revenue, and technology development revenue, was $6,494,937 for the quarter, compared to $1,717,298 for the second quarter of 2009. For the second quarter of 2010, developmental revenue included the recognition of $2,100,000 of non-refundable payments previously received from a customer for technical assistance that was provided under an agreement that expired in 2006. These payments had previously been classified as deferred revenue.

Operating expenses for the second quarter of 2010 were $10,355,973, compared to $9,267,117 for the second quarter of 2009.

“We are pleased to report a significant improvement in our second quarter 2010 financial performance,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. “Revenues rose significantly and our operating loss was reduced by two-thirds compared to the second quarter of last year. As a result of the ever-widening utilization of our UniversalPHOLED™ technology and materials, both our commercial and developmental revenues increased and operating results improved. With display quality and power efficiency performance becoming an increasingly important selling feature for handheld devices, our strategy is to strengthen our technological leadership and continue our legacy of innovation to more firmly establish the UniversalPHOLED™ technology and materials franchise.”

Mr. Rosenblatt continued, “Demand for AMOLED displays is reportedly outstripping supply. Manufacturers are in the process of significantly expanding their capacity for small-area OLED display applications and migration to larger format displays is expected. In addition, the development of white OLED lighting should create another exciting market opportunity for our technology and materials. This quarter we announced a series of new technological innovations to help sustain our industry leadership, add to our competitive advantages, and create value for our shareholders.”

For the six months ended June 30, 2010, the Company reported a net loss of $7,414,426, or $(0.20) per basic and diluted share, compared to a net loss of $11,984,777, or $(0.33) per basic and diluted share, for the same period in 2009. Operating loss for the six months ended June 30, 2010 was $6,133,476, which was less than half the $12,304,361 operating loss for the same period in 2009.

For the first half of 2010, the Company reported revenues of $12,693,479, compared to revenues of $5,790,212 for the same period in 2009. Commercial revenues for the first six months of 2010 were $3,782,039, compared to $2,608,193 for the same period in 2009. Developmental revenue for the first six months of 2010 was $8,911,440, compared to $3,182,019 for the same period in 2009.

Cash used in operating activities for the six months ended June 30, 2010 was $2,757,981, compared to $8,798,154 for the six months ended June 30, 2009. The improvement in cash used in operating activities was mainly attributable to the growth in revenues, partially offset by an increase in operating costs. The Company’s balance sheet remained strong at quarter end, with cash, cash equivalents and short-term investments of $66,092,924 as of June 30, 2010, up over $2 million compared to cash, cash equivalents and short-term investments of $63,874,081 as of December 31, 2009.

Mr. Rosenblatt concluded, “Looking ahead, the momentum behind adoption of AMOLED display technology in handheld devices appears to be accelerating. Longer term, we believe there is opportunity for additional demand for our UniversalPHOLED technology and materials in the emerging market for white OLEDs, as well as expansion into larger displays. We intend to follow the disciplined strategy that has established Universal Display as the industry leader to capitalize on the rising demand for more power efficient and cost-effective displays and lighting solutions in a world that is increasingly visual, environmentally-sensitive and energy efficient.”

In conjunction with this release, Universal Display will host a conference call, followed by a question and answer session, on Monday, August 9, 2010 at 5:00 p.m. Eastern Time. Interested parties may participate by calling 888-215-6982 at 4:55 p.m. Eastern Time and referencing conference ID 1148660. A taped replay of the conference call will be available within two hours of the conclusion of the call and will remain available through Monday, August 23, 2010. The number to call for the taped replay is 888-203-1112 and the conference PIN is 1148660.

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 events portion of 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 (Nasdaq: PANL) is a leader in developing and delivering state-of-the-art, organic light emitting device (OLED) technologies, materials and services to the display and lighting industries. Founded in 1994, the company currently owns or has exclusive, co-exclusive or sole license rights with respect to more than 1,000 issued and pending patents worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED™ phosphorescent OLED technology, that can enable the development of low power and eco-friendly displays and white lighting. The company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training.

Based in Ewing, New Jersey, Universal Display works and partners with a network of world-class organizations, including Princeton University, the University of Southern California, the University of Michigan, and PPG Industries, Inc. The company has also established relationships with companies such as AU Optronics Corporation, 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, Showa Denko K.K., and Tohoku Pioneer Corporation. To learn more about Universal Display, please visit www.universaldisplay.com.

Universal Display Corporation and the Universal Display logo are trademarks or registered trademarks of Universal Display Corporation. All other company, brand or product names may be trademarks or registered trademarks.

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, 2009. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.