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 fourth quarter and year
ended December 31, 2010.
“Commercial and developmental revenues for the fourth quarter of 2010
were up both sequentially and year-over-year as our PHOLED technology
gains increasing market adoption”
Revenues for the fourth quarter of 2010 were $10,795,040, more than
double fourth quarter 2009 revenues of $4,851,012. Commercial revenue,
which includes commercial chemical revenue, license and royalty
revenues, and commercialization assistance revenue, was $4,511,121 for
the quarter, compared to $1,888,490 for the fourth quarter of 2009. The
increase was primarily due to increased commercial chemical sales.
Developmental revenue, which includes development chemical revenue,
contract research revenue, and technology development revenue, was
$6,283,919 for the quarter, compared to $2,962,522 for the fourth
quarter of 2009. The increase was due to increased developmental
chemical sales.
For the fourth quarter of 2010, the Company reported an operating loss
of $210,276, which is an improvement of nearly $4 million compared to
the operating loss of $4,169,657 for the fourth quarter of 2009. The net
loss for the fourth quarter of 2010 was $5,316,414, or ($0.14) per basic
and diluted share, compared to a net loss of $3,847,696 or ($0.10) per
basic and diluted share, for the fourth quarter of 2009. The net loss
for the fourth quarter of 2010 included a $4,845,439 non-cash loss on
stock warrant liability, compared to a gain of $90,025 on stock warrant
liability in the fourth quarter of 2009. Operating expenses for the
fourth quarter of 2010 were $11,005,316, compared to $9,020,669 for the
fourth quarter of 2009.
“Commercial and developmental revenues for the fourth quarter of 2010
were up both sequentially and year-over-year as our PHOLED technology
gains increasing market adoption,” said Sidney D. Rosenblatt, Executive
Vice President and Chief Financial Officer of Universal Display. “We are
very pleased to see products in the market with displays powered by our
technology and materials proving to be a commercial success. The
sequential growth of our commercial chemical sales in the fourth quarter
was driven primarily by our penetration of the handheld device market.
With superior performance and improved energy efficiency, we expect our
technology to migrate not only to larger-sized displays, but also into
the global lighting market.”
For the full year of 2010, the Company reported revenues of $30,544,380,
compared to revenues of $15,786,617 for 2009. Commercial revenue for
2010 was $11,129,747, compared to $6,118,099 for 2009. Developmental
revenue for 2010 was $19,414,633, compared to $9,668,518 for 2009.
Increases in both commercial and developmental revenues primarily
reflect increased chemical sales.
The operating loss for 2010 was $10,226,297, down $10 million from an
operating loss of $20,266,794 in 2009. The Company reported a net loss
of $19,917,410, or ($0.53) per basic and diluted share, for the full
year 2010, compared to a net loss of $20,505,320, or ($0.56) per basic
and diluted share, for the full year 2009. The net losses for 2010 and
2009 included $10,077,065 and $1,031,055, respectively, of non-cash
losses on stock warrant liability. The non-cash stock warrant liability,
which will cease upon expiration of the related warrants in the third
quarter of fiscal 2011, continues to adversely affect our net loss.
Cash used in operating activities for 2010 was $4,200,138, compared to
$14,610,208 for 2009. The decrease in cash used in operating activities
was mainly due to a decrease in the operating loss after adjusting for
the impact of non-cash items in 2010 compared to 2009. The Company’s
balance sheet remained strong at December 31, 2010, with cash, cash
equivalents and short-term investments of $73,163,397, $9 million higher
than cash, cash equivalents and short-term investments as of December
31, 2009. The Company’s cash position at December 31, 2010 also
benefitted from $14 million of cash received based on the exercise of
outstanding stock purchase warrants and stock options.
Mr. Rosenblatt concluded, “With revenues for the year almost doubling,
fiscal 2010 may well be regarded as the year PHOLED technology
officially migrated out of the laboratory and into the lives of millions
of consumers. The appetite for bright, beautiful and more energy
efficient and environmentally friendly displays is creating strong
demand for the use of OLEDs in a variety of applications. In 2011,
manufacturers are expected to add capacity, enabling this technology to
be enjoyed more widely by consumers everywhere. To further leverage our
extensive intellectual property assets and create value for our
shareholders, we are actively pursuing opportunities in the small and
large format display markets, as well as the general lighting market
where our technology can demonstrably improve OLED performance and
efficiency.”
In conjunction with this release, Universal Display will host a
conference call, followed by a question and answer session, on Tuesday,
March 15, 2011 at 5:00 p.m. Eastern Time. Interested parties may
participate by calling 866-575-6538 at 5:00 p.m. Eastern Time and
referencing conference ID 1357797. A taped replay of the conference call
will be available within two hours of the conclusion of the call and
will remain available through Tuesday, March 29, 2011. The number to
call for the taped replay is 888-203-1112, and the conference PIN is
1357797.
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, Chimei Innolux Corporation,
DuPont Displays, Inc., Konica Minolta Technology Center, Inc., LG
Display Co., Ltd., Moser Baer Technologies Inc., 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, 2010, as
amended. Universal Display Corporation disclaims any obligation to
update any forward-looking statement contained in this document.
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
20,368,852
|
|
|
|
$
|
22,701,126
|
|
|
Short-term investments
|
|
|
|
52,794,545
|
|
|
|
|
41,172,955
|
|
|
Accounts receivable
|
|
|
|
7,247,873
|
|
|
|
|
3,344,255
|
|
|
Other current assets
|
|
|
|
1,988,239
|
|
|
|
|
411,240
|
|
|
Total current assets
|
|
|
|
82,399,509
|
|
|
|
|
67,629,576
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
|
|
9,711,093
|
|
|
|
|
11,048,763
|
|
|
ACQUIRED TECHNOLOGY, net
|
|
|
|
-
|
|
|
|
|
1,234,272
|
|
|
OTHER ASSETS
|
|
|
|
216,529
|
|
|
|
|
227,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
|
$
|
92,327,131
|
|
|
|
$
|
80,139,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
2,155,489
|
|
|
|
$
|
1,275,695
|
|
|
Accrued expenses
|
|
|
|
6,906,289
|
|
|
|
|
5,238,870
|
|
|
Deferred license fees
|
|
|
|
4,028,486
|
|
|
|
|
6,047,467
|
|
|
Deferred revenue
|
|
|
|
1,294,668
|
|
|
|
|
1,403,927
|
|
|
Stock warrant liability
|
|
|
|
10,659,755
|
|
|
|
|
-
|
|
|
Total current liabilities
|
|
|
|
25,044,687
|
|
|
|
|
13,965,959
|
|
|
DEFERRED LICENSE FEES
|
|
|
|
2,775,024
|
|
|
|
|
2,826,237
|
|
|
STOCK WARRANT LIABILITY
|
|
|
|
-
|
|
|
|
|
3,720,165
|
|
|
RETIREMENT PLAN BENEFIT LIABILITY
|
|
|
|
7,077,901
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
34,897,612
|
|
|
|
|
20,512,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY:
|
|
|
|
|
|
|
|
|
|
|
|
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, 100,000,000 shares
authorized, 38,936,571 and 36,818,440 shares issued and
outstanding at December 31, 2010 and 2009, respectively
|
|
|
|
389,366
|
|
|
|
|
368,184
|
|
|
Additional paid-in capital
|
|
|
|
280,102,227
|
|
|
|
|
256,340,530
|
|
|
Accumulated deficit
|
|
|
|
(217,026,115
|
)
|
|
|
|
(197,108,705
|
)
|
|
Accumulated other comprehensive (loss) income
|
|
|
|
(6,037,959
|
)
|
|
|
|
25,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
57,429,519
|
|
|
|
|
59,627,526
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
$
|
92,327,131
|
|
|
|
$
|
80,139,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial revenue
|
|
|
$
|
4,511,121
|
|
|
|
$
|
1,888,490
|
|
|
Developmental revenue
|
|
|
|
6,283,919
|
|
|
|
|
2,962,522
|
|
|
Total revenue
|
|
|
|
10,795,040
|
|
|
|
|
4,851,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
|
240,843
|
|
|
|
|
100,809
|
|
|
Research and development
|
|
|
|
5,605,730
|
|
|
|
|
5,146,811
|
|
|
Selling, general and administrative
|
|
|
|
3,321,795
|
|
|
|
|
2,927,838
|
|
|
Patent costs
|
|
|
|
1,468,140
|
|
|
|
|
729,416
|
|
|
Royalty and license expense
|
|
|
|
368,808
|
|
|
|
|
115,795
|
|
|
Total operating expenses
|
|
|
|
11,005,316
|
|
|
|
|
9,020,669
|
|
|
|
|
|
|
|
|
|
|
`
|
|
|
|
Operating loss
|
|
|
|
(210,276
|
)
|
|
|
|
(4,169,657
|
)
|
|
INTEREST INCOME
|
|
|
|
78,321
|
|
|
|
|
105,713
|
|
|
INTEREST EXPENSE
|
|
|
|
(9,207
|
)
|
|
|
|
(3,692
|
)
|
|
LOSS ON STOCK WARRANT LIABILITY
|
|
|
|
(4,845,439
|
)
|
|
|
|
90,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAXES
|
|
|
|
(4,986,601
|
)
|
|
|
|
(3,977,611
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX (EXPENSE) BENEFIT
|
|
|
|
(329,813
|
)
|
|
|
|
129,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
|
$
|
(5,316,414
|
)
|
|
|
$
|
(3,847,696
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
|
$
|
(0.14
|
)
|
|
|
$
|
(0.10
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
|
|
|
|
38,112,123
|
|
|
|
|
36,749,118
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
2010
|
|
|
2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial revenue
|
|
|
$
|
11,129,747
|
|
|
|
$
|
6,118,099
|
|
|
Developmental revenue
|
|
|
|
19,414,633
|
|
|
|
|
9,668,518
|
|
|
Total revenue
|
|
|
|
30,544,380
|
|
|
|
|
15,786,617
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of chemicals sold
|
|
|
|
887,509
|
|
|
|
|
374,322
|
|
|
Research and development
|
|
|
|
21,695,139
|
|
|
|
|
21,122,156
|
|
|
Selling, general and administrative
|
|
|
|
13,041,438
|
|
|
|
|
10,921,859
|
|
|
Patent costs
|
|
|
|
4,270,689
|
|
|
|
|
3,239,795
|
|
|
Royalty and license expense
|
|
|
|
875,902
|
|
|
|
|
395,279
|
|
|
Total operating expenses
|
|
|
|
40,770,677
|
|
|
|
|
36,053,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
|
(10,226,297
|
)
|
|
|
|
(20,266,794
|
)
|
|
INTEREST INCOME
|
|
|
|
279,474
|
|
|
|
|
669,633
|
|
|
INTEREST EXPENSE
|
|
|
|
(27,871
|
)
|
|
|
|
(7,019
|
)
|
|
LOSS ON STOCK WARRANT LIABILITY
|
|
|
|
(10,077,065
|
)
|
|
|
|
(1,031,055
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE INCOME TAX BENEFIT
|
|
|
|
(20,051,759
|
)
|
|
|
|
(20,635,235
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX BENEFIT
|
|
|
|
134,349
|
|
|
|
|
129,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
|
$
|
(19,917,410
|
)
|
|
|
$
|
(20,505,320
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE
|
|
|
$
|
(0.53
|
)
|
|
|
$
|
(0.56
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
|
|
|
|
37,567,374
|
|
|
|
|
36,479,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
2010
|
|
|
2009
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
$
|
(19,917,410
|
)
|
|
|
$
|
(20,505,320
|
)
|
|
Adjustments to reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of deferred license fees and deferred revenue
|
|
|
|
(4,890,555
|
)
|
|
|
|
(3,986,490
|
)
|
|
Depreciation
|
|
|
|
1,706,816
|
|
|
|
|
2,069,626
|
|
|
Amortization of intangibles
|
|
|
|
1,234,272
|
|
|
|
|
1,695,072
|
|
|
Amortization of premium and discount on investments, net
|
|
|
|
(172,737
|
)
|
|
|
|
(426,065
|
)
|
|
Stock-based employee compensation
|
|
|
|
4,553,713
|
|
|
|
|
3,156,420
|
|
|
Stock-based non-employee compensation
|
|
|
|
47,222
|
|
|
|
|
7,011
|
|
|
Non-cash expense under materials and license agreements
|
|
|
|
1,173,347
|
|
|
|
|
1,170,039
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
|
|
1,332,712
|
|
|
|
|
755,294
|
|
|
Loss on stock warrant liability
|
|
|
|
10,077,065
|
|
|
|
|
1,031,055
|
|
|
Retirement plan benefit expense
|
|
|
|
1,026,244
|
|
|
|
|
-
|
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
(3,903,618
|
)
|
|
|
|
(893,811
|
)
|
|
Other current assets
|
|
|
|
(1,577,000
|
)
|
|
|
|
53,877
|
|
|
Other assets
|
|
|
|
10,747
|
|
|
|
|
(157,504
|
)
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
|
|
2,387,942
|
|
|
|
|
(210,939
|
)
|
|
Deferred license fees
|
|
|
|
792,423
|
|
|
|
|
-
|
|
|
Deferred revenue
|
|
|
|
1,918,679
|
|
|
|
|
1,631,527
|
|
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Net cash used in operating activities
|
|
|
|
(4,200,138
|
)
|
|
|
|
(14,610,208
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
(369,145
|
)
|
|
|
|
(258,761
|
)
|
|
Purchases of short-term investments
|
|
|
|
(91,393,656
|
)
|
|
|
|
(61,345,251
|
)
|
|
Proceeds from sale of short-term investments
|
|
|
|
79,932,984
|
|
|
|
|
69,630,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used in) provided by investing activities
|
|
|
|
(11,829,817
|
)
|
|
|
|
8,025,988
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from the issuance of common stock
|
|
|
|
245,684
|
|
|
|
|
130,184
|
|
|
Proceeds from the exercise of common stock options and warrants
|
|
|
|
14,618,569
|
|
|
|
|
1,702,138
|
|
|
Payment of withholding taxes related to stock-based employee
compensation
|
|
|
|
(1,166,572
|
)
|
|
|
|
(868,557
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities
|
|
|
|
13,697,681
|
|
|
|
|
963,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DECREASE IN CASH AND CASH EQUIVALENTS
|
|
|
|
(2,332,274
|
)
|
|
|
|
(5,620,455
|
)
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
|
|
22,701,126
|
|
|
|
|
28,321,581
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
|
$
|
20,368,852
|
|
|
|
$
|
22,701,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contacts
For:
Universal Display Corporation
Dean Ledger,
800-599-4426
or
From:
Gregory FCA Communications
Investor
contact:
Joe Hassett, 610-228-2110
joeh@gregoryfca.com
or
Media
contact:
Matt McLoughlin, 610-228-2123
matt@gregoryfca.com