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, 2012.
“Universal Display Corporation reported a second consecutive profitable
year on the strength of a solid finish to 2012”
For the full year of 2012, the company reported revenues of $83.2
million, up 36% compared to revenues of $61.3 million for 2011.
Operating income rose to $13.7 million for the year, up 141% from $5.7
million in 2011. The company reported net income of $9.7 million, or
$0.21 per diluted share, for the full year of 2012, compared to net
income of $3.2 million, or $0.07 per diluted share, for 2011.
“Universal Display Corporation reported a second consecutive profitable
year on the strength of a solid finish to 2012,” said Sidney D.
Rosenblatt, Executive Vice President and Chief Financial Officer of
Universal Display. “As we continue to grow, we are building a business
that we believe can deliver strong gross margins, produce high operating
leverage and generate strong cash flow. Our goal is to solidify and
extend our market leadership to capitalize on the growth of the OLED
market. With our strong financial position, industry-leading technology,
and extensive relationships throughout the industry, we are very excited
about the competitive advantages we believe we have established and our
expectation that we will be able to use these resources to bring OLED
technology into the lives of the global community.”
Material sales for 2012 were $44.5 million, up 19% compared to $37.4
million for 2011. Royalty and license fees for 2012 were $31.7 million,
up 107% compared to $15.3 million for 2011 as a result of the licensing
agreement with Samsung Display Corporation (SDC, and formerly Samsung
Mobile Display) being in place for the full year. Technology development
and support revenue was $7.1 million for 2012, down 17% compared to $8.5
million for 2011.
Cash provided by operating activities was $17.8 million in 2012,
compared to $16.4 million in 2011, primarily due to an improvement in
net income. The company’s balance sheet remained strong at December 31,
2012, with cash, cash equivalents and short-term investments of $243.9
million, which reflects the $109.1 million used this year to purchase
Fujifilm’s worldwide patent portfolio of more than 1,200 OLED patents
and patent applications. During the fourth quarter of 2012, the company
used $5.2 million of its $50 million authorization to repurchase
approximately 206,000 of our shares.
FOURTH QUARTER RESULTS
For the fourth quarter of 2012, the company reported revenues of $28.1
million and operating income of $8.4 million, increases of 51% and 135%,
respectively, over fourth quarter 2011 revenues of $18.7 million and
operating income of $3.6 million. Net income for the fourth quarter of
2012 was $5.4 million, or $0.12 per diluted share, compared to net
income of $5.7 million, or $0.12 per diluted share, for the fourth
quarter of 2011. Fourth quarter 2011 net income and earnings per share
reflect a net tax benefit of approximately $2.7 million as a result of
the sale of state-related net operating losses and tax credits, whereas
there were no similar benefits in the fourth quarter of 2012.
Royalty and license fees in the fourth quarter of 2012 were $15.4
million, up 184% compared to $5.4 million in the fourth quarter of 2011
primarily due to increased revenue under the licensing agreement with
SDC. Material sales were $10.1 million for the 2012 quarter, down 7%
compared to $10.8 million for the fourth quarter of 2011. Total
operating expenses for the fourth quarter increased $4.7 million
compared to the fourth quarter of 2011, with $3.6 million of the
increase attributable to higher patent costs and amortization of
acquired technology as a result of the Fujifilm patent portfolio
acquisition.
Mr. Rosenblatt concluded, “For nearly 20 years, Universal Display has
championed OLED technology as a better performing, more efficient
alternative to existing display and lighting technology. Consequently,
we are extremely pleased with the excitement created by the OLED
displays currently in the market, and the increase in new OLED product
development that has been encouraged by these initial successes. Beyond
today’s focus on materials and technology for both large and small
format displays, we are working on new generations of products that we
believe have the potential to significantly increase our total
addressable market, such as encapsulation and solution-based technology.
Over the past year, through the acquisition of OLED patent portfolios,
new partnerships with companies both domestically and in South Korea,
and the expansion of our facilities, we have been making the investments
that we anticipate will enable us to remain at the forefront of an
industry that we believe is only now entering the early stages of a
period of significant growth.”
GUIDANCE
The company’s arrangement with SDC provides a substantial amount of
visibility into its potential future financial performance. Although the
OLED industry is still at a stage where many variables can have a
material effect on growth, in an effort to increase our transparency,
Universal Display is providing the following financial guidance. Again
with the caveat that the OLED industry is still in an early stage, the
company believes that its revenues will be in the range of $110 million
to $125 million for fiscal 2013.
In conjunction with this release, Universal Display will host a
conference call, followed by a question and answer session, on
Wednesday, February 27, 2013 at 5:00 p.m. Eastern Time. Interested
parties may participate by calling 888-271-8594 at 5:00 p.m. Eastern
Time and referencing conference ID 4380580.
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 diode (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
3,000 issued and pending patents worldwide, including those acquired
from Fujifilm. 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, DuPont Displays, Inc.,
Innolux Corporation, Konica Minolta Technology Center, Inc., LG Display
Co., Ltd., Lumiotec, Inc., Moser Baer Technologies Inc., Panasonic
Idemitsu OLED Lighting Co., Pioneer Corporation, Samsung Display
Corporation, 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. Forward-looking statements concern possible or
assumed future results of operations, including descriptions of our
business strategies and customer relationships. These statements often
include words such as “believe,” “expect,” “anticipate,” “intend,”
“plan,” “estimate,” “seek,” “will,” “goal,” “may” or similar
expressions. 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 based on assumptions that we have made in light of our experience in
the industry, as well as our perceptions of historical trends, current
conditions, expected future developments and other factors we believe
are appropriate in these circumstances, and are thus 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, 2012. Universal Display Corporation
disclaims any obligation to update any forward-looking statement
contained in this document.
Tables Follow:
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(unaudited)
|
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
December 31,
|
|
|
|
2012
|
|
2011
|
|
ASSETS
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
85,923
|
|
|
$
|
111,795
|
|
Short-term investments
|
|
158,018
|
|
|
234,294
|
|
Accounts receivable
|
|
8,657
|
|
|
10,727
|
|
Inventory
|
|
11,018
|
|
|
3,843
|
|
Other current assets
|
|
3,929
|
|
|
1,645
|
|
Total current assets
|
|
267,545
|
|
|
362,304
|
|
PROPERTY AND EQUIPMENT, net
|
|
11,808
|
|
|
10,884
|
|
ACQUIRED TECHNOLOGY, net
|
|
104,624
|
|
|
391
|
|
INVESTMENTS
|
|
1,270
|
|
|
—
|
|
OTHER ASSETS
|
|
277
|
|
|
299
|
|
TOTAL ASSETS
|
|
$
|
385,524
|
|
|
$
|
373,878
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
|
$
|
7,596
|
|
|
$
|
4,776
|
|
Accrued expenses
|
|
10,394
|
|
|
9,020
|
|
Deferred revenue
|
|
4,273
|
|
|
5,534
|
|
Other current liabilities
|
|
36
|
|
|
187
|
|
Total current liabilities
|
|
22,299
|
|
|
19,517
|
|
DEFERRED REVENUE
|
|
3,153
|
|
|
3,874
|
|
RETIREMENT PLAN BENEFIT LIABILITY
|
|
9,837
|
|
|
8,260
|
|
Total liabilities
|
|
35,289
|
|
|
31,651
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
2
|
|
|
2
|
|
Common Stock, par value $0.01 per share, 100,000,000 shares
authorized, 46,561,437 and 46,113,296 shares issued at December 31,
2012 and 2011, respectively
|
|
465
|
|
|
461
|
|
Additional paid-in capital
|
|
564,883
|
|
|
561,492
|
|
Accumulated deficit
|
|
(204,211
|
)
|
|
(213,871)
|
|
Accumulated other comprehensive loss
|
|
(5,702
|
)
|
|
(5,857)
|
|
Treasury stock, at cost (205,902 shares at December 31, 2012)
|
|
(5,202
|
)
|
|
—
|
|
Total shareholders’ equity
|
|
350,235
|
|
|
342,227
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
385,524
|
|
|
$
|
373,878
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
|
|
(in thousands except for share and per share data)
|
|
|
|
|
|
|
|
Three Months Ended December 31,
|
|
|
|
2012
|
|
2011
|
|
REVENUE:
|
|
|
|
|
|
Material sales
|
|
$
|
10,111
|
|
|
$
|
10,840
|
|
|
Royalty and license fees
|
|
15,445
|
|
|
5,447
|
|
|
Technology development and support revenue
|
|
2,577
|
|
|
2,372
|
|
|
Total revenue
|
|
28,133
|
|
|
18,659
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
Cost of material sales
|
|
735
|
|
|
1,080
|
|
|
Research and development
|
|
7,958
|
|
|
5,943
|
|
|
Selling, general and administrative
|
|
4,789
|
|
|
5,615
|
|
|
Patent costs and amortization of acquired technology
|
|
5,526
|
|
|
1,976
|
|
|
Royalty and license expense
|
|
754
|
|
|
478
|
|
|
Total operating expenses
|
|
19,762
|
|
|
15,092
|
|
|
Operating income
|
|
8,371
|
|
|
3,567
|
|
|
INTEREST INCOME
|
|
254
|
|
|
350
|
|
|
INTEREST EXPENSE
|
|
(5
|
)
|
|
(19
|
)
|
|
INCOME BEFORE INCOME TAXES
|
|
8,620
|
|
|
3,898
|
|
|
INCOME TAX (EXPENSE) BENEFIT
|
|
(3,235
|
)
|
|
1,836
|
|
|
NET INCOME
|
|
$
|
5,385
|
|
|
$
|
5,734
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE:
|
|
|
|
|
|
BASIC
|
|
$
|
0.12
|
|
|
$
|
0.13
|
|
|
DILUTED
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON
SHARE:
|
|
|
|
|
|
BASIC
|
|
46,051,637
|
|
|
45,625,323
|
|
|
DILUTED
|
|
46,794,260
|
|
|
46,896,277
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
|
|
(in thousands except for share and per share data)
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2012
|
|
2011
|
|
REVENUE:
|
|
|
|
|
|
Material sales
|
|
$
|
44,472
|
|
|
$
|
37,444
|
|
|
Royalty and license fees
|
|
31,698
|
|
|
15,345
|
|
|
Technology development and support revenue
|
|
7,074
|
|
|
8,500
|
|
|
Total revenue
|
|
83,244
|
|
|
61,289
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
Cost of material sales
|
|
4,528
|
|
|
3,731
|
|
|
Research and development
|
|
30,032
|
|
|
24,129
|
|
|
Selling, general and administrative
|
|
19,550
|
|
|
18,940
|
|
|
Patent costs and amortization of acquired technology
|
|
13,385
|
|
|
7,442
|
|
|
Royalty and license expense
|
|
2,073
|
|
|
1,360
|
|
|
Total operating expenses
|
|
69,568
|
|
|
55,602
|
|
|
Operating income
|
|
13,676
|
|
|
5,687
|
|
|
INTEREST INCOME
|
|
1,240
|
|
|
994
|
|
|
INTEREST EXPENSE
|
|
(48
|
)
|
|
(50
|
)
|
|
LOSS ON STOCK WARRANT LIABILITY
|
|
—
|
|
|
(4,190
|
)
|
|
INCOME BEFORE INCOME TAXES
|
|
14,868
|
|
|
2,441
|
|
|
INCOME TAX (EXPENSE) BENEFIT
|
|
(5,208
|
)
|
|
714
|
|
|
NET INCOME
|
|
$
|
9,660
|
|
|
$
|
3,155
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON SHARE:
|
|
|
|
|
|
BASIC
|
|
$
|
0.21
|
|
|
$
|
0.07
|
|
|
DILUTED
|
|
$
|
0.21
|
|
|
$
|
0.07
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON
SHARE:
|
|
|
|
|
|
BASIC
|
|
45,951,276
|
|
|
43,737,968
|
|
|
DILUTED
|
|
46,883,602
|
|
|
45,140,394
|
|
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited)
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
2012
|
|
2011
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
|
$
|
9,660
|
|
|
$
|
3,155
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Amortization of deferred revenue
|
|
(5,284
|
)
|
|
(3,275
|
)
|
|
Depreciation
|
|
1,978
|
|
|
1,451
|
|
|
Amortization of intangibles
|
|
4,869
|
|
|
49
|
|
|
Amortization of premium and discount on investments, net
|
|
(778
|
)
|
|
(775
|
)
|
|
Stock-based employee compensation
|
|
4,263
|
|
|
4,373
|
|
|
Stock-based non-employee compensation
|
|
—
|
|
|
6
|
|
|
Non-cash expense under materials and license agreements
|
|
—
|
|
|
9
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
781
|
|
|
1,377
|
|
|
Loss on stock warrant liability
|
|
—
|
|
|
4,190
|
|
|
Retirement plan benefit expense
|
|
1,600
|
|
|
1,527
|
|
|
Decrease (increase) in assets:
|
|
|
|
|
|
Accounts receivable
|
|
2,070
|
|
|
(3,479
|
)
|
|
Inventory
|
|
(7,175
|
)
|
|
(3,841
|
)
|
|
Other current assets
|
|
(2,284
|
)
|
|
341
|
|
|
Other assets
|
|
22
|
|
|
(82
|
)
|
|
Increase in liabilities:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
4,718
|
|
|
6,775
|
|
|
Other current liabilities
|
|
11
|
|
|
23
|
|
|
Deferred revenue
|
|
3,303
|
|
|
4,585
|
|
|
Net cash provided by operating activities
|
|
17,754
|
|
|
16,409
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Purchases of property and equipment
|
|
(2,737
|
)
|
|
(2,624
|
)
|
|
Purchases of intangibles
|
|
(109,102
|
)
|
|
(440
|
)
|
|
Purchases of short-term investments
|
|
(304,500
|
)
|
|
(337,442
|
)
|
|
Proceeds from sale of short-term investments
|
|
380,253
|
|
|
156,717
|
|
|
Net cash used in investing activities
|
|
(36,086
|
)
|
|
(183,789
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
321
|
|
|
249,936
|
|
|
Repurchase of common stock
|
|
(5,202
|
)
|
|
—
|
|
|
Proceeds from the exercise of common stock options and warrants
|
|
1,483
|
|
|
13,343
|
|
|
Payment of withholding taxes related to stock-based employee
compensation
|
|
(4,142
|
)
|
|
(4,473
|
)
|
|
Net cash (used in) provided by financing activities
|
|
(7,540
|
)
|
|
258,806
|
|
|
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
|
(25,872
|
)
|
|
91,426
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
|
111,795
|
|
|
20,369
|
|
|
CASH AND CASH EQUIVALENTS, END OF YEAR
|
|
$
|
85,923
|
|
|
$
|
111,795
|
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Contacts
Universal Display Corporation
Media Contact:
Gregory FCA
Matt
McLoughlin, 610-228-2123
matt@gregoryfca.com
or
Investor
Relations:
Gregory FCA
Joe Hassett, 610-228-2110
joeh@gregoryfca.com