EWING, N.J.--(BUSINESS WIRE)--Universal
Display Corporation (Nasdaq: OLED), enabling energy-efficient
displays and lighting with its UniversalPHOLED®
technology and materials, reported its financial results today for the
quarter and nine-month period, ended September 30, 2013.
“Universal Display delivered outstanding third quarter results that were
directly attributable to the commercial adoption of its red emitter,
green emitter and green host materials. The use of these industry
leading materials in a number of new products resulted in record
material sales in the quarter”
For the third quarter of 2013, the Company reported net income of $5.5
million, or $0.12 per diluted share, on revenues of $32.8 million. For
the third quarter of 2012, the Company reported a net loss of $5.5
million, or $(0.12) per diluted share, on revenues of $12.5 million.
“Universal Display delivered outstanding third quarter results that were
directly attributable to the commercial adoption of its red emitter,
green emitter and green host materials. The use of these industry
leading materials in a number of new products resulted in record
material sales in the quarter,” said Sidney D. Rosenblatt, Executive
Vice President and Chief Financial Officer of Universal Display.
“Looking forward, we believe the OLED industry is poised for robust
growth as product roadmaps are further developed, new manufacturing
capacity ramps and new display and lighting manufacturers enter the
market. The strength of our phosphorescent OLED core competency, coupled
with an expanding IP and materials technology portfolio, leaves us
well-positioned to continue to offer industry leading material and
technology solutions for this evolving and growing market.”
Third Quarter Results
Revenues for the third quarter of 2013 were $32.8 million compared to
revenues of $12.5 million in the same quarter of 2012. Growth in third
quarter revenues was led by a 176% increase in material sales, which
rose to $30.3 million, up from $11.0 million in the third quarter of
2012, reflecting strong volume growth in sales of green emitter and host
materials. Royalty and license fees were $1.5 million in the third
quarter of 2013 compared to $0.4 million in the same quarter of 2012.
Technology development and support revenue was $1.1 million for both the
third quarter of 2013 and 2012.
No revenue was recognized under the Samsung Display Co., Ltd. (SDC)
licensing agreement in the third quarter, as SDC is obligated to make
licensing payments in the second and fourth quarters of the year. For
2013, the Company recognized $20 million in SDC licensing revenue in the
second quarter and expects to recognize another $20 million in the
fourth quarter, for a total of $40 million in SDC licensing revenues for
the year.
Operating expenses for the third quarter of 2013 were $28.6 million
compared to $18.6 million in the same quarter of 2012. Cost of materials
for the third quarter were $9.8 million compared to $1.1 million in the
third quarter of 2012, reflecting an increase in the quantity of
material shipped and changes in product mix.
The Company reported operating income of $4.2 million for the third
quarter of 2013, compared to operating loss of $6.1 million for the
third quarter of 2012.
The Company’s balance sheet remained strong, with cash and cash
equivalents and short-term investments of $248.3 million as of September
30, 2013.
First Nine Months Results
Revenues for the first nine months of 2013 were $97.2 million, a 76%
increase from the $55.1 million generated in the first nine months of
2012. Material sales in the first nine months of the year were $70.2
million, a 104% increase compared to material sales of $34.4 million in
the first nine months of 2012. Operating income in the first nine months
of 2013 was $18.8 million, more than tripling the $5.3 million of
operating income in the first nine months of 2012. For the first nine
months of 2013, the Company reported net income of $16.2 million, or
$0.35 per diluted share, compared to $4.3 million, or $0.09 per diluted
share, in the same period in 2012. In the first nine months of the year,
the Company generated $22.6 million in operating cash flow, a 214%
increase from the $7.2 million of operating cash flow in the first nine
of months of 2012.
2013 Guidance
Although the OLED industry is still at a stage where many variables can
have a material impact on its growth, the Company now has better
visibility into its potential future financial performance for this year
and expects 2013 revenues to be approximately $142-$144 million,
compared to the prior guidance of reaching the high end of its $110-$125
million range.
Conference Call Information
In conjunction with this release, Universal Display will host a
conference call, followed by a question and answer session, on Thursday,
November 7, 2013 at 5:00 p.m. Eastern Time. The live webcast of the
conference call can be accessed under the "events" portion of the
Company's website at www.udcoled.com.
Those wishing to participate in the live call should dial 1-888-549-7880
(toll-free) or 1-480-629-9867. 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: OLED) 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. 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, with international offices in Ireland, South
Korea, Hong Kong, Japan and Taiwan, 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 Co., Ltd., Seiko Epson Corporation, Sony Corporation, Showa
Denko K.K., and Tohoku Pioneer Corporation. To learn more about
Universal Display, please visit www.udcoled.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, the Company’s expected
results as well as the growth of the OLED market and the Company’s
opportunities in that market, 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, 2012. Universal Display Corporation
disclaims any obligation to update any forward-looking statement
contained in this document.
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|
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|
|
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(unaudited)
|
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
|
2013
|
|
2012
|
|
ASSETS
|
|
|
|
CURRENT ASSETS:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
67,085
|
|
|
$
|
85,923
|
|
|
Short-term investments
|
|
181,193
|
|
|
158,018
|
|
|
Accounts receivable
|
|
17,785
|
|
|
8,657
|
|
|
Inventory
|
|
7,852
|
|
|
11,018
|
|
|
Other current assets
|
|
6,387
|
|
|
3,929
|
|
|
Total current assets
|
|
280,302
|
|
|
267,545
|
|
|
PROPERTY AND EQUIPMENT, net
|
|
14,698
|
|
|
11,808
|
|
|
ACQUIRED TECHNOLOGY, net
|
|
96,768
|
|
|
104,624
|
|
|
INVESTMENTS
|
|
7,971
|
|
|
1,270
|
|
|
OTHER ASSETS
|
|
282
|
|
|
277
|
|
|
TOTAL ASSETS
|
|
$
|
400,021
|
|
|
$
|
385,524
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
CURRENT LIABILITIES:
|
|
|
|
|
|
Accounts payable
|
|
$
|
8,042
|
|
|
$
|
7,596
|
|
|
Accrued expenses
|
|
9,661
|
|
|
10,394
|
|
|
Deferred revenue
|
|
3,684
|
|
|
4,273
|
|
|
Other current liabilities
|
|
15
|
|
|
36
|
|
|
Total current liabilities
|
|
21,402
|
|
|
22,299
|
|
|
DEFERRED REVENUE
|
|
2,591
|
|
|
3,153
|
|
|
RETIREMENT PLAN BENEFIT LIABILITY
|
|
10,579
|
|
|
9,837
|
|
|
Total liabilities
|
|
34,572
|
|
|
35,289
|
|
|
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, 46,670,763 and 46,561,437 shares issued at September 30,
2013 and December 31, 2012, respectively
|
|
467
|
|
|
465
|
|
|
Additional paid-in capital
|
|
568,896
|
|
|
564,883
|
|
|
Accumulated deficit
|
|
(188,045
|
)
|
|
(204,211
|
)
|
|
Accumulated other comprehensive loss
|
|
(5,213
|
)
|
|
(5,702
|
)
|
|
Treasury stock, at cost (401,501 and 205,902 shares at September 30,
2013 and December 31, 2012, respectively)
|
|
(10,658
|
)
|
|
(5,202
|
)
|
|
Total shareholders’ equity
|
|
365,449
|
|
|
350,235
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
400,021
|
|
|
$
|
385,524
|
|
|
|
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(unaudited)
|
|
|
|
|
|
(in thousands, except for share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
REVENUE:
|
|
|
|
|
|
|
|
|
|
|
|
Material sales
|
|
$
|
30,286
|
|
|
$
|
10,984
|
|
|
$
|
70,175
|
|
|
$
|
34,361
|
|
|
Royalty and license fees
|
|
|
1,456
|
|
|
396
|
|
|
|
23,956
|
|
|
16,253
|
|
|
Technology development and support revenue
|
|
|
1,084
|
|
|
1,124
|
|
|
|
3,030
|
|
|
4,497
|
|
|
Total revenue
|
|
|
32,826
|
|
|
12,504
|
|
|
|
97,161
|
|
|
55,111
|
|
|
OPERATING EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
Cost of material sales
|
|
|
9,783
|
|
|
1,094
|
|
|
|
21,157
|
|
|
3,793
|
|
|
Research and development
|
|
|
7,862
|
|
|
8,177
|
|
|
|
24,116
|
|
|
22,074
|
|
|
Selling, general and administrative
|
|
|
6,411
|
|
|
5,275
|
|
|
|
17,918
|
|
|
14,761
|
|
|
Patent costs and amortization of acquired technology
|
|
|
3,899
|
|
|
3,736
|
|
|
|
13,038
|
|
|
7,859
|
|
|
Royalty and license expense
|
|
|
624
|
|
|
283
|
|
|
|
2,108
|
|
|
1,319
|
|
|
Total operating expenses
|
|
|
28,579
|
|
|
18,565
|
|
|
|
78,337
|
|
|
49,806
|
|
|
Operating income (loss)
|
|
|
4,247
|
|
|
(6,061
|
)
|
|
|
18,824
|
|
|
5,305
|
|
|
INTEREST INCOME
|
|
|
206
|
|
|
272
|
|
|
|
594
|
|
|
986
|
|
|
INTEREST EXPENSE
|
|
|
(13
|
)
|
|
(5
|
)
|
|
|
(31
|
)
|
|
(43
|
)
|
|
INCOME (LOSS) BEFORE INCOME TAXES
|
|
|
4,440
|
|
|
(5,794
|
)
|
|
|
19,387
|
|
|
6,248
|
|
|
INCOME TAX BENEFIT (EXPENSE)
|
|
|
1,102
|
|
|
326
|
|
|
|
(3,221
|
)
|
|
(1,973
|
)
|
|
NET INCOME (LOSS)
|
|
|
5,542
|
|
|
(5,468
|
)
|
|
|
16,166
|
|
|
4,275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) PER COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
$
|
0.12
|
|
|
$
|
(0.12
|
)
|
|
$
|
0.35
|
|
|
$
|
0.09
|
|
|
DILUTED
|
|
$
|
0.12
|
|
|
$
|
(0.12
|
)
|
|
$
|
0.35
|
|
|
$
|
0.09
|
|
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
BASIC
|
|
|
45,912,512
|
|
|
46,006,290
|
|
|
|
45,865,395
|
|
|
45,916,536
|
|
|
DILUTED
|
|
|
46,594,843
|
|
|
46,006,290
|
|
|
|
46,547,568
|
|
|
46,912,557
|
|
|
|
|
|
|
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(unaudited)
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
September 30,
|
|
|
|
2013
|
|
2012
|
|
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
|
|
$
|
16,166
|
|
|
$
|
4,275
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
Amortization of deferred revenue
|
|
(3,282
|
)
|
|
(2,685
|
)
|
|
Depreciation
|
|
1,493
|
|
|
1,449
|
|
|
Amortization of intangibles
|
|
8,224
|
|
|
2,126
|
|
|
Amortization of premium and discount on investments, net
|
|
(336
|
)
|
|
(612
|
)
|
|
Stock-based employee compensation
|
|
4,514
|
|
|
3,111
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
597
|
|
|
648
|
|
|
Retirement plan benefit expense
|
|
1,250
|
|
|
1,165
|
|
|
(Increase) decrease in assets:
|
|
|
|
|
|
Accounts receivable
|
|
(9,128
|
)
|
|
2,856
|
|
|
Inventory
|
|
3,166
|
|
|
(5,608
|
)
|
|
Other current assets
|
|
(2,458
|
)
|
|
(2,745
|
)
|
|
Other assets
|
|
(5
|
)
|
|
37
|
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
265
|
|
|
1,538
|
|
|
Other current liabilities
|
|
(21
|
)
|
|
(3
|
)
|
|
Deferred revenue
|
|
2,131
|
|
|
1,627
|
|
|
Net cash provided by operating activities
|
|
22,576
|
|
|
7,179
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Purchase of property and equipment
|
|
(4,200
|
)
|
|
(2,278
|
)
|
|
Additions to intangibles
|
|
(367
|
)
|
|
(109,102
|
)
|
|
Purchase of investments
|
|
(284,581
|
)
|
|
(209,244
|
)
|
|
Proceeds from sale of investments
|
|
255,022
|
|
|
278,412
|
|
|
Net cash used in investing activities
|
|
(34,126
|
)
|
|
(42,212
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
Proceeds from the issuance of common stock
|
|
268
|
|
|
244
|
|
|
Repurchase of common stock
|
|
(5,456
|
)
|
|
—
|
|
|
Proceeds from the exercise of common stock options
|
|
890
|
|
|
1,323
|
|
|
Payment of withholding taxes related to stock-based employee
compensation
|
|
(2,990
|
)
|
|
(4,136
|
)
|
|
Net cash used in financing activities
|
|
(7,288
|
)
|
|
(2,569
|
)
|
|
DECREASE IN CASH AND CASH EQUIVALENTS
|
|
(18,838
|
)
|
|
(37,602
|
)
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
85,923
|
|
|
111,795
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
67,085
|
|
|
$
|
74,193
|
|
Contacts
Investor Relations:
Universal Display
Darice Liu,
609-671-0980 x558
dliu@udcoled.com
or
Media
Contact:
Gregory FCA
Matt McLoughlin, 610-228-2123
matt@gregoryfca.com