EWING, N.J.--(BUSINESS WIRE)--
Universal
Display Corporation (Nasdaq: OLED), enabling energy-efficient
displays and lighting with its UniversalPHOLED®
technology and materials, today reported financial results for the first
quarter ended March 31, 2014.
For the first quarter of 2014, the Company reported net income of $4.0
million, or $0.09 per diluted share, on revenues of $37.8 million. For
the first quarter of 2013, the Company reported a net loss of $4.8
million, or $(0.10) per diluted share, on revenues of $15.0 million.
"Our solid execution in delivering high performance, quality assured,
proprietary phosphorescent emitters and hosts to our growing list of
OLED customers, coupled with increasing production activity, resulted in
strong revenues, operating income and earnings in the first quarter,"
said
Sidney D. Rosenblatt
, Executive Vice President and Chief Financial
Officer of Universal Display. "In recent months, we were very pleased to
see new products, including flagship launches, showcasing our
phosphorescent OLED materials and technologies. Looking forward, we are
excited about new growth opportunities in the mobile, wearable, TV and
lighting markets as we continue to fortify and expand our IP and
materials portfolio for long-term growth."
First Quarter 2014 Results
Revenues for the first quarter of 2014 were $37.8 million compared to
revenues of $15.0 million in the same quarter of 2013. Growth in first
quarter revenues was led by a 177% increase in material sales, which
rose to $35.3 million, up from $12.8 million in the first quarter of
2013, reflecting robust volume growth in sales of red emitter, green
emitter and green host materials. Royalty and license fees were $1.8
million in the first quarter of 2014, up from $1.3 million in the same
quarter of 2013. Technology development and support revenue was $0.7
million in the first quarter of 2014 compared to $0.9 million in the
same quarter of 2013.
No revenue was recognized under the Samsung Display Co., Ltd. (SDC)
licensing agreement in the first quarter, as SDC is obligated to make
licensing payments in the second and fourth quarters of the year. For
2014, the Company expects to recognize $50 million in SDC licensing
revenues for the full year.
Operating expenses for the first quarter of 2014 were $31.2 million
compared to $22.1 million in the same quarter of 2013. Cost of materials
for the quarter were $9.9 million compared to $3.1 million in the first
quarter of 2013, reflecting an increase in the quantity of material
shipped and changes in product mix.
The Company reported operating income of $6.6 million for the first
quarter of 2014, compared to an operating loss of $7.2 million for the
first quarter of 2013.
The Company's balance sheet remained strong, with cash and cash
equivalents and short-term investments of $267 million as of March 31,
2014. During the quarter, accounts receivables and inventories
increased, while accrued expenses declined. This resulted in working
capital increasing to $318 million at the end of the quarter.
2014 Guidance
Although the OLED industry is still at a stage where many variables can
have a material impact on its growth, the Company now expects 2014
revenues to reach the high end of its $190 million to $205 million
guidance range.
Conference Call Information
In conjunction with this release, Universal Display will host a
conference call on Thursday, May 8, 2014 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. Those wishing to participate in the
live call should dial 1-877-941-0843 (toll-free) or 1-480-629-9819, and
reference conference ID 4679603. An online archive of the webcast will
be available within two hours of the conclusion of the call.
To see how Universal Display is changing the face of the display and
lighting industries with its UniversalPHOLED®, white OLED,
and flexible OLED technologies, please visit the company's website at www.udcoled.com.
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, BOE
Technology, DuPont Displays, Inc., Innolux Corporation, Kaneka
Corporation, Konica Minolta Technology Center, Inc., LG Display Co.,
Ltd., Lumiotec, Inc., Pioneer Corporation, Samsung Display Co., Ltd.,
Sony Corporation, 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 financial 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, 2013.
Universal Display Corporation disclaims any obligation to update any
forward-looking statement contained in this document.
(OLED-C)
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
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CONSOLIDATED BALANCE SHEETS
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(UNAUDITED)
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|
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(in thousands, except share and per share data)
|
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March 31, 2014
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December 31, 2013
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ASSETS
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CURRENT ASSETS:
|
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|
|
|
|
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Cash and cash equivalents
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$
|
35,931
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|
$
|
70,586
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Short-term investments
|
|
230,990
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|
202,024
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Accounts receivable
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24,508
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15,657
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Inventory
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14,592
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|
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10,595
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Deferred income taxes
|
|
20,558
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|
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21,563
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Other current assets
|
|
11,150
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|
|
6,623
|
|
|
Total current assets
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337,729
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|
327,048
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PROPERTY AND EQUIPMENT, net of accumulated depreciation of $23,251
and $22,756
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|
15,004
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|
|
14,893
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|
|
ACQUIRED TECHNOLOGY, net of accumulated amortization of $35,591 and
$32,841
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91,261
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|
|
94,011
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INVESTMENTS
|
|
3,051
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|
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7,417
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DEFERRED INCOME TAXES
|
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18,309
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|
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19,143
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OTHER ASSETS
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|
602
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|
|
242
|
|
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TOTAL ASSETS
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$
|
465,956
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|
|
$
|
462,754
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|
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LIABILITIES AND SHAREHOLDERS' EQUITY
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CURRENT LIABILITIES:
|
|
|
|
|
|
|
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Accounts payable
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$
|
8,368
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|
|
$
|
5,256
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|
|
Accrued expenses
|
|
6,956
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|
|
16,039
|
|
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Deferred revenue
|
|
3,375
|
|
|
1,910
|
|
|
Other current liabilities
|
|
1,041
|
|
|
24
|
|
|
Total current liabilities
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|
19,740
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|
|
23,229
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|
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DEFERRED REVENUE
|
|
3,503
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|
|
2,403
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|
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RETIREMENT PLAN BENEFIT LIABILITY
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9,709
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|
|
9,436
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|
|
Total liabilities
|
|
32,952
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|
|
35,068
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|
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|
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|
|
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SHAREHOLDERS' EQUITY:
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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)
|
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2
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|
|
2
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|
|
Common Stock, par value $0.01 per share, 100,000,000 shares
authorized, 46,889,496 and 46,825,168 shares issued and outstanding
at March 31, 2014 and December 31, 2013, respectively
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469
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|
|
468
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|
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Additional paid-in capital
|
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573,574
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|
|
572,401
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|
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Accumulated deficit
|
|
(126,137
|
)
|
|
(130,159
|
)
|
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Accumulated other comprehensive loss
|
|
(4,246
|
)
|
|
(4,368
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)
|
|
Treasury stock, at cost (401,501 shares at March 31, 2014 and
December 31, 2013, respectively)
|
|
(10,658
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)
|
|
(10,658
|
)
|
|
Total shareholders' equity
|
|
433,004
|
|
|
427,686
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$
|
465,956
|
|
|
$
|
462,754
|
|
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|
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
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CONSOLIDATED STATEMENTS OF OPERATIONS
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(UNAUDITED)
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(in thousands, except share and per share data)
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Three Months Ended March 31,
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2014
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2013
|
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REVENUE:
|
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|
|
|
|
|
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Material sales
|
|
$
|
35,327
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|
|
$
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12,752
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Royalty and license fees
|
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1,779
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|
|
1,299
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Technology development and support revenue
|
|
733
|
|
|
925
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Total revenue
|
|
37,839
|
|
|
14,976
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|
|
|
|
|
|
|
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OPERATING EXPENSES:
|
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|
|
|
|
|
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Cost of material sales
|
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9,897
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|
|
3,092
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Research and development
|
|
10,156
|
|
|
8,938
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|
Selling, general and administrative
|
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6,430
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|
|
5,171
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Patent costs and amortization of acquired technology
|
|
3,972
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|
|
4,617
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|
|
Royalty and license expense
|
|
756
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|
|
312
|
|
|
Total operating expenses
|
|
31,211
|
|
|
22,130
|
|
|
Operating income (loss)
|
|
6,628
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|
|
(7,154
|
)
|
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INTEREST INCOME
|
|
218
|
|
|
210
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|
|
INTEREST EXPENSE
|
|
(17
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)
|
|
(8
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)
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INCOME (LOSS) BEFORE INCOME TAXES
|
|
6,829
|
|
|
(6,952
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)
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INCOME TAX (EXPENSE) BENEFIT
|
|
(2,807
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)
|
|
2,194
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NET INCOME (LOSS)
|
|
$
|
4,022
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|
|
$
|
(4,758
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)
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NET INCOME (LOSS) PER COMMON SHARE:
|
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BASIC
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|
$
|
0.09
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|
$
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(0.10
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)
|
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DILUTED
|
|
$
|
0.09
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|
$
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(0.10
|
)
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WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER
COMMON SHARE:
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BASIC
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46,177,661
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45,823,414
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DILUTED
|
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46,651,438
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45,823,414
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UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
|
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(UNAUDITED)
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(in thousands)
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|
|
|
|
|
|
|
Three Months Ended March 31,
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|
|
|
2014
|
|
2013
|
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CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
Net income
|
|
$
|
4,022
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|
|
$
|
(4,758
|
)
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
Amortization of deferred revenue
|
|
(1,127
|
)
|
|
(678
|
)
|
|
Depreciation
|
|
501
|
|
|
509
|
|
|
Amortization of intangibles
|
|
2,750
|
|
|
2,742
|
|
|
Amortization of premium and discount on investments, net
|
|
(136
|
)
|
|
(116
|
)
|
|
Stock-based employee compensation
|
|
1,899
|
|
|
1,174
|
|
|
Stock-based compensation to Board of Directors and Scientific
Advisory Board
|
|
203
|
|
|
224
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|
|
Deferred income tax benefit
|
|
1,773
|
|
|
—
|
|
|
Retirement plan benefit expense
|
|
419
|
|
|
417
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|
|
(Increase) decrease in assets:
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(8,851
|
)
|
|
(1,870
|
)
|
|
Inventory
|
|
(3,997
|
)
|
|
1,936
|
|
|
Other current assets
|
|
(4,887
|
)
|
|
(3,703
|
)
|
|
Other assets
|
|
—
|
|
|
18
|
|
|
Increase (decrease) in liabilities:
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses
|
|
(4,598
|
)
|
|
(6,837
|
)
|
|
Other current liabilities
|
|
1,017
|
|
|
—
|
|
|
Deferred revenue
|
|
3,692
|
|
|
44
|
|
|
Net cash used in operating activities
|
|
(7,320
|
)
|
|
(10,898
|
)
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
(917
|
)
|
|
(549
|
)
|
|
Additions to intangibles
|
|
—
|
|
|
(69
|
)
|
|
Purchases of investments
|
|
(127,244
|
)
|
|
(102,142
|
)
|
|
Proceeds from sale of investments
|
|
102,823
|
|
|
81,364
|
|
|
Net cash used in investing activities
|
|
(25,338
|
)
|
|
(21,396
|
)
|
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock
|
|
86
|
|
|
93
|
|
|
Repurchase of common stock
|
|
—
|
|
|
(5,456
|
)
|
|
Proceeds from the exercise of common stock options and warrants
|
|
616
|
|
|
66
|
|
|
Payment of withholding taxes related to stock-based employee
compensation
|
|
(2,699
|
)
|
|
(2,796
|
)
|
|
Net cash used in financing activities
|
|
(1,997
|
)
|
|
(8,093
|
)
|
|
DECREASE IN CASH AND CASH EQUIVALENTS
|
|
(34,655
|
)
|
|
(40,387
|
)
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
70,586
|
|
|
85,923
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
35,931
|
|
|
$
|
45,536
|
|
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
Source: Universal Display Corporation
News Provided by Acquire Media