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 March 31,
2010.
For the first quarter of 2010, the net loss was $2,978,331, or $(0.08)
per basic and diluted share, versus a net loss of $5,569,599, or $(0.15)
per basic and diluted share, for the first quarter of 2009. The
improvement in the net loss was attributable to the increase in revenue
and the decrease in operating costs. The Company also recognized an
income tax benefit of $464,162 and a gain on stock warrant liability of
$713,243 during the quarter, both of which had a positive impact on the
Company’s net loss and loss per share.
Revenues for the first quarter of 2010 were $4,246,650, compared to
$2,833,858 for the first quarter of 2009. Commercial revenue, which
includes commercial chemical revenue, license and royalty revenues, and
commercialization assistance revenue, was $1,830,147 for the quarter,
compared to $1,369,137 for the first quarter of 2009. Developmental
revenue, which includes development chemical revenue, contract research
revenue, and technology development revenue, was $2,416,503 for the
quarter, compared to $1,464,721 for the first quarter of 2009.
Operating expenses for the first quarter of 2010 were $8,470,982, a
decrease from operating expenses of $8,827,456 for the first quarter of
2009. Operating loss for the first quarter improved to $4,224,332,
compared to $5,993,598 for the first quarter of 2009. The improvement in
the operating loss was attributable to the increase in revenues and the
decrease in operating expenses.
“We are pleased with the improvement in our financial results in the
first quarter, particularly the improvement in our operating loss,” said
Sidney D. Rosenblatt, Executive Vice President and Chief Financial
Officer of Universal Display. “Both commercial and developmental revenue
continue to grow as our UniversalPHOLED™ technology and materials are
utilized in more commercial and developmental products, particularly in
white OLED lighting.”
“As licensees like Samsung SMD, LG Display and others continue to
increase their AMOLED display production, we are also seeing OLED
lighting innovations that utilize our technology and materials from our
licensees and other partners,” said Mr. Rosenblatt. “We believe that
AMOLED display production will continue to increase through 2010 and
into 2011, driving increased adoption and use of our UniversalPHOLED
technology and materials, as well as having a positive impact on our
financial performance. In addition, the increased usage of our
technology and materials for white OLED is pushing this energy efficient
solution closer to commercialization today than ever before.”
Mr. Rosenblatt concluded, “Looking ahead at the next three quarters of
2010, we expect to continue managing our expenses as the OLED market
continues to expand. We look forward to the 2010 Society for Information
Display (SID) International Symposium, Seminar & Exhibition at the end
of May where we will present our recent technological gains and newest
UniversalPHOLED materials to our customers and industry peers.”
Cash used in operating activities for the first quarter of 2010 was
$442,848, compared to $4,505,171 for the first quarter of 2009. The
improvement in cash used in operating activities was attributable to the
growth in revenues, the decrease in operating costs, and $925,000 in
payments received that were deferred during the quarter. The Company’s
balance sheet remained strong at quarter end, with cash, cash
equivalents and short-term investments totaling $63,020,995 as of March
31, 2010, compared to $63,874,081 as of December 31, 2009.
In conjunction with this release, Universal Display will host a
conference call, followed by a question and answer session, on Monday,
May 10, 2010 at 5:00 p.m. Eastern Time. Interested parties may
participate by calling 913-312-0854 at4:55 p.m. Eastern Time and
referencing conference ID 9764687. 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, May 24, 2010. The number to call
for the taped replay is 888-203-1112 and the conference PIN is 9764687.
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.
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
March 31,
December 31,
2010
2009
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
7,553,643
$
22,701,126
Short-term investments
55,467,352
41,172,955
Accounts receivable
2,399,297
3,344,255
Other current assets
372,585
411,240
Total current assets
65,792,877
67,629,576
PROPERTY AND EQUIPMENT, net
10,624,506
11,048,763
ACQUIRED TECHNOLOGY, net
810,504
1,234,272
OTHER ASSETS
245,557
227,276
TOTAL ASSETS
$
77,473,444
$
80,139,887
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$
1,620,909
$
1,275,695
Accrued expenses
3,470,776
5,238,870
Deferred license fees
6,178,886
6,047,467
Deferred revenue
1,041,731
1,403,927
Total current liabilities
12,312,302
13,965,959
DEFERRED LICENSE FEES
3,271,388
2,826,237
STOCK WARRANT LIABILITY
3,006,922
3,720,165
Total liabilities
18,590,612
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, 50,000,000 shares
authorized, 37,593,459 and 36,818,440 shares issued and
outstanding at March 31, 2010 and December 31, 2009, respectively
375,935
368,184
Additional paid-in capital
258,599,927
256,340,530
Unrealized (loss) gain on available-for-sale securities
(7,994
)
25,517
Accumulated deficit
(200,087,036
)
(197,108,705
)
Total shareholders' equity
58,882,832
59,627,526
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
77,473,444
$
80,139,887
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended March 31,
2010
2009
REVENUE:
Commercial revenue
$
1,830,147
$
1,369,137
Developmental revenue
2,416,503
1,464,721
Total revenue
4,246,650
2,833,858
OPERATING EXPENSES:
Cost of chemicals sold
460,786
170,987
Research and development
4,466,631
5,219,062
Selling, general and administrative
2,642,246
2,622,945
Patent costs
781,259
731,531
Royalty and license expense
120,060
82,931
Total operating expenses
8,470,982
8,827,456
Operating loss
(4,224,332
)
(5,993,598
)
INTEREST INCOME
75,655
253,400
INTEREST EXPENSE
(7,059
)
(2,643
)
GAIN ON STOCK WARRANT LIABILITY
713,243
173,242
LOSS BEFORE INCOME TAX BENEFIT
(3,442,493
)
(5,569,599
)
INCOME TAX BENEFIT
464,162
-
NET LOSS
$
(2,978,331
)
$
(5,569,599
)
BASIC AND DILUTED NET LOSS PER COMMON SHARE
$
(0.08
)
$
(0.15
)
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
37,029,462
36,299,967
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Three Months Ended March 31,
2010
2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(2,978,331
)
$
(5,569,599
)
Adjustments to reconcile net loss to net cash used in operating
activities:
Amortization of deferred license fees and deferred revenue
(710,626
)
(663,634
)
Depreciation
513,557
517,472
Amortization of intangibles
423,768
423,768
Amortization of premium and discount on investments, net
(43,619
)
(144,887
)
Stock-based employee compensation
463,133
551,489
Stock-based non-employee compensation
40,848
1,998
Non-cash expense under a materials agreement
243,459
309,375
Stock-based compensation to Board of Directors and Scientific
Advisory Board
149,703
71,524
Gain on stock warrant liability
(713,243
)
(173,242
)
(Increase) decrease in assets:
Accounts receivable
944,958
637,086
Other current assets
38,655
(20,988
)
Other assets
(18,281
)
(13,719
)
Increase (decrease) in liabilities:
Accounts payable and accrued expenses
278,171
(498,481
)
Deferred license fees
800,000
-
Deferred revenue
125,000
66,667
Net cash used in operating activities
(442,848
)
(4,505,171
)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
(89,300
)
(95,801
)
Purchases of short-term investments
(35,224,272
)
(36,479,245
)
Proceeds from sale of short-term investments
20,939,983
19,655,000
Net cash used in investing activities
(14,373,589
)
(16,920,046
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of common stock
62,659
-
Proceeds from the exercise of common stock options and warrants
722,682
-
Payment of withholding taxes related to stock-based employee
compensation
(1,116,387
)
(831,877
)
Net cash used in financing activities
(331,046
)
(831,877
)
DECREASE IN CASH AND CASH EQUIVALENTS
(15,147,483
)
(22,257,094
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
22,701,126
28,321,581
CASH AND CASH EQUIVALENTS, END OF PERIOD
$
7,553,643
$
6,064,487
Universal Display Corporation Dean Ledger, 800-599-4426 or Gregory
FCA Communications Investor contact: Paul Johnson, 610-228-2113 [email protected] or Media
contact: Matt McLoughlin, 610-228-2123 [email protected]
