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 second quarter of 2011.
Revenues for the second quarter of 2011 were $11,252,415, a 33 percent increase compared to revenues of $8,446,829 in the same quarter a year ago. Commercial revenue, which includes commercial chemical revenue, license and royalty revenues, and commercialization assistance revenue, was $5,278,704 for the quarter, compared to $1,951,892 for the second quarter of 2010, an increase of 170 percent. The increase was primarily due to increased commercial chemical sales and royalty revenues.
Developmental revenue, which includes development chemical revenue, contract research revenue, and technology development revenue, was $5,973,711 for the quarter, compared to $6,494,937 for the second quarter of 2010, an eight percent decrease. For the second quarter of 2010, developmental revenue included the recognition of $2,100,000 in non-refundable payments previously received from a customer for technical assistance. There were no comparable revenues recognized in the current quarter.
For the second quarter of 2011, the company reported an operating loss of $1,070,753, compared to an operating loss of $1,909,144 for the second quarter of 2010. For the second quarter of 2011, net income was $3,312,700, corresponding to earnings of $0.07 per basic share and a loss of $0.03 per diluted share, compared to a net loss of $4,436,095 for the second quarter of 2010, corresponding to a loss of $0.12 per basic and diluted share. Net income for the second quarter of 2011 included a $4,496,367 non-cash gain on stock warrant liability, compared to a non-cash loss of $2,582,428 on stock warrant liability for the second quarter of 2010. Operating expenses for the second quarter of 2011 were $12,323,168, compared to $10,355,973 for the second quarter of 2010.
Cash provided by operating activities for the second quarter of 2011 was approximately $223,000, compared to approximately $2,315,000 of cash used in operating activities for the second quarter of 2010. The increase in cash provided by operating activities was primarily due to an improvement in the net loss, excluding non-cash items, of approximately $2.4 million on a year-over-year basis. With $250 million raised in an equity offering in March 2011, the company’s balance sheet remained strong, with cash, cash equivalents and short-term investments of $326 million as of June 30, 2011.
“We are pleased to report the best revenue quarter in our company’s history on the strength of increasing commercial revenue and development chemical sales,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. “Key to our sustained growth, commercial revenue was up 170 percent for the quarter, reflecting the accelerating pace at which products using our technology and materials are moving into the market. Developmental revenue was also strong, indicative of a broadening range of customer development efforts that utilize our proprietary technology and materials for a wide array of exciting displays and lighting applications. Operating performance also improved, with strong margins on incremental revenues. We also achieved positive operating cash flow for the third consecutive quarter. While the bottom line benefited from non-cash gains this quarter, we certainly believe that our financial performance illustrates the significant progress we are making in creating value for our shareholders.”
Mr. Rosenblatt concluded, “In addition to our financial results, we are making equally impressive progress in our efforts to strengthen our intellectual property position and to develop innovative new applications for our technologies and materials. Our patented encapsulation technology for the packaging of flexible OLEDs and other thin-film devices, advances in our printable UniversalP2OLED technology and materials, and flexible OLED display and lighting panel initiatives are some of the exciting projects ongoing at Universal Display that may lead to new growth markets for the company. With momentum building for OLEDs in mobile, television and lighting applications, the advances being achieved in our OLED technologies and materials continue to position our company as the leading OLED technology provider.”
In conjunction with this release, Universal Display will host a conference call, followed by a question and answer session, on Monday, August 8, 2011 at 5:00 p.m. Eastern Time. Interested parties may participate by calling 888-378-4353 at 5:00 p.m. Eastern Time and referencing conference ID 7555624. 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, August 22, 2011. The number to call for the taped replay is 888-203-1112, and the conference PIN is 7555624.
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 1,200 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 and quarterly report on Form 10-Q for the quarterly period ended March 31, 2011. 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) | ||||||||||
| June 30, | December 31, | |||||||||
| 2011 | 2010 | |||||||||
| ASSETS | ||||||||||
| CURRENT ASSETS: | ||||||||||
| Cash and cash equivalents | $ | 65,240,065 | $ | 20,368,852 | ||||||
| Short-term investments | 261,158,726 | 52,794,545 | ||||||||
| Accounts receivable | 6,541,232 | 7,247,873 | ||||||||
| Other current assets | 2,841,934 | 1,988,239 | ||||||||
| Total current assets | 335,781,957 | 82,399,509 | ||||||||
| PROPERTY AND EQUIPMENT, net | 10,487,827 | 9,711,093 | ||||||||
| ACQUIRED TECHNOLOGY, net | 420,105 | - | ||||||||
| OTHER ASSETS | 323,235 | 216,529 | ||||||||
| TOTAL ASSETS | $ | 347,013,124 | $ | 92,327,131 | ||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
| CURRENT LIABILITIES: | ||||||||||
| Accounts payable | $ | 3,161,943 | $ | 2,155,489 | ||||||
| Accrued expenses | 5,667,855 | 6,906,289 | ||||||||
| Deferred revenue | 4,816,882 | 5,323,154 | ||||||||
| Stock warrant liability | 4,588,178 | 10,659,755 | ||||||||
| Total current liabilities | 18,234,858 | 25,044,687 | ||||||||
| DEFERRED REVENUE | 3,446,843 | 2,775,024 | ||||||||
| RETIREMENT PLAN BENEFIT LIABILITY | 7,541,337 | 7,077,901 | ||||||||
| Total liabilities | 29,223,038 | 34,897,612 | ||||||||
| 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, 45,552,175 and 38,936,571 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively |
455,522 | 389,366 | ||||||||
| Additional paid-in capital | 548,871,155 | 280,102,227 | ||||||||
| Accumulated deficit | (225,594,271 | ) | (217,026,115 | ) | ||||||
| Accumulated other comprehensive loss | (5,944,320 | ) | (6,037,959 | ) | ||||||
| Total shareholders' equity | 317,790,086 | 57,429,519 | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 347,013,124 | $ | 92,327,131 | ||||||
| UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| (unaudited) | ||||||||||
| Three Months Ended June 30, | ||||||||||
| 2011 | 2010 | |||||||||
| REVENUE: | ||||||||||
| Commercial revenue | $ | 5,278,704 | $ | 1,951,892 | ||||||
| Developmental revenue | 5,973,711 | 6,494,937 | ||||||||
| Total revenue | 11,252,415 | 8,446,829 | ||||||||
| OPERATING EXPENSES: | ||||||||||
| Cost of chemicals sold | 142,540 | 218,417 | ||||||||
| Research and development | 5,551,492 | 5,500,507 | ||||||||
| Selling, general and administrative | 4,495,821 | 3,624,582 | ||||||||
| Patent costs | 1,915,060 | 843,907 | ||||||||
| Royalty and license expense | 218,255 | 168,560 | ||||||||
| Total operating expenses | 12,323,168 | 10,355,973 | ||||||||
| Operating loss | (1,070,753 | ) | (1,909,144 | ) | ||||||
| INTEREST INCOME | 184,877 | 61,125 | ||||||||
| INTEREST EXPENSE | (8,430 | ) | (5,648 | ) | ||||||
| GAIN (LOSS) ON STOCK WARRANT LIABILITY | 4,496,367 | (2,582,428 | ) | |||||||
| INCOME (LOSS) BEFORE INCOME TAX EXPENSE | 3,602,061 | (4,436,095 | ) | |||||||
| INCOME TAX EXPENSE | (289,361 | ) | - | |||||||
| NET INCOME (LOSS) | $ | 3,312,700 | $ | (4,436,095 | ) | |||||
| NET INCOME (LOSS) PER COMMON SHARE: | ||||||||||
| BASIC | $ | 0.07 | $ | (0.12 | ) | |||||
| DILUTED | $ | (0.03 | ) | $ | (0.12 | ) | ||||
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER COMMON SHARE: |
||||||||||
| BASIC | 45,024,373 | 37,362,176 | ||||||||
| DILUTED | 45,201,175 | 37,362,176 | ||||||||
| UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||
| (unaudited) | ||||||||||
| Six Months Ended June 30, | ||||||||||
| 2011 | 2010 | |||||||||
| REVENUE: | ||||||||||
| Commercial revenue | $ | 10,022,779 | $ | 3,782,039 | ||||||
| Developmental revenue | 10,830,176 | 8,911,440 | ||||||||
| Total revenue | 20,852,955 | 12,693,479 | ||||||||
| OPERATING EXPENSES: | ||||||||||
| Cost of chemicals sold | 245,202 | 317,037 | ||||||||
| Research and development | 12,106,610 | 10,329,304 | ||||||||
| Selling, general and administrative | 8,367,778 | 6,266,828 | ||||||||
| Patent costs | 3,528,102 | 1,625,166 | ||||||||
| Royalty and license expense | 420,039 | 288,620 | ||||||||
| Total operating expenses | 24,667,731 | 18,826,955 | ||||||||
| Operating loss | (3,814,776 | ) | (6,133,476 | ) | ||||||
| INTEREST INCOME | 280,350 | 136,780 | ||||||||
| INTEREST EXPENSE | (18,068 | ) | (12,707 | ) | ||||||
| LOSS ON STOCK WARRANT LIABILITY | (4,429,845 | ) | (1,869,185 | ) | ||||||
| LOSS BEFORE INCOME TAX (EXPENSE) BENEFIT | (7,982,339 | ) | (7,878,588 | ) | ||||||
| INCOME TAX (EXPENSE) BENEFIT | (585,817 | ) | 464,162 | |||||||
| NET LOSS | $ | (8,568,156 | ) | $ | (7,414,426 | ) | ||||
|
BASIC AND DILUTED NET LOSS PER COMMON SHARE |
$ | (0.20 | ) | $ | (0.20 | ) | ||||
|
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET LOSS PER COMMON SHARE |
41,977,113 | 37,196,741 | ||||||||
| UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
| (unaudited) | ||||||||||
| Six Months Ended June 30, | ||||||||||
| 2011 | 2010 | |||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
| Net loss | $ | (8,568,156 | ) | $ | (7,414,426 | ) | ||||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||||
| Amortization of deferred revenue | (1,479,453 | ) | (3,653,330 | ) | ||||||
| Depreciation | 733,597 | 944,798 | ||||||||
| Amortization of intangibles | 19,539 | 847,536 | ||||||||
| Amortization of premium and discount on investments, net | (166,491 | ) | (80,168 | ) | ||||||
| Stock-based employee compensation | 2,150,898 | 1,191,701 | ||||||||
| Stock-based non-employee compensation | 1,934 | 43,308 | ||||||||
| Non-cash expense under a materials agreement | 9,181 | 557,223 | ||||||||
| Stock-based compensation to Board of Directors and Scientific Advisory Board | 718,117 | 384,665 | ||||||||
| Loss on stock warrant liability | 4,429,845 | 1,869,185 | ||||||||
| Retirement plan benefit expense | 763,436 | 342,081 | ||||||||
| Decrease (increase) in assets: | ||||||||||
| Accounts receivable | 706,641 | (541,125 | ) | |||||||
| Other current assets | (853,695 | ) | (44,828 | ) | ||||||
| Other assets | (106,706 | ) | (43,656 | ) | ||||||
| Increase in liabilities: | ||||||||||
| Accounts payable and accrued expenses | 1,836,456 | 1,464,055 | ||||||||
| Deferred revenue | 1,645,000 | 1,375,000 | ||||||||
|
Net cash provided by (used in) operating activities |
1,840,143 | (2,757,981 | ) | |||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
| Purchases of property and equipment | (1,510,331 | ) | (144,376 | ) | ||||||
| Purchase of intangibles | (439,644 | ) | - | |||||||
| Purchases of short-term investments | (253,903,705 | ) | (51,910,640 | ) | ||||||
| Proceeds from sale of short-term investments | 45,499,654 | 38,784,983 | ||||||||
| Net cash used in investing activities | (210,354,026 | ) | (13,270,033 | ) | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
| Proceeds from the issuance of common stock | 249,821,785 | 129,650 | ||||||||
| Proceeds from the exercise of common stock options and warrants | 7,542,784 | 6,083,944 | ||||||||
| Payment of withholding taxes related to stock-based employee compensation | (3,979,473 | ) | (1,132,421 | ) | ||||||
| Net cash provided by financing activities | 253,385,096 | 5,081,173 | ||||||||
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 44,871,213 | (10,946,841 | ) | |||||||
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 20,368,852 | 22,701,126 | ||||||||
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 65,240,065 | $ | 11,754,285 | ||||||