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Universal Display Corporation Announces First Quarter 2010 Financial Results

^{Published on 2010-05-10 13:25:30 - Market Wire}
 

EWING, N.J.--([ BUSINESS WIRE ])--Universal Display Corporation (NASDAQ: PANL), enabling energy-efficient displays and lighting with its UniversalPHOLEDa" technology and materials, today announced its results for the quarter ended March 31, 2010.

"We are pleased with the improvement in our financial results in the first quarter, particularly the improvement in our operating loss"

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 Companya™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.

aWe are pleased with the improvement in our financial results in the first quarter, particularly the improvement in our operating loss,a said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. aBoth commercial and developmental revenue continue to grow as our UniversalPHOLEDa" technology and materials are utilized in more commercial and developmental products, particularly in white OLED lighting.a

aAs 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,a said Mr. Rosenblatt. aWe 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.a

Mr. Rosenblatt concluded, aLooking 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.a

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 Companya™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 UniversalPHOLEDa" 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 Corporationa™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 Corporationa™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 Corporationa™s periodic reports on Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, including, in particular, the section entitled aRisk Factorsa in Universal Display Corporationa™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.