Universal Display Corporation : Announces First Quarter 2012 Financial Results
05/09/2012| 04:15pm US/Eastern
Recommend:
0
Universal Display Corporation (NASDAQ: PANL), enabling energy-efficient
displays and lighting with its UniversalPHOLED® technology and
materials, today announced its results for the first quarter of 2012.
For the first quarter of 2012, the Company reported an operating loss of
$1.6 million and a net loss of $1.2 million, or ($0.03) per diluted
share, on revenues of $12.6 million. This compares to an operating loss
of $2.7 million and a net loss of $11.9 million, or ($0.31) per diluted
share, on revenues of $9.6 million for the first quarter of 2011. The
net loss for the first quarter of 2011 included an $8.9 million loss on
stock warrant liability. Operating expenses for the first quarter of
2012 were $14.2 million, compared to $12.3 million in the first quarter
of 2011.
Results in the first quarter do not include the recognition of any
revenue under a licensing agreement with Samsung Mobile Display (SMD),
under which SMD is obligated to make payments to the Company of $15
million in each of the second and fourth quarters of this year. Had the
Company recognized these payments on a pro rata quarterly basis over the
year, it would have resulted in an additional $7.5 million of royalty
and license fees revenue in the first quarter. The Company will incur a
license fee of 3% payable to its university partners, and 16.5% payable
as tax on sales to South Korea in connection with the SMD licensing
revenue.
"Results in the quarter continue to reflect the growing demand for our
proprietary materials and technology consistent with the steady growth
in the OLED market," said Sidney D. Rosenblatt, Executive Vice President
and Chief Financial Officer of Universal Display. "Not surprising, given
the growth in the OLED market, material sales under commercial
agreements more than doubled this quarter compared to the first quarter
of 2011, reflecting the strong correlation between material sales under
commercial agreements and the size of the OLED market. Developments in
both the display and lighting markets around the world seem to be
accelerating. Our goal is to continually improve the performance of
OLEDs through the advancement of our industry leading technology and
materials to both support and encourage a widening adoption of OLEDs for
an ever increasing variety of applications."
Revenues for the first quarter of 2012 were $12.6 million, up 31%
compared to first quarter 2011 revenues of $9.6 million, led by a 132%
increase in material sales to $10.6 million compared to $4.5 million for
the first quarter of 2011. Increased material sales primarily reflect
increased sales under commercial agreements to a large customer. Royalty
and license fees for the quarter were $422,000, compared to $2.7 million
for the first quarter of 2011. Royalty and license fees for this quarter
were lower in large part as the result of the new arrangement with SMD,
which provides for the payment of $15 million in the second and fourth
quarter of this fiscal year. Revenues in the fourth quarter of 2011
included $5 million in license payments from SMD under the new
arrangement, which was before the new arrangement increased SMD's annual
license payment obligation to the higher 2012 level.
Cash used in operating activities for the first quarter of 2012 was $2
million compared to cash generated by operating activities of $1.6
million in the first quarter of 2011. The increase in cash used was
mainly due to the impact of the timing of the payment of both accounts
payables and accrued expenses as well as the timing of inventory
purchases and payment of other current assets. The Company's balance
sheet remained strong at quarter end, with cash, cash equivalents and
investments totaling $339.5 million as of March 31, 2012, compared to
$346.1 million as of December 31, 2011.
Mr. Rosenblatt concluded, "While material sales under commercial
agreements in the quarter doubled due to the growth of products in the
market utilizing OLED technology, material sales under development
agreements in the quarter also doubled from the same period last year as
we grew the number of display, lighting and similar companies that are
employing our materials in the development of the OLED-powered products
and applications of the future. We're also sustaining our own research
and development efforts and maintaining our industry-leading position
through the development of new compounds and technologies as well as
through the filing of new patents and the tenacious defense of our
established intellectual property. As manufacturers exhibit a vast and
increasing variety of dazzling new OLED-powered products, from flexible
displays to OLED televisions to white lighting, Universal Display's goal
remains to be at the forefront of the pioneers that are transforming the
display and lighting markets."
Our new arrangement with Samsung SMD provides the first real visibility
into our potential future financial performance. Although the OLED
industry is still at the stage where many variables can have a material
effect on growth, in an effort to increase our transparency, we are
providing the following financial guidance. Again with the caveat that
the OLED industry is still in an early stage, we believe that our
revenues will be in the range of $90 million to $110 million for fiscal
2012.
In conjunction with this release, Universal Display will host a
conference call, followed by a question and answer session, on
Wednesday, May 9, 2012 at 5:00 p.m. Eastern Time. Interested parties may
participate by calling 888-442-4145 at 5:00 p.m. Eastern Time and
referencing conference ID 4014069. A taped replay of the conference call
will be available within two hours of the conclusion of the call and
will remain available through Wednesday, May 23, 2012. The number to
call for the taped replay is 888-203-1112, and the conference PIN is4014069.
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 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
1,400 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., Lumiotec, Inc., Moser Baer Technologies Inc.,
Panasonic Idemitsu OLED Lighting Co., Pioneer Corporation, 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, 2011.
Universal Display Corporation disclaims any obligation to update any
forward-looking statement contained in this document.
TABLES FOLLOW
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in thousands, except for share and per share data)
March 31,
December 31,
2012
2011
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
144,246
$
111,795
Short-term investments
194,331
234,294
Accounts receivable
8,708
10,727
Inventory
5,574
3,843
Other current assets
2,472
1,645
Total current assets
355,331
362,304
PROPERTY AND EQUIPMENT, net
12,268
10,884
ACQUIRED TECHNOLOGY, net
376
391
INVESTMENTS
971
-
OTHER ASSETS
284
299
TOTAL ASSETS
$
369,230
$
373,878
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$
4,600
$
4,776
Accrued expenses
6,506
9,020
Deferred revenue
5,897
5,534
Other current liabilities
284
187
Total current liabilities
17,287
19,517
DEFERRED REVENUE
3,636
3,874
RETIREMENT PLAN BENEFIT LIABILITY
8,401
8,260
Total liabilities
29,324
31,651
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
2
Common Stock, par value $0.01 per share, 100,000,000 shares
authorized, 46,336,765 and 46,113,296 shares issued and
outstanding at March 31, 2012 and December 31, 2011, respectively
463
461
Additional paid-in capital
560,346
561,492
Accumulated deficit
(215,092
)
(213,871
)
Accumulated other comprehensive loss
(5,813
)
(5,857
)
Total shareholders' equity
339,906
342,227
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
369,230
$
373,878
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except for share and per share data)
Three Months Ended March 31,
2012
2011
REVENUE:
Material sales
$
10,529
$
4,537
Royalty and license fees
422
2,669
Technology development and support revenue
1,669
2,395
Total revenue
12,620
9,601
OPERATING EXPENSES:
Cost of material sales
1,088
103
Research and development
6,661
6,555
Selling, general and administrative
4,311
3,872
Patent costs
1,868
1,613
Royalty and license expense
250
202
Total operating expenses
14,178
12,345
Operating loss
(1,558
)
(2,744
)
INTEREST INCOME
357
96
INTEREST EXPENSE
(20
)
(10
)
LOSS ON STOCK WARRANT LIABILITY
-
(8,926
)
LOSS BEFORE INCOME TAX EXPENSE
(1,221
)
(11,584
)
INCOME TAX EXPENSE
-
(297
)
NET LOSS
$
(1,221
)
$
(11,881
)
BASIC AND DILUTED NET LOSS PER COMMON SHARE
$
(0.03
)
$
(0.31
)
WEIGHTED AVERAGE SHARES USED IN COMPUTING BASIC AND DILUTED NET
LOSS PER COMMON SHARE
45,749,072
38,895,999
UNIVERSAL DISPLAY CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
Three Months Ended March 31,
2012
2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$
(1,221
)
$
(11,881
)
Adjustments to reconcile net loss to net cash (used in) provided
by operating activities:
Amortization of deferred revenue
(917
)
(705
)
Depreciation
418
372
Amortization of intangibles
15
5
Amortization of premium and discount on investments, net
(238
)
(64
)
Stock-based employee compensation
800
1,039
Non-cash expense under a materials agreement
-
9
Stock-based compensation to Board of Directors and Scientific
Advisory Board
213
529
Loss on stock warrant liability
-
8,926
Retirement plan benefit expense
388
382
Decrease (increase) in assets:
Accounts receivable
2,019
1,263
Inventory
(1,731
)
(89
)
Other current assets
(827
)
394
Other assets
15
(116
)
(Decrease) increase in liabilities:
Accounts payable and accrued expenses
(1,987
)
253
Other current liabilities
(1
)
-
Deferred revenue
1,042
1,300
Net cash (used in) provided by operating activities
(2,012
)
1,617
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment
(1,802
)
(475
)
Purchase of intangibles
-
(440
)
Purchase of investments
(139,512
)
(37,346
)
Proceeds from sale of investments
178,638
23,396
Net cash provided by (used in) investing activities
37,324
(14,865
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of common stock
71
249,803
Proceeds from the exercise of common stock options and warrants
541
5,120
Payment of withholding taxes related to stock-based employee
compensation
(3,473
)
(3,938
)
Net cash (used in) provided by financing activities
(2,861
)
250,985
INCREASE IN CASH AND CASH EQUIVALENTS
32,451
237,737
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
111,795
20,369
CASH AND CASH EQUIVALENTS, END OF PERIOD
$
144,246
$
258,106
Universal Display Corporation Investor Relations: Gregory
FCA Joe Hassett, 610-228-2110 joeh@gregoryfca.com or Media
Contact: Gregory FCA Matt McLoughlin, 610-228-2123 matt@gregoryfca.com
Recommend:
