OLED-TV Display/Monitor Technology News

Cambridge Display Technology, Inc. (Nasdaq:OLED), a pioneer in the development of polymer organic light emitting diode (P-OLED) technology, today reported its financial results for the second quarter ended June 30, 2007.
Total revenues for the second quarter of 2007 were $2.7 million, compared with $2.7 million for the same period last year. The increase in revenue for equipment and supplies caused by a major ink sale in the second quarter of 2007 was offset by slightly reduced license revenue.

Gross profit decreased from $2.4 million in the second quarter of 2006 to $1.9 million in the second quarter of 2007 due to lower margins in technology, services, development, equipment and supplies revenue.

Research and Development expenses for the second quarter of 2007 were $3.6 million, up from $3.2 million for the second quarter of 2006. R&D expenses were impacted primarily by an increase in development costs related to CDT's Total Matrix Addressing(tm) ("TMA(tm)") technology, higher expenditures on research programs and stock-based consideration costs related to the purchase of the assets of Next Sierra Inc. in January 2007 as part of our TMA development plan.

Selling, General and Administrative expenses for the second quarter of 2007 increased to $4.6 million, from $3.6 million for the same period last year. Expenses were impacted primarily by increased stock compensation costs, professional fees incurred relating to the proposed merger with Sumitomo Chemical, and litigation expenses.

Equity in loss of affiliates increased slightly to $1.7 million for the second quarter of 2007, from $1.6 million for the same period in 2006.

Net loss increased to $7.4 million during the second quarter of 2007, from $5.0 million for the same period in 2006. This is due to lower gross profit as well as increased operating expenses.

Total deferred revenues at June 30, 2007 were $17.6 million, an increase of $12.3 million compared with the $5.3 million of deferred revenue balance at December 31, 2006. This increase was due to the receipt of cash under license and technology services contracts in the first and second quarters of 2007 exceeding the revenues recognized under those contracts during the first and second quarters of 2007. The most significant of those contracts was a major license which was sold in June 2007, pursuant to which the majority of revenues are expected to be recognised in the third quarter of 2007.

Total cash and current marketable securities was $21.3 million at June 30, 2007, as compared with $19.3 million at December 31, 2006.

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