OLED-TV Display/Monitor Technology News

Universal Display Corporation (NASDAQ:PANL), a key innovator behind tomorrow’s displays and lighting through its phosphorescent OLED technology, today announced its results for the second quarter ended June 30, 2007.

Revenues for the three months and six months ended June 30, 2007 were $2,315,170 and $5,329,800, respectively, compared to $3,009,316 and $6,280,722 for the same periods in 2006. Revenue components for the second quarter and first six months of 2007 were as follows:

Commercial chemical revenues were $229,631 and $1,542,631, for the three months and six months ended June 30, 2007, respectively, compared to $336,365 and $734,844 for the same periods in 2006. Commercial chemical revenue for the first six months of 2007 was positively impacted by material shipments almost entirely to Samsung SDI. In 2006, commercial chemical revenue was mainly from material shipments to AU Optronics.

Royalty and license revenues were $163,295 and $291,195 for three months and six months ended June 30, 2007, respectively, compared to $807,185 and $1,738,031 for the same periods in 2006. Royalty and license revenue decreased in both periods of 2007 due to AU Optronics discontinuing its purchase of materials for which in 2006 we recognized both commercial chemical and license revenue, unlike the agreement with Samsung SDI for which royalties will be recorded after Samsung SDI sells the products.

Technology development revenues were $250,000 and $500,000 for the three months and six months ended June 30, 2007, compared to $667,613 and $1,397,727 for the same periods in 2006. The decrease was due to the completion of work on certain technology development agreements.

Development chemical revenues were $366,998 and $576,204 for the three months and six months ended June 30, 2007, compared to $296,624 and $972,530 for the same periods in 2006. The decrease for the six month period was primarily attributable to the transition of Samsung SDI from development to commercial chemical sales.

Contract research revenues were $1,305,246 and $2,419,770 for the three months and six months ended June 30, 2007, compared to $901,529 and $1,437,590 for same periods in 2006. The growth in contract research revenue reflects additional activity under government contracts with the U.S. Departments of Defense and Energy for flexible OLED displays and OLEDs for lighting and the timing of payments received under existing government contracts.

The Company had a strong balance sheet at quarter end, with cash, cash equivalents, short-term and long-term investments of $84,339,097 as of June 30, 2007, compared to $49,098,055 as of December 31, 2006. The increase in the cash position reflects proceeds from the Company’s offering of 2.8 million shares of its common stock at a price of $14.50 per share during the second quarter.

“While we continue to experience a shift in our revenue mix as our technology is commercialized, we have and expect to continue to experience fluctuations in revenues as the market for our OLED technology continues to develop,” said Sidney D. Rosenblatt, Chief Financial Officer of Universal Display. “The next year will be an important time for Universal Display as we continue to advance our PHOLED technology for displays and lighting applications, and as display manufacturers continue to incorporate our OLED technology and materials into their commercial products. We believe that the Company is in a strong technological and financial position as it enters a new era in display technology.”