Universal Display Corporation, a major force behind today’s evolving displays and lighting with its Universal
PHOLED™ phosphorescent OLED technology, today announced its results for the
quarter ended September 30, 2008.
For the third quarter of 2008, the Company reported a net loss of $5,302,983, or $(0.15)
per diluted share, versus a net loss of $2,960,565, or $(0.08) per diluted share, for the
third quarter of 2007.
“The rise in net loss was partially attributable to a decline in revenue of approximately
$450,000 and a decrease of $570,000 in interest income, due to reduced rates of return of
investments. This quarter also saw an increase in operating expenses, specifically
research and development, compared to the third quarter of 2007, which had been lower
than average. Operating expenses for the third quarter of 2008 were in line with the prior
quarters of 2008,” said Sidney D. Rosenblatt, Executive Vice President and Chief
Financial Officer of Universal Display.
For the nine months ended September 30, 2008, net loss totalled $14,702,158, or $(0.41)
per diluted share, versus a net loss of $12,719,737, or $(0.38) per diluted share for the
same period of 2007.
Operating expenses for the third quarter of 2008 were $8,458,503, compared to
$7,150,030 for the same period of 2007, and $24,357,777 for the nine-months ended
September 30, 2008, compared to $23,647,095 for the same period of 2007.
Cash used in operating activities was $522,950 and $6,801,677 for the three months and
nine months ended September 30, 2008, compared to $2,575,906 and $9,450,432 for the
same periods in 2007. The main reason for reduced cash used in operating activities was
that during the third quarter of 2008, the Company received $2,200,000 in fees from
customers for licenses, technical assistance and joint development work. The Company
recorded these fees as deferred revenue and began recognizing a portion of them in the
third quarter.
Revenues for the third quarter of 2008 were $2,625,639, compared to $3,077,281 for the
third quarter of 2007. Commercial revenue, which includes commercial chemical
revenue, license fees and royalty income, was $1,324,924 for the quarter, compared to
$1,368,201 for the third quarter of 2007. Developmental revenue, which includes
contract research revenue, technology development revenue and development chemical
revenue, were $1,300,715 for the quarter, compared to $1,709,080 for the third quarter of
2007.
Commercial revenue stayed relatively constant on a quarter-over-quarter basis
because revenues from the Company’s licensee, Samsung SDI, were essentially the same.
For the nine months ended September 30, 2008, the Company reported revenues of
$7,488,056, compared to $8,407,081 for the same period of 2007. Commercial revenue
for the first nine months of 2008 increased to $4,275,476, compared to $3,202,027 for the
same period of 2007. Developmental revenue for the first nine months of 2008 decreased
to $3,212,580, compared to $5,205,054 for the same period of 2007.
“Commercial revenue remained constant during the third quarter of 2008 when compared
with the same quarter of 2007, and increased for the first nine months of 2008 versus the
