OLED-TV Display/Monitor Technology News

Universal Display Corporation (NASDAQ:PANL), a major force behind today’s evolving displays and lighting with its PHOLED™ phosphorescent OLED technology, today announced its results for the quarter ended September 30, 2007.

For the third quarter of 2007, the Company reported a net loss of $2,960,565 or $(0.08) per diluted share, versus a net loss of $2,943,287 or $(0.09) per diluted share for the third quarter of 2006. The Company’s net loss for the nine-month period ended September 30, 2007 was $12,719,737 or ($0.38) per diluted share, compared to a net loss of $10,777,978, or ($0.35) per diluted share, for the same period in 2006.

“Universal Display is in a solid financial position as our revenue mix reflects momentum in the commercialization of our PHOLED technology,” said Sidney D. Rosenblatt, Chief Financial Officer of Universal Display. “While revenues and net loss were about the same for the third quarters of 2006 and 2007, sequentially, we saw a significant increase in our commercial chemical revenue for the third quarter of 2007 compared to the second quarter. Revenue increased from $2,315,170 in the second quarter to $3,077,281 in the third quarter, and our net loss was reduced from $5,175,371 in the second quarter to $2,960,565 in the third quarter, as our PHOLED technology and materials continue to be incorporated into more commercial products. The OLED industry is closer than ever to realizing broad commercialization of OLED technology in personal electronics, TV’s and other display applications.”

Revenues for the three months and nine months ended September 30, 2007 were $3,077,281 and $8,407,081, respectively, compared to $3,096,288 and $9,377,010 for the same periods in 2006. Revenue components for the third quarter and first nine months of 2007 were as follows:

Commercial chemical revenues were $1,185,050 and $2,727,681, respectively, for the three months and nine months ended September 30, 2007, compared to $201,227 and $936,071 for the same periods in 2006. Commercial chemical revenue for the quarter ended September 30, 2007 and the first nine months of 2007 was positively impacted by material shipments almost entirely to Samsung SDI. Comparatively, material shipments to AU Optronics comprised the bulk of commercial chemical revenue for the same periods of 2006.

Royalty and license revenues were $183,151 and $474,346, respectively, for three months and nine months ended September 30, 2007, compared to $534,248 and $2,272,279 for the same periods in 2006. The decrease in royalty and license revenue is attributable to a suspension of OLED display production by a major customer, AU Optronics, as well as structural differences in the Company’s licensing arrangements with AU Optronics and Samsung SDI. Under the arrangement with AU Optronics, license revenues were earned when the Company sold materials to AU Optronics, while under the arrangement with Samsung SDI, corresponding royalty revenues are not earned until products incorporating the Company’s materials are sold by Samsung SDI.