Universal Display Corporation (Universal Display), a US based manufacturer of organic light emitting diode (OLED) technologies and materials, has reported total revenues of $11.1 million for the year-end 2008, compared with the total revenues of $11.3 million in the previous year-end. It has also reported a net loss of $19.1 million, or $0.53 loss per diluted share, for the year-end 2008, compared with the net loss of $16 million, or $0.47 loss per diluted share, in the previous year-end.
For the fourth quarter of 2008, the company reported a net loss of $4,437,578 or $(0.11) per diluted share, versus a net loss of $3,256,104, or $(0.08) per diluted share, for the fourth quarter of 2007.
Revenues for the fourth quarter of 2008 were $3,587,168, compared to $2,898,826 for the fourth quarter of 2007. Commercial revenue, which includes commercial chemical revenue, license and royalty revenues, and commercialization assistance revenue, was $1,355,282 for the quarter, compared to $1,226,021 for the fourth quarter of 2007. Developmental revenue, which includes development chemical revenue, contract research revenue, and technology development revenue, was $2,231,886 for the quarter, compared to $1,672,805 for the fourth quarter of 2007. Operating expenses were $9,380,361 for the fourth quarter of 2008, compared to $8,030,670 for the same quarter of 2007.
“This was a good quarter for Universal Display,” said Sidney D. Rosenblatt, executive vice president and chief financial officer of Universal Display. “While the net loss increased quarter-over-quarter, primarily due to expanding our technical team in anticipation of the growth of the OLED industry, we are encouraged by the trends we are seeing on the revenue side. Revenues for the fourth quarter of 2008 were the highest quarterly revenues in the company’s history.”
Commercial revenue for 2008 increased to $5,630,758, compared to $4,428,048 for 2007. Developmental revenue for 2008 decreased to $5,444,466, compared to $6,877,859 for 2007. Commercial revenue has steadily increased as customers’ transition from OLED development activities to sales of commercial OLED products.
“As our PHOLED technology continues to gain increased commercial adoption, we expect revenue to trend much as it did in 2008,” continued Rosenblatt. “While it is difficult to predict revenues on a quarter-to-quarter basis, we are encouraged by the commercial OLED activities of our licensees and technology partners. We believe that Universal Display remains well-positioned as OLED products gain market acceptance. As this occurs over the coming quarters, we will continue to manage our resources prudently.”
Operating expenses were $33,738,138 for the year ended December 31, 2008, compared to $31,677,765 for 2007. Operating expenses for the year were consistent with the company’s expectations and included an increase in research and development spending associated with higher patent costs, as well as increased personnel and operating costs at Universal Display’s Ewing facility. During 2008, the company increased the size of its team by 25%.
Cash used in operating activities was $7,785,164 for the year ended December 31, 2008, compared to $10,439,279 for the same period in 2007. The reduction in cash used in operating activities for the year 2008 was primarily attributable to $3.7 million in fees received by the company from customers for licenses, technical assistance and joint development work. These fees have been recorded as deferred revenue, and the company began to recognize them as revenue in the third and fourth quarters of 2008.
The company’s balance sheet remained strong at quarter end, with cash, cash equivalents and short-term investments totaling $77,454,200 as of December 31, 2008, compared to $83,659,657 as of December 31, 2007.