UDC Announces Gains for Q3 2011

12/2/2011 9:58 AM 

Ewing, NJ; November 2011. Universal Display Corporation recently announced its results for the third quarter and nine months ended September 30, 2011. For the third quarter of 2011, the company reported net income of $6.0 million, or $0.13 per basic and $0.12 per diluted share, with revenues of $21.8 million. This compares to a net loss of $7.2 million, or $0.19 per basic and diluted share, with revenues of $7.1 million for the third quarter of 2010. Results for the third quarters of 2011 and 2010 included a non-cash gain of $240,000 and non-cash loss of $3.4 million, respectively, on stock warrant liability.

Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display, said, "We are pleased to report a significant improvement in our financial results, driven by a rapid ramp in revenues that we believe may signal the dawning of the OLED era. For the quarter, we achieved attractive returns that help demonstrate the value of the proprietary technologies and materials created by our talented and dedicated team over many years. While it is certainly rewarding to have achieved positive returns this quarter, our financial performance was accomplished although the OLED market is in its infancy. Our proprietary technologies and materials continue to show great promise in both early and advanced stages of research,development, and commercial application. We are aggressively pursuing existing growth opportunities in the smartphone, tablet, television, and lighting markets, while continuing to build our arsenal of intellectual property and next-generation materials to expand our future growth potential."

Commercial revenue, which includes commercial chemical revenue, license and royalty revenues and commercialization assistance revenue, was $9.9 million for the third quarter of 2011, compared to $2.8 million for the third quarter of 2010. Developmental revenue, which includes development chemical revenue, contract research revenue and technology development revenue, was $11.9 million for the third quarter of 2011, compared to $4.2 million for the third quarter of 2010.

Chemical revenue accounted for $3.5 million and $7.5 million of the increases in commercial and developmental revenue, respectively, for the third quarter of 2011 compared to the third quarter of 2010. Within commercial and developmental chemical revenues, host material revenues accounted for $2.9 million and $4.3 million, respectively, of this increase. Commercial revenue also benefitted from a $3.6 million increase in royalty and license revenue, primarily due to amounts received from Samsung Mobile Display Co., Ltd. (Samsung SMD).

See UDC's news page for more information on the Q3 2011 financial statement.