Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 04, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'UNIVERSAL DISPLAY CORP \PA\ | ' |
Entity Central Index Key | '0001005284 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 46,283,339 |
CONSOLIDATED_BALANCE_SHEETS_UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $67,085 | $85,923 |
Short-term investments | 181,193 | 158,018 |
Accounts receivable | 17,785 | 8,657 |
Inventory | 7,852 | 11,018 |
Other current assets | 6,387 | 3,929 |
Total current assets | 280,302 | 267,545 |
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $22,206 and $20,713 | 14,698 | 11,808 |
ACQUIRED TECHNOLOGY, net of accumulated amortization of $30,091 and $21,868 | 96,768 | 104,624 |
INVESTMENTS | 7,971 | 1,270 |
OTHER ASSETS | 282 | 277 |
TOTAL ASSETS | 400,021 | 385,524 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 8,042 | 7,596 |
Accrued expenses | 9,661 | 10,394 |
Deferred revenue | 3,684 | 4,273 |
Other current liabilities | 15 | 36 |
Total current liabilities | 21,402 | 22,299 |
DEFERRED REVENUE | 2,591 | 3,153 |
RETIREMENT PLAN BENEFIT LIABILITY | 10,579 | 9,837 |
Total liabilities | 34,572 | 35,289 |
SHAREHOLDERS’ EQUITY: | ' | ' |
Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 shares of Series A Nonconvertible Preferred Stock issued and outstanding (liquidation value of $7.50 per share or $1,500) | 2 | 2 |
Common Stock, par value $0.01 per share, 100,000,000 shares authorized, 46,670,763 and 46,561,437 shares issued at September 30, 2013 and December 31, 2012, respectively | 467 | 465 |
Additional paid-in capital | 568,896 | 564,883 |
Accumulated deficit | -188,045 | -204,211 |
Accumulated other comprehensive loss | -5,213 | -5,702 |
Treasury stock, at cost (401,501 and 205,902 shares at September 30, 2013 and December 31, 2012, respectively) | -10,658 | -5,202 |
Total shareholders’ equity | 365,449 | 350,235 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $400,021 | $385,524 |
CONSOLIDATED_BALANCE_SHEETS_UN1
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Property and Equipment, accumulated depreciation | $22,206,000 | $20,713,000 |
Acquired Technology, accumulated amortization | 30,091,000 | 21,868,000 |
Preferred Stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred Stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued (in shares) | 200,000 | 200,000 |
Preferred Stock, shares outstanding (in shares) | 200,000 | 200,000 |
Preferred Stock, liquidation value per share (in dollars per share) | $7.50 | $7.50 |
Preferred Stock, liquidation value | $1,500,000 | $1,500,000 |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, shares issued (in shares) | 46,670,763 | 46,561,437 |
Treasury Stock, shares | 401,501 | 205,902 |
CONSLIDATED_STATEMENTS_OF_OPER
CONSLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUE: | ' | ' | ' | ' |
Material sales | $30,286 | $10,984 | $70,175 | $34,361 |
Royalty and license fees | 1,456 | 396 | 23,956 | 16,253 |
Technology development and support revenue | 1,084 | 1,124 | 3,030 | 4,497 |
Total revenue | 32,826 | 12,504 | 97,161 | 55,111 |
OPERATING EXPENSES: | ' | ' | ' | ' |
Cost of material sales | 9,783 | 1,094 | 21,157 | 3,793 |
Research and development | 7,862 | 8,177 | 24,116 | 22,074 |
Selling, general and administrative | 6,411 | 5,275 | 17,918 | 14,761 |
Patent costs and amortization of acquired technology | 3,899 | 3,736 | 13,038 | 7,859 |
Royalty and license expense | 624 | 283 | 2,108 | 1,319 |
Total operating expenses | 28,579 | 18,565 | 78,337 | 49,806 |
Operating income (loss) | 4,247 | -6,061 | 18,824 | 5,305 |
INTEREST INCOME | 206 | 272 | 594 | 986 |
INTEREST EXPENSE | -13 | -5 | -31 | -43 |
INCOME (LOSS) BEFORE INCOME TAXES | 4,440 | -5,794 | 19,387 | 6,248 |
INCOME TAX BENEFIT (EXPENSE) | 1,102 | 326 | -3,221 | -1,973 |
NET INCOME (LOSS) | $5,542 | ($5,468) | $16,166 | $4,275 |
NET INCOME (LOSS) PER COMMON SHARE: | ' | ' | ' | ' |
BASIC (in dollars per share) | $0.12 | ($0.12) | $0.35 | $0.09 |
DILUTED (in dollars per share) | $0.12 | ($0.12) | $0.35 | $0.09 |
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME (LOSS) PER COMMON SHARE: | ' | ' | ' | ' |
BASIC (in shares) | 45,912,512 | 46,006,290 | 45,865,395 | 45,916,536 |
DILUTED (in shares) | 46,594,843 | 46,006,290 | 46,547,568 | 46,912,557 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Other Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $5,542 | ($5,468) | $16,166 | $4,275 |
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX: | ' | ' | ' | ' |
Unrealized (loss) gain on available-for-sale securities | -54 | 55 | -19 | 16 |
Amortization of prior service cost and actuarial loss for retirement plan included in net periodic pension costs | 169 | 148 | 508 | 445 |
TOTAL OTHER COMPREHENSIVE INCOME | 115 | 203 | 489 | 461 |
COMPREHENSIVE INCOME (LOSS) | $5,657 | ($5,265) | $16,655 | $4,736 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $16,166 | $4,275 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Amortization of deferred revenue | -3,282 | -2,685 |
Depreciation | 1,493 | 1,449 |
Amortization of intangibles | 8,224 | 2,126 |
Amortization of premium and discount on investments, net | -336 | -612 |
Stock-based employee compensation | 4,514 | 3,111 |
Stock-based compensation to Board of Directors and Scientific Advisory Board | 597 | 648 |
Retirement plan benefit expense | 1,250 | 1,165 |
(Increase) decrease in assets: | ' | ' |
Accounts receivable | -9,128 | 2,856 |
Inventory | 3,166 | -5,608 |
Other current assets | -2,458 | -2,745 |
Other assets | -5 | 37 |
Increase (decrease) in liabilities: | ' | ' |
Accounts payable and accrued expenses | 265 | 1,538 |
Other current liabilities | -21 | -3 |
Deferred revenue | 2,131 | 1,627 |
Net cash provided by operating activities | 22,576 | 7,179 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchase of property and equipment | -4,200 | -2,278 |
Additions to intangibles | ' | -109,102 |
Purchase of investments | -284,581 | -209,244 |
Proceeds from sale of investments | 255,022 | 278,412 |
Net cash used in investing activities | -34,126 | -42,212 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from the issuance of common stock | 268 | 244 |
Repurchase of common stock | -5,456 | 0 |
Proceeds from the exercise of common stock options | 890 | 1,323 |
Payment of withholding taxes related to stock-based employee compensation | -2,990 | -4,136 |
Net cash used in financing activities | -7,288 | -2,569 |
DECREASE IN CASH AND CASH EQUIVALENTS | -18,838 | -37,602 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 85,923 | 111,795 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 67,085 | 74,193 |
The following non-cash activities occurred: | ' | ' |
Unrealized loss on available-for-sale securities | -19 | -16 |
Common stock issued to Board of Directors and Scientific Advisory Board that was earned in a previous period | 300 | 328 |
Common stock issued to employees that was accrued for in a previous period, net of shares withheld for taxes | 282 | 252 |
Property and equipment purchases included in accounts payable | $184 | $0 |
BACKGROUND
BACKGROUND | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BACKGROUND | ' |
BACKGROUND | |
Universal Display Corporation (the Company) is engaged in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in displays for smartphones, tablets and televisions as well as solid-state lighting applications. The Company’s primary business strategy is to develop and license its proprietary OLED technologies to product manufacturers for use in these applications. In support of this objective, the Company also develops new OLED materials and sells those materials to product manufacturers. Through internal research and development efforts and acquisitions from and relationships with entities such as Princeton University (Princeton), the University of Southern California (USC), the University of Michigan (Michigan), FUJIFILM Corporation (Fujifilm), Motorola Solutions, Inc. (f/k/a Motorola, Inc.) (Motorola) and PPG Industries, Inc. (PPG Industries), the Company has established a significant portfolio of proprietary OLED technologies and materials (see Notes 5, 6 and 7). |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
Interim Financial Information | |
In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the Company’s financial position as of September 30, 2013 and results of operations for the three and nine months ended September 30, 2013 and 2012, and cash flows for the nine months ended September 30, 2013 and 2012. While management believes that the disclosures presented are adequate to make the information not misleading, these unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in the Company’s latest year-end financial statements, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The results of the Company’s operations for any interim period are not necessarily indicative of the results of operations for any other interim period or for the full year. | |
Management’s Use of Estimates | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates made are principally in the areas of revenue recognition for license agreements, the useful life of acquired technology, the valuation of the Company's convertible promissory note investments, income taxes including realization of deferred tax assets, stock-based compensation and retirement benefit plan liabilities. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments | |
The carrying values of accounts receivable and accounts payable approximate fair value in the accompanying financial statements due to the short-term nature of those instruments. See Notes 3 and 4 for a discussion of cash equivalents and investments. | |
Revenue Recognition | |
Material sales relate to the Company’s sale of its OLED materials for incorporation into its customers’ commercial OLED products or for their OLED development and evaluation activities. Material sales are recognized at the time of shipment or at time of delivery, and passage of title, depending upon the contractual agreement between the parties. | |
The Company has received non-refundable advance license and royalty payments under certain commercial, development and technology evaluation agreements. Certain of the payments under development and technology evaluation agreements are creditable against future amounts payable under commercial license agreements that the parties may subsequently enter into and, as such, are deferred until such commercial license agreements are executed or negotiations have ceased and Company management determines that there is no appreciable likelihood of executing a commercial license agreement with the other party. Revenue would then be recognized over the term of the agreement or the expected useful life of the relevant licensed technology, for perpetual licenses, if there is an effective commercial license agreement or amounts are not creditable against future commercial license fees, or at the time Company management determines that there is no appreciable likelihood of an executable commercial license agreement. Amounts deferred are classified as current and non-current based upon current contractual remaining terms; however, based upon on-going relationships with customers, as well as future agreement extensions, amounts classified as current as of September 30, 2013, may not be recognized as revenue over the next twelve months. As of September 30, 2013, $6.3 million was recorded as deferred revenue, of which $1.5 million is creditable against future commercial license agreements that have not yet been executed or deemed effective. For arrangements with extended payment terms where the fee is not fixed and determinable, the Company recognizes revenue when the payment is due and payable. Royalty revenue is recognized when earned and the amount is fixed and determinable. | |
Technology development and support revenue is revenue earned from government contracts, development and technology evaluation agreements and commercialization assistance fees, which includes reimbursements by government entities for all or a portion of the research and development costs the Company incurs in relation to its government contracts. Revenues are recognized proportionally as research and development costs are incurred, or as defined milestones are achieved. | |
Currently, the Company's most significant commercial license agreement, which runs through the end of 2017, is with Samsung Display Co., Ltd. (SDC) and covers the manufacture and sale of specified OLED display products. Under this agreement, the Company is being paid a license fee, payable in semi-annual installments over the agreement term of 6.4 years. The installments, which are due in the second and fourth quarter of each year, increase on an annual basis over the term of the agreement. The agreement conveys to SDC the non-exclusive right to use certain of the Company's intellectual property assets for a limited period of time that is less than the estimated life of the assets. Ratable recognition of revenue is impacted by the agreement's extended increasing payment terms in light of the Company's limited history with similar agreements. As a result revenue is recognized at the lesser of the proportional performance approach (ratable) and the amount of due and payable fees from SDC. Given the increasing contractual payment schedule, license fees under the agreement are recognized as revenue when they become due and payable, which is currently scheduled to be in the second and fourth quarter of each year. | |
Cost of Material Sales | |
Cost of material sales represents costs associated with the sale of materials that have been classified as commercial including shipping costs. Commercial materials are materials that have been validated by the Company for use in commercial OLED products. Prior to their designation as commercial materials, costs incurred related to the materials are included in research and development costs. | |
Recent Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board (FASB) issued amended standards that revised the reporting of reclassifications out of accumulated other comprehensive income and addressed certain matters from standards for reporting of other comprehensive income that were deferred pending additional consideration. The amendment requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income (loss) is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income (loss) by the respective line items of net income (loss) but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income (loss) in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income (loss), entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. This guidance is effective prospectively for reporting periods beginning after December 15, 2012. The Company adopted this guidance in the first quarter of 2013, and such adoption did not have an impact on the Company’s results of operations or financial position, but did change the Company’s disclosures related to accumulated other comprehensive income (loss). In addition, consistent with its annual financial statements, the Company has elected to present separate statements of operations and comprehensive income (loss) versus one continuous statement. |
CASH_CASH_EQUIVALENTS_AND_INVE
CASH, CASH EQUIVALENTS AND INVESTMENTS | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ' | ||||||||||||||||
CASH, CASH EQUIVALENTS AND INVESTMENTS | ' | ||||||||||||||||
CASH, CASH EQUIVALENTS AND INVESTMENTS | |||||||||||||||||
The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. The Company classifies its remaining investments as available-for-sale. These securities are carried at fair market value, with unrealized gains and losses reported in shareholders’ equity. Gains or losses on securities sold are based on the specific identification method. | |||||||||||||||||
Investments at September 30, 2013 consisted of the following (in thousands): | |||||||||||||||||
Amortized | Unrealized | Aggregate Fair | |||||||||||||||
Investment Classification | Cost | Gains | (Losses) | Market Value | |||||||||||||
September 30, 2013 – | |||||||||||||||||
Certificates of deposit | $ | 11,103 | $ | 2 | $ | (20 | ) | $ | 11,085 | ||||||||
Corporate bonds | 170,724 | 15 | (34 | ) | 170,705 | ||||||||||||
U.S. government bonds | 3,074 | — | — | 3,074 | |||||||||||||
Convertible notes | 4,300 | — | — | 4,300 | |||||||||||||
$ | 189,201 | $ | 17 | $ | (54 | ) | $ | 189,164 | |||||||||
Investments at December 31, 2012 consisted of the following (in thousands): | |||||||||||||||||
Amortized | Unrealized | Aggregate Fair | |||||||||||||||
Investment Classification | Cost | Gains | (Losses) | Market Value | |||||||||||||
December 31, 2012 – | |||||||||||||||||
Certificates of deposit | $ | 7,562 | $ | 3 | $ | (5 | ) | $ | 7,560 | ||||||||
Commercial paper | 2,997 | — | — | 2,997 | |||||||||||||
Corporate bonds | 141,349 | 9 | (25 | ) | 141,333 | ||||||||||||
U.S. government bonds | 3,098 | — | — | 3,098 | |||||||||||||
Convertible notes | 4,300 | — | — | 4,300 | |||||||||||||
$ | 159,306 | $ | 12 | $ | (30 | ) | $ | 159,288 | |||||||||
On July 13, 2012, the Company entered into a three-year joint development agreement with Plextronics, Inc. (Plextronics), a private company engaged in printed solar, lighting and other electronics-related research and development. Under the joint development agreement, the Company is committed to pay $1.0 million per year to Plextronics for three years. In addition, the Company invested $4.0 million in Plextronics through the purchase of a convertible promissory note. The Company also received warrants to purchase shares of preferred stock in connection with the purchase of the convertible note. The note accrues interest at the rate of 3% per year. The Company modified the note extending its due date beyond the original due date of June 30, 2013. Depending on certain conditions, the note may either convert automatically, or if other certain conditions are met, the Company has the option to convert the note into shares of Plextronics’ preferred stock at a specified conversion price. The note was classified as a long-term investment at September 30, 2013, and was classified as a short-term investment at December 31, 2012. | |||||||||||||||||
On July 17, 2012, the Company invested $300,000 in a private company engaged in plasma processing equipment research and development (the Borrower) through the purchase of a convertible promissory note. The note accrues interest at the rate of 5% per year and is due and payable by August 1, 2015. The note is included in long-term investments on the consolidated balance sheet. The Company has the option to convert the note into shares of the Borrower’s preferred stock at a specified conversion price. | |||||||||||||||||
All short-term investments held at September 30, 2013 will mature within one year. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
The following table provides the assets carried at fair value measured on a recurring basis as of September 30, 2013 (in thousands): | ||||||||||||||||
Fair Value Measurements, Using | ||||||||||||||||
Total carrying | Quoted prices | Significant other observable inputs | Significant unobservable inputs | |||||||||||||
value as of | in active markets | (Level 2) | (Level 3) | |||||||||||||
September 30, 2013 | (Level 1) | |||||||||||||||
Cash equivalents | $ | 41,792 | $ | 41,792 | $ | — | $ | — | ||||||||
Short-term investments | 181,193 | 181,193 | — | — | ||||||||||||
Long-term investments | 7,971 | 3,671 | — | 4,300 | ||||||||||||
The following table provides the assets carried at fair value measured on a recurring basis as of December 31, 2012 (in thousands): | ||||||||||||||||
Fair Value Measurements, Using | ||||||||||||||||
Total carrying | Quoted prices | Significant other observable inputs | Significant unobservable inputs | |||||||||||||
value as of December 31, 2012 | in active markets | (Level 2) | (Level 3) | |||||||||||||
(Level 1) | ||||||||||||||||
Cash equivalents | $ | 63,863 | $ | 63,863 | $ | — | $ | — | ||||||||
Short-term investments | 158,018 | 154,018 | — | 4,000 | ||||||||||||
Long-term investments | 1,270 | 970 | — | 300 | ||||||||||||
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management’s own assumptions used to measure assets and liabilities at fair value. A financial asset's or liability’s classification is determined based on the lowest level input that is significant to the fair value measurement. | ||||||||||||||||
The Company's convertible promissory note investments were initially recorded at cost and are classified within investments on the consolidated balance sheets. | ||||||||||||||||
These convertible promissory note investments are inherently risky because they lack a ready market for resale and the note issuer’s success is dependent on numerous factors, including, among others, product development, market acceptance, operational efficiency, the ability of the investee companies to raise additional funds in financial markets that can be volatile, and other key business factors. Additionally, the companies that the Company has invested in could fail or not be able to raise additional funds when needed. Should one or more of these events occur, they could cause the Company's investments to become impaired. In addition, financial market volatility could negatively affect the Company's ability to realize value in the Company's investments through liquidity events, such as mergers and private sales. | ||||||||||||||||
The Company determines the fair value of its convertible promissory note investments portfolio quarterly. The fair value of the Company's convertible promissory note investments is determined through the consideration of whether an investee is experiencing financial difficulty and other factors. Management performs an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future. The evaluation requires significant judgment and includes quantitative and qualitative analysis of identified events or circumstances affecting the investee, which may impact the fair value of the investment, such as: | ||||||||||||||||
• | the investee’s revenue and earnings trends relative to pre-defined milestones and overall business prospects; | |||||||||||||||
• | the technological feasibility of the investee’s products and technologies; | |||||||||||||||
• | the general market conditions in the investee’s industry or geographic area, including adverse regulatory or economic changes; | |||||||||||||||
• | factors related to the investee’s ability to remain in business, such as the investee’s liquidity, debt ratios, and the rate at which the investee is using its cash; and | |||||||||||||||
• | the investee’s receipt of additional funding at a lower valuation. | |||||||||||||||
If the fair value of a convertible promissory note investment is below the Company's carrying value, the asset will be written down to its fair value with a resulting charge to net income. Temporary impairments result in a write down of the investment to its fair value with the charge reported in shareholders’ equity. There were no impairments of non-marketable convertible promissory note investments as of September 30, 2013. | ||||||||||||||||
The following table is a reconciliation of the changes in fair value of the Company’s investments in convertible notes for the three and nine months ended September 30, 2013, which had been classified in Level 3 in the fair value hierarchy (in thousands): | ||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||
Fair value of notes, beginning of period | $ | 4,300 | $ | 4,300 | ||||||||||||
Investments | — | — | ||||||||||||||
Fair value of notes, end of period | $ | 4,300 | $ | 4,300 | ||||||||||||
RESEARCH_AND_LICENSE_AGREEMENT
RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON, USC AND MICHIGAN | 9 Months Ended |
Sep. 30, 2013 | |
Research and Development [Abstract] | ' |
RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON, USC AND MICHIGAN | ' |
RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON, USC AND MICHIGAN | |
The Company funded OLED technology research at Princeton and, on a subcontractor basis, at USC for 10 years under a Research Agreement executed with Princeton in August 1997 (the 1997 Research Agreement). The principal investigator conducting work under the 1997 Research Agreement transferred to Michigan in January 2006. Following this transfer, the 1997 Research Agreement was allowed to expire on July 31, 2007. | |
As a result of the transfer, the Company entered into a new Sponsored Research Agreement with USC to sponsor OLED technology research at USC and, on a subcontractor basis, Michigan. This new Sponsored Research Agreement (as amended, the 2006 Research Agreement) was effective as of May 1, 2006 and had an original term of three years. On May 1, 2009, the Company amended the 2006 Research Agreement to extend the term of the agreement for an additional four years. The 2006 Research Agreement superseded the 1997 Research Agreement with respect to all work being performed at USC and Michigan. Payments under the 2006 Research Agreement were made to USC on a quarterly basis as actual expenses were incurred. The Company incurred a total of $5.0 million in research and development expense for work performed under the 2006 Research Agreement during the extended term, which ended on April 30, 2013. | |
Effective June 1, 2013, the Company amended the 2006 Research Agreement again to extend the term of the agreement for an additional four years. As of September 30, 2013, the Company was obligated to pay USC up to $8.2 million for work actually performed during the remaining extended term, which expires April 30, 2017. From June 1, 2013 through September 30, 2013, the Company incurred $386,000 in research and development expense for work performed under the newly amended 2006 Research Agreement. | |
On October 9, 1997, the Company, Princeton and USC entered into an Amended License Agreement (as amended, the 1997 Amended License Agreement) under which Princeton and USC granted the Company worldwide, exclusive license rights, with rights to sublicense, to make, have made, use, lease and/or sell products and to practice processes based on patent applications and issued patents arising out of work performed by Princeton and USC under the 1997 Research Agreement. Under this 1997 Amended License Agreement, the Company is required to pay Princeton royalties for licensed products sold by the Company or its sublicensees. For licensed products sold by the Company, the Company is required to pay Princeton 3% of the net sales price of these products. For licensed products sold by the Company’s sublicensees, the Company is required to pay Princeton 3% of the revenues received by the Company from these sublicensees. These royalty rates are subject to renegotiation for products not reasonably conceivable as arising out of the 1997 Research Agreement if Princeton reasonably determines that the royalty rates payable with respect to these products are not fair and competitive. | |
The Company is obligated under the 1997 Amended License Agreement to pay to Princeton minimum annual royalties. The minimum royalty payment is $100,000 per year. The Company accrued royalty expense in connection with this agreement of $601,000 and $278,000 for the three months ended September 30, 2013 and 2012, respectively, and $2.1 million and $1.3 million for the nine months ended September 30, 2013 and 2012, respectively. | |
The Company also is required under the 1997 Amended License Agreement to use commercially reasonable efforts to bring the licensed OLED technology to market. However, this requirement is deemed satisfied if the Company invests a minimum of $800,000 per year in research, development, commercialization or patenting efforts respecting the patent rights licensed to the Company. | |
In connection with entering into the 2006 Research Agreement, the Company amended the 1997 Amended License Agreement to include Michigan as a party to that agreement effective as of January 1, 2006. Under this amendment, Princeton, USC and Michigan have granted the Company a worldwide exclusive license, with rights to sublicense, to make, have made, use, lease and/or sell products and to practice processes based on patent applications and issued patents arising out of work performed under the 2006 Research Agreement. The financial terms of the 1997 Amended License Agreement were not impacted by this amendment. |
ACQUIRED_TECHNOLOGY
ACQUIRED TECHNOLOGY | 9 Months Ended |
Sep. 30, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
ACQUIRED TECHNOLOGY | ' |
ACQUIRED TECHNOLOGY | |
In 2000, the Company entered into a license agreement with Motorola whereby Motorola granted the Company perpetual license rights to what are now 74 issued U.S. patents relating to Motorola’s OLED technologies, together with foreign counterparts in various countries. These patents expire in the U.S. between 2014 and 2018. | |
The Company was required under the license agreement with Motorola to pay Motorola annual royalties on gross revenues received on account of the Company’s sales of OLED products or components, or from its OLED technology licensees, whether or not these revenues related specifically to inventions claimed in the patent rights licensed from Motorola. | |
On March 9, 2011, the Company purchased these patents from Motorola, including all existing and future claims and causes of action for any infringement of the patents, pursuant to a Patent Purchase Agreement. The Patent Purchase Agreement effectively terminated the Company’s license agreement with Motorola, including any obligation to make royalty payments to Motorola. | |
The technology acquired from Motorola had an assigned value of $440,000 as of March 9, 2011, which is being amortized over a period of 7.5 years. | |
On July 23, 2012, the Company entered into a Patent Sale Agreement (the Agreement) with Fujifilm. Under the Agreement, Fujifilm sold more than 1,200 OLED-related patents and patent applications to the Company in exchange for a cash payment of $105.0 million. | |
The Company recorded the $105.0 million plus $4.1 million of costs as acquired technology, which is being amortized over a period of 10 years. | |
Total amortization expense associated with acquired technology for the three month periods ended September 30, 2013 and 2012 was $2.7 million and $2.1 million, respectively, and for the nine months ended September 30, 2013 and 2012 was $8.2 million and $2.1 million, respectively. Amortization expense is included in the patent costs and amortization of acquired technology expense line item on the accompanying Consolidated Statements of Operations. |
EQUITY_AND_CASH_COMPENSATION_U
EQUITY AND CASH COMPENSATION UNDER THE PPG INDUSTRIES AGREEMENTS | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
EQUITY AND CASH COMPENSATION UNDER THE PPG INDUSTRIES AGREEMENTS | ' |
EQUITY AND CASH COMPENSATION UNDER THE PPG INDUSTRIES AGREEMENTS | |
On October 1, 2000, the Company entered into a five-year Development and License Agreement (the Development Agreement) and a seven-year Supply Agreement (the Supply Agreement) with PPG Industries. Under the Development Agreement, a team of PPG Industries scientists and engineers assisted the Company in developing its proprietary OLED materials and supplied the Company with these materials for evaluation purposes. Under the Supply Agreement, PPG Industries supplied the Company with its proprietary OLED materials that were intended for resale to customers for commercial purposes. | |
On July 29, 2005, the Company entered into an OLED Materials Supply and Service Agreement with PPG Industries (the OLED Materials Agreement). The OLED Materials Agreement superseded and replaced in their entireties the Development Agreement and Supply Agreement effective as of January 1, 2006, and extended the term of the Company’s relationship with PPG Industries through December 31, 2009. The term of the OLED Materials Agreement was subsequently extended through December 31, 2014. | |
On September 22, 2011, the Company entered into an Amended and Restated OLED Materials Supply and Service Agreement with PPG Industries (the New OLED Materials Agreement), which replaced the original OLED Materials Agreement with PPG Industries effective as of October 1, 2011. The term of the New OLED Materials Agreement runs through December 31, 2014 and contains provisions that are substantially similar to those of the original OLED Materials Agreement. Under the New OLED Materials Agreement, PPG Industries continues to assist the Company in developing its proprietary OLED materials and to supply the Company with those materials for evaluation purposes and for resale to its customers. | |
Under the New OLED Materials Agreement, the Company compensates PPG Industries on a cost-plus basis for the services provided during each calendar quarter. The Company is required to pay for some of these services in all cash. Up to 50% of the remaining services are payable, at the Company’s sole discretion, in cash or shares of the Company’s common stock, with the balance payable in cash. The actual number of shares of common stock issuable to PPG Industries is determined based on the average closing price for the Company’s common stock during a specified number of days prior to the end of each calendar half-year period ending on March 31 and September 30. If, however, this average closing price is less than $20.00, the Company is required to compensate PPG Industries in cash. | |
The Company also reimburses PPG Industries for raw materials used for research and development. The Company records the purchases of these raw materials as a current asset until such materials are used for research and development efforts. | |
The Company recorded expense of $1.6 million for both the three months ended September 30, 2013 and 2012, and $4.9 million and $4.0 million for the nine months ended September 30, 2013 and 2012, respectively, in relation to the cash portion of the reimbursement of expenses and work performed by PPG Industries, excluding amounts paid for commercial chemicals. No shares were issued for services to PPG Industries for the three and nine months ended September 30, 2013 or 2012. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||
SHAREHOLDERS EQUITY | ' | |||||||||||||||||||||||||||
SHAREHOLDERS’ EQUITY (in thousands, except for share and per share data) | ||||||||||||||||||||||||||||
Series A | Additional | Accumulated Other | Total | |||||||||||||||||||||||||
Nonconvertible | ||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-In | Accumulated | Comprehensive | Treasury Stock | Shareholders’ | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Loss | Shares | Amount | Equity | |||||||||||||||||||
Balance, | 200,000 | $ | 2 | 46,561,437 | $ | 465 | $ | 564,883 | $ | (204,211 | ) | $ | (5,702 | ) | (205,902 | ) | $ | (5,202 | ) | $ | 350,235 | |||||||
1-Jan-13 | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 16,166 | — | — | — | 16,166 | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 489 | — | — | 489 | ||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | — | — | (195,599 | ) | (5,456 | ) | (5,456 | ) | |||||||||||||||
Exercise of common stock options, net of tendered shares | — | — | 77,589 | 1 | 889 | — | — | — | — | 890 | ||||||||||||||||||
Stock-based employee compensation, net of shares withheld for employee taxes (A) | — | — | (13,904 | ) | — | 1,959 | — | — | — | — | 1,959 | |||||||||||||||||
Issuance of common stock to Board of Directors and Scientific Advisory Board (B) | — | — | 34,153 | 1 | 897 | — | — | — | — | 898 | ||||||||||||||||||
Issuance of common stock under an Employee Stock Purchase Plan | — | — | 11,488 | — | 268 | — | — | — | — | 268 | ||||||||||||||||||
Balance, | 200,000 | $ | 2 | 46,670,763 | $ | 467 | $ | 568,896 | $ | (188,045 | ) | $ | (5,213 | ) | (401,501 | ) | $ | (10,658 | ) | $ | 365,449 | |||||||
30-Sep-13 | ||||||||||||||||||||||||||||
(A) | Includes $435 (13,356 shares) that was accrued for in a previous period and charged to expense when earned, but issued in 2013, less shares withheld for taxes in the amount of $153 (4,672 shares). | |||||||||||||||||||||||||||
(B) | Includes $300 (9,212 shares) that was earned in a previous period and charged to expense when earned, but issued in 2013. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ' | |||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||
Accumulated other comprehensive loss consists of the following (in thousands): | ||||||||||||
Unrealized loss on available-for-sale securities | Net unrealized loss on retirement plan | Total | ||||||||||
Balance January 1, 2013 | $ | (18 | ) | $ | (5,684 | ) | $ | (5,702 | ) | |||
Other comprehensive loss before reclassification | (19 | ) | — | (19 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | 508 | 508 | |||||||||
Net current-period other comprehensive (loss) income | (19 | ) | 508 | 489 | ||||||||
Balance September 30, 2013 | $ | (37 | ) | $ | (5,176 | ) | $ | (5,213 | ) | |||
Amounts related to the retirement plan reclassified out of accumulated other comprehensive loss and included in net periodic benefit costs (see Note 11) for the three and nine months ended September 30, 2013 were as follows (in thousands): | ||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||
Amortization of prior service cost | $ | 146 | $ | 438 | ||||||||
Amortization of actuarial loss | 23 | 70 | ||||||||||
Total | $ | 169 | $ | 508 | ||||||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
STOCK-BASED COMPENSATION | ' |
STOCK-BASED COMPENSATION | |
The Company recognizes in the statements of operations the grant-date fair value of stock options and other equity based compensation, such as shares issued under employee stock purchase plans, restricted stock awards, restricted stock units, performance unit awards and stock appreciation rights (SARs), issued to employees and directors. | |
The grant-date fair value of stock options is determined using the Black-Scholes option pricing model. The fair value of share-based awards is recognized as compensation expense on a straight-line basis over the requisite service period, net of estimated forfeitures. The Company relies primarily upon historical experience to estimate expected forfeitures and recognizes compensation expense on a straight-line basis from the date of the grant. The Company issues new shares upon the respective grant, exercise or vesting of share-based payment awards, as applicable. | |
Cash-settled SARs awarded in share-based payment transactions are classified as liability awards; accordingly, the Company records these awards as a component of accrued expenses on its consolidated balance sheets. The fair value of each SAR is estimated using the Black-Scholes option pricing model and is remeasured at each reporting period until the award is settled. Changes in the fair value of the liability award are recorded as expense or income in the statements of operations. | |
Performance unit awards are subject to either a performance-based or market-based vesting requirement. For performance-based vesting, the grant-date fair value of the award, based on fair value of the Company's common stock, is recognized over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved and compensation expense is periodically adjusted based on actual and expected performance. Compensation expense for performance unit awards with market-based vesting is calculated based on the estimated fair value as of the grant date utilizing a Monte Carlo simulation model and is recognized over the service period on a straight-line basis. | |
Equity Compensation Plan | |
In 1995, the Board of Directors of the Company (the Board) adopted a stock option plan, which was amended and restated in 2003, 2011 and 2013 and is now called the Equity Compensation Plan. The Equity Compensation Plan provides for the granting of incentive and nonqualified stock options, shares of common stock, SARs, and performance units to employees, directors and consultants of the Company. Stock options are exercisable over periods determined by the Compensation Committee, but for no longer than 10 years from the grant date. Through September 30, 2013, the Company’s shareholders have approved increases in the number of shares reserved for issuance under the Equity Compensation Plan to 8,000,000 and have extended the term of the plan through September 1, 2015. | |
Restricted Stock Awards and Restricted Stock Units | |
During the nine months ended September 30, 2013, the Company granted 117,121 shares of restricted stock awards and restricted stock units to employees, which had a total fair value of $3.8 million on the respective dates of grant, and will vest over two to three years from the date of grant, provided that the grantee is still an employee of the Company on the applicable vesting date. | |
For the three months ended September 30, 2013 and 2012, the Company recorded general and administrative expense of $959,000 and $787,000 and research and development expense of $409,000 and $342,000, respectively, related to restricted stock awards and restricted stock units. | |
For the nine months ended September 30, 2013 and 2012, the Company recorded general and administrative expense of $2.9 million and $2.1 million and research and development expense of $1.2 million and $851,000, respectively, related to restricted stock awards and restricted stock units. | |
In connection with the vesting of restricted common stock previously issued to employees, for the nine months ended September 30, 2013, 94,209 shares of common stock with a fair value of $3.0 million were withheld in satisfaction of tax withholding obligations. | |
Performance Unit Awards | |
During the nine months ended September 30, 2013, the Company granted 35,776 performance units, of which 17,888 are subject to a performance-based vesting requirement and 17,888 are subject to a market-based vesting requirement and will vest over the terms described above. Total fair value of the performance unit awards granted was $1.4 million on the date of grant. | |
Each performance unit award is subject to both a performance-vesting requirement (either performance-based or market-based) and a service-vesting requirement. | |
The performance-based vesting requirement is tied to the Company's cumulative revenue growth compared to the cumulative revenue growth of companies comprising the Nasdaq Electronics Components Index, as measured over a two-year performance period beginning January 1, 2013 and ending December 31, 2014. The market-based vesting requirement is tied to the Company's total shareholder return relative to the total shareholder return of companies comprising the Nasdaq Electronics Components Index, as measured over a two-year performance period beginning January 1, 2013 and ending December 31, 2014. | |
The maximum number of performance units that may vest based on performance is two times the shares granted. Further, if the Company's total shareholder return is negative, the performance units may not vest above the shares granted. | |
For the three months ended September 30, 2013, the Company recorded general and administrative expense of $139,000 and research and development expense of $42,000 related to performance units. | |
For the nine months ended September 30, 2013, the Company recorded general and administrative expense of $314,000 and research and development expense of $95,000 related to performance units. | |
Employee Stock Grants | |
For the nine months ended September 30, 2012, the Company recorded research and development expense of $68,000 related to fully vested shares issued to employees. | |
No such grants were made or expenses recorded in 2013. | |
Stock Appreciation Rights | |
During 2011, the Company granted 24,000 cash-settled SARs to certain executive officers. The SARs represented the right to receive, for each SAR, a cash payment equal to the amount, if any, by which the fair market value of a share of the common stock of the Company on the vesting date exceeded the base price of the SAR award. The base price of each SAR award was $34.78 per share. The SARs vested on the first anniversary of the date of grant, provided that the grantee was still an employee of the Company on the applicable vesting date. During the three months ended March 31, 2012, all SARs were settled, resulting in cash payments of $49,000. The Company recorded $1,000 to general and administrative expense, and $3,000 to research and development expense, for the nine months ended September 30, 2012, related to the SARs. No such grants were made in 2013 or 2012. | |
Other Compensation | |
During the nine months ended September 30, 2013, the Company issued 15,000 shares of common stock to members of the Board as partial compensation for their service on the Board. The Company recorded general and administrative expense of $126,000 and $162,000 for the three months ended September 30, 2013 and 2012, respectively, and $390,000 and $482,000 for the nine months ended September 30, 2013 and 2012, respectively, related to shares issued to members of the Board. | |
During the nine months ended September 30, 2013, the Company granted 7,370 shares of restricted stock to certain members of its Scientific Advisory Board. These shares of restricted stock will vest and be issued in equal increments annually over three years from the date of grant, provided that the grantee is still engaged as a consultant of the Company on the applicable vesting date. The Company recorded research and development expense of $78,000 and $50,000 for the three months ended September 30, 2013 and 2012, respectively, and $207,000 and $166,000 for the nine months ended September 30, 2013 and 2012, respectively, related to shares issued to members of its Scientific Advisory Board. | |
Employee Stock Purchase Plan | |
On April 7, 2009, the Board adopted an Employee Stock Purchase Plan (ESPP). The ESPP was approved by the Company’s shareholders and became effective on June 25, 2009. The Company has reserved 1,000,000 shares of common stock for issuance under the ESPP. Unless sooner terminated by the Board, the ESPP will expire when all reserved shares have been issued. | |
Eligible employees may elect to contribute to the ESPP through payroll deductions during consecutive three-month purchase periods, the first of which began on July 1, 2009. Each employee who elects to participate will be deemed to have been granted an option to purchase shares of the Company’s common stock on the first day of the purchase period. Unless the employee opts out during the purchase period, the option will automatically be exercised on the last day of the period, which is the purchase date, based on the employee’s accumulated contributions to the ESPP. The purchase price will equal 85% of the lesser of the price per share of common stock on the first day of the period or the last day of the period. | |
Employees may allocate up to 10% of their base compensation to purchase shares of common stock under the ESPP; however, each employee may purchase no more than 12,500 shares on a given purchase date, and no employee may purchase more than $25,000 of common stock under the ESPP during a given calendar year. | |
During the nine months ended September 30, 2013 and 2012, the Company issued 11,488 and 8,097 shares of its common stock, respectively, under the ESPP, resulting in proceeds of $268,000 and $244,000, respectively. | |
For the three months ended September 30, 2013 and 2012, the Company recorded general and administrative expense of $12,000 and $10,000 and research and development expense of $17,000 and $24,000, respectively, related to the ESPP. | |
For the nine months ended September 30, 2013 and 2012, the Company recorded general and administrative expense of $27,000 and $19,000 and research and development expense of $59,000 and $58,000, respectively, related to the ESPP. | |
The expense recorded equals the amount of the discount and the value of the look-back feature for the shares that were issued under the ESPP. |
SUPPLEMENTAL_EXECUTIVE_RETIREM
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN | ' | |||||||
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN | ||||||||
On March 18, 2010, the Compensation Committee and the Board approved and adopted the Universal Display Corporation Supplemental Executive Retirement Plan (SERP), effective as of April 1, 2010. The purpose of the SERP, which is unfunded, is to provide certain executive officers of the Company with supplemental pension benefits following a cessation of their employment. As of September 30, 2013, there were five participants in the SERP. The SERP benefit is based on a percentage of the participant’s annual base salary and the number of years of service. | ||||||||
The Company records amounts relating to the SERP based on calculations that incorporate various actuarial and other assumptions, including discount rates, rate of compensation increases, retirement dates and life expectancies. The net periodic costs are recognized as employees render the services necessary to earn the SERP benefits. | ||||||||
The components of net periodic pension cost were as follows for the three months ended September 30, (in thousands): | ||||||||
2013 | 2012 | |||||||
Service cost | $ | 162 | $ | 144 | ||||
Interest cost | 85 | 96 | ||||||
Amortization of prior service cost | 146 | 146 | ||||||
Amortization of actuarial loss | 23 | 2 | ||||||
Total net periodic benefit cost | $ | 416 | $ | 388 | ||||
The components of net periodic pension cost were as follows for the nine months ended September 30, (in thousands): | ||||||||
2013 | 2012 | |||||||
Service cost | $ | 485 | $ | 432 | ||||
Interest cost | 257 | 288 | ||||||
Amortization of prior service cost | 438 | 438 | ||||||
Amortization of actuarial loss | 70 | 7 | ||||||
Total net periodic benefit cost | $ | 1,250 | $ | 1,165 | ||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
Commitments | |
On July 13, 2012, the Company entered into a three-year joint development agreement with Plextronics. Under the joint development agreement, the Company is committed to pay $1.0 million per year to Plextronics for three years starting on July 13, 2012. | |
Under the 2006 Research Agreement with USC, the Company is obligated to make certain payments to USC based on work performed by USC under that agreement, and by Michigan under its subcontractor agreement with USC. See Note 5 for further explanation. | |
Under the terms of the 1997 Amended License Agreement, the Company is required to make minimum royalty payments to Princeton. See Note 5 for further explanation. | |
The Company has agreements with six executive officers which provide for certain cash payments and other benefits upon termination of employment of the officer in connection with a change in control of the Company. Each executive is entitled to a lump-sum cash payment equal to two times the sum of the average annual base salary and bonus of the officer and immediate vesting of all stock options and other equity awards that may be outstanding at the date of the change in control, among other items. | |
Patent Related Challenges and Oppositions | |
Each major jurisdiction in the world that grants patents provides third parties with opportunities and access to administrative proceedings whereby they can request for additional review of previously issued patents in the respective jurisdiction. Each jurisdiction provides unique procedures for undertaking such activities, as well as different vehicles to review and appeal the determinations made in connection with such reviews. The conclusions made by the administration bodies tend to be appealable and generally are limited in scope and applicability to the specific claims and jurisdiction in question. | |
Below are summaries of certain proceedings that have been commenced against issued patents that are either exclusively licensed to the Company or which are now assigned to the Company. The Company notes that it currently has more than 3,000 issued patents and pending patent applications, worldwide, which are utilized in the Company's materials supply and device licensing business. The Company does not believe that the confirmation, loss or modification of the Company's rights in any individual claim or set of claim(s) that are the subject of the following legal proceedings would have a material impact on the Company's material sales or licensing business or on the Company's consolidated financial statements, including its consolidated statements of operations, as a whole. However, as noted within the descriptions, many of the following legal proceedings involve patents relating to the Company's key phosphorescent OLED technologies and the Company intends to vigorously defend against such claims, which may require the expenditure of significant amounts of the Company's resources. The entries marked with an "*" relate to our UniversalPHOLED phosphorescent OLED technology. | |
Opposition to European Patent No. 0946958 | |
On December 8, 2006, Cambridge Display Technology Ltd. (CDT), which was acquired in 2007 by Sumitomo Chemical Company (Sumitomo), filed a Notice of Opposition to European Patent No. 0946958 (EP '958 patent), which relates to the Company's FOLED™ flexible OLED technology. The EP '958 patent, which was issued on March 8, 2006, is a European counterpart patent to U.S. patents 5,844,363; 6,602,540; 6,888,306; and 7,247,073. These patents are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | |
The European Patent Office (the EPO) conducted an Oral Hearing in this matter and on November 26, 2009 issued its written decision to reject the opposition and to maintain the patent as granted. CDT has filed an appeal to the EPO panel decision. | |
At this time, based on its current knowledge, Company management believes that the EPO panel decision will be upheld on appeal. However, Company management cannot make any assurances of this result. | |
Opposition to European Patent No. 1449238* | |
Between March 8, 2007 and July 27, 2007, three companies filed Notices of Opposition to European Patent No. 1449238 (EP '238 patent). The three companies are Sumation Company Limited (Sumation), a joint venture between Sumitomo and CDT, Merck Patent GmbH, of Darmstadt, Germany, and BASF Aktiengesellschaft, of Mannheim, Germany. The EP '238 patent, which was issued on November 2, 2006, is a European counterpart patent, in part, to U.S. patents 6,830,828; 6,902,830; 7,001,536; 7,291,406; 7,537,844; and 7,883,787; and to pending U.S. patent applications 13/009,001, filed on January 19, 2011, and 13/205,290, filed on August 9, 2011 (hereinafter the “U.S. '828 Patent Family”). They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | |
The EPO combined all three oppositions into a single opposition proceeding. The EPO conducted an Oral Hearing in this matter and at the conclusion of the Oral Hearing, the EPO panel announced its decision to maintain the patent with claims directed to OLEDs comprising phosphorescent organometallic iridium compounds. The official minutes from the Oral Hearing and written decision were published on January 13, 2012. | |
All the parties filed notices of appeal to the EPO's panel decision and submitted their initial papers in support of their respective requests for appellate review. An Oral Hearing has been scheduled by the EPO in the second half of 2013. | |
At this time, based on its current knowledge, Company management believes that the EPO will uphold the Company's positions on appeal. However, Company management cannot make any assurances of this result. | |
Opposition to European Patent No. 1394870* | |
On April 20, 2010, five European companies filed Notices of Opposition to European Patent No. 1394870 (the EP '870 patent). The EP '870 patent, which was issued on July 22, 2009, is a European counterpart patent, in part, to U.S. patents 6,303,238; 6,579,632; 6,872,477; 7,279,235; 7,279,237; 7,488,542; 7,563,519; and 7,901,795; and to pending U.S. patent application 13/035,051, filed on February 25, 2011 (hereinafter the “U.S. '238 Patent Family”). They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | |
The five companies are Merck Patent GmbH; BASF Schweitz AG of Basel, Switzerland; Osram GmbH of Munich, Germany; Siemens Aktiengesellschaft of Munich, Germany; and Koninklijke Philips Electronics N.V., of Eindhoven, The Netherlands. | |
The EPO combined the oppositions into a single opposition proceeding. The matter has been briefed and an Oral hearing has been scheduled by the EPO in the second quarter of 2014. | |
At this time, based on its current knowledge, Company management believes there is a substantial likelihood that the patent being challenged will be declared valid and that all or a significant portion of the Company's claims will be upheld. However, Company management cannot make any assurances of this result. | |
Invalidation Trials in Japan for Japan Patent Nos. 4357781 and 4358168* | |
On May 24, 2010, the Company received two Notices of Invalidation Trials against Japan Patent Nos. 4357781 (the JP '781 patent) and 4358168 (the JP '168 patent), which were both issued on August 14, 2009. The requests for these two additional Invalidation Trials were filed by Semiconductor Energy Laboratory Co., Ltd. (SEL) of Kanagawa, Japan. The JP '781 and '168 patents are also Japanese counterpart patents, in part, to the above-noted U.S. '828 Patent Family and EP '238 Patent. They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | |
On March 31, 2011, the Company learned that the Japanese Patent Office ("JPO") had issued decisions finding all claims in the JP '781 and JP '168 patents invalid. Company management believed that the JPO's decisions invalidating these claims were erroneous, and the Company filed appeals for both cases to the Japanese IP High Court. | |
Both parties filed appeal briefs in this matter with the Japanese IP High Court. The Japanese IP High Court held hearings for this matter on November 22, 2011, March 5, 2012, and June 18, 2012. On November 7, 2012, the Company was notified by the Company's Japanese counsel that the Japanese IP High Court had reversed the JPO's finding of invalidity and remanded the case back to the JPO for further consideration. | |
In a decision reported to the Company on April 15, 2013, all claims in the Company's JP '781 and JP '168 patents were upheld as valid by the JPO. The Company's opponent filed an appeal and submitted their appeal briefs. The Company has filed a timely response to the Opponent's papers. | |
At this time, based on its current knowledge, Company management believes that the claims on the patents should be upheld. However, Company management cannot make any assurances of this result. | |
Invalidation Trial in Japan for Japan Patent No. 4511024* | |
On June 16, 2011, the Company learned that a Request for an Invalidation Trial was filed in Japan for its Japanese Patent No. JP-4511024 (the JP '024 patent), which issued on May 14, 2010. The Request was filed by SEL, the same opponent as in the above-noted Japanese Invalidation Trials for the JP '781 and '168 patents. The JP '024 patent is a counterpart patent, in part, to the U.S. '238 Patent Family, which relate to the EP '870 patent, which is subject to one of the above-noted European oppositions and which relates to the Company's UniversalPHOLED phosphorescent OLED technology. They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | |
On May 10, 2012, after a scheduled hearing, the Company learned that the JPO issued a decision upholding the validity of certain claimed inventions in the JP '024 Patent but invalidating the broadest claims in the patent. | |
The Company appealed the JPO’s decision to the Japanese IP High Court. After holding a Technical Hearing on May 30, 2013 and considering numerous supporting briefs filed by all relevant parties, the Japanese IP High Court delivered a decision on October 31, 2013, ruling that the prior art references relied on by the JPO did not support the JPO’s findings. The Japanese IP High Court reversed the JPO’s decision with respect to the previously invalidated broad claims in the JP ‘024 patent and remanded the matter back to the JPO for further consideration consistent with its decision. | |
At this time, based on its current knowledge, Company management believes that the patent being challenged should be declared valid and that all or a significant portion of the Company's claims should be upheld. However, Company management cannot make any assurances of this result. | |
Opposition to European Patent No. 1252803* | |
On July 12 and 13, 2011, Sumitomo, Merck Patent GmbH and BASF SE, of Ludwigshaven, Germany filed oppositions to the Company's European Patent No. 1252803 (the EP '803 patent). The EP '803 patent, which was issued on October 13, 2010, is a European counterpart patent, in part, to the U.S. '828 Patent Family. They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | |
The EPO combined the oppositions into a single opposition proceeding. On December 7, 2012 the EPO rendered a decision at an Oral Hearing wherein it upheld the broadest claim of the granted patent. All three opponents filed an appeal and have submitted their appeal briefs. The Company's responses are currently under preparation. | |
At this time, based on its current knowledge, Company management believes there is a substantial likelihood that the patent being challenged will be declared valid and that all or a significant portion of the Company's claims will be further upheld on appeal. However, Company management cannot make any assurances of this result. | |
Opposition to European Patent No. 1390962 | |
On November 16, 2011, Osram AG and BASF SE each filed a Notice of Opposition to European Patent No. 1390962 (EP '962 patent), which relates to the Company's white phosphorescent OLED technology. The EP '962 patent, which was issued on February 16, 2011, is a European counterpart patent to U.S. patents 7,009,338 and 7,285,907. They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | |
The EPO combined the oppositions into a single opposition proceeding. The Company's response to the opponents' opposition briefs was timely filed on June 28, 2012. | |
At this time, based on its current knowledge, Company management believes there is a substantial likelihood that the patent being challenged will be declared valid, and that all or a significant portion of the Company's claims will be upheld. However, Company management cannot make any assurances of this result. | |
Opposition to European Patent No. 1933395* | |
On February 24 and 27, 2012, Sumitomo, Merck Patent GmbH and BASF SE filed oppositions to the Company's European Patent No. 1933395 (the EP '395 patent). The EP '395 patent is a counterpart patent to the above-noted JP '168 patent and, in part, to the U.S. '828 Patent Family. This patent is exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | |
At an Oral Hearing on October 14, 2013, the EPO panel issued a decision that affirmed the basic invention and broad patent coverage in the '395 patent, but narrowed the scope of the original claims. | |
The Company will likely appeal the ruling to reinstate a broader set of claims. This patent, as originally granted by the EPO, would be deemed valid during the pendency of an appeals process. |
CONCENTRATION_OF_RISK
CONCENTRATION OF RISK | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
CONCENTRATION OF RISK | ' | ||||||||
CONCENTRATION OF RISK | |||||||||
Included in technology development and support revenue in the accompanying statements of operations is $143,000 and $658,000 for the three months ended September 30, 2013 and 2012, respectively, and $1.0 million and $3.0 million for the nine months ended September 30, 2013 and 2012, respectively, of revenue which was derived from contracts with United States government agencies. Revenues derived from contracts with United States government agencies represented less than 1% and 5% of the consolidated revenue for the three months ended September 30, 2013 and 2012, respectively, and 1% and 5% of the consolidated revenue for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||
Revenues for the three months ended September 30, 2013 and 2012, and accounts receivable as of September 30, 2013, from our largest non-government customers were as follows: | |||||||||
% of Total Revenue | Accounts Receivable | ||||||||
(in thousands) | |||||||||
Customer | 2013 | 2012 | September 30, 2013 | ||||||
A | 47% | 54% | $ | 10,857 | |||||
B | 34% | 15% | 3,459 | ||||||
Revenues for the nine months ended September 30, 2013 and 2012, were as follows: | |||||||||
% of Total Revenue | |||||||||
Customer | 2013 | 2012 | |||||||
A | 59% | 63% | |||||||
B | 24% | 9% | |||||||
Revenues from outside of North America represented 99% and 93% of consolidated revenue for the three months ended September 30, 2013 and 2012, respectively. Revenues by geographic area are as follows (in thousands): | |||||||||
Country | 2013 | 2012 | |||||||
United States | $ | 269 | $ | 874 | |||||
South Korea | 18,707 | 7,735 | |||||||
Japan | 13,160 | 3,352 | |||||||
Taiwan | 441 | 398 | |||||||
Other | 249 | 145 | |||||||
All foreign locations | 32,557 | 11,630 | |||||||
Total revenue | $ | 32,826 | $ | 12,504 | |||||
Revenues from outside of North America represented 99% and 94% of consolidated revenue for the nine months ended September 30, 2013 and 2012, respectively. Revenues by geographic area are as follows (in thousands): | |||||||||
Country | 2013 | 2012 | |||||||
United States | $ | 1,353 | $ | 3,432 | |||||
South Korea | 66,509 | 38,689 | |||||||
Japan | 28,257 | 10,055 | |||||||
Taiwan | 659 | 2,387 | |||||||
Other | 383 | 548 | |||||||
All foreign locations | 95,808 | 51,679 | |||||||
Total revenue | $ | 97,161 | $ | 55,111 | |||||
The Company attributes revenue to different geographic areas on the basis of the location of the customer. | |||||||||
Long-lived assets (net) by geographic area at September 30, 2013 and December 31, 2012 are as follows (in thousands): | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
United States | $ | 14,441 | $ | 11,512 | |||||
Other | 257 | 296 | |||||||
Total long-lived assets, net | $ | 14,698 | $ | 11,808 | |||||
All chemical materials were purchased from one supplier. See Note 7. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
In July 2012, Samsung Mobile Display Co., Ltd (SMD) merged with SDC. Following the merger, all agreements between the Company and SMD were assigned to SDC, and SDC will honor all pre-existing agreements made between the Company and SMD. | |
The Company is subject to income taxes in both United States and foreign jurisdictions. For the three and nine months ended September 30, 2013, an income tax benefit of $1.1 million and an expense of $3.2 million, respectively, was recorded based on the Company's estimated annual effective tax rate for 2013 applied to the Company's income before income taxes. For the three and nine months ended September 30, 2012, an income tax benefit of $326,000 and an expense of $2.0 million, respectively, were recorded. The Company's estimated effective tax rate is primarily related to foreign taxes withheld on royalty and license fees paid to the Company. SDC has been required to withhold tax upon payment of royalty and license fees to the Company at a rate of 16.5%. Any potential foreign tax credits to be received by the Company for these amounts on its United States tax returns are currently offset by a full valuation allowance as noted below. The income tax benefit for the three months ended September 30, 2013, was primarily the result of an increase in the projected estimated income not subject to withholding taxes reducing the estimated annual effective tax rate for the year-to-date period and to a lesser extent the recording of $225,000 of discrete income tax items. | |
Based on previous earnings history, evaluation of expected future taxable income and other evidence, the Company determined it is not more likely than not that certain deferred tax assets will be realized. Therefore, the Company has established a full valuation allowance for significantly all its net deferred tax assets. | |
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the Company's ability to continue to generate taxable income to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credits. The Company considers the scheduled reversal of deferred tax liabilities, historic earnings, projected future taxable income, and tax planning strategies in making this assessment. As of September 30, 2013, a full valuation allowance continued to be established for significantly all of the Company's net deferred tax assets because the Company incurred substantial consolidated operating losses from inception through 2010, as well as continuing losses in certain jurisdictions, and based on the aforementioned factors, the Company has assessed that the net deferred tax assets do not meet the criteria for realization. In future periods, if the Company determines it is more likely than not that net deferred tax assets will be realized, the related valuation allowance would be reduced and an income tax benefit would be recorded. |
NET_INCOME_LOSS_PER_COMMON_SHA
NET INCOME (LOSS) PER COMMON SHARE | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
NET INCOME (LOSS) PER COMMON SHARE | ' | ||||||||
NET INCOME (LOSS) PER COMMON SHARE | |||||||||
Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period excluding unvested restricted stock awards, restricted stock units and performance units. Diluted net income (loss) per common share reflects the potential dilution from the exercise or conversion of securities into common stock, the effect of unvested restricted stock awards, restricted stock units and performance units, and the impact of shares to be issued under the ESPP. | |||||||||
The following table is a reconciliation of net income (loss) and the shares used in calculating basic and diluted net income (loss) per common share for the three months ended September 30, 2013 and 2012 (in thousands, except for share and per share data): | |||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net income (loss) | $ | 5,542 | $ | (5,468 | ) | ||||
Denominator: | |||||||||
Weighted average common shares outstanding - Basic | 45,912,512 | 46,006,290 | |||||||
Effect of dilutive shares: | |||||||||
Common stock equivalents arising from stock options, warrants and ESPP | 494,536 | — | |||||||
Restricted stock awards and units and performance units | 187,795 | — | |||||||
Weighted average common shares outstanding - Diluted | 46,594,843 | 46,006,290 | |||||||
Net income (loss) per common share: | |||||||||
Basic | $ | 0.12 | $ | (0.12 | ) | ||||
Diluted | $ | 0.12 | $ | (0.12 | ) | ||||
For the three months ended September 30, 2013 and 2012, the combined effects of unvested restricted stock awards and restricted stock units and outstanding stock options of 111,993 and 1,447,301, respectively, and the impact of shares to be issued under the ESPP for the three months ended September 30, 2012, which was minor, were excluded from the calculation of diluted EPS as their impact would have been antidilutive, or for performance units, as the units would not be issued if the end of the reporting period was the end of the performance period. | |||||||||
The following table is a reconciliation of net income and the shares used in calculating basic and diluted net income per common share for the nine months ended September 30, 2013 and 2012 (in thousands, except for share and per share data): | |||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net income | $ | 16,166 | $ | 4,275 | |||||
Denominator: | |||||||||
Weighted average common shares outstanding - Basic | 45,865,395 | 45,916,536 | |||||||
Effect of dilutive shares: | |||||||||
Common stock equivalents arising from stock options, warrants and ESPP | 500,749 | 701,351 | |||||||
Restricted stock awards and units and performance units | 181,424 | 294,670 | |||||||
Weighted average common shares outstanding - Diluted | 46,547,568 | 46,912,557 | |||||||
Net income per common share: | |||||||||
Basic | $ | 0.35 | $ | 0.09 | |||||
Diluted | $ | 0.35 | $ | 0.09 | |||||
For the nine months ended September 30, 2013, the combined effects of unvested restricted stock awards, restricted stock units and performance units of 188,302 were excluded from the calculation of diluted EPS as their impact would have been antidilutive, or for performance units, as the units would not be issued if the end of the reporting period was the end of the performance period. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Management's Use of Estimates | ' |
Management’s Use of Estimates | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates made are principally in the areas of revenue recognition for license agreements, the useful life of acquired technology, the valuation of the Company's convertible promissory note investments, income taxes including realization of deferred tax assets, stock-based compensation and retirement benefit plan liabilities. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The carrying values of accounts receivable and accounts payable approximate fair value in the accompanying financial statements due to the short-term nature of those instruments. See Notes 3 and 4 for a discussion of cash equivalents and investments. | |
Cost of Material Sales | ' |
Cost of Material Sales | |
Cost of material sales represents costs associated with the sale of materials that have been classified as commercial including shipping costs. |
BASIS_OF_PRESENTATION_Revenue_
BASIS OF PRESENTATION Revenue Recognition (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Revenue Disclosure [Abstract] | ' |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition | |
Material sales relate to the Company’s sale of its OLED materials for incorporation into its customers’ commercial OLED products or for their OLED development and evaluation activities. Material sales are recognized at the time of shipment or at time of delivery, and passage of title, depending upon the contractual agreement between the parties. | |
The Company has received non-refundable advance license and royalty payments under certain commercial, development and technology evaluation agreements. Certain of the payments under development and technology evaluation agreements are creditable against future amounts payable under commercial license agreements that the parties may subsequently enter into and, as such, are deferred until such commercial license agreements are executed or negotiations have ceased and Company management determines that there is no appreciable likelihood of executing a commercial license agreement with the other party. Revenue would then be recognized over the term of the agreement or the expected useful life of the relevant licensed technology, for perpetual licenses, if there is an effective commercial license agreement or amounts are not creditable against future commercial license fees, or at the time Company management determines that there is no appreciable likelihood of an executable commercial license agreement. Amounts deferred are classified as current and non-current based upon current contractual remaining terms; however, based upon on-going relationships with customers, as well as future agreement extensions, amounts classified as current as of September 30, 2013, may not be recognized as revenue over the next twelve months. As of September 30, 2013, $6.3 million was recorded as deferred revenue, of which $1.5 million is creditable against future commercial license agreements that have not yet been executed or deemed effective. For arrangements with extended payment terms where the fee is not fixed and determinable, the Company recognizes revenue when the payment is due and payable. Royalty revenue is recognized when earned and the amount is fixed and determinable. | |
Technology development and support revenue is revenue earned from government contracts, development and technology evaluation agreements and commercialization assistance fees, which includes reimbursements by government entities for all or a portion of the research and development costs the Company incurs in relation to its government contracts. Revenues are recognized proportionally as research and development costs are incurred, or as defined milestones are achieved. | |
Currently, the Company's most significant commercial license agreement, which runs through the end of 2017, is with Samsung Display Co., Ltd. (SDC) and covers the manufacture and sale of specified OLED display products. Under this agreement, the Company is being paid a license fee, payable in semi-annual installments over the agreement term of 6.4 years. The installments, which are due in the second and fourth quarter of each year, increase on an annual basis over the term of the agreement. The agreement conveys to SDC the non-exclusive right to use certain of the Company's intellectual property assets for a limited period of time that is less than the estimated life of the assets. Ratable recognition of revenue is impacted by the agreement's extended increasing payment terms in light of the Company's limited history with similar agreements. As a result revenue is recognized at the lesser of the proportional performance approach (ratable) and the amount of due and payable fees from SDC. Given the increasing contractual payment schedule, license fees under the agreement are recognized as revenue when they become due and payable, which is currently scheduled to be in the second and fourth quarter of each year. |
CASH_CASH_EQUIVALENTS_AND_INVE1
CASH, CASH EQUIVALENTS AND INVESTMENTS (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Cash, Cash Equivalents, and Short-term Investments [Abstract] | ' | ||||||||||||||||
Investments | ' | ||||||||||||||||
Investments at September 30, 2013 consisted of the following (in thousands): | |||||||||||||||||
Amortized | Unrealized | Aggregate Fair | |||||||||||||||
Investment Classification | Cost | Gains | (Losses) | Market Value | |||||||||||||
September 30, 2013 – | |||||||||||||||||
Certificates of deposit | $ | 11,103 | $ | 2 | $ | (20 | ) | $ | 11,085 | ||||||||
Corporate bonds | 170,724 | 15 | (34 | ) | 170,705 | ||||||||||||
U.S. government bonds | 3,074 | — | — | 3,074 | |||||||||||||
Convertible notes | 4,300 | — | — | 4,300 | |||||||||||||
$ | 189,201 | $ | 17 | $ | (54 | ) | $ | 189,164 | |||||||||
Investments at December 31, 2012 consisted of the following (in thousands): | |||||||||||||||||
Amortized | Unrealized | Aggregate Fair | |||||||||||||||
Investment Classification | Cost | Gains | (Losses) | Market Value | |||||||||||||
December 31, 2012 – | |||||||||||||||||
Certificates of deposit | $ | 7,562 | $ | 3 | $ | (5 | ) | $ | 7,560 | ||||||||
Commercial paper | 2,997 | — | — | 2,997 | |||||||||||||
Corporate bonds | 141,349 | 9 | (25 | ) | 141,333 | ||||||||||||
U.S. government bonds | 3,098 | — | — | 3,098 | |||||||||||||
Convertible notes | 4,300 | — | — | 4,300 | |||||||||||||
$ | 159,306 | $ | 12 | $ | (30 | ) | $ | 159,288 | |||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assets and liabilities carried at fair value measured on a recurring basis | ' | |||||||||||||||
The following table provides the assets carried at fair value measured on a recurring basis as of September 30, 2013 (in thousands): | ||||||||||||||||
Fair Value Measurements, Using | ||||||||||||||||
Total carrying | Quoted prices | Significant other observable inputs | Significant unobservable inputs | |||||||||||||
value as of | in active markets | (Level 2) | (Level 3) | |||||||||||||
September 30, 2013 | (Level 1) | |||||||||||||||
Cash equivalents | $ | 41,792 | $ | 41,792 | $ | — | $ | — | ||||||||
Short-term investments | 181,193 | 181,193 | — | — | ||||||||||||
Long-term investments | 7,971 | 3,671 | — | 4,300 | ||||||||||||
The following table provides the assets carried at fair value measured on a recurring basis as of December 31, 2012 (in thousands): | ||||||||||||||||
Fair Value Measurements, Using | ||||||||||||||||
Total carrying | Quoted prices | Significant other observable inputs | Significant unobservable inputs | |||||||||||||
value as of December 31, 2012 | in active markets | (Level 2) | (Level 3) | |||||||||||||
(Level 1) | ||||||||||||||||
Cash equivalents | $ | 63,863 | $ | 63,863 | $ | — | $ | — | ||||||||
Short-term investments | 158,018 | 154,018 | — | 4,000 | ||||||||||||
Long-term investments | 1,270 | 970 | — | 300 | ||||||||||||
Convertible Notes, unobservable input reconciliation | ' | |||||||||||||||
The following table is a reconciliation of the changes in fair value of the Company’s investments in convertible notes for the three and nine months ended September 30, 2013, which had been classified in Level 3 in the fair value hierarchy (in thousands): | ||||||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||||||
Fair value of notes, beginning of period | $ | 4,300 | $ | 4,300 | ||||||||||||
Investments | — | — | ||||||||||||||
Fair value of notes, end of period | $ | 4,300 | $ | 4,300 | ||||||||||||
SHAREHOLDERS_EQUITY_Tables
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||
Shareholders equity | ' | |||||||||||||||||||||||||||
Series A | Additional | Accumulated Other | Total | |||||||||||||||||||||||||
Nonconvertible | ||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-In | Accumulated | Comprehensive | Treasury Stock | Shareholders’ | ||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Loss | Shares | Amount | Equity | |||||||||||||||||||
Balance, | 200,000 | $ | 2 | 46,561,437 | $ | 465 | $ | 564,883 | $ | (204,211 | ) | $ | (5,702 | ) | (205,902 | ) | $ | (5,202 | ) | $ | 350,235 | |||||||
1-Jan-13 | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 16,166 | — | — | — | 16,166 | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 489 | — | — | 489 | ||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | — | — | (195,599 | ) | (5,456 | ) | (5,456 | ) | |||||||||||||||
Exercise of common stock options, net of tendered shares | — | — | 77,589 | 1 | 889 | — | — | — | — | 890 | ||||||||||||||||||
Stock-based employee compensation, net of shares withheld for employee taxes (A) | — | — | (13,904 | ) | — | 1,959 | — | — | — | — | 1,959 | |||||||||||||||||
Issuance of common stock to Board of Directors and Scientific Advisory Board (B) | — | — | 34,153 | 1 | 897 | — | — | — | — | 898 | ||||||||||||||||||
Issuance of common stock under an Employee Stock Purchase Plan | — | — | 11,488 | — | 268 | — | — | — | — | 268 | ||||||||||||||||||
Balance, | 200,000 | $ | 2 | 46,670,763 | $ | 467 | $ | 568,896 | $ | (188,045 | ) | $ | (5,213 | ) | (401,501 | ) | $ | (10,658 | ) | $ | 365,449 | |||||||
30-Sep-13 | ||||||||||||||||||||||||||||
(A) | Includes $435 (13,356 shares) that was accrued for in a previous period and charged to expense when earned, but issued in 2013, less shares withheld for taxes in the amount of $153 (4,672 shares). | |||||||||||||||||||||||||||
(B) | Includes $300 (9,212 shares) that was earned in a previous period and charged to expense when earned, but issued in 2013. |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||
Accumulated other comprehensive loss consists of the following (in thousands): | ||||||||||||
Unrealized loss on available-for-sale securities | Net unrealized loss on retirement plan | Total | ||||||||||
Balance January 1, 2013 | $ | (18 | ) | $ | (5,684 | ) | $ | (5,702 | ) | |||
Other comprehensive loss before reclassification | (19 | ) | — | (19 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income | — | 508 | 508 | |||||||||
Net current-period other comprehensive (loss) income | (19 | ) | 508 | 489 | ||||||||
Balance September 30, 2013 | $ | (37 | ) | $ | (5,176 | ) | $ | (5,213 | ) | |||
Components of net periodic pension cost | ' | |||||||||||
Amounts related to the retirement plan reclassified out of accumulated other comprehensive loss and included in net periodic benefit costs (see Note 11) for the three and nine months ended September 30, 2013 were as follows (in thousands): | ||||||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | |||||||||||
Amortization of prior service cost | $ | 146 | $ | 438 | ||||||||
Amortization of actuarial loss | 23 | 70 | ||||||||||
Total | $ | 169 | $ | 508 | ||||||||
The components of net periodic pension cost were as follows for the three months ended September 30, (in thousands): | ||||||||||||
2013 | 2012 | |||||||||||
Service cost | $ | 162 | $ | 144 | ||||||||
Interest cost | 85 | 96 | ||||||||||
Amortization of prior service cost | 146 | 146 | ||||||||||
Amortization of actuarial loss | 23 | 2 | ||||||||||
Total net periodic benefit cost | $ | 416 | $ | 388 | ||||||||
SUPPLEMENTAL_EXECUTIVE_RETIREM1
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Compensation and Retirement Disclosure [Abstract] | ' | ||||||||
Components of net periodic pension cost | ' | ||||||||
Amounts related to the retirement plan reclassified out of accumulated other comprehensive loss and included in net periodic benefit costs (see Note 11) for the three and nine months ended September 30, 2013 were as follows (in thousands): | |||||||||
Three Months Ended September 30, 2013 | Nine Months Ended September 30, 2013 | ||||||||
Amortization of prior service cost | $ | 146 | $ | 438 | |||||
Amortization of actuarial loss | 23 | 70 | |||||||
Total | $ | 169 | $ | 508 | |||||
The components of net periodic pension cost were as follows for the three months ended September 30, (in thousands): | |||||||||
2013 | 2012 | ||||||||
Service cost | $ | 162 | $ | 144 | |||||
Interest cost | 85 | 96 | |||||||
Amortization of prior service cost | 146 | 146 | |||||||
Amortization of actuarial loss | 23 | 2 | |||||||
Total net periodic benefit cost | $ | 416 | $ | 388 | |||||
CONCENTRATION_OF_RISK_Tables
CONCENTRATION OF RISK (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||
Revenues and accounts receivable from our largest non-government customers | ' | ||||||||
Revenues for the three months ended September 30, 2013 and 2012, and accounts receivable as of September 30, 2013, from our largest non-government customers were as follows: | |||||||||
% of Total Revenue | Accounts Receivable | ||||||||
(in thousands) | |||||||||
Customer | 2013 | 2012 | September 30, 2013 | ||||||
A | 47% | 54% | $ | 10,857 | |||||
B | 34% | 15% | 3,459 | ||||||
Revenues for the nine months ended September 30, 2013 and 2012, were as follows: | |||||||||
% of Total Revenue | |||||||||
Customer | 2013 | 2012 | |||||||
A | 59% | 63% | |||||||
B | 24% | 9% | |||||||
Revenues by geographic area | ' | ||||||||
Revenues from outside of North America represented 99% and 94% of consolidated revenue for the nine months ended September 30, 2013 and 2012, respectively. Revenues by geographic area are as follows (in thousands): | |||||||||
Country | 2013 | 2012 | |||||||
United States | $ | 1,353 | $ | 3,432 | |||||
South Korea | 66,509 | 38,689 | |||||||
Japan | 28,257 | 10,055 | |||||||
Taiwan | 659 | 2,387 | |||||||
Other | 383 | 548 | |||||||
All foreign locations | 95,808 | 51,679 | |||||||
Total revenue | $ | 97,161 | $ | 55,111 | |||||
Revenues from outside of North America represented 99% and 93% of consolidated revenue for the three months ended September 30, 2013 and 2012, respectively. Revenues by geographic area are as follows (in thousands): | |||||||||
Country | 2013 | 2012 | |||||||
United States | $ | 269 | $ | 874 | |||||
South Korea | 18,707 | 7,735 | |||||||
Japan | 13,160 | 3,352 | |||||||
Taiwan | 441 | 398 | |||||||
Other | 249 | 145 | |||||||
All foreign locations | 32,557 | 11,630 | |||||||
Total revenue | $ | 32,826 | $ | 12,504 | |||||
Long lived assets by geographic area | ' | ||||||||
Long-lived assets (net) by geographic area at September 30, 2013 and December 31, 2012 are as follows (in thousands): | |||||||||
30-Sep-13 | 31-Dec-12 | ||||||||
United States | $ | 14,441 | $ | 11,512 | |||||
Other | 257 | 296 | |||||||
Total long-lived assets, net | $ | 14,698 | $ | 11,808 | |||||
NET_INCOME_PER_COMMON_SHARE_NE
NET INCOME PER COMMON SHARE NET INCOME PER COMMON SHARE (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
The following table is a reconciliation of net income and the shares used in calculating basic and diluted net income per common share for the nine months ended September 30, 2013 and 2012 (in thousands, except for share and per share data): | |||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net income | $ | 16,166 | $ | 4,275 | |||||
Denominator: | |||||||||
Weighted average common shares outstanding - Basic | 45,865,395 | 45,916,536 | |||||||
Effect of dilutive shares: | |||||||||
Common stock equivalents arising from stock options, warrants and ESPP | 500,749 | 701,351 | |||||||
Restricted stock awards and units and performance units | 181,424 | 294,670 | |||||||
Weighted average common shares outstanding - Diluted | 46,547,568 | 46,912,557 | |||||||
Net income per common share: | |||||||||
Basic | $ | 0.35 | $ | 0.09 | |||||
Diluted | $ | 0.35 | $ | 0.09 | |||||
The following table is a reconciliation of net income (loss) and the shares used in calculating basic and diluted net income (loss) per common share for the three months ended September 30, 2013 and 2012 (in thousands, except for share and per share data): | |||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Net income (loss) | $ | 5,542 | $ | (5,468 | ) | ||||
Denominator: | |||||||||
Weighted average common shares outstanding - Basic | 45,912,512 | 46,006,290 | |||||||
Effect of dilutive shares: | |||||||||
Common stock equivalents arising from stock options, warrants and ESPP | 494,536 | — | |||||||
Restricted stock awards and units and performance units | 187,795 | — | |||||||
Weighted average common shares outstanding - Diluted | 46,594,843 | 46,006,290 | |||||||
Net income (loss) per common share: | |||||||||
Basic | $ | 0.12 | $ | (0.12 | ) | ||||
Diluted | $ | 0.12 | $ | (0.12 | ) | ||||
BASIS_OF_PRESENTATION_Revenue_1
BASIS OF PRESENTATION Revenue Recognition (Details) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Deferred Revenue Arrangement [Line Items] | ' |
Deferred Revenue | $6.30 |
Deferred revenue under license agreements not yet executed or deemed effective | $1.50 |
CASH_CASH_EQUIVALENTS_AND_INVE2
CASH, CASH EQUIVALENTS AND INVESTMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 13, 2012 | Jul. 13, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 13, 2012 | Jul. 17, 2012 |
Plextronics, Inc. [Member] | Certificates of deposit [Member] | Certificates of deposit [Member] | Commercial Paper [Member] | Corporate bonds [Member] | Corporate bonds [Member] | U.S. government bonds [Member] | U.S. government bonds [Member] | Convertible notes [Member] | Convertible notes [Member] | Convertible notes [Member] | Convertible notes [Member] | ||||
Plextronics, Inc. [Member] | Private company [Member] | ||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortized Cost | $189,201,000 | $159,306,000 | ' | ' | $11,103,000 | $7,562,000 | $2,997,000 | $170,724,000 | $141,349,000 | $3,074,000 | $3,098,000 | $4,300,000 | $4,300,000 | $4,000,000 | $300,000 |
Unrealized Gains | 17,000 | 12,000 | ' | ' | 2,000 | 3,000 | ' | 15,000 | 9,000 | ' | ' | ' | ' | ' | ' |
Unrealized Losses | -54,000 | -30,000 | ' | ' | -20,000 | -5,000 | ' | -34,000 | -25,000 | ' | ' | ' | ' | ' | ' |
Aggregate Fair Market Value | 189,164,000 | 159,288,000 | ' | ' | 11,085,000 | 7,560,000 | 2,997,000 | 170,705,000 | 141,333,000 | 3,074,000 | 3,098,000 | 4,300,000 | 4,300,000 | ' | ' |
Joint development, term of agreement (in years) | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Joint development agreement, annual commitment | ' | ' | $1,000,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible promissory note stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 5.00% |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Assets carried at fair value measured on a recuring basis [Abstract] | ' | ' |
Impairment of non-marketable convertible debt | $0 | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Fair value of notes, beginning of period | ' | 4,300,000 |
Fair value of notes, end of period | 4,300,000 | 4,300,000 |
Notes Receivable [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Investments | 0 | ' |
Carrying Value [Member] | ' | ' |
Assets carried at fair value measured on a recuring basis [Abstract] | ' | ' |
Cash equivalents | 41,792,000 | 63,863,000 |
Short-term investments | 181,193,000 | 158,018,000 |
Long-term investments | 7,971,000 | 1,270,000 |
Fair Value [Member] | Quoted prices in active markets (Level 1) [Member] | ' | ' |
Assets carried at fair value measured on a recuring basis [Abstract] | ' | ' |
Cash equivalents | 41,792,000 | 63,863,000 |
Short-term investments | 181,193,000 | 154,018,000 |
Long-term investments | 3,671,000 | 970,000 |
Fair Value [Member] | Significant other observable inputs (Level 2) [Member] | ' | ' |
Assets carried at fair value measured on a recuring basis [Abstract] | ' | ' |
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Fair Value [Member] | Significant unobservable inputs (Level 3) [Member] | ' | ' |
Assets carried at fair value measured on a recuring basis [Abstract] | ' | ' |
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 4,000,000 |
Long-term investments | $4,300,000 | $300,000 |
RESEARCH_AND_LICENSE_AGREEMENT1
RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON, USC AND MICHIGAN (Details) (USD $) | 120 Months Ended | 36 Months Ended | 0 Months Ended | 50 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2007 | Apr. 30, 2009 | 1-May-09 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
1997 Research Agreement [Member] | 2006 Research Agreement - Original Term [Member] | 2006 Research Agreement - Extended Term [Member] | 2006 Research Agreement - Extended Term [Member] | 2006 Research Agreement - Extended Term [Member] | 1997 Amended License Agreement [Member] | 1997 Amended License Agreement [Member] | 1997 Amended License Agreement [Member] | 1997 Amended License Agreement [Member] | |
Research and Development Arrangement, Contract to perform for Others [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of agreement (in years) | '10 years | '3 years | '4 years | ' | ' | ' | ' | ' | ' |
Research and development expense incurred | ' | $5,000,000 | ' | $386,000 | ' | ' | ' | ' | ' |
Maximum obligation | ' | ' | ' | ' | 8,200,000 | ' | ' | ' | ' |
Royalty rate for licensed products sold by the Company (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' |
Royalty rate for licensed products sold by the Company's sublicenses (in hundredths) | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' |
Minimum royalty payment per year | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' |
Royalty and license expense | ' | ' | ' | ' | ' | 601,000 | 278,000 | 2,100,000 | 1,300,000 |
Minimum investment per year | ' | ' | ' | ' | ' | ' | ' | $800,000 | ' |
ACQUIRED_TECHNOLOGY_Details
ACQUIRED TECHNOLOGY (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Mar. 09, 2011 | Jul. 23, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Motorola [Member] | Motorola [Member] | FUJIFILM [Member] | FUJIFILM [Member] | FUJIFILM [Member] | FUJIFILM [Member] | FUJIFILM [Member] | |||
Licensing agreement [Member] | Licensing agreement [Member] | Patents [Member] | Patents [Member] | Patents [Member] | Patents [Member] | Patents [Member] | |||
patent | patent | ||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patents under license agreement | ' | ' | 74 | ' | ' | ' | ' | ' | ' |
Assigned value of acquired intangible assets | ' | ' | ' | $440,000 | ' | ' | ' | ' | ' |
Amortization period of acquired intangible assets (in years) | ' | ' | '7 years 6 months | ' | ' | ' | ' | ' | ' |
Number of patents acquired (more than 1,200) | ' | ' | ' | ' | 1,200 | ' | ' | ' | ' |
Cost of acquired intangibles | ' | ' | ' | ' | 105,000,000 | ' | ' | ' | ' |
Cash paid for OLED patents | ' | ' | ' | ' | 4,100,000 | ' | ' | ' | ' |
OLED patents useful life | ' | ' | ' | ' | '10 years | ' | ' | ' | ' |
Amortization of intangibles | $8,224,000 | $2,126,000 | ' | ' | ' | $2,700,000 | $2,100,000 | $8,200,000 | $2,100,000 |
EQUITY_AND_CASH_COMPENSATION_U1
EQUITY AND CASH COMPENSATION UNDER THE PPG INDUSTRIES AGREEMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' |
Specified form of payment for the balance payable in cash or shares of the Company's common stock | 50.00% | 50.00% | ' | ' |
Development Agreement [Member] | ' | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' |
Time period (in years) | ' | '5 years | ' | ' |
Supply Agreement [Member] | ' | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' |
Time period (in years) | ' | '7 years | ' | ' |
New OLED Materials Agreement and OLED Materials Agreement [Member] | ' | ' | ' | ' |
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' |
Minimum average closing price of common stock (in dollars per share) | ' | ' | ' | $20 |
Charges to expense for cash portion of reimbursement of expenses | $1.60 | $4.90 | $4 | ' |
Shares issued for services to PPG | ' | 0 | 0 | ' |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | ||||||||
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
BALANCE (in shares) | ' | ' | ' | ' | 200,000 | 200,000 | 46,561,437 | ' | ' | ' | 205,902,000 | |||
BALANCE | ' | ' | $350,235,000 | ' | $2,000 | $2,000 | $465,000 | $564,883,000 | ($204,211,000) | ($5,702,000) | ($5,202,000) | |||
Net income | 5,542,000 | -5,468,000 | 16,166,000 | 4,275,000 | ' | ' | ' | ' | 16,166,000 | ' | ' | |||
Other comprehensive income | 115,000 | 203,000 | 489,000 | 461,000 | ' | ' | ' | ' | ' | 489,000 | ' | |||
Repurchase of common stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -195,599,000 | |||
Repurchase of common stock | ' | ' | -5,456,000 | ' | ' | ' | ' | ' | ' | ' | -5,456,000 | |||
Exercise of common stock options, net of tendered shares (in shares) | ' | ' | ' | ' | ' | ' | 77,589 | ' | ' | ' | ' | |||
Exercise of common stock options, net of tendered shares | ' | ' | 890,000 | ' | ' | ' | 1,000 | 889,000 | ' | ' | ' | |||
Stock-based employee compensation, net of shares withheld for employee taxes (in shares) | ' | ' | ' | ' | ' | ' | -13,904 | [1] | ' | ' | ' | ' | ||
Stock-based employee compensation, net of shares withheld for employee taxes | ' | ' | 1,959,000 | [1] | ' | ' | ' | 0 | [1] | 1,959,000 | [1] | ' | ' | ' |
Issuance of common stock to Board of Directors and Scientific Advisory Board (in shares) | ' | ' | ' | ' | ' | ' | 34,153 | [2] | ' | ' | ' | ' | ||
Issuance of common stock to Board of Directors and Scientific Advisory Board | ' | ' | 898,000 | [2] | ' | ' | ' | 1,000 | [2] | 897,000 | [2] | ' | ' | ' |
Issuance of common stock under an Employee Stock Purchase Plan (in shares) | ' | ' | ' | ' | ' | ' | 11,488 | ' | ' | ' | ' | |||
Issuance of common stock under an Employee Stock Purchase Plan | ' | ' | 268,000 | ' | ' | ' | 0 | 268,000 | ' | ' | ' | |||
BALANCE (in shares) | ' | ' | ' | ' | 200,000 | 200,000 | 46,670,763 | ' | ' | ' | 401,501,000 | |||
BALANCE | 365,449,000 | ' | 365,449,000 | ' | 2,000 | 2,000 | 467,000 | 568,896,000 | -188,045,000 | -5,213,000 | -10,658,000 | |||
Shares issued to employees, earned in prior period | ' | ' | 435,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares issued to employees, earned in prior period (in shares) | ' | ' | 13,356 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares withheld for employees' tax withholding obligations, earned in prior period | ' | ' | 153,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares withheld for employees' tax withholding obligations, earned in prior period (in shares) | ' | ' | 4,672 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares issued to Board of Directors and Scientific Advisory Board, earned in prior period | ' | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares issued to Board of Directors and Scientific Advisory Board, earned in prior period (in shares) | ' | ' | 9,212 | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | Includes $435 (13,356 shares) that was accrued for in a previous period and charged to expense when earned, but issued in 2013, less shares withheld for taxes in the amount of $153 (4,672 shares). | |||||||||||||
[2] | Includes $300 (9,212 shares) that was earned in a previous period and charged to expense when earned, but issued in 2013. |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance January 1, 2013 | ' | ' | ($5,702) | ' |
Other comprehensive loss before reclassification | ' | ' | -19 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 508 | ' |
TOTAL OTHER COMPREHENSIVE INCOME | 115 | 203 | 489 | 461 |
Balance September 30, 2013 | -5,213 | ' | -5,213 | ' |
Unrealized loss on available-for-sale securities [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance January 1, 2013 | ' | ' | -18 | ' |
Other comprehensive loss before reclassification | ' | ' | -19 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 0 | ' |
TOTAL OTHER COMPREHENSIVE INCOME | ' | ' | -19 | ' |
Balance September 30, 2013 | -37 | ' | -37 | ' |
Net unrealized loss on retirement plan [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance January 1, 2013 | ' | ' | -5,684 | ' |
Other comprehensive loss before reclassification | ' | ' | 0 | ' |
Amounts reclassified from accumulated other comprehensive income | ' | ' | 508 | ' |
TOTAL OTHER COMPREHENSIVE INCOME | ' | ' | 508 | ' |
Balance September 30, 2013 | -5,176 | ' | -5,176 | ' |
Net unrealized loss on retirement plan [Member] | Reclassification out of AOCI [Member] | ' | ' | ' | ' |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax [Abstract] | ' | ' | ' | ' |
Amortization of prior service cost | 146 | ' | 438 | ' |
Amortization of actuarial loss | 23 | ' | 70 | ' |
Total | $169 | ' | $508 | ' |
STOCKBASED_COMPENSATION_Equity
STOCK-BASED COMPENSATION - Equity Compensation Plan (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 07, 2013 | Sep. 30, 2013 | Mar. 07, 2013 | Sep. 30, 2013 | Mar. 07, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | |
Board of Directors [Member] | Board of Directors [Member] | Employees and Non Employee Members of Scientific Advisory Board [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Restricted Stock Awards and Restricted Stock Units [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Common Stock [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Stock Appreciation Rights (SARs) [Member] | Equity Compensation Plan [Member] | ||
Board of Directors [Member] | Board of Directors [Member] | Employees and Non Employee Members of Scientific Advisory Board [Member] | Employees and Non Employee Members of Scientific Advisory Board [Member] | Employees and Non Employee Members of Scientific Advisory Board [Member] | Employees and Non Employee Members of Scientific Advisory Board [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Minimum [Member] | Maximum [Member] | Performance Vesting [Member] | Performance Vesting [Member] | Market-based Vesting [Member] | Market-based Vesting [Member] | General and Administrative Expense [Member] | General and Administrative Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | Research and Development Expense [Member] | General and Administrative Expense [Member] | Research and Development Expense [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration term (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years |
Number of shares authorized (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 117,121 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period from date of grant (in years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 959,000 | 787,000 | 2,900,000 | 2,100,000 | 409,000 | 342,000 | 1,200,000 | 851,000 | ' | ' | ' | ' | ' | ' | ' | ' | 139,000 | 314,000 | 42,000 | 95,000 | 68,000 | ' | ' | ' | ' | 1,000 | 3,000 | ' |
Shares of common stock withheld to satisfy tax obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94,209 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of shares of common stock withheld to satisfy tax obligations | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Performance period over which performance units are measured | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of performance units that may vest as a multiple of target level shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of performance units granted during period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,776 | ' | 17,888 | ' | 17,888 | ' | ' | ' | ' | ' | 0 | ' | 0 | 24,000 | ' | ' | ' |
Total fair value of performance units granted during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base price of each SAR award (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34.78 | ' | ' | ' |
Cash payments as a result of settlement of SARs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49,000 | ' | ' | ' | ' | ' |
Number of shares of common stock issued during the period | ' | ' | 15,000 | 7,370 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of shares issued during the period | ' | 126,000 | 390,000 | ' | 162,000 | 482,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period of restricted stock | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | ' | ' | ' | ' | ' | ' | $78,000 | $50,000 | $207,000 | $166,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKBASED_COMPENSATION_Employ
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' | ' |
Proceeds from common stock issued | ' | ' | $268,000 | ' |
General and Administrative Expense [Member] | ' | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' | ' |
Charges to expense | 12,000 | 10,000 | 27,000 | 19,000 |
Research and Development Expense [Member] | ' | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' | ' |
Charges to expense | 17,000 | 24,000 | 59,000 | 58,000 |
Employee Stock Purchase Plan (ESPP) [Member] | ' | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' | ' |
Reserved for issuance (in shares) | 1,000,000 | ' | 1,000,000 | ' |
Purchase period (in months) | ' | ' | 'three | ' |
Percentage of market value (in hundredths) | ' | ' | 85.00% | ' |
Maximum allocation of base compensation (in hundredths) | ' | ' | 10.00% | ' |
Maximum shares per purchase date (in shares) | ' | ' | 12,500 | ' |
Maximum value per calendar year, per employee | ' | ' | 25,000 | ' |
Common stock issued (in shares) | ' | ' | 11,488 | 8,097 |
Proceeds from common stock issued | ' | ' | $268,000 | $244,000 |
SUPPLEMENTAL_EXECUTIVE_RETIREM2
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (Details) (Supplemental Executive Retirement Plan [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
participant | participant | |||
Supplemental Executive Retirement Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Number of participants | 5 | ' | 5 | ' |
Components of net periodic pension cost [Abstract] | ' | ' | ' | ' |
Service cost | $162 | $144 | $485 | $432 |
Interest cost | 85 | 96 | 257 | 288 |
Amortization of prior service cost | 146 | 146 | 438 | 438 |
Amortization of actuarial loss | 23 | 2 | 70 | 7 |
Total net periodic benefit cost | $416 | $388 | $1,250 | $1,165 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 0 Months Ended | 5 Months Ended | ||||
Jul. 13, 2012 | Jul. 13, 2011 | 24-May-10 | Apr. 20, 2010 | Jul. 27, 2007 | Sep. 30, 2013 | |
company | notice_of_invalidation | company | company | patent | ||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Joint development agreement, commitment period | '3 years | ' | ' | ' | ' | ' |
Joint development agreement, annual commitment | $1,000,000 | ' | ' | ' | ' | ' |
Number of issued patetends and pending patent applications (more than 3,000) | ' | ' | ' | ' | ' | 3,000 |
Number of companies filings notices of opposition to patent | ' | 3 | ' | 5 | 3 | ' |
Number of Notices of Invalidation Trials | ' | ' | 2 | ' | ' | ' |
Commitment with executive officers [Member] | ' | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' |
Number of executive officers under agreement | ' | ' | ' | ' | ' | 6 |
Agreement terms, multiple of sum of average annual base salary and bonus | ' | ' | ' | ' | ' | 2 |
CONCENTRATION_OF_RISK_Revenues
CONCENTRATION OF RISK - Revenues and Accounts Receivable (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Revenue | $32,826,000 | $12,504,000 | $97,161,000 | $55,111,000 | ' |
Accounts receivable | 17,785,000 | ' | 17,785,000 | ' | 8,657,000 |
Total Revenue [Member] | Customer Concentration Risk [Member] | Major Customer A [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | 47.00% | 54.00% | 59.00% | 63.00% | ' |
Total Revenue [Member] | Customer Concentration Risk [Member] | Major Customer B [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | 34.00% | 15.00% | 24.00% | 9.00% | ' |
Total Revenue [Member] | Government Contracts Concentration Risk [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Revenue | 143,000 | 658,000 | 1,000,000 | 3,000,000 | ' |
Concentration Risk, Percentage | 1.00% | 5.00% | 1.00% | 5.00% | ' |
Total Revenue [Member] | Geographic Concentration Risk [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | 99.00% | 93.00% | 99.00% | 94.00% | ' |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Major Customer A [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Accounts receivable | 10,857,000 | ' | 10,857,000 | ' | ' |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Major Customer B [Member] | ' | ' | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' |
Accounts receivable | $3,459,000 | ' | $3,459,000 | ' | ' |
CONCENTRATION_OF_RISK_Revenues1
CONCENTRATION OF RISK - Revenues by Geographic Area (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues by geographic area [Line Items] | ' | ' | ' | ' |
United States | $269,000 | $874,000 | $1,353,000 | $3,432,000 |
Revenue | 32,826,000 | 12,504,000 | 97,161,000 | 55,111,000 |
All foreign locations | 32,557,000 | 11,630,000 | 95,808,000 | 51,679,000 |
South Korea [Member] | ' | ' | ' | ' |
Revenues by geographic area [Line Items] | ' | ' | ' | ' |
Revenue | 18,707,000 | 7,735,000 | 66,509,000 | 38,689,000 |
Japan [Member] | ' | ' | ' | ' |
Revenues by geographic area [Line Items] | ' | ' | ' | ' |
Revenue | 13,160,000 | 3,352,000 | 28,257,000 | 10,055,000 |
Taiwan [Member] | ' | ' | ' | ' |
Revenues by geographic area [Line Items] | ' | ' | ' | ' |
Revenue | 441,000 | 398,000 | 659,000 | 2,387,000 |
Other foreign locations [Member] | ' | ' | ' | ' |
Revenues by geographic area [Line Items] | ' | ' | ' | ' |
Revenue | $249,000 | $145,000 | $383,000 | $548,000 |
Geographic Concentration Risk [Member] | Total Revenue [Member] | ' | ' | ' | ' |
Revenues by geographic area [Line Items] | ' | ' | ' | ' |
Concentration Risk, Percentage | 99.00% | 93.00% | 99.00% | 94.00% |
CONCENTRATION_OF_RISK_Long_Liv
CONCENTRATION OF RISK - Long Lived Assets by Geographic Area (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | $14,698 | $11,808 |
United States [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | 14,441 | 11,512 |
Other [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | $257 | $296 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Withholding tax rate for royalty payments | ' | ' | 16.50% | ' |
Income tax benefit | $1,100,000 | $326,000 | $3,200,000 | $2,000,000 |
Discrete income tax items | $225,000 | ' | ' | ' |
NET_INCOME_LOSS_PER_COMMON_SHA1
NET INCOME (LOSS) PER COMMON SHARE (Details) (Stock Options, Restricted Stock Awards, and Restricted Stock Units [Member]) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Stock Options, Restricted Stock Awards, and Restricted Stock Units [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive securities excluded from computation of earnings per share amount | 111,993 | 1,447,301 | 188,302 |
NET_INCOME_PER_COMMON_SHARE_NE1
NET INCOME PER COMMON SHARE NET INCOME (LOSS) PER COMMON SHARE (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ' | ' | ' | ' |
Net income | $5,542 | ($5,468) | $16,166 | $4,275 |
Weighted Average Number of Shares Outstanding, Basic | 45,912,512 | 46,006,290 | 45,865,395 | 45,916,536 |
Incremental Common Shares Attributable to Call Options and Warrants | 494,536 | 0 | 500,749 | 701,351 |
Incremental Common Shares Attributable to Nonvested Shares with Forfeitable Dividends | 187,795 | 0 | 181,424 | 294,670 |
DILUTED (in shares) | 46,594,843 | 46,006,290 | 46,547,568 | 46,912,557 |
Earnings Per Share, Basic | $0.12 | ($0.12) | $0.35 | $0.09 |
Earnings Per Share, Diluted | $0.12 | ($0.12) | $0.35 | $0.09 |