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Universal Display Corporation Gregory FCA Communications
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Dean Ledger Investor contact: Kathy Keyser
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Media contact: Renee Rozniatoski
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FOR IMMEDIATE RELEASE
- ---------------------
Universal Display Corporation Announces Second Quarter 2003 Results
Ewing NJ, August 13, 2003 -- Universal Display Corporation (NASDAQ:PANL; PHLX:
PNL), a leading developer of Organic Light Emitting Device (OLED) technologies
for flat panel displays, today announced its unaudited results of operations for
the second quarter of 2003.
Universal Display Corporation had a net loss of $4,092,994 (or $0.19 per share)
for the quarter ended June 30, 2003, compared to a net loss of $5,577,787 (or
$0.31 per share) for the same quarter in 2002. The Company had a net loss of
$7,961,740 (or $0.37 per share) for the six months ended June 30, 2003, compared
to a net loss of $10,876,596 (or $0.60 per share) for the same six months in
2002. The decrease in the net loss is primarily attributable to an increase in
revenues and a decrease in interest expense as a result of the conversion and
repayment of convertible promissory notes in September 2002.
Revenues for the three months and six months ended June 30, 2003 were $1,349,956
and $2,530,903 respectively, compared to $455,026 and $989,952 for the same
periods in 2002. The Company earned $1,193,550 from its sales of OLED materials
for evaluation purposes during the six months ended June 30, 2003, compared to
$177,893 for the same period in 2002. The increase in this amount is due to the
increased volume of OLED materials purchased for evaluation by potential OLED
manufacturers, including the Company's current joint development partners. The
Company earned $837,353 in contract research revenue from the U.S. Government
during the six months ended June 30, 2003, compared to $812,059 for the same
period in 2002. The Company also recognized $500,000 in technology development
revenue for the six-month period in 2003 in connection with a technology and
development evaluation agreement. There were no similar revenues for the same
period in 2002.
Net cash used in operating activities was $3,312,481 for the six months ended
June 30, 2003, compared to $4,103,394 for the same period in 2002. The decreased
use of cash in operating activities is partly due to a decrease in the net loss
and an increase in accounts payable.
Universal Display Corporation -- Summary Operating Results
Three Months Ended Six Months Ended
(unaudited) (unaudited)
-------------------------------------------- -------------------------------------------
June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002
-------------------- -------------------- -------------------- -------------------
Total Revenue $ 1,349,956 $ 455,026 $ 2,530,903 $ 989,952
Net Loss $(4,092,994) $(5,577,787) $(7,961,740) $(10,876,596)
Net Loss per Share $(0.19) $(0.31) $(0.37) $(0.60)
Weighted Average
Number of Shares 21,654,133 18,183,254 21,595,360 18,181,230
About Universal Display Corporation
Universal Display Corporation is a world leader in developing and
commercializing innovative Organic Light Emitting Device (OLED) technologies. It
is collaborating with a network of world class organizations to penetrate the
electronic flat panel display market, and its relationships include
long-standing relationships for innovative OLED technology research with
Princeton University and the University of Southern California; a joint
development and cross-licensing arrangement with DuPont Displays for
solution-processible OLEDs; a joint development agreement with Sony Corporation
for OLED products; a joint development agreement with Samsung SDI for OLED
products; a development and evaluation agreement with Toyota Industries
Corporation relating to OLEDs for white light sources; an evaluation agreement
with AU Optronics focusing on OLEDs using amorphous silicon TFT's; development
and supply agreements with PPG Industries, Inc. of Pittsburgh, PA for the
commercialization and production of proprietary high efficiency OLED materials;
and a partnership with AIXTRON AG of Aachen, Germany for the development and
production of next-generation OLED production equipment using Universal Display
Corporation's proprietary organic vapor phase deposition (OVPD) technology.
Universal Display Corporation currently has over 500 issued and pending patents
worldwide. These include approximately 250 patents from its strategic research
partnerships with Princeton University and the University of Southern
California.
Universal Display Corporation is located in the Princeton Crossroads Corporate
Center in Ewing, NJ, minutes away from its research partner at Princeton
University. Its 21,000 sq. ft. facility includes an OLED pilot production line,
as well as OLED technology development and technology transfer facilities. The
state-of-the-art facility has been designed to further technology development,
technology transfer to manufacturing partners and work with customers to develop
products to meet their needs for flat panel displays. Visit Universal Display
Corporation on the Web at http://www.universaldisplay.com
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All statements in this document that are not historical, such as financial or
product forecasts and market growth predictions, are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
Often, though not always, these statements are accompanied by the words
"estimate," "project," "believe," "anticipate," "intend," "expect" and similar
expressions. You are cautioned not to place undue reliance on any
forward-looking statements in this document, as they reflect Universal Display
Corporation's current views with respect to future events and are subject to
risks and uncertainties that could cause actual results to differ materially
from those contemplated. These include, but are not limited to, the following:
the feasibility and market acceptance of OLEDs for use in commercial product
applications; the success of Universal Display Corporation and its research and
development partners in accomplishing advances in OLED technologies, including
Universal Display Corporation's TOLED(TM), FOLED(TM), PHOLED(TM), P(2)OLED(TM)
and Organic Vapor Phase Deposition (OVPD) technologies; the ability of Universal
Display Corporation to enter into licensing and other strategic alliances with
manufacturers of OLEDs and OLED-containing products; Universal Display
Corporation's ability to obtain patent protection for its OLED technologies and
to assert these patents against others; and future developments and advances by
Universal Display Corporation's competitors in OLED and other display
technologies. These and other risks and uncertainties are discussed in greater
detail in Universal Display Corporation's periodic reports on Form 10-K and Form
10-Q filed with the Securities and Exchange Commission, including, in
particular, the section entitled "Factors that May Affect Future Results and
Financial Condition" in Universal Display Corporation's annual report on Form
10-K for the year ended December 31, 2002. Universal Display Corporation
expressly disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statement contained in this document
to reflect events or circumstances after the date hereof, or to reflect the
occurrence of unanticipated events.