For the fourth quarter of 2007, the Company reported a net loss of $3,256,104, versus a net loss of $4,408,826 for the fourth quarter of 2006. The Company’s net loss for the year ended December 31, 2007 was $15,975,841, compared to a net loss of $15,186,804 for the year ended December 31, 2006.
Royalty and license revenues were $354,025 and $828,371 for three months and year ended December 31, 2007, respectively, compared to $127,900 and $2,400,179 for the same periods in 2006. The decrease in royalty and license revenue for the year was attributable to a suspension of OLED display production by a major customer, AU Optronics Corporation, as well as structural differences in the Company’s licensing arrangements with AU Optronics and Samsung SDI Co., Ltd. Under the arrangement with AU Optronics, license revenues were earned when the Company sold materials to AU Optronics, while under the arrangement with Samsung SDI, corresponding royalty revenues are not earned until products incorporating the Company’s materials are sold by Samsung SDI and reported to the Company.
“2007 marked a milestone year for Universal Display on a number of fronts,” said Sidney D. Rosenblatt, Chief Financial Officer of Universal Display. “Our licensee, Samsung SDI, began production and shipment of active-matrix OLED displays that utilize our phosphorescent OLED technology and materials. Recipients of these shipments included a number of major handset manufacturers, and we were encouraged to see that Samsung SDI had ramped volume production by the fourth quarter of 2007. We also continue to see a number of advances in our OLED technologies, with increased performance in our red, green and blue PHOLED material systems. In addition, we continued our work with industry leaders as well as the U.S. Department of Defense and U.S. Department of Energy, to accelerate growth of the OLED industry and to advance next generation OLED technologies like white OLED lighting and flexible OLED displays.