August 2007

Chen updated that CMEL currently only houses one 3.5-generation (3.5G) AMOLED (active matrix organic light-emitting diode) production line with a monthly capacity of 7,000 glass substrates. Maximum output of AMOLED panels is 300,000 units, he added.

Given that CMEL currently has its 2.4-inch panels under validation with leading mobile phone makers, present capacity may run short of demand very soon. Thus, the fund raising for further expansion is necessary, Chen said.

The second production line at CMEL will also follow the 3.5G standard with a monthly capacity of 7,000 units. Production is slated to be available during the second half of 2008, Chen detailed.

Read more here (Digitimes)

Data from spin coated devices using a common cathode and interlayer material demonstrate lifetimes for recently developed solution-processable green and red PLED materials of 78,000 hours and 67,000 hours, respectively, from an initial luminance of 1000 candelas per square meter, or cd/m2. This is equivalent to approximately 445,000 hours and 420,000 hours from an operating brightness of 400 cd/m² for these materials.

These latest lifetimes represent a 60% and 280% increase in performance for green and red materials over results that were announced in May and March of this year, respectively.

Total revenues for the second quarter of 2007 were $2.7 million, compared with $2.7 million for the same period last year. The increase in revenue for equipment and supplies caused by a major ink sale in the second quarter of 2007 was offset by slightly reduced license revenue.

Gross profit decreased from $2.4 million in the second quarter of 2006 to $1.9 million in the second quarter of 2007 due to lower margins in technology, services, development, equipment and supplies revenue.

Revenues for the three months and six months ended June 30, 2007 were $2,315,170 and $5,329,800, respectively, compared to $3,009,316 and $6,280,722 for the same periods in 2006. Revenue components for the second quarter and first six months of 2007 were as follows:

Commercial chemical revenues were $229,631 and $1,542,631, for the three months and six months ended June 30, 2007, respectively, compared to $336,365 and $734,844 for the same periods in 2006. Commercial chemical revenue for the first six months of 2007 was positively impacted by material shipments almost entirely to Samsung SDI. In 2006, commercial chemical revenue was mainly from material shipments to AU Optronics.

Royalty and license revenues were $163,295 and $291,195 for three months and six months ended June 30, 2007, respectively, compared to $807,185 and $1,738,031 for the same periods in 2006. Royalty and license revenue decreased in both periods of 2007 due to AU Optronics discontinuing its purchase of materials for which in 2006 we recognized both commercial chemical and license revenue, unlike the agreement with Samsung SDI for which royalties will be recorded after Samsung SDI sells the products.

"While we continue to experience a shift in our revenue mix as our technology is commercialized, we have and expect to continue to experience fluctuations in revenues as the market for our OLED technology continues to develop," said Sidney D. Rosenblatt, Chief Financial Officer of Universal Display. "The next year will be an important time for Universal Display as we continue to advance our PHOLED technology for displays and lighting applications, and as display manufacturers continue to incorporate our OLED technology and materials into their commercial products. We believe that the Company is in a strong technological and financial position as it enters a new era in display technology."

eMagin Corporation has issued preliminary financial results for its second quarter ending June 30, 2007. The results show record revenues with year-over-year revenues improving by 153% for the quarter and 137% for the first six months of 2007.

Financial Summary

• Revenue for the three and six months ending June 30, 2007, of $4.2 million and $7.8 million represent increases of 153% and 137% from $1.7 million and $3.3 million in 2006. Once again, increases in microdisplay demand fueled the reported growth and eMagin’s eighth consecutive quarter of revenue increases.
• Gross margins in 2007 grew to 30% of revenue or $1.3 million for the quarter and 23% or $1.8 million for the six-month period as compared to gross losses of $1.3 million (77%) of revenue and $2.7 million (81%) of revenue in 2006. These results reflect improvements of $2.6 million and $4.5 million for the three and six month periods ended June 30, 2007 as compared to 2006.
• Operating expenses declined 32% and 25% from $2.4 million and $5.5 million for the three and six month periods ending June 30, 2007, as compared to $3.6 million and $7.4 million in 2006.
• Operating loss declined 76% for the three months ending June 30, 2007, to $1.1 million from $4.8 million in 2006. Excluding $384,000 of non-cash expenses, the operating losses for the quarter totaled $760,000. For the six-month period, losses were $3.7 million in 2007 down 63% or $6.3 million from $10.1 million in 2006.
• Net losses for the three and six month periods ending June 2007 were $1.7 million or $0.15 per share and $4.7 million or $0.42 per share as compared to a net loss of $4.8 million or $0.48 per share and $10.0 million or $1.00 per share for the periods in 2006.

eMagin anticipates revenues to exceed $16 million for the full year, ending December 31, 2007. Built on our pioneering work in OLED microdisplay technology and on-going customer development and support, our combination of manufacturing and financial discipline with marketing focus has enabled us to improve the business substantially during the first half of 2007, said K.C. Park, interim CEO and president, eMagin Corporation. With this solid footing established we’re excited about our opportunities and look forward to continuing our growth.

"We will commercialize a display, which is not a TV, in 2008. Then in 2009 to 2010, we will strive to release an organic EL TV product." He explained that the color purity of emitted RGB light is equivalent to that of low-molecular organic EL materials.

"We consider developing not only materials but also application devices since we recently begun to know we can also extend a life and efficiency by changing the material's structure," he said, citing the green organic EL material's light-emitting efficiency as the company's current challenges to be addressed.

OSD has been manufacturing and marketing passive matrix Large Molecule OLED products since 2003. These popular products have been designed into communication systems, industrial control systems and many types of consumer electronics. So, it is with great regret that OSD has announced it is withdrawing its entire PLED module line from the marketplace.

Recently several of the world's largest PLED panel manufacturers have announced their withdrawal from PLED production because of financial reasons. The withdrawal of these suppliers will have a direct effect on the availability of critical components that sustain OSD's PLED module production.

OSD will continue to supply products to our valued customers and will have product to fill all outstanding open orders. OSD will also accept new orders from customers until August 15, 2007.

OSD will continue to offer an extensive line of TFT, Small Molecule OLED and monochrome LCD display modules. See www.osddisplays.com for more information.

Vitex was granted six new patents recently. These new patent grants bring Vitex's owned or controlled patents to a total of 127. This solidifies the company's IP portfolio following its successful reinvention as a licensing and technology development company-a move achieved by leveraging its leadership position in thin-film encapsulation for flexible substrates and organic light emitting diode (OLED) displays.

The recently granted patents are directed at protecting the unique technology Vitex has developed for edge sealing on OLED displays and other electronic devices, as well as for unique tool apparatus needed for the deposition of the proprietary thin-film encapsulation. The six patent wins comprise two each in Europe and China, and one each in the United States and Taiwan.

While the display market continues to be Vitex's primary focus, the company is applying parallel applications to the rapidly emerging thin-film photovoltaic market, which has a strong need for a superior low-cost, thin-film encapsulation.