Cambridge Display Technology today reported its financial results for the fourth quarter of 2006 and year ended December 31, 2006. The fourth quarter was the Company's highest revenue-generating quarter of 2006, with revenues of $3.3 million, as compared with $7.3 million for same period in 2005, and $0.9 million for the third quarter of 2006. Total cash and current marketable securities increased by $3.7 million during the quarter.
Total revenues for 2006 were $7.9 million, compared with $18.1 million for 2005 when the Company recorded revenues from the sale of nine ink jet printers and from two large technology services and development contracts. Net loss increased to $27.5 million in 2006, from $13.8 million in 2005.
Chairman and CEO Dr. David Fyfe commented: "Our revenues for 2006 were impacted by a slow down in discretionary R&D spending in the display industry but also by sales that we did make being affected by revenue recognition rules regarding linked transactions. During 2006 we made highly gratifying progress in accelerating development of PLED lifetimes and efficiencies through our 50% joint venture, Sumation. We also successfully demonstrated a new technology -- Total Matrix Addressing(TM), or TMA -- which we are very hopeful will open up a major new revenue stream as well as enhance the attractiveness of our technology for production of passive-matrix displays.
We followed up positive industry reception of this demonstration with the acquisition of the OLED driving chip development team from Next Sierra, Inc. of Mountain View, California, in a non-cash stock for assets transaction. We are pleased to report that this team is already accelerating our progress in getting TMA to the next stage of demonstration and sampling of chips to potential customers. Finally, we were pleased to achieve positive cash flow in the fourth quarter, primarily as a result of the major new license granted in Q3, which signified the establishment of an important new relationship with a 'Tier One' player in the FPD industry."
