For the first quarter of 2008, the Company reported a net loss of $4,193,385, or $(0.12) per diluted share, versus a net loss of $4,583,801, or $(0.15) per diluted share, for the first quarter of 2007.
Revenues for the first quarter of 2008 were $2,716,819, compared to $3,014,630 for the first quarter of 2007. Commercial revenue, which includes commercial chemical revenue, license fees and royalty income, increased to $1,555,065 for the first quarter of 2008, from $1,440,900 for the first quarter of 2007. Developmental revenue, which includes contract research revenue, technology development revenue and development chemical sales, decreased for the first quarter of 2008 to $1,161,754, compared to $1,573,730 for the first quarter of 2007. Universal Display believes these revenue categories, which now combine accounts previously reported separately, better reflect the Company’s business strategies and activities.
Our licensee, Samsung SDI, has achieved volume production of AMOLED displays and reports that it will increase output in 2008 and again in 2009. This should drive a further increase in our commercial revenue, said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. However, total revenues for the quarter decreased due to lower developmental revenue, but this is to be expected as AMOLED manufacturer’s transition from development to commercial activities.
Mr. Rosenblatt, continued, We expect our financial results to be impacted positively as an increasing number of AMOLED displays are sold and integrated into the marketplace through customers such as Chi Mei EL, LG Display and Samsung SDI. As the year progresses, we will look to maintain our operating expenses at current levels, while continuing to generate new innovations and commercial opportunities for our OLED technologies and materials, including in the areas of white OLED lighting and flexible OLED displays. In all, we believe that Universal Display is well positioned to benefit from the accelerated growth being forecast for the OLED market.
