Universal Display Corporation Announces First Quarter 2009 Financial Results

Universal Display Corporation (NASDAQ:PANL), a key innovator behind today’s and tomorrow’s evolving displays and lighting with its Universal PHOLED™ phosphorescent OLED technology, today announced its results for the quarter ended March 31, 2009.

For the first quarter of 2009, the Company reported a net loss of $5,569,599 or $(0.15) per diluted share, versus a net loss of $4,193,385, or $(0.12) per diluted share, for the first quarter of 2008. The increase in net loss was primarily due to an increase in operating expenses and a decrease in interest income.

Revenues for the first quarter of 2009 were $2,833,858, compared to $2,716,819 for the first quarter of 2008. Commercial revenue, which includes commercial chemical revenue, license and royalty revenues, and commercialization assistance revenue, was $1,369,137 for the quarter, compared to $1,555,065 for the first quarter of 2008. Developmental revenue, which includes development chemical revenue, contract research revenue, and technology development revenue, was $1,464,721 for the quarter, compared to $1,161,754 for the first quarter of 2008.

Operating expenses were $8,827,456 for the first quarter of 2009, compared to $7,823,731 for the same quarter of 2008. Operating expenses for the quarter were consistent with expectations and included an increase quarter-over-quarter in R&D spending associated with the scale up and acquisition of long-lead time raw materials for the Company’s OLED material business. Selling, general and administrative expenses remained relatively consistent over the corresponding periods.

"We are pleased that revenues in the first quarter of 2009 saw modest gains quarter-over-quarter,” said Sidney D. Rosenblatt, Executive Vice President and Chief Financial Officer of Universal Display. "While the economy continues to see its share of challenges, our licensees and partners remained focused on manufacturing and selling OLED displays on a global scale. Our technology continues to be a key differentiator for the next generation of consumer electronics. Right now, these products are primarily personal electronic devices like MP3 players and cell phones. However, the industry has larger area displays, including TVs and computer monitors, in its sights for 2010.”

Cash used in operating activities was $4,505,171 for the three months ended March 31, 2009, compared to $2,645,283 for the same period in 2008. The increase in cash used in operating activities was due mainly to an increased loss for the first quarter of 2009, compared to the same period in 2008. In addition, cash used in operating activities increased as a result of reducing accounts payable and accrued expenses during the first quarter of 2009.

The Company’s balance sheet remained strong at quarter end, with cash, cash equivalents and short-term investments totalling $72,181,005 as of March 31, 2009, compared to $77,454,200 as of December 31, 2008.

In conjunction with this release, Universal Display will host a conference call, followed by a question and answer session, on Thursday, May 7th, at 5:00 p.m. Eastern Time. Interested parties may participate by calling 706-634-1395 at 4:55 p.m. Eastern Time and referencing conference PIN 97172983. A taped replay of the conference call will be available within two hours of the conclusion of the call and will remain available through Sunday, June 7th, 2009. The number to call for the taped replay is 800-642-1687 and the conference PIN is 97172983.

The conference call will be simultaneously broadcast live over the Internet through a webcast on the Universal Display website. To access the call, please visit the website at http://tinyurl.com/5cvkxg. An online archive of the webcast will be available within two hours of the conclusion of the call.

About Universal Display Corporation

Universal Display Corporation is a world leader in developing and commercializing innovative OLED technologies and materials for use in flat panel displays, solid-state lighting products, electronic communications and other opto-electronic devices. Universal Display is working with a network of world-class organizations, including Princeton University, the University of Southern California, the University of Michigan, and PPG Industries, Inc. Universal Display has also established numerous commercial relationships with companies such as Chi Mei EL Corporation, DuPont Displays, Inc., Konica Minolta Technology Center, Inc., LG Display Co., Ltd., Samsung Mobile Display Co, Ltd., Seiko Epson Corporation, Sony Corporation, Tohoku Pioneer Corporation and Toyota Industries Corporation. Universal Display currently owns or has exclusive, co-exclusive or sole license rights with respect to more than 940 issued and pending patents worldwide.

Universal Display is located in the Princeton Crossroads Corporate Center in Ewing, New Jersey. Universal Display’s state-of-the-art facility is designed to further technology and materials development, technology transfer to manufacturing partners and work with customers to develop OLED products that meet their needs. Visit Universal Display on the Web at www.universaldisplay.com.

All statements in this document that are not historical, such as those relating to Universal Display Corporation’s technologies and potential applications of those technologies, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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 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 "Risk Factors” in Universal Display Corporation’s annual report on Form 10-K for the year ended December 31, 2008, as amended. Universal Display Corporation disclaims any obligation to update any forward-looking statement contained in this document.