Business Context and Reporting Period
Company: Universal Display Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: January 26, 2015
Event Date: January 26, 2015
Universal Display Corporation entered into two new agreements with LG Display Co., Ltd. ("LG Display") on January 26, 2015. These agreements supersede the existing Commercial Supply Agreement between the parties regarding the supply of phosphorescent organic light emitting diode (OLED) materials.
Key Financial Metrics
This filing is a current report regarding a material event and does not contain audited financial statements, revenue figures, profit margins, cash flow data, debt levels, or liquidity metrics. The filing text does not provide a clear value for these financial indicators.
Material Changes and Agreements
The filing details the execution of two primary agreements:
- OLED Patent License Agreement:
- Universal Display Corporation, through its subsidiary UDC Ireland, Limited (UDI), granted LG Display license rights under various patents.
- Scope: Manufacture and sale of certain small area and large area OLED display products.
- Term: Through December 31, 2022.
- Consideration: LG Display agreed to pay upfront license fees and running royalties based on revenues from Licensed Products.
- Commercial OLED Material Supply Agreement:
- LG Display agreed to purchase OLED materials from Universal Display Corporation.
- These materials are for use in the manufacture of royalty-bearing Licensed Products.
Guidance, Outlook, and Risks
The filing does not provide specific financial guidance, management commentary on future outlook, or a detailed discussion of risks and contingencies beyond the description of the new contractual obligations. The primary focus is the disclosure of the new licensing and supply relationship with LG Display.
Investor Verification Checklist
- Verify the specific amount of upfront license fees paid by LG Display (not disclosed in this text).
- Confirm the royalty rate structure and calculation methodology for running royalties.
- Review the specific volume commitments or pricing terms within the new Supply Agreement.
- Assess the impact of the new agreements on the company's revenue recognition timeline and future cash flows.
- Check for any subsequent filings detailing the financial impact of this agreement in quarterly reports.