Business Context and Reporting Period
Company: Universal Display Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: September 29, 2011
Event Date: September 27, 2011
Context: The registrant reported the entry into a Material Definitive Agreement regarding OLED technology licensing.
Key Financial Metrics
This filing does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity figures. The document focuses exclusively on the terms of a new contractual agreement.
Material Changes and Agreements
On September 27, 2011, Universal Display Corporation entered into an OLED Technology License Agreement with Pioneer Corporation of Japan. Key terms include:
- Licensing Scope: Pioneer received license rights under various patents and know-how to manufacture and sell OLED products specifically for lighting applications.
- Compensation: Pioneer is obligated to pay license fees and running royalties based on sales of the licensed products.
- Term: The agreement continues until net sales revenue from Pioneer's sales of licensed products reaches a certain threshold amount (specific threshold not disclosed).
- Material Sales: The registrant separately agreed to sell certain OLED materials to Pioneer for use in manufacturing the licensed products.
Guidance, Outlook, and Risks
The filing does not contain updated financial guidance, management commentary on future outlook, or specific risk factors beyond the standard disclosure of the agreement's existence. No unusual items or contingencies were detailed in this report.
Investor Verification Checklist
- Verify the specific threshold amount for net sales revenue that terminates the agreement term.
- Confirm the specific license fee amounts and royalty rates agreed upon with Pioneer.
- Review subsequent filings for the volume of OLED materials sold to Pioneer under the separate supply agreement.
- Monitor Pioneer's progress in commercializing OLED lighting products to assess royalty revenue potential.