Business Context and Reporting Period
Company: Universal Display Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: July 13, 2010
Event Date: July 12, 2010
Context: The filing reports the entry into a material definitive agreement regarding an existing patent license.
Key Financial Metrics
This filing is a current report regarding a contractual agreement and does not contain financial statements. Consequently, the filing text does not provide clear values for revenue, profit, cash flow, margins, debt, or liquidity.
Material Changes
The material change reported is the execution of Amendment No. 2 to the OLED Patent License Agreement with Samsung Mobile Display Co., Ltd. (SMD). Key details include:
- Extension: The term of the existing agreement is extended for three months, through September 30, 2010.
- Negotiation Period: During this extension, both parties agreed to negotiate a new business arrangement.
- Future Intent: The new arrangement is expected to include a license agreement that would retroactively supersede the current agreement for the extension period.
Guidance, Outlook, and Risks
Outlook: Management indicates an expectation to enter into a new business arrangement with SMD following the extension period.
Risks/Contingencies: The filing does not explicitly detail specific risks or contingencies beyond the inherent uncertainty of ongoing negotiations for a new agreement. The current arrangement is temporary and subject to replacement.
Investor Verification Checklist
- Verify the status of negotiations between Universal Display Corporation and Samsung Mobile Display Co., Ltd. for a new license agreement.
- Confirm whether a new agreement was executed prior to the September 30, 2010 expiration of the extension period.
- Review subsequent filings for details on the terms of any new business arrangement or license agreement.
- Assess the impact of the patent license on future revenue streams given the reliance on SMD.