Business Context and Reporting Period
Company: Universal Display Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: August 22, 2011
Event: Entry into and termination of material definitive agreements with Samsung Mobile Display Co., Ltd. ("SMD").
Key Financial Metrics
This filing does not contain specific financial statements, revenue figures, profit margins, cash flow data, debt levels, or liquidity metrics. The document focuses exclusively on the terms of a new contractual agreement.
Material Changes
- New Agreements: On August 22, 2011, Universal Display entered into a new OLED Patent License Agreement and a Supplemental OLED Material Purchase Agreement with SMD.
- Termination: The previous OLED Patent License Agreement and Supplemental License Agreement dated April 19, 2005 (as amended), were terminated effective August 22, 2011.
- License Terms: SMD received license rights to manufacture and sell certain phosphorescent OLED display products. The license term extends through December 31, 2017.
- Consideration: SMD agreed to pay a license fee over the term of the agreement. Specific fee amounts are not disclosed in the summary text.
- Purchase Commitment: SMD committed to purchasing a minimum amount of phosphorescent materials from Universal Display, subject to Universal Display's ability to supply sufficient material.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms the renewal and restructuring of the commercial relationship with SMD, a key customer, extending the partnership through 2017.
Confidentiality: Certain portions of the executed agreements (Exhibits 99.1 and 99.2) have been redacted as confidential treatment was requested pursuant to Rule 24b-2. Consequently, specific financial terms, royalty rates, and minimum purchase quantities are not available in this public summary.
Risks/Contingencies: The minimum purchase commitment is contingent upon Universal Display's ability to supply sufficient material to meet SMD's requirements.
Investor Verification Checklist
- Review the full text of Exhibits 99.1 and 99.2 (if available via confidential treatment withdrawal or future filings) to determine specific royalty rates and minimum purchase volumes.
- Assess the impact of the 2017 expiration date on long-term revenue visibility.
- Verify Universal Display's production capacity to ensure it can meet the supply conditions required to trigger the minimum purchase commitment.
- Compare the new agreement terms against the terminated 2005 agreements to understand the strategic shift in the partnership.