Cambridge Display Tech Q2 losses narrow; sees new applications on horizon
Nasdaq-listed Cambridge Display Technology Inc (OLED) said today that its net loss for the second quarter to the end of June 2006 was $5.0m, down from $6.7m for the second quarter of 2005.
Revenues in the quarter were $2.7m, the same as for Q2, which was predominantly generated by license fees and royalties.
The Cambridge-based company develops polymer light emitting diode (P-OLED) technology, which is targeted for use in a wide range of electronic displays used for information management, communications and entertainment.
CEO Dr. David Fyfe (pictured) said: “In the second quarter we were delighted to see Sharp reveal their work on high resolution P-OLED displays at the SID conference in June. At the same conference we were able to show the world’s first roll printed OLED display, produced in co-operation with Toppan Printing. This printing technology could become very important in future for lower cost display production.”
He said the firm had opened up new territories with sales of inkjet printing solutions to Brazil and Singapore, enabling Government-backed institutions there to develop P-OLED capability.
“We believe that there is evidence of an emerging trend for fast developing economies to refuse to accept that the display industry will continue to be concentrated in a few nations.
“We have also seen an encouraging number of new commercial applications utilizing our technology, from digital radios and MP3 players to diving computers.”
Q2 gross profit reached $2.4m from $2.0m for the corresponding period last year.
R&D
Research and Development expenses were $3.2m, $1.0m lower, mainly due to the $1.9m reimbursement of a R & D expenses by its 50% owned joint venture Sumation (formed in November 2005 in partnership with Sumitomo Chemical of Japan), partially offset by lower government grant receipts and additional effort on research programs.
Sumation supplies polymers and formulated inks for use in both development and commercial P-OLED displays and lighting. It is headquartered in Tokyo and has an R&D team located in both the UK and Japan, and started trading in mid November.
Cash generated by CDT operations was $1.2m. During the quarter, it invested $3.3m in Sumation. It had $23.0m in the bank at June 30, compared with $31.3m at December 31, 2005.
The stock market marked the company’s shares down a marginal 0.2% on the news to $5.06, valuing it at around $110m.
The 14-year-old company’s display screens’ features include reduced power consumption, size, thickness and weight, wide viewing angle, superior video imaging performance and the potential for use on flexible display substrates. Current CDT licensees are actively developing their manufacturing strategies.
15th August 2006
