Cambridge Display Technology 3Q revenue, profits down as industry R&D spending slows
Cambridge Display Technology, Inc. (OLED), a pioneer in the development of polymer light emitting diode (P-OLED) technology, said on Friday that both its revenue and gross profits were down in the third ended September 30.
Total revenues were $0.9m, down from $6.6m for the same period in 2005 when it sold three inkjet printers and two large technology services and development contracts.
Gross profit was $0.4m, compared with $2.9m.
Chairman and CEO Dr. David Fyfe (pictured) said: “Although our financial results continue to be impacted by the slow-down in discretionary R&D spending in the display industry, we completed a major license deal in September for which we expect to recognize significant revenues in future periods and we have continued to achieve significant improvements in P-OLED material lifetimes.
“During the third quarter, we were delighted to see one of our long-term licensees, MicroEmissive Displays, announce that it had raised funding for the construction of a volume manufacturing facility for its P-OLED microdisplay products. This facility will be located in Germany and is due to commence production in mid-2007.''
Sao Paulo deal
He said the Cambridge-headquartered, NASDAQ listed-CDT will be appointed by a consortium of Brazilian state agencies and a private developer to carry out a feasibility study for a P-OLED manufacturing facility in Sao Paulo. The funding for this study was agreed at a signing this week.
The group’s share price fell $1.40, or 18%, after the release of the results to finish at $6.19 on heavy volume on Friday.
Q3 2006 net loss was $9.6m, compared with $8.6m for the same period in 2005. Cash used in operations was $6.8m, compared with cash used of $7.6m. The cash and near cash total was $15.6m at September 30, compared with $31.3m at the end of December 2005.
13th November 2006
