#b#Universal Display Buys OLED Patents#/b#
Universal Display Corporation (UDC), the Ewing-based manufacturer of LED equipment and screen optics, has purchased Fujifilm’s entire worldwide patent portfolio of more than 1,200 OLED patents and patent applications for $105 million.
Through the acquisition, Universal Display is expanding its business for OLED materials and the licensing of its patented OLED technologies. According to the company, Fujifilm has conducted R&D in the OLED field for more than a decade and has developed promising new technologies in OLED materials as well as devices using such materials.
Fujifilm plans to move into supplying new barrier films and other materials for OLED technologies. The two companies are continuing talks on a strategic partnership that would allow Fujifilm access to UDC’s customer base.
“We are very excited to acquire the OLED patent portfolio of Fujifilm Corporation, a remarkable company with one of the strongest OLED research teams in the world,” said Steve Abramson, president and CEO of Universal Display. “This transaction will almost double Universal Display’s patent portfolio enabling us to deepen, broaden, and extend the technologies and materials that we offer to our customers.
“Opportunities such as this come along rarely,” he added. “We are pleased that we are able to expand our OLED licensing and materials businesses and accelerate the growth of the OLED markets with this excellent acquisition. We look forward to continuing to enhance our alliance by exploring new avenues of collaboration with Fujifilm in the future.”
On the heels of the agreement, Universal Display announced strong results for the second quarter and first half of 2012.
“We are pleased to report the best quarterly financial results in our company’s history,” said Sidney Rosenblatt, executive vice president and CFO. “The significant increase in licensing revenue and a near doubling of material sales in the (second) quarter reflect the growth of our OLED technology.”
The company reported net income of $11 million on revenues of $30 million for 2012’s second quarter. This is compared to a net income of $3.3 million on revenues of $11.3 million for the same period in 2011 — a 166 percent increase.
During the second quarter the company earned $15 million in revenue under a licensing agreement with Samsung Display Corporation, under which Samsung is obligated to make payments to Universal Display of $15 million in both the second and fourth quarters of 2012.
“Looking at the first half of the year, we generated over $9.2 million in operating cash flow, while improving operating income by over $15 million on a $21.8 million increase in revenues compared to the first half of fiscal 2011,” said Rosenblatt.
Material sales were $12.8 million in the quarter, up 92 percent from $6.7 million in the second quarter of 2011 as a result of expanded marketplace adoption of UDC’s technology and materials, said Rosenblatt. Royalty and license fees were $15.4 million in the second quarter of 2012, up 479 percent compared to $2.7 million in the same quarter of 2011.
Universal Display Corporation Inc. (PANL), 375 Phillips Boulevard, Ewing 08618; 609-671-0980; fax, 609-671-0995. Steven Abramson, CEO. www.universaldisplay.com.
#b#Church & Dwight Acquires Avid Health#/b#
Church & Dwight, the manufacturer of household and personal care products based on North Harrison Street, is expanding into the vitamin business.
The company has signed a deal to acquire Avid Health, a maker of gummy vitamins and supplements, for $650 million in cash. The deal is expected to close in the fourth quarter of 2012.
Avid, headquartered in Vancouver, WA, had net sales over the last 12 months through June 30 of some $230 million. The company’s major brands are Vitafusion, the top-selling brand in adult gummy vitamins, and L’il Critters, the leading children’s gummy vitamin.
James Craigie, Church & Dwight chairman and CEO, said the acquisition gives the company an opportunity to grow in the popular vitamin/mineral/supplement market.
Church & Dwight Co. Inc. (CHD), 469 North Harrison Street, CN 5297, Princeton 08543-5297; 609-683-5900; fax, 609-497-7177. James R. Craigie, president, CEO, chairman. www.churchdwight.com.