Shares of Universal Display Corp. (PANL) slumped nearly 18 percent in extended trade on Wednesday after the LED technologies company provided results for the first quarter that missed analysts' expectations on higher costs.
However, profit for the quarter sharply narrowed from last year, which included a loss on stock warranty liability. The company also affirmed its revenue guidance for the full-year 2012.
Meanwhile, the company noted that the results do not include the royalty and licensee fees related to its new license arrangement with Samsung Mobile Display, which will use Universal Display's proprietary materials in its line of OLED display products. Samsung is expected to pay $15 million to Universal in the second and fourth quarters.
"Results in the quarter continue to reflect the growing demand for our proprietary materials and technology consistent with the steady growth in the OLED market," CFO Sidney Rosenblatt said in a statement.
The Ewing, New Jersey-based company reported a net loss of $1.22 million or $0.03 per share for the first quarter, narrower than $11.88 million or $0.31 per share in the prior-year quarter.
The results for the year-ago quarter included a non-cash loss of $9.6 million on stock warrant liability.
On average, 12 analysts polled by Thomson Reuters expected the company to report earnings of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter increased 31 percent to $12.62 million from $9.60 million in the same quarter last year, and missed ten Wall Street analysts' consensus estimate of $16.43 million.
The sales growth was attributable to a 132 percent increase in material sales to $10.6 million from $4.5 million in the year-ago quarter on increased sales under commercial agreements to a large customer.
Total operating expenses for the quarter increased to $14.2 million from $12.3 million in the prior-year quarter, reflecting sharply higher cost of material sales.
Looking ahead to fiscal 2012, the company continues to expect revenues in the range of $90 million to $110 million. Street is currently looking for full-year 2012 revenues of $104.68 million.
"Our goal is to continually improve the performance of OLEDs through the advancement of our industry leading technology and materials to both support and encourage a widening adoption of OLEDs for an ever increasing variety of applications," Rosenblatt added.
PANL closed Wednesday's regular trading session at $39.16, up $0.33 or 0.85% on a volume of 2.31 million shares. However, the stock plunged $7.04 or 17.98% in after-hours trading.
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