CAMBRIDGE, England Cambridge Display Technology, the Nasdaq quoted developer of polymer light emitting diode technology, has reported fourth quarter revenues to the end of December 2004 of $7.8 million which provided total revenues for the full year of $13.3 million, an increase of 24% over 2003.
The company sold 50% of the equity of its ink jet printing equipment subsidiary, Litrex, in August 2003, revenues from Litrex ceased to be consolidated and excluding Litrex revenues from its 2003 total revenues, the year-over-year revenue increase was 65%.
There was a net loss of $5.7 million for the fourth quarter, which included $5.8 million in stock compensation expense for the public offering of 2.5million shares in December 2004 which raised $25million. For the full year the loss before cumulative effect of accounting change was $22.6 million in 2004. Excluding the stock compensation expense, the net loss was $16.8 million for 2004, compared with $22.8 million in 2003.
Cash used in operations improved significantly from $14.1 million in 2003 to $6.1 million in 2004, a reduction of 57%, due in part to an increase of $4.4 million in accounts payable. Capital expenditures were $3.6 million in 2003 and $2.4 million in 2004. The company's cash and cash equivalents were $26.9 million at December 31, 2004.
David Fyfe, CDT's chairman and CEO, said, “We are pleased with our operating performance for the fourth quarter and 2004. The nature of CDT's business and its current stage of development mean that revenues will vary from quarter to quarter as licensing and other contract negotiations are concluded.”
“We now have the financial resources to pursue our aggressive strategy of enhancing the attractiveness of our P-OLED technology. 2004 has seen a significant strengthening of our business of transferring manufacturing systems technology to our licensees and potential licensees, showing that we are on the cutting edge of development of the technology. We have also made tremendous progress in enhancing the lifetime of the P-OLED materials – green and red colors as well as the critical blue color. Our deepening relationship with Sumitomo Chemical is a tribute to their regard for our light emitting polymer development skills”.
Revenues from license fees and royalties grew to $6.8 million from $4.3 million in 2003, an increase of 58%. Of these revenues, royalties increased to $2.6 million in 2004 from $0.4 million in 2003. The company is also reporting $0.9 million of other license-related revenues in 2004.
There was a significant increase in the number of technology transfer and development contracts in 2004, and technology services and development revenues grew by $1.2 million from $3.8 million in 2003 to $5.0 million in 2004. Significant growth is expected in the combined technology services and development and equipment and supplies lines in 2005 as a result of contracts that have already been entered into, which involve the supply of ink jet printing equipment as well as technology transfer.
Research and development expenses decreased from $16.8 million in 2003 to $14.2 million in 2004, a reduction of 16%.