CAMBRIDGE, England, Aug. 15, 2007 (PRIME NEWSWIRE) --  Cambridge Display Technology, Inc. (Nasdaq:OLED), a pioneer in the development of polymer organic light emitting diode (P-OLED) technology, today reported its financial results for the second quarter ended June 30, 2007.

Chairman and Chief Executive Office Dr. David Fyfe stated, "In July we jointly announced with Sumitomo Chemical Company that we have entered into a definitive merger agreement whereby Sumitomo Chemical Company will acquire CDT. Under the merger agreement, Sumitomo Chemical will acquire all outstanding shares of CDT common stock at a price of $12 per share in cash, for an aggregate purchase price of approximately $285 million. I believe the acquisition of CDT by Sumitomo Chemical will significantly enhance the prospects for P-OLED technology adoption. CDT and Sumitomo Chemical have developed an ever-closer relationship since Sumitomo acquired a license to certain IP from CDT in 2001, culminating in the formation of the Sumation 50/50 joint venture in 2005 to develop, manufacture and sell P-OLED materials to CDT licensees and others. We have admired the long-term commitment of Sumitomo Chemical to the development of this very important technology and believe this merger is not only in the best interest of our shareholders but also of our employees and the global display industry."

Total revenues for the second quarter of 2007 were $2.7 million, compared with $2.7 million for the same period last year. The increase in revenue for equipment and supplies caused by a major ink sale in the second quarter of 2007 was offset by slightly reduced license revenue.

Gross profit decreased from $2.4 million in the second quarter of 2006 to $1.9 million in the second quarter of 2007 due to lower margins in technology, services, development, equipment and supplies revenue.

Research and Development expenses for the second quarter of 2007 were $3.6 million, up from $3.2 million for the second quarter of 2006. R&D expenses were impacted primarily by an increase in development costs related to CDT's Total Matrix Addressing(tm) ("TMA™") technology, higher expenditures on research programs and stock-based consideration costs related to the purchase of the assets of Next Sierra Inc. in January 2007 as part of our TMA development plan.

Selling, General and Administrative expenses for the second quarter of 2007 increased to $4.6 million, from $3.6 million for the same period last year. Expenses were impacted primarily by increased stock compensation costs, professional fees incurred relating to the proposed merger with Sumitomo Chemical, and litigation expenses.

Equity in loss of affiliates increased slightly to $1.7 million for the second quarter of 2007, from $1.6 million for the same period in 2006.

Net loss increased to $7.4 million during the second quarter of 2007, from $5.0 million for the same period in 2006. This is due to lower gross profit as well as increased operating expenses.

Total deferred revenues at June 30, 2007 were $17.6 million, an increase of $12.3 million compared with the $5.3 million of deferred revenue balance at December 31, 2006. This increase was due to the receipt of cash under license and technology services contracts in the first and second quarters of 2007 exceeding the revenues recognized under those contracts during the first and second quarters of 2007. The most significant of those contracts was a major license which was sold in June 2007, pursuant to which the majority of revenues are expected to be recognised in the third quarter of 2007.

Total cash and current marketable securities was $21.3 million at June 30, 2007, as compared with $19.3 million at December 31, 2006.

Dr. Fyfe continued, "Our results for the second quarter primarily reflected the impact of license and development agreements signed during the fall of 2006. In May, we announced more significant growth in our material lifetimes -- through our joint venture Sumation. The lifetimes are approximately 40% better than those announced in March.
At the SID 2007 Conference held in California in June of this year, we exhibited a 3" diagonal 160ppi inkjet-printed display made by CDT using Casio's backplane design and technology. This was arguably one of the best quality displays that CDT has produced and clearly showed the potential for inkjet printing to tackle high resolution displays that are going to be increasingly in demand for handheld applications."

The financial statements of the Company for the quarter ended June 30, 2007 are included in the Company's Quarterly Report on Form 10-Q, which can be accessed through the Internet at www.cdtltd.co.uk.

The Company will be holding a conference call to discuss the financial results included in this news release. Interested investors may listen to a live web cast today, August 15, 2007 at Noon ET/9:00AM PT (5:00PM BST). The call can be accessed through the Internet at www.cdtltd.co.uk.