Universal Display +17.9% AH following Q3 beat, strong guidance


In addition to soundly beating Q3 estimates, Universal Display (OLED) is now guiding for 2013 revenue of $142M-$144M, well above a $128.1M consensus.

Q3 materials sales totaled $30.3M, +12% Q/Q and +176% Y/Y. Green host and emitter sales, which were also up strongly in Q2, are said to be responsible for the growth. Samsung has been making heavy use of OLED's green host/emitter materials in its high-end smartphones.

With Samsung's license payments taking place in Q2 and Q4 ($20M in each quarter), royalty/license revenue was only $1.5M, up from $0.4M a year ago.

Materials gross margin (closely watched) was 67.7%, down from 69.4% in Q2 and 90% a year ago. R&D spend -4% Y/Y to $7.9M, SG&A +22% to $6.4M.

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Comments (8)
  • hermano
    , contributor
    Comments (11) | Send Message
     
    Very impressive. Seems OLED is not only here to stay, but also to soar.
    7 Nov 2013, 06:47 PM Reply Like
  • Esekla
    , contributor
    Comments (4660) | Send Message
     
    Yes, see here for price modeling, and metrics on the possibility of a short squeeze: http://seekingalpha.co...
    7 Nov 2013, 09:59 PM Reply Like
  • retiredinvestor
    , contributor
    Comments (4) | Send Message
     
    Dang, I was scared off by other articles published here. I should've listened to this guy: http://seekingalpha.co...
    8 Nov 2013, 12:52 AM Reply Like
  • retiredinvestor
    , contributor
    Comments (4) | Send Message
     
    Oh well. I was watching this one, but was scared off by some other articles published here. I should have listened to this guy instead:

     

    http://seekingalpha.co...
    8 Nov 2013, 02:22 AM Reply Like
  • Esekla
    , contributor
    Comments (4660) | Send Message
     
    There is very likely more upside to come once we get past some profit-taking. As posted on Twitter (follow me by the same name there) JMP has raised their price target to $50. See the comments referenced above.
    8 Nov 2013, 10:12 AM Reply Like
  • Robert 7809591
    , contributor
    Comments (1048) | Send Message
     
    As I stated in your INVN article I owned OLED in the past (about four years ago, too early) and haven't kept up on the LED market except in passing. I see now aixtron (AIXG), Veeco (VECO) both LED manufacturing equipment suppliers and CREE are all well off their highs. Do any other companies represent a good value now? I just remember look at OLED some time back and seeing it was in the 60's, likewise I was following AIXG a few years ago and watched it go from 5 bucks to 50 only to go back down now because of cutbacks in LED equipment orders.
    8 Nov 2013, 12:52 PM Reply Like
  • Robert 7809591
    , contributor
    Comments (1048) | Send Message
     
    And just doing some perfunctory research I see graphene is being talked about as the "next big thing" in LED and other applications the way LED was being talked about about 5 years ago when I was looking at universal display. From aixtrons website:

     

    Graphene and Carbon Nanotube Deposition Systems

     

    AIXTRON’s CVD and PECVD equipment enables customers to reproducibly and uniformly deposit graphene, carbon nanotubes and semiconducting nanowires. Our systems incorporate the latest process technologies and are based upon the showerhead, vertical flow concept which delivers both uniformity and scalability, rapid heating and plasma-based processing to successfully grow mono and multi layer graphene and various types of nanotubes and nanowires.
    8 Nov 2013, 12:59 PM Reply Like
  • Robert 7809591
    , contributor
    Comments (1048) | Send Message
     
    2010 article that explains samsungs advancement in practical applications for thin printed sheets of graphene in more lay person terms. This is the kind of stuff I was reading about LED about five years ago which advanced to organic LED and on. What caught my eye in the article:

     

    "The technique shows some potential to be scaled up for mass production. “They particularly show that they are able to grow the graphene [in a way] that is compatible with manufacturing,” says Strano. “It’s a very economical way to manufacture materials.”

     

    Hong sees application for the method in the production of graphene-based solar cells, touch sensors, and flat-panel displays. But he says products will be a while in coming. “It is too early to say something about mass production and commercialization,” he says. Current manufacturing processes for indium tin oxide use a spreading technology that is different from roll-to-roll printing. “However, the situation will be changed when bigger flexible-electronics markets are formed in the near future,” Hong says."

     

    The "they" Hong is talking about is Samsung.

     

    http://bit.ly/17dbQYV
    8 Nov 2013, 01:12 PM Reply Like
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