Mid Or End Game For Universal Display?
Esekla • 26 Comments
Esekla • 26 Comments
Universal Display Is A Bet On The OLED Market
Alpha Gen Capital
Alpha Gen Capital
Sep. 4, 2014, 1:10 PM
- Apple's (AAPL +0.5%) smartwatch will join the iPhone 6 in sporting an NFC radio that will enable a tap-to-pay payments solution, the WSJ reports. Given recent reports, NXP (NXPI +0.5%) is the likely chip supplier.
- The WSJ also backs up the Nikkei in stating the watch will feature a curved OLED display - a moderate positive for Universal Display (OLED +6.8%) - and reiterates two sizes will be offered.
- At the same time, Apple is said to be "still working out engineering kinks in production," and one source says there's "no way" the watch ships this year (meshes with a re/code report). Pre-orders will be taken in advance.
- No word on pricing; re/code has reported Apple has mulled a $400 price point. Unsurprisingly, Jony Ive is said to have overseen development. Ive has reportedly boasted Apple's watch spells trouble for Switzerland.
- Meanwhile, KGI's Ming-Chi Kuo reports the watch will have 8GB of storage, and that the display sizes will respectively be 1.3" and 1.5". Kuo reported of NFC support back in April, and of limited 2014 production in July.
Sep. 3, 2014, 10:13 AM
- As rumored, Samsung's (OTC:SSNLF, OTC:SSNGY) Galaxy Note 4 sports a 5.7" quad-HD (2560x1440) display; the Note 3 has a 1080p display. Other improvements include a revamped S Pen (twice the pressure sensitivity, among other things), a metal rim, and the addition of optical image stabilization, a fingerprint scanner, and a heart rate sensor.
- The U.S. version will run on Qualcomm's (QCOM +0.8%) high-end Snapdragon 805 processor (2.7GHz., quad-core) and support Cat-6 LTE; the Note 3 uses the Snapdragon 800. Some international models will use Samsung's Exynos 5433 processor (1.9GHz., 8-core) and only support Cat-4 LTE. The 5433 beat the 805 in some early benchmarks.
- Samsung has also launched the Note Edge, a phone with combines most of the Note 4's specs with a display that curves downwards at the sides. Samsung argues the edges of the display can be used to quickly glance at information while the phone is lying on a table.
- Samsung, which pioneered the phablet market 3 years ago, is counting on the Note 4/Edge to both counter hungry Chinese OEMs that have been grabbing share, and deal with the pending launch (per numerous reports) of a 5.5" iPhone 6. The company still maintains a high phablet share in the U.S.
- Universal Display (OLED +1.4%) benefits from Samsung's use of a quad-HD display, since the panel requires more OLED materials than a 1080p display.
Aug. 7, 2014, 5:38 PM
- Universal Display (NASDAQ:OLED) reiterates it expects 2014 revenue to "reach the high end" of a $190M-$205M guidance range (consensus is at $205.7M). The reiteration comes in spite of top customer Samsung's recent struggles.
- Q2 materials sales +32% Y/Y to $35.9M; they grew 38% in Q1. Royalty/license fees +33% Y/Y to $28.1M; Samsung made a $25M payment.
- Materials gross margin was 66.6%, down from 72% in Q1 and 69.3% a year ago. GAAP costs/expenses +28% to $35.3M, with R&D spend totaling $10.5M.
- $7M was spent on buybacks, following the June launch of a $50M buyback program.
- Shares +0.8% AH. Q2 results, PR
Aug. 7, 2014, 4:10 PM
- Universal Display (NASDAQ:OLED): Q2 EPS of $0.44 beats by $0.06.
- Revenue of $64.1M (+29.9% Y/Y) beats by $2.49M.
Aug. 5, 2014, 12:45 PM
- Cautious overall on small caps (NYSEARCA:IWM) due to valuation concerns, Goldman's David Kostin nevertheless has a list of 25 names with market caps less than $4B which could offer at least 25% upside to his firm's price target over the next year.
- The list skews towards Consumer Discretionary - Lumber Lidquidators (LL +2.1%), Office Depot (ODP -2.4%), RetailMeNot (SALE -26.1%), Ryland (RYL +0.5%), Steven Madden (SHOO +2.7%), Vitamin Shoppe (VSI -8.2%) - and Tech - Universal Display (OLED -0.2%), Qlik Technologies (QLIK -1.6%), Proofpoint (PFPT -1.5%), Polycom (PLCM +0.2%), Nimble Storage (NMBL -0.3%), Marketo (MKTO +1.1%), Infinera (INFN +1.1%), Cornerstone Ondemand (CSOD -0.9%), GT Advanced Technology (GTAT +5.7%).
- Also included are Health Care names: Agios Pharmaceuticals (AGIO -1.1%), NPS Pharma (NPSP +0.7%), NuVasive (NUVA -1.8%), Synageva (GEVA -1.6%); Consumer Staples: Darling Ingredients (DAR -0.8%); Materials: Axiall (AXLL -1%), Boise Cascade (BCC -0.9%); Industrials: Granite Construction (GVA +0.7%), Financials: MGIC Investment (MTG +1.2%), Radian (RDN +1.7%).
Jul. 18, 2014, 2:51 PM
- "We believe Skyworks’ (SWKS +13.5%) diverse analog portfolio is enabling content share gains in its handset customer base," writes Canaccord after taking in the RF component giant's FQ3 beat and very strong FQ4 guidance.
- Canaccord thinks the FQ4 outlook is due to a mixture of strong iPhone 6 content share, growing sales of higher dollar-content integrated solutions to Chinese/emerging markets OEMs (gaining Android share), and "growing traction" for the company's non-phone analog IC business.
- 802.11ac Wi-Fi, mobile infrastructure, and embedded products (the proverbial "Internet of Things") are some of the non-mobile RF markets Canaccord sees Skyworks growing its sales to. Needham, for its part, also sees the smart grid, automotive, and medical markets providing a boost.
- On the CC (transcript), CEO David Aldrich declared broader mobile RF demand is benefiting from the need to support a larger number of spectrum bands - Avago (AVGO +4.3%) also benefits from this - as well as growing system complexity (driving a shift towards integrated solutions) and OEM efforts to improve signal performance.
- RF component peers Avago, RF Micro (RFMD +6.7%), TriQuint (TQNT +6.8%), and Resonant (RESN +7%) are outperforming amid a tech rally, as are several other mobile suppliers. INVN +3.9%. HIMX +2.9%. OLED +5.3%. CRUS +2.9%.
Jun. 27, 2014, 12:14 PM
- Goldman, a long-time Universal Display (OLED +7.3%) bull, has issued another upbeat note: The firm sees a variety of upcoming mobile, TV, and wearables product launches boosting Universal's growth.
- Goldman recently argued Samsung's new Galaxy Tab S (features a 2K OLED display) will act as a positive catalyst; volumes should be much lower than the Galaxy S5 and Note 3's, but revenue/device higher.
- Separately, Korean media reports state LG Display (LPL +1.6%) plans to spend $788M to expand OLED production, in part to address the nascent OLED TV market (has seen some recent exits). For his part, LPL CEO Han Sang-beom says his company is thinking of expanding production of plastic OLEDs for smartphones and smartwatches.
- Reuters previously reported LPL will be the exclusive display supplier for Apple's iWatch. The Nikkei has reported the iWatch will feature a curved OLED display.
Jun. 4, 2014, 5:19 PM
- Universal Display's (OLED) buyback is good for repurchasing 4% of shares at current levels.
- The company had $267M in cash/investments to pay for buybacks with at the end of Q1, and no debt.
Jun. 2, 2014, 10:25 AM
- Rosenblatt Securities reports Google is testing a Samsung OLED microdisplay chipset for use with Google Glass.
- Likewise, OLED-Info.com reports Google "isn't happy" with the performance of Glass' LCoS microdisplay and "wants to upgrade to an OLED." However, the site adds Google is thinking of using French startup MicroOLED's products, rather than Samsung's.
- Himax (HIMX) shares aren't responding well to the reports. They tumbled a week ago amid rumors Google, which has a 6.3% stake in Himax, will no longer use the company's LCoS microdisplays. Synaptics-Renesas worries also appear to have played a role.
- Universal Display (OLED +0.6%) is edging higher. The Glass reports follow one stating Samsung will be providing Oculus with OLED displays sporting resolutions above 1080p for use in its VR headsets.
- Samsung has been dabbling in OLED microdisplays for years, but its products haven't gained much traction thus far. The Korea Times reported a year ago the next-gen version of Glass will rely on a Samsung microdisplay.
May 30, 2014, 4:48 PM
- Engadget reports Samsung (SSNLF) is partnering with Oculus VR (FB) to build a mobile/media-focused VR headset.
- Not surprisingly, Oculus is said to be handling the product's software/UI, and Samsung the hardware. Unlike the gaming-focused Oculus Rift, the headset won't have a display of its own, but will instead (using a slot within the device) rely on a smartphone to act as its screen.
- The phone's rear camera can allow a user to stay connected to the outside world, and might also enable augmented reality apps. Oculus is reportedly providing Samsung with an early version of its mobile SDK,
- As part of the tie-up, Samsung is providing Oculus with OLED displays sporting resolutions above 1080p for its own hardware; Universal Display (OLED) should be happy to hear that. The latest Rift dev. kit (DK2) features a 5" 1080p OLED display.
- Mark Zuckerberg has insisted from the start the Oculus deal is about enabling a wide variety of VR applications, of which gaming is just one.
May 13, 2014, 10:35 AM
- Korea's Naver.com reports Samsung (SSNLF) plans to launch the Galaxy S5 Prime, a version of its flagship phone that features a 2K (2560x1440) display, in mid-June via local carriers SK Telecom, KT, and LG U+. The phone will reportedly cost just $50-$60 more than the regular S5.
- There were reports the S5 would sport a 2K display prior to its launch. Samsung instead went with the 1080p resolution used for the S4, albeit with an improved OLED panel that has received good reviews.
- Samsung stated last November it plans to launch phones with 2K displays in 2014, and phones with 4K displays in 2015. Universal Display (OLED -0.1%) wouldn't mind seeing that happen, given OLED panels with higher resolutions require more OLED materials.
- Naver's report doesn't state whether the S5 Prime will feature a metal case, as has been previously rumored. Samsung has received its share of criticism for sticking with plastic cases for its high-end phones, and the company recently replaced its mobile design chief.
- Apple, a fan of using aluminum cases (the plastic 5C excepted), is expected to launch 4.7" and 5.5" iPhones in 2H14.
May 12, 2014, 2:56 PM
- The Nikkei reports Sony (SNE +0.5%) is halting OLED TV development. Universal Display (OLED -5.2%) spiked sharply lower on the report, but has recovered some of its losses.
- Sony, which showed off the world's first 4K OLED TV in January, has already called off an OLED TV JV with Panasonic. Today's report follows one from a week ago stating Samsung is scrapping plans for an OLED TV plant, as sky-high price tags relegate the technology to niche status for now in spite of its image quality and form factor strengths.
- Universal is giving back a portion of the big gains it saw on Friday due to a Q1 beat and guidance hike that drew plenty of sell-side praise.
May 8, 2014, 5:49 PM
May 8, 2014, 4:59 PM
- Universal Display (OLED) now expects 2014 revenue to "reach the high end" of a prior guidance range of $190M-$205M; the consensus is at $199.2M.
- Materials sales (93% of revenue, given Samsunng licensing payments arrive in Q2 and Q4) rose 38% Q/Q and 176% Y/Y to $35.3M. Materials gross margin (closely watched) rose 220 bps Q/Q and fell 370 bps Y/Y to 72%.
- R&D spend rose 14% Y/Y to $10.2M, and SG&A spend 24% to $6.4M.
- Shares had fallen over the last six weeks due to a tech stock selloff and Samsung-related concerns.
- Q1 results, PR
May 8, 2014, 4:14 PM
- Universal Display (OLED): Q1 EPS of $0.09 beats by $0.09.
- Revenue of $37.83M (+152.5% Y/Y) beats by $6.13M.
May 6, 2014, 3:52 PM
- Digitimes reports Samsung (SSNLF) "putting in weaker-than-expected handset component orders to the supply chain" amid toughening competition, particularly in China. The site adds Samsung, which last month launched its latest flagship (the Galaxy S5), is mostly expected to cut orders for cheaper smartphones.
- The report comes a few days after InvenSense (INVN -2.8%) offered a soft June quarter outlook, while estimating Samsung will return to accounting for a mid-30s % of revenue after making up 47% of March quarter sales.
- Strategy Analytics estimates Samsung saw its smartphone share fall 120 bps Y/Y to 31.2% in Q1 (89M shipments out of 285M), following many quarters of steady share gains. Strategy also estimates Lenovo (LNVGY) grew its share to 4.7% from 3.9%, and that Huawei's share was steady at 3.9%.
- Other Chinese OEMs, including Xiaomi, ZTE, and Coolpad, have also been seeing healthy shipment growth amid an industry mix shift towards cheaper phones aimed at emerging markets. Xiaomi (also a major InvenSense client) is looking to roughly double its shipments in 2014 to 40M.
- Other suppliers with heavy Samsung exposure: OLED, MXIM, SYNA, ANAD.
Universal Display Corp. is engaged in the research, development and commercialization of organic light emitting diode (OLED), technologies and materials to display displays for wearables, smartphones, tablets and televisions, as well as solid-state lighting applications. The company develops and... More
Industry: Computer Peripherals
Country: United States
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