Universal Display CorporationNASDAQ
Mid Or End Game For Universal Display?
Esekla • 26 Comments
Esekla • 26 Comments
Wed, Jun. 29, 2:47 PM
- Universal Display (OLED +1.9%) is higher after agreeing to acquire BASF's (OTCQX:BASFY +2.3%) organic light emitting diode intellectual property assets for ~€87M.
- OLED says the assets include more than 500 issued and pending patents around the world, and are aimed at accelerating development of commercial blue phosphorescent emissive materials.
- Needham reiterates a Buy rating and $69 price target on OLED, saying that combined with last week's acquisition of a contract research firm specializing in advanced materials development, the moves are a good use of cash that could erect additional barriers against competitors as OLED displays gain broader adoption.
- Even as it reiterates a Hold rating, Gabelli notes that light blue and dark blue emitter materials are "the holy grail" of OLED emitter materials, and the company will continue to strive to be able to launch the first commercial light blue and dark blue emitter materials.
Aug. 9, 2013, 10:45 AM
- Samsung (SSNLF.PK) and affiliate Cheil Industries (a maker of OLED materials) are buying German OLED materials/tech provider Novaled for €260M ($347M).
- Cheil's CEO promises the deal will yield major OLED R&D synergies. Samsung says it's paying ~10x revenue.
- Universal Display (OLED +13.4%) shares, which dove last week on a Samsung/Novaled report, and partly rebounded after analysts argued Novaled's offerings are complementary, is below yesterday's AH highs, but remain sharply higher in response to its Q2 beat and strong full-year guidance.
- Universal mentioned on its Q2 CC sales of green host materials (used in newer Samsung phones, including the Galaxy S4) rose 192% Q/Q and over 6x Y/Y to $9M. Likewise, green emitter sales rose 186% Q/Q and over 8x Y/Y to $13.1M. Red emitter sales totaled $3.6M, +25% Q/Q but -29% Y/Y.
- The company added product mix and price cuts impacted its materials gross margin, and that there could be some additional margin pressure if host materials sales "proportionally grow faster" than emitter sales.
Jul. 29, 2013, 1:41 PM
- Bloomberg reports Samsung (SSNLF.PK) is close to buying German OLED materials/tech provider Novaled for $200M+. Novaled's CMO says "negotiations are ongoing."
- Samsung invested in Novaled in 2011, and the companies signed a licensing/materials purchasing deal in 2012.
- Novaled claims its PIN OLED doping tech allows for fewer manufacturing process steps, low driving voltages, and greater design flexibility.
- Universal Display (OLED -9.2%) shares aren't taking the news well. Universal remains very dependent on Samsung's materials purchases and (fixed-fee) licensing payments for now. It's counting on expected manufacturing ramps from AU Optronics, Innolux, and LG Display, among others, to help lower its dependence.
- Universal's Q2 report arrives on Aug. 8.