Mon, Jan. 26, 9:16 AM
- Universal Display (NASDAQ:OLED) has struck an OLED patent licensing deal with LG Display (NYSE:LPL) that runs through the end of 2022. Universal will also supply LG with phosphorescent OLED materials.
- The licensing deal features license fees and running royalties. Universal CEO Steven Abramson: "We are excited to enter into these agreements with our long-term partner LG Display, a global technology innovator who is leading the charge for OLED TVs, evidenced by its recent CES showcase of new 4K models ranging from 55, 65 and 77 in flexible, curved and flat form factors."
- Depending on LG's production ramp, the deal could lower Universal's dependence on top customer Samsung, which recently opted not to use Universal's host materials in new hardware. Universal has risen to $35 in premarket trading.
- Previously: Universal strikes licensing deal with Sumitomo
Mon, Jan. 26, 9:14 AM
Wed, Jan. 14, 1:20 PM
- A slew of tech companies have posted steep losses on a day the Nasdaq is down 1%.
- Major decliners include Pandora (P -5%), LED giant Cree (CREE -5.9%), cloud HR software leader Workday (WDAY -4.1%), chipmakers Ambarella (AMBA -5.3%), Pixelworks (PXLW -3.7%), Audience (ADNC -3.6%), Spansion (CODE -4.4%), and Cypress (CY -3.9%) (the last two are merger partners), OLED materials/IP provider Universal Display (OLED -4.2%), industrial automation tech provider Echelon (ELON -4.8%), and P2P lending giant/recent IPO LendingClub (LC -4.8%).
- Possibly affecting OLED: LG Display (NYSE:LPL) has been ordered to halt operations at an OLED TV panel production line following a gas leak that killed two workers.
- Cree and Pandora aren't far removed from their 52-week lows; the former reports on Jan. 20, and the latter on Feb. 5. LendingClub, whose selloff follows a volatile Tuesday, could be affected by a neutral coverage launch from Susquehanna.
Nov. 14, 2014, 8:50 AM
- Believing growth will slow in 2015, Oppenheimer has downgraded Universal Display (NASDAQ:OLED) to Perform. Nonetheless, its target is at $35.
- The downgrade comes a week after OLED slashed its 2014 revenue guidance, while blaming soft high-end Samsung phone sales and "lower host material sales as the result of our host materials not being used in certain new product offerings."
Nov. 6, 2014, 5:07 PM
- Universal Display (NASDAQ:OLED) now expects 2014 revenue of $183M-$185M, below a $203.6M consensus. The company previously forecast revenue would be at the high end of an initial $190M-$205M guidance range.
- Universal attributes its Q3 revenue miss to weaker-than-expected high-end phone sales - top customer Samsung's high-end sales have come under pressure - and (notably) to "lower host material sales as the result of our host materials not being used in certain new product offerings."
- On Monday, Canaccord declared it believes Universal is losing green host material share within Samsung's phone lineup to Samsung affiliate Cheil Industries.
- Materials sales fell 9% Y/Y in Q3 to $27.5M; royalty/license fee revenue rose 260% to $5.4M. Opex fell 6% to $26.8M. $22.5M was spent on buybacks.
- Q3 results, PR
Nov. 3, 2014, 1:12 PM
- Canaccord's Jonathan Dorsheimer believes Universal Display (NASDAQ:OLED) is set to lose OLED green host material share to Samsung affiliate Cheil industries for the Galaxy S5, and also sees Samsung using Cheil as a supplier for future phones.
- In a base case scenario, Dorsheimer sees Universal losing 33% of its 2H14 green host sales, and 50% in 2015 and beyond. He estimates such a loss would respectively affect 2H14, 2015, and 2016 sales by $8.4M, $30.4M, and $29.4M. A bear-case scenario of 100% share loss yields estimated revenue losses of $16.7M, $60.8M, and $58.8M.
- Dorsheimer does note Universal could benefit from Apple Watch-related materials sales - Apple Watch is believed to feature an OLED display, and Universal client LG Display (LPL -0.3%) is the rumored supplier. But he thinks the device might only yield $1M-$2M in quarterly revenue for Universal.
- Q3 results are due on Thursday. Universal plunged in July in response to news Samsung/Cheil is buying German OLED materials provider Novaled, but rebounded after analysts argued Novaled's offerings are complementary.
Oct. 7, 2014, 12:25 PM
- Universal Display (OLED -2.6%) has sold off after top customer Samsung warned its Q3 sales will be down ~20% Y/Y due to mobile weakness.
- Samsung, contending with both tough Chinese competition and the iPhone 6 launch, mentioned a declining smartphone ASP took a toll on its results. That suggests sales of the high-end devices (the Galaxy S5, Note 3, etc.) that Universal depends heavily on for OLED materials says may have been particularly soft.
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
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. 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. 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
Apr. 14, 2014, 2:53 PM
- U.S. first-day Galaxy S5 sales were up 30% relative to first-day S4 sales a year ago, Samsung (SSNLF) declares. The electronics giant also states sales in certain other markets doubled Y/Y.
- Pac Crest's checks also paint a favorable picture of U.S. S5 sales: The firm estimates average inventory sell-through hit 60% within four hours, and thinks sales were especially strong at Verizon thanks to a 2-for-1 promotion.
- Needham thinks S5 sales could reach 10M sales in 25 days vs. 27 for the S4. The firm is reiterating a Buy on touch controller/fingerprint sensor supplier Synaptics (SYNA +3.7%).
- Two caveats: 1) Samsung's numbers typically measure sell-in to carriers/distributors rather than consumer sell-through. 2) S4 sales also got off to a hot start, but later slowed down.
- Compared with the S4, Samsung has taken a no-frills approach with the S5, emphasizing practical features such as waterproofing/dust-resistance over sensor-based features (Smart Pause, Smart Scroll, etc.) often derided as gimmicks. The company has also provided modest discounts relative to the S4 (the S5 still typically goes for $600+ unsubsidized), as it contends with aggressive high-end pricing from Chinese Android rivals.
- Synaptics is outperforming, as is motion sensor supplier InvenSense (INVN +1.7%), which gets over 30% of its revenue from Samsung. S5 OLED materials supplier Universal Display (OLED +0.6%) is up slightly. Synaptics reports on April 24, and InvenSense on May 1.
Feb. 18, 2014, 9:43 AM
- BlackBerry (BBRY +3.9%) has been upgraded to Market Perform by FBR. Dan Loeb's Third Point LLC disclosed a 10M-share stake in the company after the close on Friday.
- Veeco (VECO +1.8%) has been upgraded to Hold by Canaccord ahead of tomorrow's Q4 report. Credit Suisse and JPMorgan have already upgraded shares this month.
- Universal Display (OLED +3.9%) has also been upgraded to Hold by Canaccord.
- Cerner (CERN +1.7%), Allscripts (MDRX +1.1%), and Medidata (MDSO +2.2%) have been started at Buy by Citi as part of a healthcare IT coverage launch.
- Care.com (CRCM -2.1%) has been assigned neutral ratings by JPMorgan, Morgan Stanley, and Stifel on underwriter coverage day.
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