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Universal Display Corporation (OLED)

- NASDAQ
  • Mon, Aug. 17, 6:19 PM
    • LG Display (NYSE:LPL) plans to invest at least KRW10T ($8.47B) in OLED manufacturing through 2018, aiming for a bigger chunk of a growing market in which Samsung is still easily the biggest player. The investments will go towards both large-screen OLED panels for TV sets and signs, and smaller panels for phones/tablets, wearables, and cars.
    • Could some of the capacity go towards panels used by Apple? LG currently supplies OLEDs for the Apple Watch, and there's speculation Apple will use OLEDs in future iPhones/iPads.
    • Universal Display (NASDAQ:OLED) is seven months removed from striking a licensing deal with LPL that lasts until 2022. Universal's shares rose 5% today to $40.67.
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  • Thu, Aug. 6, 5:14 PM
    • Universal Display (NASDAQ:OLED) CFO Sidney Rosenblatt: "During [Q2], dynamic shifts in market strategies resulted in numerous new product introductions that utilized our new red and green emitters. At the same time, these shifts also negatively impacted demand for established products that used our existing host material, which led a customer to significantly reduce its forecast for this host material."
    • A $33M inventory write-down has been taken, largely related to host material. Universal's host sales also took a hit last year, after Samsung opted not to use them in certain new phones.
    • In spite of the Q2 miss, Universal is reiterating 2015 revenue guidance of $200M, with upside potential of 15% and downside potential of 5%. Consensus is at $212.1M.
    • An $11.7M Y/Y drop in host material sales led total material revenue to fall 32% Y/Y to $24.3M. Royalty/license revenue rose 20% to $33.7M, with Samsung paying $30M vs. $25M a year ago.
    • Excluding the write-down, material gross margin was 75%, improved from 68% in Q1 and 67% a year ago. Operating expenses (non-GAAP) fell 16% Y/Y to $29.6M. Universal ended Q2 with $356M in cash, and no debt.
    • Shares have dropped to $42.72 in AH trading.
    • Q2 results, PR
    | 1 Comment
  • Wed, May 20, 12:29 PM
    • Apple (NASDAQ:AAPL) will follow up on its use of OLED displays for the Apple Watch by launching iPhones and iPads sporting OLEDs in the 2016/2017 timeframe, argues The Motley Fool's Steve Symington in a column today.
    • Symington notes Apple has reportedly contracted Foxconn and Innolux to build a $2.6B plant to make flexible OLEDs for both smartphones and wearables, and that a JV launched by Japan Display, Sony, and Panasonic (known as JOLED) has reportedly been contracted by Apple to produce OLEDs for next-gen iPads.
    • Universal Display (OLED +2.2%) has made fresh highs, and is now up 89% YTD. Shares jumped two weeks ago after the company disclosed a $45M Q/Q increase in its deferred revenue balance within its Q1 report.
    • Also: LG Display (LPL +0.9%) recently showed off a 55" OLED panel prototype that's only 0.97mm thick - far thinner than its existing 55" panel (4.3mm). The prototype weighs only 1.9kg, and can be stuck to a wall using a magnetic mat.
    • LG, which struck a new licensing deal with Universal earlier this year, says it plans to ramp OLED production in Q3, and is respectively aiming for 2015 and 2016 unit shipments of 600K and 1.5M.
    | 17 Comments
  • Fri, May 8, 11:14 AM
    • Nearly unchanged in AH trading yesterday, Universal Display (NASDAQ:OLED) has taken off today after beating Q1 EPS estimates (while missing on revenue) and reiterating full-year revenue guidance of $200M (with up to 5% downside and 15% upside).
    • Likely providing a lift: Though revenue missed estimates, Universal's deferred revenue balance soared to $51M ($25.6M current, $25.4M long-term) from $5.8M at the end of Q4. When asked about the growth on the CC (transcript), CEO Steve Abramson noted Universal received payments for 3 deals during the quarter, and that much of the license revenue has been classified as deferred.
    • Boosting Q1 EPS: Material gross margin was 68%, down from 72% a year ago but up from Q4's 57%. Volume growth (lifted by the Galaxy S6) helped offset "competitive pricing pressures." CEO Steve Abramson states Universal is still targeting a 60%-70% GM range.
    • Also helping: Operating expenses fell by $500K Y/Y to $20.8M. R&D spend fell by ~$300K to $9.9M, and SG&A spend by ~$200K to $6.2M. Green emitter sales totaled $14.4M, red emitter sales (growing) $6.3M, and green host sales (declining as Samsung turns to an affiliate) $4.4M.
    | 7 Comments
  • Wed, Apr. 15, 2:40 PM
    • Universal Display (NASDAQ:OLED) has rallied to its highest levels since 2011 after Samsung announced early Galaxy S6 sales are "much higher" than initially expected, and that it expects total sales for the S6 and curved S6 Edge to top 70M.
    • The S6 sports a 2K OLED display that requires more materials than the 1080p display used by S5. Reviews for the metal/glass flagship phone have been quite positive.
    | 5 Comments
  • Tue, Mar. 17, 5:38 PM
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  • Tue, Mar. 17, 2:50 PM
    • Universal Display (NASDAQ:OLED) has surged to new 52-week highs again. Today's gains have come on volume of 1.54M shares, more than 2x a 3-month daily average of 689K.
    • Universal has been buoyed by reports of strong early interest in Samsung's Galaxy S6, and perhaps also by expectations Apple Watch will use OLEDs (though this has been expected for some time).
    • Also, there have been reports Samsung's phone mix is shifting towards OLED models relative to LCD models. The electronics giant's high-end phones have relied on OLEDs for a long time, but it still uses LCDs for many cheaper models.
    | 2 Comments
  • Fri, Mar. 13, 3:15 PM
    • The Nasdaq is down 0.9%, and major tech decliners are outnumbering major gainers by a sound margin.
    • Notable gainers include 3D printer maker ExOne (XONE +2.7%), OLED materials/IP provider Universal Display (OLED +3.9%), stock photo marketplace Shutterstock (SSTK +4%), flash storage array vendor Violin Memory (VMEM +8.2%), and Wi-Fi hardware vendor Aerohive (HIVE +4.6%).
    • For the second day in a row, Chinese companies are well-represented among major decliners. The list includes online retailer Vipshop (VIPS -4.8%), microblogging platform Weibo (WB -4.2%), auto site Autohome (ATHM -4.3%), online real estate plays SouFun (SFUN -5.3%) and Leju (LEJU -5.9%), and mobile game publisher iDreamSky (DSKY -4.5%).
    • Other major decliners include flash sales site Zulily (ZU -5.8%), server maker Super Micro (SMCI -3.7%), fleet management software vendor FleetMatics (FLTX -3.9%), and 4G baseband modem maker Sequans (SQNS -9.1%).
    • Universal Display is adding to yesterday's big gains, and appears to be benefiting from early signs of strong Galaxy S6 demand. Zulily has reversed yesterday's gains. Weibo's losses come two days after the company posted a Q4 revenue beat and offered in-line guidance.
    • Previously covered: IBM, Ebix, NXP/Freescale, Qiwi, eHealth, Pandora, InterCloud, ChipMOS, Demandware, Imperva, Rudolph, Globalstar, ChannelAdvisor
    | 3 Comments
  • Thu, Mar. 12, 12:45 PM
    • Universal Display (NASDAQ:OLED) has rallied to new 52-week highs today. Its move has come on volume of 1.26M shares, well above a 3-month daily average of 662K.
    • Signs of strong early demand for Samsung's (OTC:SSNLF) Galaxy S6 and S6 Edge (unveiled on March 1, going on sale on April 10) could be giving the OLED materials/IP provider a lift. Samsung has announced S6 pre-orders have topped 20M, and Korea's Electronic Times has reported Samsung has upped its April S6/S6 Edge production target by 1M to 8M.
    • The S6 sports a quad-HD OLED display that requires more materials than the S5's 1080p display. Its use of a metal/glass body (as compared with the plastic bodies of its predecessors) has been well-received.
    • Samsung's shares have already benefited from S6 enthusiasm: Though they fell overnight in Seoul, they're still up 7% since the March 1 launch event.
    | 4 Comments
  • Thu, Mar. 5, 2:11 PM
    • "LG will have [a high dynamic range] OLED solution available this year. We expect we’ll start to make a bit more noise about this around the time of the IFA technology show in September," says LG exec Robert Taylor. He adds creating an HDR OLED set is a priority for LG, and that the self-emissive nature of OLEDs makes them a superior solution for HDR than LCDs.
    • Taylor cautions commercializing HDR remains a work in progress. "[W]e’ve got the easy job; we display it. The broadcasters and the movie studios are the ones who have to figure out how to code it, how to distribute it, how to commercialize it, how to infrastructure it. And they’re just not there yet."
    • LG recently unveiled a curved 65" 4K OLED set that will sell for a steep $8,999 in April. Subsidiary LG Display (LPL -0.7%) significantly expanded OLED production in December, and plans to create a new large-panel OLED production line later this year; Samsung still accounts for the lion's share of OLED panel output.
    • Universal Display (OLED) is up strongly today, adding to the big Monday gains it saw after Samsung launched the Galaxy S6.
    | 1 Comment
  • Thu, Feb. 26, 5:09 PM
    • Though it beat Q4 revenue estimates (while missing on EPS), Universal Display (NASDAQ:OLED) is setting a 2015 "base revenue forecast" of $200M, below a $211.4M consensus. The company believes the forecast has a "downside range" of 5%, and "upside potential" of 15%.
    • The outlook is attributed to uncertain timing for OLED TV and flexible OLED production ramps, as well as for new mobile products featuring OLED displays. It assumes $60M in Samsung license revenue, and a one-quarter lag in LG Display royalty payments.
    • CFO Sidney Rosenblatt: "The key takeaway is that we believe this transitional year of strategic capacity investment and product expansion in the OLED industry will set the framework for the next wave of market growth, which we anticipate to more fully materialize in 2016 and beyond."
    • Materials sales rose 10% Y/Y in Q4 to $28.1M, after declining 9% in Q3 (believed to be due to a lack of host materials sales for the Galaxy Note 4). Royalty/license fees rose 21% to $28M, with Samsung making a $25M payment (up from $20M a year ago).
    • Hurting EPS: Materials gross margin fell to 57% from 73% in Q3 and 70% a year ago; Universal notes materials costs rose thanks to a $3.9M inventory write-down, as well as mix changes and higher shipments. Operating expenses (including materials costs) rose 30% Y/Y to $39.1M.
    • Shares have fallen to $35.25 AH.
    • Q4 results, PR
    | 5 Comments
  • Mon, Feb. 2, 12:15 PM
    • Citing the company's recent LG Display licensing deal, Cowen has hiked its Universal Display (NASDAQ:OLED) target by $10 to $50, while reiterating an Outperform.
    • Shares are up 19% since the LG deal was announced last Monday. 8.8M shares (26% of the float) were shorted as of Jan. 15.
    | 1 Comment
  • 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
    | 11 Comments
  • Mon, Jan. 26, 9:14 AM
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  • 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.
    | 4 Comments
  • 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."
    | 2 Comments
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Company Description
Universal Display Corp is engaged in the research, development & commercialization of organic light emitting diode or OLED, technologies & materialsfor use in displays for wearables, smartphones, tablets & televisions & solid-state lighting applications.
Sector: Technology
Country: United States