This writer does not think UDC should be in the green host material business as it is going to be the same "commodity business" as red host. They should not waste human resources and money on this at all.
Memory is that host material is shelf stable and does not spoil so it can be sold over time to others. Sid was very careful to say that they have written the inventory down to what it can be sold for now........which should be next to nothing. Is it fair to say that, over time, this inventory will be sold at fair market price and produce extra profit for UDC?
Well said. And frankly, when you write off this much it's fair to expect that you really clean house........sometimes overclean house which makes for room going forward.
I just looked at the analyst estimates and see revenues between $58 and $69 million for q2 with the average $63 million.....................and earnings between 40 - 50 cents/share with the average 45 cents.
So $63 million in sales and 45 cents in earnings.
Since then there have been days of substantially greater volume than normal. Do you sense that the shorts are continuing to cover?
And even if the Galaxy 6 hasn't been selling through as fast as Samsung built inventory in q1 and q2 that part will show up in q3 with reduced production but should be balanced out by the production of the 6 edge. From UDC's point of view, I agree with Berry..........pas de problem
WSJ writer misses the point...................here's my email to him
Good morning Jonathan and thanks for your interesting take on Samsung’s oled manufacturing facilities.
As a long time shareholder in Universal Display Corp (OLED), the company that owns patents that make oled possible, I thought you might find it interesting that Samsung has, indeed, found a way to differentiate its smartphones by bending the edges and will be ahead of Apple in this regard. As time goes on and Samsung develops products, this will become a bigger deal. That said, it was necessary to make further investments in plant facilities in order to make this possible…………..flexible fabs. When they issued these phones, they made as many as they could on the lines they had and were pleasantly surprised with the reception …………….. and then rushed to build out production faster than planned.
Indeed, these phones can only be made with oled screens and that’s a big deal for Universal Display………..the only pure oled play.
I think you missed an important point in your story………………………it’s not that they were bumbling idiots who can’t get it right, it’s that in an effort to differentiate their product they DID get it right and that will impact future sales in this product category.
Steve Symington for Motley Fool.............sounds like a very realistic take on the situation.........but, then again, Steve's that kind of guy.