PLL's New Product Launch

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Recently Pall Corporation (PLL) launched a new purifier called Gaskleen. Along with high performance, Gaskleen will be useful for cost control and deriving benefits from economies of large scale production of light emitting diodes (:LED). The product is primarily targeted toward high brightness light emitting diodes (HB-LEDs).

This new purifier will deliver pure ammonia required to increase the luminosity of LEDs, which in turn will double the service life of such purifiers compared with the other commercially available technologies. With this new product, Pall will be able to meet the rising industry demand for LED lamps as replacements for incandescent and CFL bulbs. Royal Phillips Electronics (PHG) is one of the leading companies that manufactures and markets LED based lighting and automotive lamps and accessories.

The Gaskleen High-Bright purifiers will be included under Pall’s Microelectronics segment, which is mainly engaged in Chemical Mechanical Polishing (CMP) products for Semiconductor Manufacturing. The addition of Gaskleen High-Bright purifiers will enhance Pall’s product portfolio at a minimum additional operating cost. This is because Gaskleen is a combined assembly of Pall’s proprietary purification materials and Ultramet-L stainless steel filter media.

In the last quarter (second quarter 2013), Pall’s Microelectronics segment sales declined 7.6% year over year, primarily affected by the weak demand in global end markets for semiconductors and data storage products. Therefore, this new product with a high emerging market demand is expected to drive the segment’s sales going forward. In the last six months Pall’s Research and Development expenses went up by 16% year over year. The increase in expenses is reflected in the introduction of this new product.

Pall currently has a Zacks Rank #3 (Hold) compared with companies such as Calgon Carbon Corporation (CCC) and CECO Environmental Corp. (CECE) having a Zacks Rank #2 (Buy) and operating in the same industry.

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