Universal Display Stock Falls
If you ever wondered about cutting edge technology in NJ, you should take a look at Universal Display, a company in Ewing N.J. The company has a 40,000 square foot facility where it performs OLED tech development, provides technology transfer and assistance services to its partners, and develops and fabricates prototypes.
Although the company had a good quarter in some ways, it’s stock fell after it released its Q1 2011 results on “wider-than-expected first-quarter adjusted loss, partly hurt by higher research and development expenses,” according to a Reuter’s report. “Research and development expenses rose to $6.6 million, from $4.8 million, while operating expenses rose 45 percent,” Reuters pointed out. A Barron’s report said that that stock fell in part “in part due to a stock warranty liability charge.”
On the good side, Barron’s reported that even Wall Street “bears” see a bright outlook for the company’s growth. Sid Rosenblatt, the company’s Chief Financial Officer said that revenues for the first quarter totaled $9.6 million an increase of $5.4 million or 126% compared to $4.2 million for the first quarter of 2010. The rest of the company’s financial statement for the first quarter can be found here.
R &D; is important to a company like Universal Display, which has been in business for 15 years, now that the market for its products is finally starting to emerge. Steve Abramson, president and CEO told analysts about the company’s plans to expand use of its PHOLED Technology in the display and lighting markets. “Our success comes from the growing demand for bright beautiful energy efficient OLED displays,” powered by the company’s technology and materials, he said.
The company said AU Optronics is scheduled to start mass production of Universal’s Gen 3.5 AMOLED line in the second half of this year. “From these reports it appears that we are on the verge of eliminating a major bottle neck to increase OLED production.” Abramson said. The first OLED television should be out in 2012, “although they are expected to be costly,” he added.
Universal Displays says it possesses more than 1,000 patents in the OLED display field.
