UDC at Cowen - 6/1/2017
Rob Stone from Cowen with Steve this time, it is normally Sid. Steve did a fantastic job. It was the best history and overview I've ever heard. Forty minutes total, well worth it for anyone interested!
- They are seeing a large increase in the demand for different materials with different specs. They are even seeing regional preferences in specs.
- Their definition of Development vs. Commercial materials in their earnings reports is purely on the UDC side, they consider them all commercial materials from the customer's perspective. Development is when they haven't made enough of the material yet to meet certain internal requirements(ex quantity qualified) .
- He indicated all license agreements that move from development to commercial have an upfront license fee and ongoing royalties.
- They are increasingly feeling better about blue. They have a growing IP portfolio and team working on it, which is now over 50 people. Fuji patents had some blue IP, and of course BASF. They are developing a number of different color points. Some of their improvements are incremental, some are breakthrough. Their customers are ready for blue. They are seeing a lot of customer pull for a PHOLED blue. They will likely sell blue host with their blue emitter when it first comes into production, just like with green. Later in the Q&A Steve expanded. The first blue will not be the ultimate blue, it will continually improve. "Once we get blue in, there will be a 20-30% energy improvement. It will depend on which blue"
- small tidbit on FMM/shadow masks, said they are extremely thin and that is why they bow as the substrate sizes grow.
- OVJP. Still uses dry materials but they stay where they are supposed to. They think this is a good product for large area panels. Still a few years away but all fundamental issues have been resolved. Lifetime is the only issue, color point and efficiency are solved. They believe the lifetime issue may be the cleanliness of the development systems, which are notoriously not as clean. They are hoping for a partner that makes equipment to take this on(vs. the panel makers).
- His view on their patent position, post early 2020's, is bullish bordering on cocky. He pretty much thinks licensing continues unabated.
- TADF. Science experiment, long way off.
- Revenues will grow faster than expenses, operating margins are going up. They plan to use their cash to increase dividends and fund acquisitions.
Cooters
