Q2 2014 CC notes:
- Revenue of $64.1M, EPS .44/sh. Material sales break down was: Green Host - $13.2M vs. $12.4M in Q1 Green Emitter - $15M vs. $17.2M in Q1 Red Emitter - $4.4M vs. $3.9M in Q1.
- They maintained guidance at the high end of their original forecast, indicating they expect 2H2014 to be similar to 1H2014, which was specifically stated in Q&A.
- Royalty and Licensing of $28.1M, with $25M from Samsung. Said you can assume most of the rest was from LG.
- LG sales were $9M vs $9.5M in Q1. Said they don't have a lot of visibility on exactly what those materials are going into but expect LG revenue to grow along with their volumes.
- Total Materials GM of 73% vs. 72% in Q1.
- There was a tax settlement of $3M from Japan related to a VAT they will see on an ongoing basis. I am unclear exactly how it impacted the other numbers.
- Expect their effective tax rate to be 30% in 2014.
- $291M in cash, after spending $7M to buy back 234K shares.
- Saw increased sales of their new red emitter. Said there is pricing pressure on their green emitter, which will continue into the second half of 2014. They were asked about it several times and did not expand significantly, other than to say there has been no change in the dynamic between them and their customers.
- Working with over 25 customers in the display and lighting market.
- They hinted other customers are making up for some softness at Samsung. The Other category regionally, Europe and China we assume, went from $337K to $3.8M.
- BOE pricing is structured similar to LG in terms of the license fee being built into the material price.
- Now way to tell if red emitter is peaking in Q2, but they see a lot of additional fab capacity available to generate red growth.
- Not much revenue expected this year from BOE and Philips, said they haven't announced capacity. I am not sure how that squares with the revenue growth in the Other category.
- Always some blue and yellow revenue in developmental, did not mention any commercial.
