Universal display posted disappointing financial results for Q3 2014. Revenues were $32.9 million (unchanged from Q3 2013) and net income was $4.3 million. UDC lowered their guidance for 2014 ($183-185 million, down from $190-205 million).
The lower sales were attributed to Samsung's soft mobile phone sales and lower green host sales. UDC reports that Samsung adopted a different green host supplier in some of their panels. The company is working on new high-performance low-cost host materials, but they always said that this is a competitive market.
On the positive side, sales to LG Display reached $9 million - 31% of UDC's sales in the quarter. LGD is ramping up OLED TV production and UDC expects material sales to LG to rise accordingly in the near future. UDC also sees a rapid OLED takeup in wearables, flexible OLEDs and specifically with new Chinese producers.
With the OLED industry still in its nascent stage where many variables can have a material impact on its growth, the Company now expects revenues to be in the range of $183 million to $185 million. The revised expectation is based on the assumption that the above noted third quarter customer trends are likely to continue for the remainder of this year.
If you're interested in a long-term investment in Universal Display, be sure to check my two articles on Seeking Alpha: Universal Display: 20X Jackpot In 2018? and Universal Display's Second Key Customer Is On Its Way.
Disclaimer - the owner of OLED-Info owns shares in Universal Display