What They Say
OLED material supplier UDC has reported a strong end to a good year for its business. It reached record quarterly revenue of $141.5 million, up from $101.7 million in 2019. Material sales were $62.5 million and licensing income was $75 million. Net income was $53.9 million in Q4 up from $26.4 million a year ago.
For the year, revenue was up from $405.2 million to $428.9mm ($229.7 million for material sales – down from $243.4 for 2019). License revenues were up from $150 million to $185.1 million. Over the year, net income was down slightly at $133.4 million, from $138.3 million.
What We Think
I have a friend that was very involved in displays for a long time that said for years that ‘UDC investors will never get their money back’. He missed out on a good opportunity for his pension fund! The company is heading for significant re-negotiations this year, but will be in a strong position as OLED remains a good growth segment. It should be able to resist competitive pressure for a while, yet, unless someone makes a breakthrough in blue. (BR)
I try not to pay too much attention to stock prices, but the long term history of UDC is interesting, having recently hit a new peak.
