Vertical Divider
In Q218, UDC Material Sales Don’t Keep Up with Shipment Growth
August 13, 2018 UDC reported 2ndquarter results based on the adoption of accounting standard, ASC 606. Revenues for the second quarter of 2018 were $56.1 m, down 45.3% Y/Y from Q217 revenue of $102.5 without the impact of ASC 606, second quarter revenues would have been $73.6 million, down only 28.2%. UDCmaintained their previous yearly guidance of $280m to $310m despite expected growth in 2Q18 of 43.5% in smartphone panel shipments and 45.4% in TV panel shipments over 1H18.
Given the release of 2 OLED iPhones, the Galaxy Note 9, the expected early release of the Galaxy S10, the continued growth of TV panels and what appears to be a significant reduction in material inventory by Samsung, the 2ndhalf should be much stronger than the 1 half as Smartphone panels are expected to grow from 195m to 280m and TV panels could increase from 1.1m to 1.6m. |
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Barry Young
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