Universal Display (PANL) Slammed as Samsung Deal Seriously Questioned
Tweet
Share
E-mail
Get Alerts PANL Hot Sheet
Join SI Premium – FREE
Shares of Universal Display Corp. (Nasdaq: PANL) are under heavy pressure early Monday following a write-up at theStreetSweeper.org, which highlights the important Samsung deal in a negative light.
While analysts and other bullish followers expected a jump in the Samsung royalty rate under a renegotiated deal, the company ultimately revealed it "would no longer receive royalty payments from the giant cell phone maker at all." The new contract shows that PANL will receive a "mere “license fee” from Samsung – rather than royalties based on actual sales of products using its patented technology – and (unspecified) revenue from chemical sales to the giant electronics company going forward."
"In other words, that contract indicates, PANL may never capitalize on the popularity of Samsung smart phones featuring the Organic Light Emitting Diode (OLED) technology that has long been viewed as the key to its own future success."
Read the full report here
While analysts and other bullish followers expected a jump in the Samsung royalty rate under a renegotiated deal, the company ultimately revealed it "would no longer receive royalty payments from the giant cell phone maker at all." The new contract shows that PANL will receive a "mere “license fee” from Samsung – rather than royalties based on actual sales of products using its patented technology – and (unspecified) revenue from chemical sales to the giant electronics company going forward."
"In other words, that contract indicates, PANL may never capitalize on the popularity of Samsung smart phones featuring the Organic Light Emitting Diode (OLED) technology that has long been viewed as the key to its own future success."
Read the full report here
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Exclusive: PayPal cuts 220 jobs in India, 160 in Ireland
- Nokia to join Euro Stoxx 50 Index
- Mexico imposes countervailing duties on steel imports from China and Vietnam
Create E-mail Alert Related Categories
Insiders' Blog, Trader TalkSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
