Q4 CC notes -
- Q4 Revenue $49.5M, EPS 0.35/sh2013 Revenue $146.6M, EPS 0.70/shCash $272.6M at EOY, up $45M in 2013 vs. $17.8M in 2012.
- 2014 Revenue guidance is $190-$205M, which includes a $50M Samsung royalty payment. They are forecasting materials revenue will grow 50% in 2014, based primarily on capacity growth in 2H2014.
- OLED discussions have heated up in Japan and China.
- Material breakdown, due to expected seasonal declines vs Q3.Green emitter - $11.6M vs. $13.6MGreen host - $9.3M vs. $11.2MRed emitter - $2.8M vs. $3.4M
- The revenue beat versus the tight Q4 range given in November was across the board, materials and license fees.
- The Konica License Agreement was a standard, post-Samsung agreement, with an up-front component and royalties.
- Re-iterated GM's of 40-50% on host and 70-80% on emitters, expect those to be maintained throughout 2014, do not see any meaningful impact from volume discounts.
- Did not answer a question on whether their green materials were in Samsung's wearables.
- Expect R&D to move 15% higher, even though there was a greater quarterly bump in Q4.
- Answered a question about new customers by saying nothing has changed, but highlighted they are expecting 50% materials growth in 2014.
- There has been No Change and No Impact with regard to the adverse patent ruling in November, it has not even been discussed by their customers.
- They have 15-20 customers today in varying volumes. They have no updates on progress with blue or with customers adopting new materials. There is a lot of customer interest in the existing green materials.
- Said lighting revenues would be less than 10% of 2014 revenues, which is different than their comments prior that it was 5% of revenue.
- Said all the TV's are currently from prototype lines, so too early to tell what material usage will be for TV's versus mobile.
- No new uses for the growing cash balance.
- Did not have an answer for backplane upgrades at Samsung.
- Said $1.5M of the increase in non-Samsung license revenue was a Seiko/Epson upfront fee that was moved to current revenue since they are not proceeding with their plans. The remainder is the portion of license fees built into material prices.
- Said capacity additions at their customers is where the revenue growth in the forecast is coming from, primarily in 2H2014. They are not forecasting new materials in their guidance.
