When Samsung Electronics unveiled its new 55-inch screen organic LED television at the International Consumer Electronics Show, Universal Display (Nasdaq: [[ticker:PANL]]) in Ewing, NJ saw its own prospects rise. Organic LED (OLED) technology uses razor-thin layers of organic semiconductor material to generate light and electronic displays. It is an alternative to traditional LED and LCD technology and offers the potential to create devices that are lighter and use less energy. OLEDs do not use backlighting, which some LED and LCD displays require.
Universal Display develops OLED material and technology it licenses to manufacturers such as Samsung. While OLED screens have made their way into handheld-size devices such as Samsung’s Galaxy series of smartphones, production of larger displays that use the technology has been limited so far.
That seems to be changing with the debut of 55-inch OLED televisions from Samsung and a wicked thin 55-inch television from LG Electronics due for sale by the later half of this year. Steven Abramson, CEO of Universal Display, visited CES in Las Vegas but did not exhibit though his company’s technology could be found around the show. The plethora of smartphones and other devices built with OLED displays increases demand for the technology, he says. “We’ve been laboring in this vineyard for a long, long time,” Abramson says. “After sixteen years, we’re finally starting to see this take off.”
In addition to Samsung, other manufacturers tap into Universal Display’s research and development. “LG is buying material from us,” Abramson says. “We’ll eventually have a long-term agreement with them. Our revenues grow as the OLED industry grows.”
Universal Display reported net income of nearly $6 million on revenue of $21.8 million for the quarter ended Sept. 30, 2011 compared with a net loss of $7.2 million on a bit less than $7.1 million in revenue for the prior year period. The company also
