UDC shares up on long-term deal with Samsung
On Tuesday August 23, 2011, 11:33 am
NEW YORK (AP) -- Shares of Universal Display Corp., a Ewing, N.J., company that develops organic light-emitting materials, climbed Tuesday after it struck a long-term licensing and supply deal with Samsung.
THE SPARK: UDC said it will license its technologies and sell materials to Samsung Mobile Display Co., which makes cellphone screens based on organic light-emitting diodes, or OLEDs. The screens have showed up in a variety of Samsung phones, notably the Galaxy S smartphones.
UDC is a leader in OLED development, and sells some of the chemicals that go into the screens.
The deals runs until 2017. Specific terms were not disclosed, but Samsung said it will pay UDC a license fee for its patents and buy a minimum amount of OLED materials.
THE ANALYSIS: Robert Stone at Cowen & Co. said the deal "should clearly be seen as a vote of confidence in the patents and technology" of UDC. It paves the way for new long-term deals with LG Display and others, he wrote in a research report.
SHARE ACTION: The stock rose $7.32, or 21.1 percent, to $42.08 in morning trading. |
