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Technology Stocks : OLED Universal Display Corp
OLED 96.76+0.3%Sep 27 3:59 PM EDT

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To: Creaky Skier who wrote (25903)4/23/2021 7:32:16 AM
From: slacker711  Read Replies (1) of 27489
PPG manufactures the emitters.

UDC's gross margin guidance was for 65-70% material margins going foward. UDC paid for the capital equipment that makes their emitters so I doubt that PPG has very high gross margins on their material sales to UDC.

If PPG gross margins are 20%, then the cost of the raw materials would make up 24% to 28% of UDC's material revenues. I assume that iridium makes up the bulk of those materials but I have no idea what the proportion might be.

The fact that UDC only shifted their gross margin guidance by a small amount could be a sign that their contracts have some leeway on pricing built into them.
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