Universal Display's Management Presents At Canaccord Genuity 32nd Annual Growth Conference (Transcript)

Universal Display Corporation (PANL)

Canaccord Genuity 32nd Annual Growth Conference Call

August 14, 2012 1:00 pm ET

Executives

Sidney D. Rosenblatt – Executive Vice President and Chief Financial Officer

Analysts

Jed Dorsheimer – Canaccord Genuity, Inc.

Presentation

Jed Dorsheimer – Canaccord Genuity, Inc.

Well, I think we can get started. I’d like to thank everybody for coming. My name is Jed Dorsheimer. I’m one of the Senior Analyst at Canaccord Genuity to run the display, lighting and energy storage sectors for the firm globally. And for those who just heard my talk next door in terms of solid-state lighting. This Universal Display will come as no surprise in terms of their opportunity in the OLED market, for those who didn’t were fortunate enough to have with us, the leading company in the OLED sector and OLED stand for organic light emitting diodes, very different in LEDs, which are based on inorganic solid, crystalline structures. And this technology is making its way into displays, cell phones right now, tablets and TVs later on and eventually the general lighting market.

In terms of housekeeping, all our Q&A will actually be across the hall in the breakout session. And I’d point you to our conference materials for important disclosures.

And with that I would like to introduce Sid Rosenblatt, Chief Financial Officer of the Universal Display to tell us more about the company.

Sidney D. Rosenblatt

Thank you, Jed. I’m Sid Rosenblatt, CFO of Universal. We are an OLED technology development company. And we are in the forefront of developing OLED technology for displays, lasers and light generating devices. Everybody has a Safe Harbor statement. We’d appreciate it, if you would read all of our 10-Ks and 10-Qs as I usually say we pay our lawyers a lot of money to write this and we’d appreciate it, if somebody would read it. But we are a intellectual property company. We license our intellectual property and what we call phosphorescent OLED technology, and a number of other architectures. We also make and sell the emissive materials that actually go into an OLED device. And the OLED market is rapidly growing. It is in all of the Samsung Galaxy products.

In addition to that, it is in Toshiba Excite, all of these actually come from Samsung, but these are other products that have OLED technology in them, organic light-emitting diode technology as Jed said, it is actually thin-films of emissive materials. An OLED is a solid-state device, and the entire OLED stack is 11,000 to thickness of a hair. So it is a very thin technology. Samsung and LG has each demonstrated 55-inch OLED TVs at SID and at a number of other conferences, there has been reports that they’re going to introduce them at anytime from this summer to the end of the year, to the end of next year, realistically I don’t think anybody is going to have any volume at least until the end of next year. They are making them today in pilot facilities and prototyping facilities. Even though they just reported LG will sell 15,000 units. I think when they do that, you’re talking about $8,000 or $9,000 a unit. So it is really not a real product that is in the marketplace.

Jed talked a little bit about lighting I believe next door. OLEDs are very efficient light generators. We can get almost a 100 lumens per watt in the laboratories, but in an OLED light source really gives you some things that other technologies cannot. If you look at the top right hand picture, that is an Acuity Brands light source. It is literally each one is as thick as two pieces of glass. So architecturally you can make things that blend into the walls, the ceilings, it does and it generates very little heat and I’ll talk a little bit of more about that, but OLED lighting is something as we move forward, we’ll start to get commercialized in the next few years.

We have more than 2,700 patents issued and pending. We actually just purchased 1,255 patents from Fujifilm and the OLED field and I’ll talk a little bit more about that as I move forward. And we have fundamental intellectual property in the architecture of making an OLED using our phosphorescent and in the actual materials that we make and sell. We have that made for us by PPG Industries. We’d always qualify them and shift them from our facility in Ewing, New Jersey.

This is a what an OLED architecture looks like, just to give you an idea, as LCD technology, which is on this laptop and a number of others if you actually pulled it apart you would see a bright white light in the back then you see a piece of glass that has transistors and on top of that you put layers of liquid crystals and if you pushed on your screen you would actually see them move around.

OLED is very different, there is no backlight. These are self emissive materials. You have your transistor play and then you put about 7 to 9 layers of film on that transistor play and then you put glass on top of that. That’s the entire device, there is no light bulbs, it’s not reflective, it doesn’t use ambient light, but the materials themselves lied up. This entire stack is 1,100 to thickness of a hair.

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