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Wed, March 21, 2012

Analytical Reports on AU Optronics Corp. and Universal Display Corp. - Mixed Results for Computer Peripheral Companies


Published on 2012-03-21 05:31:59 - Market Wire
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March 21, 2012 08:25 ET

Analytical Reports on AU Optronics Corp. and Universal Display Corp. - Mixed Results for Computer Peripheral Companies

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Universal Display Corp. is among companies moving in a positive direction. The company recently inked a contract renewal with LG Display and has a long-term deal with Samsung. Booming demand for OLED displays should fuel strong revenues for the foreseeable future.

AU Optronics Corp., on the other hand, is moving in the opposite direction. The company was recently found guilty by a U.S court in a price fixing suit and now faces a fine of up to $1 billion. The company will appeal both the verdict and any fines but a reversal of the decision seems unlikely at this time.

Moving forward, burgeoning demand for smartphones, tablets and other mobile devices is positioning several display makers for major gains in both the short- and long-term. Court battles will likely weigh on AU Optronics for the next year but better panel pricing and demand could have a buoying effect.

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