17 Aug 2007
The acquisition by Sumitomo signals the increasing attractiveness of OLED displays to Japanese producers.
Hard on the heels of announcing an agreed merger with Sumitomo, Cambridge Display Technology has reported its second quarter 2007 results.
Total revenues were unchanged from the equivalent quarter in 2006 at $2.7 million, attributed by the company to an increase in revenue for equipment and supplies being balanced by reduced license revenue. A net loss of $7.4 million widened the deficit as compared with the $5 million loss in Q2 2006, which the company attributed to lower gross profit and increased operating expenses.
"Clearly the big news for CDT and our organic light emitting diode (OLED) technology is the acquisition by Sumitomo," CEO David Fyfe told investors. "Adoption of OLEDs is a big strategic decision for display manufacturers, and not one they will rush into. I believe that Sumitomo will now be patient as other elements of the technology, including printing methods and materials technology, come together."
Fyfe also believes that the deal points the way towards future developments in the OLED marketplace. "We'll see Japanese producers leading the way in OLED adoption, contrary to indications a few years ago," he said. "We'll also see consolidation among the private players who each own pieces of OLED technology. That process will continue, consolidating the technology into relatively few hands."
The company's Total Matrix Addressing (TMA) technology, which promises to allow longer display lifetimes and reduced power consumption for passive matrix OLEDs, was also singled out as a significant future development. An increase in research & development expenses of 12% to $3.6 million was primarily the result of costs associated with TMA development. "TMA could accelerate adoption of OLED solutions and break the industry's fixation on LCD displays," Fyfe predicted.