Display Equipment Revenues Rise 6% Q/Q in Q2’20 Based on Survey of 35 Suppliers
We have finalized our look at the financial results for 35 publicly traded display equipment suppliers in our Quarterly Display Supply Chain Financial Health Report and found that revenues grew 6% Q/Q to $1.76B. Due to COVID-19, travel restrictions and quarantines, it was a tough quarter. But display equipment companies managed to grow. On a Y/Y basis, revenues were down 20% and were down for the 6th straight quarter. However, we are expecting to see Q/Q AND Y/Y growth in Q3’20 and Q4’20 as tools not fully installed in 1H’20 are recognized in 2H’20 along with an already expected to be strong 2H’20.
Quarterly Display Equipment Revenues for 35 Publicly Traded Companies
The 35 companies covered include Applied Materials, AP Systems, Avaco, Canon (Tokki), Charm, Coherent, Contrel, Device ENG, DMS, EO Technics, Han's Laser, HB Technology, ICD, Invenia, Jusung, KC Tech, KMAC, LIS, Nikon, Nissin Electric, Philoptics, SCREEN Holdings, SEMES, SFA Engineering, Shenzhen Liande, SNU Precision, TEL, TES, Top Engineering, Toptec, ULVAC, Vessel, Viatron Technologies, V-Technology, Wonik IPS, Wuhan Jingce and Y.A.C.
Some highlights from the data examined so far:
- 24 companies managed to grow Q/Q, 1 was flat and 10 were down.
- The top 5 display equipment suppliers were AMAT, SFA, ULVAC, TEL and V Technology. Of those companies, only AMAT, SFA and V Technology gained share. The top 5 accounted for 49% of the market, up from 45% last quarter.
- 16 companies grew Y/Y, 19 declined.
- Viatron, Device Eng., Philoptics, ICD, Nissin, Toptec, KMAC and EO Technics were all up over 100% Y/Y in display equipment revenues on OLED strength.
- Display equipment revenues rose from 9% to 10% of total revenues for these companies. If Canon is removed, display equipment was 14% of these companies’ revenues.
- Equipment company gross margins were flat at 39% with operating margins flat at 10%.
- Looking just at operating income for display equipment divisions/businesses, operating income rose 26% Q/Q and 22% Y/Y to the highest since Q1'19. Operating margins rose from 8.1% to 9.8%, also the highest since Q1'19.
- Display equipment bookings fell 45% Q/Q and were down 16% Y/Y for 14 companies as COVID-19 made it difficult to meet with customers to close new orders.
- Display equipment backlog for 18 companies fell 5% Q/Q, but was up 30% Y/Y.
- Device ENG. and Toptec had the best financial performance.