Display equipment revenues for the 20 publicly traded equipment companies we are tracking were up 2% Q/Q and 67% Y/Y to a record $3.2B. Display equipment revenues have been up double-digits Y/Y for at least 10 consecutive quarters, quite a run which should continue for at least a couple more quarters on the dramatic increase in capex primarily for flexible OLEDs. Figure 1: Quarterly Display Equipment Revenues Source: DSCC’s Quarterly Display Supply Chain Financial Health Report By supplier, as shown in Figure 2:
Figure 2: Q2’17 Display Equipment Revenues and GrowthSource: DSCC’s Quarterly Display Supply Chain Financial Health Report Based on the display capex discussed in the previous blog, we believe the entire display equipment market was over $5B in Q217, a record high, and possibly the peak quarter of 2017. Margins improved for equipment suppliers across the board as shown in Figure 3 with operating margins improving from 13% to 15% and net margins improving from 10% to 12%, both record highs. By supplier:
Figure 3: Q2'15 - Q2’17 Display Equipment Margins While fewer and fewer Japanese and US equipment companies are showing bookings, most Korean companies publicly reveal their PO amounts and bookings. Q2’17 was a slow quarter for bookings for leading Japanese and Korean companies, down 20% Q/Q but up 57% Y/Y. As a result, backlog fell vs. Q1’17. Note, we are showing all POs and equipment awards in our PO database available to Capex Service customers.
Looking at balance sheets and cash flow statements:
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