Tuesday, December 05, 2006

Calls of Note Part 4

- Cowen notes that Cambridge Display Tech (NASDAQ:OLED) has developed a new, patent-pending driver technology, TMA (total matrix addressing), which they believe could greatly accelerate the adoption of OLED devices for video-capable handset main displays, by improving yields, power consumption and device life. Moreover, TMA is applicable to any OLED material, allowing CDT to license chipsets for both polymer and competing small molecule types. While TMA is not yet in firm's model, they estimate the addressable market could be about 140MM units in 2008 and reiterate Outperform rating.

Cowen understands that CDT is seeking display OEM and chipset partners to develop TMA. Contacts in Asia confirmed strong interest in the project, suggesting that TMA should be cost-competitive with 2.8" AMLCDs and able to command a 10-15% price premium. The backplanes and row/column driver chips should be relatively straightforward, with the longest-lead item being the TMA image processor ASIC.

Notablecalls: While the chart looks weak I suspect the note will generate some interest in OLED over the next couple of days.

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