COVID-19 dealt Universal Display a significant Q2 blow, with revenue down 48% from Q1 and 51% from the 2019 quarter, said CEO Steve Abramson on a Thursday call. The OLED materials and technology supplier's customer orders and shipments declined, he said: “While COVID-19 uncertainties will likely weigh on consumer demand in the near term, we continue to invest and further strengthen our leadership position in the OLED ecosystem.” OLED’s long-term growth path is “unchanged and remains robust,” he said. Customers are expressing “cautious optimism” about 2020's second half, fueled by a “pickup in demand” in July, he said. But “significant uncertainties still loom,” and it’s “prudent” that Universal continues to refrain from giving 2020 guidance, he said. Despite the significant increase in July orders and shipments, "the real question is whether it is sustainable," said Chief Financial Officer Sid Rosenblatt.
The Competitive Carriers Association dropped plans for its in-person annual meeting and will instead hold a virtual conference Oct. 27, the group said Friday. “Due to current circumstances and concerns for the health and safety of our attendees and exhibitors, it is not possible to move forward with the in-person portion of CCA’s 2020 Annual Convention,” said President Steve Berry: “The day will be chock-full of keynotes and panels featuring industry thought-leaders and key government officials, and attendees can interact in panel discussions and network with exhibitors showcasing their latest innovations though the virtual exhibit hall.”
Live Nation’s “expectation” is live concerts won't "return at scale” before next summer, “with ticket sales ramping up in the quarters leading up to these shows,” said CEO Michael Rapino on a call Wednesday. “We remain confident that fans will return to live events when it is safe.” Through Q2, 86% of concert fans held on to tickets for rescheduled shows and shunned refunds, “demonstrating their continued desire to attend concerts in the future despite the current uncertainty,” he said. Virtual concerts are in “huge demand, so the company established a “live from home platform," he said. He estimates 67 million fans globally viewed more than 18,000 virtual concerts and festivals in the quarter: “We are seeing the potential for livestreaming to become an additional long-term component of our concert business.”
Wireless charging company Energous had another product delay, said CEO Steve Rizzone on an investor call Wednesday. The company “months ago” previewed the NewSound Primo W hearing aid, which was expected to be in the market now, but factory shutdowns and supply chain issues delayed production. Energous expects to have chip procurements from NewSound by year-end, said Rizzone. The company is looking to its recently announced WattUp PowerHub developer kit to create new revenue opportunities. Q2 revenue was $114,375 vs $47,500 in the year-ago quarter. Energous received $9.2 million in the quarter through a stock offering, it said. The company is now targeting military applications.
Walmart is opening drive-in movie theaters in 160 of its parking lots Aug. 14, with plans to operate them through Oct. 21 in partnership with the Tribeca Film Festival. It plans 320 showings of “hit” movies. Customers can reserve a space at TheWalmartDriveIn.com to pick a date and location; tickets are free but must be reserved in advance. “We recognize the challenges our customers and their families have faced over the last few months, and we wanted to create an experience where they could come together safely to create new memories,” blogged Janey Whiteside, chief customer officer. Families “can stock up on their favorite theater concessions to bring along with them through Walmart’s convenient pickup or delivery services.”
Nearly 40% of U.S. employees can telecommute, reported Recon Analytics Thursday. Of those, slightly more than half are contemplating moving to a smaller city or town, it said. “The pandemic has prompted many Americans to reevaluate their priorities and living conditions.” The prevalence of videoconferencing drove bandwidth requirements upward, “especially on the upload side,” it said. The analyst firm canvassed 1,600 employees on COVID-19 videoconferencing, finding more than a quarter use it frequently for work, 21% occasionally.
Work-from-home mandates are having a “positive impact” on the Synaptics PC and video interface businesses, said CEO Michael Hurlston on a fiscal Q4 investor call Wednesday. Customers are looking to “broaden their offerings with solutions like headsets, speakers, soundbars and smart displays that enable consumers to make more of their time at home while still connecting with friends and family,” he said. The PC business “achieved record revenue and profitability” in the quarter, he said. Demand for enterprise and consumer laptops “remains strong, and we believe this strength will be sustained,” he said. The stock closed 8.5% higher Thursday at $89.69.
Competitive Carriers Association President Steve Berry urged congressional leaders Wednesday to “consider provisions” in any compromise version of the next COVID-19 aid bill that would “help Americans connect to broadband, and in particular, mobile." Senate leaders are negotiating with House colleagues and the White House, though there's no sign of a deal. Majority Leader Mitch McConnell, R-Ky., said Wednesday the chamber will delay the start of recess and be in session next week amid hopes for a breakthrough. Senate Republicans’ recent proposals included a few telecom and tech provisions (see 2007280059). House Democrats had more tech and telecom language in their Health and Economic Recovery Omnibus Emergency Solutions Act (HR-6800), including broadband funding (see 2005130059). “Wireless technology is the optimal way to provide immediate connectivity to Americans seeking a broadband connection,” Berry said in a letter to McConnell, House Speaker Nancy Pelosi, D-Calif., and the chambers’ minority leaders. “Prioritize policies and support for wireless broadband as you move forward with pandemic relief legislation. Consumers need connectivity now,” he asked. Sen. Amy Klobuchar, D-Minn., also sought broadband provisions in the next pandemic bill Wednesday, saying in a floor speech that "all Americans should have access to high speed internet. This pandemic has put a magnifying glass on the gap. It’s time to act now."
“Record-level unemployment and continuing uncertainty" led consumers to cut discretionary spending 50%, said Parks Associates' David Drury Wednesday. Consumer tech purchases increased during the COVID-19 pandemic, he said. Some 26% of U.S. broadband households bought electronics, and demand is expected to continue into next year and possibly 2022, said the analyst. Strong demand will continue for residential broadband to enable streaming video services and messaging, video calling and virtual meetings, he said. About three-fourths of households subscribe to at least one streaming video service; half to two or more. Some 30% intend to avoid public events and large gatherings into 2021 over concern of exposure, said Drury. Seventy percent believe the economy will need a long time to recover; 23% believe the economy will rebound quickly once social-distancing measures are lifted. About 29% say they are delaying vacations or personal travel at least until next year.
COVID-19 stay-at-home orders are breathing new life into tablets, reported Strategy Analytics Wednesday. Q2 unit shipments grew 17%, the highest quarterly growth in six years, said SA. Back-to-school demand could further boost the tablet market in the fall, it said. “Sales could see an extended resurgence due to lower price points if remote work and school options remain post-pandemic.” With cases “uncontained” in many parts of the world and telework and remote learning here to stay, “it's safe to say this won't be a temporary change in demand,” said SA. “Tablets have evolved from the simple entertainment slate of the boom years into devices more capable of handling work and school tasks.” Consumers and enterprises are seeing more choices “when upgrading or buying new devices for the new normal," it said.