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Corning Inc.
Operating segments and their revenue streams are divided as follows:
Display Technologies: 46.5%
- Manufactures LCD displays that are used in notebook computers, flat panel desktop monitors, and LCD televisions.
Telecommunications: 26%
- Manufactures optical fiber and cable and the hardware and equipment required for optical systems. Corning was the first to invent low-loss optical fiber in 1970.
Environmental Technologies: 12%
- Manufactures ceramic emission and pollution control devices for mobile and stationary applications, including automotive diesel filters.
Specialty Materials: 7.5%
- Manufactures glass ceramic and fluoride crystal products, such as Gorilla Glass, from more than 150 formulations.
Life Sciences: 7.5%
- Manufactures consumable glass and plastic scientific laboratory products.
Other: < 1%
2009 Net Sales Divided Geographically are as follows:
North America: 27.25%
Asia Pacific: 58.74%
Europe: 11.01%
Latin America: .65%
All other: 2.35%
Intellectual Property Rights
Intellectual property rights are essential to the survival of Corning Inc. If they fail to maintain their intellectual property rights, competitors may be able to use their technologies. This would weaken their competitive position and ultimately reduce revenues or increase costs. On September 30, 2010 they claimed that roughly 11% of their 4,350 patents will expire between 2010 and 2012, and worldwide they have 5,700 patent applications in process.
Gorilla Glass
Corning Gorilla Glass is an extremely durable glass that is environmentally friendly and designed to cover high-end display devices such as televisions, tablets, and mobile phones. The manufacturing process originated in the 1960s, but due to lack of commercial use the glass was unused for almost 50 years. The recent influx of mobile phone use created a demand for a durable glass cover. In 2006 Corning let the glass see the light of day again and picked up its first customer in 2008. The glass is currently being used by 15 major brands and is used in more than 65 devices, notably Samsung’s Galaxy X smartphones and tablets, Motorola’s Droid, and LG’s X300 notebook. Many of the companies using Corning Gorilla Glass have asked not to be identified. Apple, for instance, is likely a customer of Corning, judging by the many online videos testing the strength of Ipad, Ipod, and Iphone screens with sharp metal objects, which are similar to demonstrations found in Gorilla Glass promotional videos. There are endless uses for this glass. Some of the potential uses include refrigerator doors, automobile sunroofs, and even aquariums.
ClearCurve flexible fiber
ClearCurve flexible fiber is a special fiber-optic cable that is bend-insensitive. This type of cable maintains its signal strength even when bent or curved, and its performance is 100 times better than most current single-mode fiber. This product eliminates the fiber-optic installation challenges in multiple-dwelling units (MDUs), where strenuous deployment conditions due to tight spaces typical to such buildings are overcome by ClearCurve cable’s invaluable ability to be easily maneuvered. Verizon is purchasing this cable from Corning for commercial deployments of its FIOS services.
Good News
• Corning announced that it estimates tablet computer sales to rise to about 180 million by 2014 from roughly 20 million.
• CFO Jim Flaws said that sales could increase to between $1.8 billion and $2 billion in 2014 from $600 million in the specialty materials segment.
• Corning indicated that revenue in 2014 should increase to $10 billion, an increase from $6.6 billion in 2010. According to Thomson Reuters analysts were expecting revenue of $7.72 billion in 2011 and $8.3 billion in 2012.
• Corning believes the LCD TV replacement rate will be twofold that of traditional sets.
• The Wall Street Journal reported that Barclays Capital projects a doubling in global shipments of smartphones for 2012, from last year’s 274 million units to 500 million units. They have also forecasted tablet shipments to triple from last year’s 16 million to a whopping 57 million in 2012.
• In early January the company announced that Gorilla Glass will be used in Sony’s BRAVIA line televisions in models of 40-in or more.
• Corning claims that Gorilla Glass will deliver about $1 billion in revenue in 2011, up from about $250 million in 2010. I believe this is a conservative statement.
• On February 1, 2011 Corning acquired MobileAccess which will help the company capitalize on increasing wireless broadband demand.
• Corning Inc. won the largest of three contracts for the Australian national internet broadband network project. It is worth US$1.2 billion. The project is projected to be completed in 10 years and worth a total of US$35.6 billion.
Bad News
• On January 20, 2011 Japan’s largest glass maker, Asahi Glass Co., unveiled a scratch resistant glass similar to Gorilla Glass called Dragontrail glass which will also target the smartphone and tablet glass cover market. Asahi Glass predicts Dragontrail will generate global revenue of US$360 million and grab about 30 percent of the market share this year.
• Nippon Electric Glass Co. is developing a glass to compete with both Corning and Asahi.
• Sony, which makes the Bravia TVs that will use Gorilla Glass, slashed its forecast for TV sales in the full year to March 31 from 25 million to 23 million units.
• Corning requires certain precious metals to produce its products. China accounts for 97% of all rare earth metals sold globally and have been cutting back on exports.
Operating segments and their revenue streams are divided as follows:
Display Technologies: 46.5%
- Manufactures LCD displays that are used in notebook computers, flat panel desktop monitors, and LCD televisions.
Telecommunications: 26%
- Manufactures optical fiber and cable and the hardware and equipment required for optical systems. Corning was the first to invent low-loss optical fiber in 1970.
Environmental Technologies: 12%
- Manufactures ceramic emission and pollution control devices for mobile and stationary applications, including automotive diesel filters.
Specialty Materials: 7.5%
- Manufactures glass ceramic and fluoride crystal products, such as Gorilla Glass, from more than 150 formulations.
Life Sciences: 7.5%
- Manufactures consumable glass and plastic scientific laboratory products.
Other: < 1%
2009 Net Sales Divided Geographically are as follows:
North America: 27.25%
Asia Pacific: 58.74%
Europe: 11.01%
Latin America: .65%
All other: 2.35%
Intellectual Property Rights
Intellectual property rights are essential to the survival of Corning Inc. If they fail to maintain their intellectual property rights, competitors may be able to use their technologies. This would weaken their competitive position and ultimately reduce revenues or increase costs. On September 30, 2010 they claimed that roughly 11% of their 4,350 patents will expire between 2010 and 2012, and worldwide they have 5,700 patent applications in process.
Gorilla Glass
Corning Gorilla Glass is an extremely durable glass that is environmentally friendly and designed to cover high-end display devices such as televisions, tablets, and mobile phones. The manufacturing process originated in the 1960s, but due to lack of commercial use the glass was unused for almost 50 years. The recent influx of mobile phone use created a demand for a durable glass cover. In 2006 Corning let the glass see the light of day again and picked up its first customer in 2008. The glass is currently being used by 15 major brands and is used in more than 65 devices, notably Samsung’s Galaxy X smartphones and tablets, Motorola’s Droid, and LG’s X300 notebook. Many of the companies using Corning Gorilla Glass have asked not to be identified. Apple, for instance, is likely a customer of Corning, judging by the many online videos testing the strength of Ipad, Ipod, and Iphone screens with sharp metal objects, which are similar to demonstrations found in Gorilla Glass promotional videos. There are endless uses for this glass. Some of the potential uses include refrigerator doors, automobile sunroofs, and even aquariums.
ClearCurve flexible fiber
ClearCurve flexible fiber is a special fiber-optic cable that is bend-insensitive. This type of cable maintains its signal strength even when bent or curved, and its performance is 100 times better than most current single-mode fiber. This product eliminates the fiber-optic installation challenges in multiple-dwelling units (MDUs), where strenuous deployment conditions due to tight spaces typical to such buildings are overcome by ClearCurve cable’s invaluable ability to be easily maneuvered. Verizon is purchasing this cable from Corning for commercial deployments of its FIOS services.
Good News
• Corning announced that it estimates tablet computer sales to rise to about 180 million by 2014 from roughly 20 million.
• CFO Jim Flaws said that sales could increase to between $1.8 billion and $2 billion in 2014 from $600 million in the specialty materials segment.
• Corning indicated that revenue in 2014 should increase to $10 billion, an increase from $6.6 billion in 2010. According to Thomson Reuters analysts were expecting revenue of $7.72 billion in 2011 and $8.3 billion in 2012.
• Corning believes the LCD TV replacement rate will be twofold that of traditional sets.
• The Wall Street Journal reported that Barclays Capital projects a doubling in global shipments of smartphones for 2012, from last year’s 274 million units to 500 million units. They have also forecasted tablet shipments to triple from last year’s 16 million to a whopping 57 million in 2012.
• In early January the company announced that Gorilla Glass will be used in Sony’s BRAVIA line televisions in models of 40-in or more.
• Corning claims that Gorilla Glass will deliver about $1 billion in revenue in 2011, up from about $250 million in 2010. I believe this is a conservative statement.
• On February 1, 2011 Corning acquired MobileAccess which will help the company capitalize on increasing wireless broadband demand.
• Corning Inc. won the largest of three contracts for the Australian national internet broadband network project. It is worth US$1.2 billion. The project is projected to be completed in 10 years and worth a total of US$35.6 billion.
Bad News
• On January 20, 2011 Japan’s largest glass maker, Asahi Glass Co., unveiled a scratch resistant glass similar to Gorilla Glass called Dragontrail glass which will also target the smartphone and tablet glass cover market. Asahi Glass predicts Dragontrail will generate global revenue of US$360 million and grab about 30 percent of the market share this year.
• Nippon Electric Glass Co. is developing a glass to compete with both Corning and Asahi.
• Sony, which makes the Bravia TVs that will use Gorilla Glass, slashed its forecast for TV sales in the full year to March 31 from 25 million to 23 million units.
• Corning requires certain precious metals to produce its products. China accounts for 97% of all rare earth metals sold globally and have been cutting back on exports.
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