When building a tech company, it goes without saying that the type of technology your company is based upon is key to your company’s success. But financials are also important. Without sales, revenues, and profits, there will be no funding for the development and expansion of said technology. Here we will take a look at two vastly different tech companies and see how each is funding its much larger future potential through smaller sales now.
From your phone to your garage
Most of the time, a comparison between electric car start-up, Tesla Motors Inc (NASDAQ:TSLA), and OLED component supplier, Universal Display Corporation (NASDAQ:PANL), would make as much sense as a comparison between Ford Motor Company (NYSE:F) and Apple Inc. (NASDAQ:AAPL). But both Tesla Motors Inc (NASDAQ:TSLA) and Universal Display Corporation (NASDAQ:PANL) have carved out a potentially gigantic future market and have both the technology and the funding to hopefully capitalize on each markets’ potential.
Tesla Motors Inc (NASDAQ:TSLA) is built on the idea of revolutionizing the car industry and its first mass production car is already collecting a lot of attention. After winning Motortrend’s Car of the Year award, the Tesla Motors Inc (NASDAQ:TSLA) Model S tied for the highest ever score given by Consumer Reports. Those who recall Consumer Reports’ review of the Fisker Karma will note that electric cars don’t get a free pass at the organization, the Karma only got a 57 out of 100. Even most Tesla Motors Inc (NASDAQ:TSLA) bears agree that the Model S a a good car itself, they instead tend to question Tesla Motors Inc (NASDAQ:TSLA)’s financials and ability to scale production.
Universal Display Corporation (NASDAQ:PANL) has not garnered the same attention that Tesla has, partially because it does not supply goods directly to the consumer. The company makes its money by supplying OLED components to manufacturers which in turn build the products we see on store shelves. If you’re one of the people carrying a Samsung Galaxy S4, then you get to experience the performance of Universal Display Corporation (NASDAQ:PANL)’s OLED components in your everyday life. As Samsung’s latest smartphone offering, the Galaxy S4 will be another test for how well Samsung and the Android platform are doing in the marketplace. Current indications are positive as sales have already blown past 10 million units with some analysts forecasting a total of 80 million sold units.
It’s not enough, yet
Both Tesla and Universal Display Corporation (NASDAQ:PANL) appear to be succeeding in their current endeavors. However the production of 5,000+ award winning sports sedans or the shipment of 10 million+ cutting edge smartphones is not enough for either company. Both companies are using current sales to build name recognition, improve technology, and ramp up production, the real money is set to come in other forms.