Corning Incorporated (NYSE:GLW): Enhance Profitability Through Collaboration

Denver, CO, 04/07/2014, (Avauncer.com) – Corning Incorporated (NYSE:GLW) collaborated with Atmel Corporation to develop ultra-thin touch screens in case of multi-touch devices. Atmel is a global leader in touch technology solutions and provides complete solutions for electronic industry. The association combines Atmel’s touch sensors XSense with Corning’s damage resistant Gorilla Glass and provide thinner touch interface with superior performance for next generation applications.

Why collaboration

Corning Specialty Materials (SM) segment witnesses sales and earnings pressure year-over-year. In 4Q2013, the segment sales were down by 29% to $285 million from $399 million in 4Q2012 due to high inventory in 2012. Lower volumes of Gorilla Glass have a significant impact over its segment‘s earnings that were down by 42%. It also reduces the Company’s gross margin by 2%.

Corning’s gain

The collaboration will improve multi-touch performance for advanced applications. It provides more light and slim interface for multi-touch devices such as Smartphone, tablets, notebooks without affecting their performance.

So, Corning Incorporated (NYSE:GLW) expects increase in volume of Gorilla Glass with increasing consumptions of glasses for multi-touch devices. The Company anticipates growth from this collaboration that will increase the segment performance as well as overall gross margin of the Company.

Conclusion

The decrease in SM segment revenue affects the Company’s revenues and earnings growth. Revenues were down by 2% and core equity earnings decreased by 19%. The decline was offset by increasing performance from other segments. Therefore, Corning anticipates improvement in Gorilla Glass volume by targeting different applications through collaboration.

In addition, the positive reactions for Antimicrobial Gorilla Glass at the Consumer Electronics Show will open market for new applications. Corning also plans to expand Gorilla Glass applications in automotive and architectural market to increase its volume.

Overall, Corning Incorporated (NYSE:GLW) expects positive growth SM segment along with other segments that will increase profitability and cash flow in foreseeable quarters

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