Universal Display Corp shares fell 11 percent on Wednesday, after the LED supplier warned payments from a new contract with Samsung Electronics may not come in a steady stream, raising concerns about its over dependence on the Korean company.

Let me caution that individual quarters could still be very lumpy, particularly in light of the timing of payments under our new arrangement with Samsung, Chief Financial Officer Sid Rosenblatt said on a conference call on Tuesday.

Universal said a large portion of its $15.3 million royalty and license fee revenue in 2011 came from the company's patent license agreement with Samsung.

Canaccord Genuity, which has a hold rating on the stock, said while the company has turned profitable, much of its success has been reliant on Samsung.

We view the next year as critical to see if the company can achieve the same degree of success with the other major original equipment manufacturers starting their own organic LED commercial production, the brokerage said in a research note to clients.

The brokerage, however, raised it price target on the stock by $1 to $36.

Shares of the company fell to $40.85 -- their lowest in a month -- in early morning trade on the Nasdaq, but later recouped some losses to trade at $41.78.

The stock has doubled since it hit a year low of $22.73 on August 8, excluding Wednesday's losses.

(Reporting by Monika Shinghal in Bangalore; Editing by Saumyadeb Chakrabarty)

South Korea Display Samsung