THE WOODLANDS, TX--(Marketwire - May 9, 2011) - UniPixel, Inc. (NASDAQ: UNXL), a
provider of Clearly Superior™ Performance Engineered Films to the touch
screen, flexible electronics, lighting and display markets, reported its
results for the first quarter ended March 31, 2011.
Q1 2011 Operational Highlights
- UniPixel developed a new product, Diamond Guard, a protective cover
film that is super hard (7H qualified), scratch-resistant, and with a
glass-equivalent gloss finish, yet very thin, light and flexible. The film
can be produced via similar methods and on the same production equipment as
the company's other performance films. The company believes there is no
other similar product on the market that can match these characteristics,
and it has broad applications, including protecting mobile devices like
tablets. The qualification process has begun with shipments of samples to
major OEMs and retail stores, and related patents have been
- Developed an improved, next-generation Finger Print Resistant (FPR)
film suitable under a broader range of lighting conditions, and which has
been completely re-mastered and re-qualified.
- Established new mastering equipment in-house, which can reduce product
development and mastering time from eight weeks to a few hours. The
equipment is 80% complete in its qualification process, which is expected
to be finished by the end of May 2011.
- Following completion of the in-house mastering equipment, a substantial
backlog of UniBoss qualification products are scheduled to be fulfilled in
the third quarter of 2011 and shipped to various major OEMs.
- Signed distributor agreement with Japan-based Kaga for FPR and other
performance film products.
- Advanced to late stage discussions with a major national electronics
retailer. Initial orders are anticipated in the second quarter 2011, with
products on the shelf by the third quarter 2011.
- Sampling and qualification in progress with a multi-billion dollar,
multi-national company. In late stage negotiations for exclusive supply
agreement, which is expected to be signed in early Q3 2011.
"UniPixel made tremendous developmental and operational progress across the
board in the first quarter, including a significant expansion of our unique
IP portfolio for Performance Engineered Films," said Reed Killion, the
company's president and CEO. "This has paved the way for a number of major
events during and subsequent to the quarter, including a signed letter of
intent from Griffin Technologies, a leading global mobile accessory
company, for an exclusive retail relationship in North America."
"The joint development agreement we announced this morning with SKYFIBER, a
global leader in Optical Wireless Broadband technology, affirms our unique
and substantial opportunities in the high-speed data transmissions market,"
Dr. Robert Petcavich, the company's senior VP and chief technology officer,
commented: "We have continued to work closely with major OEMs to develop
pull-through demand for our UniBoss-produced touch screen product, as well
as working directly with touch panel component manufacturers to produce
specific types of touch panels. We expect to report some very good news on
this front as the year progresses."
Concluded Killion: "Our focus will continue to be on advancing ways to
monetize our valuable IP and expanding our product portfolio across sales
verticals. We expect to announce further major partnerships in the near
future, and anticipate a ramp-up in sales that will allow us to invest in
new technology developments and product applications of our unique
performance film technology."
The company has been making progress on a number of other potential
products based on its core thin film technology. To learn more, you are
encouraged to participate on today's conference call by following the
dial-in or Webcast instructions below.
Q1 2011 Financial Summary
Revenues in the first quarter 2011 totaled $51,600, a decrease of 19% from
$63,500 in the same period a year ago. Revenue for these periods was
primarily related to engineering services and the initial sale and
marketing of the company's thin film product. The decrease in revenue is
primarily due to a decrease in engineering services revenue.
"It is important to note that we did not have significant sales of our FPR
films during the quarter due to the re-mastering and recertification of the
next-generation version," said Killion. "We expect sales to resume and
strengthen, particularly in light of new and pending major distribution
agreements. The completion of the certification of our new in-house
equipment will also be a major catalyst for success in the number of sales
verticals we are pursuing."
Selling, general and administrative expenses in the first quarter 2011
totaled $1.5 million, an increase from $1.2 million in the same year-ago
quarter. The increase in SG&A expenses was primarily due to the issuance of
stock options to employees and the related increase in stock compensation
expense during the first quarter of 2011.
Operating loss in the first quarter of 2011 was $3.1 million, compared to
$1.9 million in the same year-ago period. Net loss was $3.1 million or
$(0.43) per share in the first quarter of 2011, versus a net loss of $2.1
million or $(0.62) per share in the prior year quarter.
Cash and cash equivalents totaled $11.0 million at March 31, 2011, compared
to $13.0 million at December 31, 2010. The decrease in cash was primarily
due to an increase in research and development expense.
UniPixel will hold a conference call later today, Monday, May 9, 2011 to
discuss these results. UniPixel's president and CEO, Reed Killion, and CFO
Jeffrey Tomz will host the call starting at 10:30 a.m. Eastern time. A
question and answer session will follow management's presentation.
To participate in the call, dial the appropriate number 5-10 minutes prior
to the start time, ask for the UniPixel conference call and provide the
conference ID below:
Dial-In Number: 1-877-941-8601
Conference ID#: 4437926
The conference call will be broadcasted simultaneously on the company's Web
site at www.unipixel.com and also available by clicking here. For the webcast,
please go to the Web site at least 15 minutes early to register, download,
and install any necessary audio software. If you have any difficulty
connecting with the conference call or webcast, please contact Liolios
Group at 949-574-3860.
A replay of the call will be available after 1:30 p.m. Eastern time on the
same day and until June 9, 2011:
Toll-free replay number: 1-877-870-5176
International replay number: 1-858-384-5517
Replay pin number: 4437926
About UniPixel, Inc.
Headquartered in The Woodlands, Texas, UniPixel delivers Clearly
Superior™ Performance Engineered Films to the Lighting & Display, Solar
and Flexible Electronics markets. UniPixel's high-volume roll-to-roll or
continuous flow manufacturing process offers high-fidelity replication of
advanced micro-optic structures and surface characteristics over large
area, combined with a thin film conductive element. The company offers its
films as sub-components for use in LCD, FSC - LCD and its Time Multiplexed
Optical Shutter (TMOS) display technology as a back light film and active
film sub-component. The company is shipping its Clearly Superior™ Finger
Print Resistant protective cover films for multiple touch enabled devices.
UniPixel sells its films under the Clearly Superior™ brand, as well as
private label and OEM. For further information, visit www.unipixel.com.
All statements in this news release that are not based on historical fact
are "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the provisions of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. While management has based any
forward-looking statements contained herein on its current expectations,
the information on which such expectations were based may change. These
forward-looking statements rely on a number of assumptions concerning
future events and are subject to a number of risks, uncertainties, and
other factors, many of which are outside of our control, that could cause
actual results to materially differ from such statements. Such risks,
uncertainties, and other factors include, but are not necessarily limited
to, those set forth under Item 1A "Risk Factors" in the Company's Annual
Report on Form 10-K for the year ended December 31, 2010. We operate in a
highly competitive and rapidly changing environment, thus new or unforeseen
risks may arise. Accordingly, investors should not place any reliance on
forward-looking statements as a prediction of actual results. We disclaim
any intention to, and undertake no obligation to, update or revise any
forward-looking statements. Readers are also urged to carefully review and
consider the other various disclosures in the Company's Annual Report on
Form 10-K for the year ended December 31, 2010, as well as other public
filings with the SEC since such date.
Trademarks in this release are the property of their respective owners.
Condensed Consolidated Balance Sheets
March 31, December 31,
Cash and cash equivalents $ 11,004,688 $ 13,049,446
Accounts receivable, net 59,132 77,889
Other current assets 223,945 --
Total current assets 11,287,765 13,127,335
Property and equipment, net of accumulated
depreciation of $1,596,874 and $1,543,839, at
March 31, 2011 and December 31, 2010,
respectively 736,794 70,734
Restricted cash 17,439 17,439
Total assets $ 12,041,998 $ 13,215,508
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $ 168,108 $ 341,541
Deferred revenue 85,906 85,906
Total current liabilities 254,014 427,447
Total liabilities 254,014 427,447
Common stock, $0.001 par value; 100,000,000
shares authorized, 7,131,890 shares issued
and outstanding at March 31, 2011 and
December 31, 2010 7,132 7,132
Additional paid-in capital 68,599,610 66,507,247
Accumulated deficit (56,818,758) (53,726,318)
Total shareholders' equity 11,787,984 12,788,061
Total liabilities and shareholders' equity $ 12,041,998 $ 13,215,508
Condensed Consolidated Statements of Operations
Three Months Ended
Revenue $ 51,588 $ 63,536
Cost of revenues 7,694 -
Gross margin 43,894 63,536
Selling, general and administrative expenses 1,515,768 1,150,756
Research and development 1,624,315 851,112
Operating loss (3,096,189) (1,938,332)
Other income (expense)
Debt issuance expense - (142,612)
Interest income (expense), net 3,749 (66,327)
Net loss $ (3,092,440) $ (2,147,271)
Per share information
Net loss - basic $ (0.43) $ (0.62)
Net loss - diluted (0.43) (0.62)
Weighted average number of basic common shares
outstanding 7,131,890 3,474,285
Weighted average number of diluted common
shares outstanding 7,131,890 3,474,285