UniPixel Reports Fourth Quarter and Full Year 2012 Results

UniPixel Reports Fourth Quarter and Full Year 2012 Results 
THE WOODLANDS, TX -- (Marketwire) -- 02/26/13 --  UniPixel, Inc.
(NASDAQ: UNXL), a provider of Performance Engineered Films(TM) to the
touch screen, flexible printed electronics, and lighting and display
markets, reported results for the fourth quarter and year ended
December 31, 2012. 
Fourth Quarter 2012 Operational Highlights   

--  Entered a multi-million dollar preferred price and capacity license
    agreement with a major manufacturer of personal computers to introduce
    products that feature next-generation touch screens based on
    UniPixel's UniBoss(TM) pro-cap, multi-touch sensor film.
--  Collaborated with N-trig, provider of the DuoSense(R) pen and
    multi-touch user interface, to develop metal mesh sensors for the
    DuoSense pen and multi-touch input. UniPixel has qualified functional
    prototypes that integrate N-trig's DuoSense controller with UniBoss
    touchscreen film. The performance increase over ITO proved significant
    in touch sensitivity and active pen based precision.
--  Enhanced UniPixel's IP portfolio with eight patent applications
    submitted during the quarter. The company's IP portfolio currently
    totals 71 patent applications submitted with three patents issued.
    Enhancing the IP portfolio remains a priority for creating strategic
    value and establishing barriers to entry, and there are currently more
    than 20 patent applications the company is preparing to submit over
    the next six months.

Management Commentary
 "In 2012, we established a solid foundation
toward the commercialization of our two flagship products, UniBoss
and Diamond Guard(TM)," said Reed Killion, CEO of UniPixel. "After
engaging with Texas Instruments, Carestream and N-trig, qualifying
multiple touch controller manufacturers and building out our
downstream supply chain, our efforts culminated with the signing of a
multi-million dollar preferred price and capacity license agreement
with a major PC maker. Together, we are working to introduce products
that feature next-generation touch screens based on our UniBoss
pro-cap, multi-touch sensor film. 
"With UniBoss, we offer the touch ecosystem the unique advantages of
metal me
sh touch sensors based on an additive, roll-to-roll, flexible
electronics process, as compared to the traditional subtractive
ITO-based and subtractive ITO replacement based touch sensor
solutions. Our UniBoss manufacturing process continues to be the only
additive process that reduces manufacturing costs and supply chain
complexity of current ITO and other ITO replacement sensors by
minimizing manufacturing steps from about 40 to less than 10. Other
production advantages include lower material costs and a simplified
supply chain, as well as extensibility to many sizes and form
"A UniBoss touch-screen offers higher touch response and sensitivity,
superior touch distinction, better durability, and lower power
requirements. UniBoss is coming into a touch module market that
Display Search estimates will grow from $13 billion to $32 billion by
"We are addressing the large market opportunity of UniBoss by
leveraging licensees and partner infrastructure in order to scale our
manufacturing capacity quickly to meet anticipated demand while
maintaining a very efficient organizational structure with UniPixel.
We continue to add to our employee base and staff with exceptional
new hires to support our operational platform and global
commercialization efforts. This includes the recent appointment of
Robert Berg to the newly created position of vice president of global
sales. Robert brings to UniPixel 25 years of sales and marketing
management experience in the touch solutions, printed and flexible
circuits industries. This includes a strong track record of exceeding
revenue and profitability targets, improving time-to-market
performance, and establishing global sales channels and supply chain
"Looking ahead in 2013, we plan to execute additional preferred price
and capacity license agreements as well as consider potential joint
ventures relationships. We will continue to focus on building out
capacity and developing our supply chain as we work closely with our
new PC partner to bring their new UniBoss-based products to market.
We recently placed purchase orders for two new printing and two
plating machines, which we will modify with UniBoss technology and
calibrate for the UniBoss process. Each printer will be capable of
printing trace widths down to 5 microns and produce, in a
roll-to-roll process, 1 million units or square feet per month. 
"Given our strong progress, we expect to recognize approximately $5
million in revenue in the current first quarter. We are planning to
begin limited production in the second quarter and ramp up to volume
production in the third. We are targeting 60,000 units or square feet
per month by the end of April, 200,000 by the end of June, 700,000 by
the end of September and then achieving 1.3 million units monthly by
January of 2014.  
"In 2012 we achieved production-level qualification of our Diamond
Guard(TM) Hard Coat film with our manufacturing and distribution
partner, Carestream Tollcoating. The unique performance
characteristics of Diamond Guard make it an ideal cover glass
alternative and decorative graphics scratch-resistant film. Given our
current focus on the greater opportunity with UniBoss, we see UniBoss
driving initial Diamond Guard adoption as an integrated touch screen
"Through the process of UniBoss development, we have become experts
at engineering micro and nano structures, and applying ultra-thin
conductive elements on film surfaces. Since our proprietary and
patented thin-film technologies can be applied to a wide variety of
applications beyond touch screens, we are enjoying a very exciting
outlook for UniPixel over the coming months and years." 
2012 Financial Summary
 Revenues totaled $76,200 in 2012, as compared
to $195,200 in 2011, reflecting the company's continued development
stage status as it transitions to a production stage company. 
Selling, general and administrative (SG&A) expenses in 2012 totaled
$4.0 million, as compared to $4.2 million in 2011. The decrease was
primarily due to a decreased stock compensation expense. 
Research and development expenses in 2012 totaled $5.1 million, as
compared to $4.5 million in 2011. The increase was primarily due to
increased lab expense related to prototype development. 
Net loss was $9.0 million or $(1.11) per share in 2012, as compared
to a net loss of $8.6 million or $(1.20) per share in 2011. 
Cash and cash equivalents totaled $13.0 million at December 31, 2012,
as compared to $7.2 million at December 31, 2011. The increase in
cash was primarily due to a $12.3 million (net) equity raise
completed in the third quarter of 2012. 
Conference Call
 UniPixel President and CEO Reed Killion and CFO Jeff
Tomz will host a conference call later today to discuss 2012 and
outlook for 2013, followed by a question and answer period. 
Date: Tuesday, February 26, 2013
 Time: 4:30 p.m. Eastern time (3:30
p.m. Central time)
 Dial-In Number: 1-877-941-4774
 Conference ID#: 4593770
The conference call will be broadcast live and available for replay
via the Investors section of the company's website at
Please call the conference telephone numbe
r 5-10 minutes prior to the
start time. An operator will register your name and organization. If
you have any difficulty connecting with the conference call, please
contact Liolios Group at 1-949-574-3860. 
A replay of the call will be available after 7:30 p.m. Eastern time
on the same day through March 26, 2013. 
Toll-free replay number: 1-877-870-5176
 International replay number:
 Replay pin number: 4593770 
About UniPixel 
 Headquartered in The Woodlands, Texas, UniPixel,
Inc. (NASDAQ: UNXL) delivers Performance Engineered Films to the
Lighting, Display 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 areas. A key focus for
UniPixel is developing electronic conductive films for use in
electronic sensors for consumer and industrial applications. The
company's newly developed UniBoss(TM) roll-to-roll electronics
manufacturing process prints conductive elements on thin film with
trace widths down to ~ 5um. The company is marketing its films for
touch panel sensor, cover glass replacement, protective cover film,
antenna and custom circuitry applications under the UniPixel label,
and potentially under private label or Original Equipment
Manufacturers (OEM) brands. UniPixel's brands include Clearly
Superior(TM), Diamond Guard(TM) and others. For further information,
visit www.unipixel.com. 
Forward-looking Statements
 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,
2012. 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, quarterly reports on Form 10-Q and Current Reports on Form 8-K. 
Trademarks in this release are the property of their respective

                              Uni-Pixel, Inc.                               
                        Consolidated Balance Sheets                         
                                                 December 31,  December 31, 
                                                     2012          2011     
                                                 ------------  ------------ 
Current assets                                                              
  Cash and cash equivalents                      $ 13,000,372  $  7,216,663 
  Accounts receivable, net                                  -         4,550 
  Prepaid expenses                                    160,320             - 
                                                 ------------  ------------ 
    Total current assets                           13,160,692     7,221,213 
                                                 ------------  ------------ 
Property and equipment, net of accumulated                                  
 depreciation of $2,531,917 and $1,977,241, at                              
 December 31, 2012 and 2011, respectively           1,536,658     1,149,654 
Restricted cash                                        17,439        17,439 
                                                 ------------  ------------ 
                                                 ------------  ------------ 
Total assets                                     $ 14,714,789  $  8,388,306 
                                                 ------------  ------------ 
      LIABILITIES AND SHAREHOLDERS' EQUITY                                  
Current liabilities                                                         
  Accounts payable                               $    348,683  $     87,468 
                                                 ------------  ------------ 
    Total current liabilities                         348,683        87,468 
                                                 ------------  ------------ 
    Total liabilities                                 348,683        87,468 
                                                 ------------  ------------ 
Commitments and contingencies                               -             - 
Shareholders' equity                                                        
  Common stock, $0.001 par value; 100,000,000                               
   shares authorized, 9,854,268 shares and                                  
   7,142,307 shares issued and outstanding at                               
   December 31, 2012 and 2011, respectively             9,854         7,142 
  Additional paid-in capital                       85,669,802    70,589,438 
  Accumulated deficit                             (71,313,550)  (62,295,742)
                                                 ------------  ------------ 
    Total shareholders' equity                     14,366,106     8,300,838 
                                                 ------------  ------------ 
Total liabilities and shareholders' equity       $ 14,714,789  $  8,388,306 
       ------------  ------------ 
                              Uni-Pixel, Inc.                               
                   Consolidated Statements of Operations                    
                                                   Year Ended December 31,  
                                                     2012          2011     
                                                 ------------  ------------ 
Revenue                                          $     76,154  $    195,237 
Cost of revenues                                       26,292        46,985 
                                                 ------------  ------------ 
Gross margin                                           49,862       148,252 
Selling, general and administrative expenses        3,961,667     4,186,927 
Research and development                            5,112,855     4,542,735 
                                                 ------------  ------------ 
    Operating loss                                 (9,024,660)   (8,581,410)
Other income                                                                
  Interest income, net                                  6,852        11,986 
                                                 ------------  ------------ 
    Net loss                                     $ (9,017,808) $ (8,569,424)
                                                 ------------  ------------ 
Per share information                                                       
  Net loss - basic                               $      (1.11) $      (1.20)
Net loss - diluted                                      (1.11)        (1.20)
Weighted average number of basic common shares                              
 outstanding                                        8,150,890     7,138,426 
Weighted average number of diluted common shares                            
 outstanding                                        8,150,890     7,138,426 
                                                 ------------  ------------ 

Company Contact:
Jeff Tomz, CFO
UniPixel, Inc.
Tel 281-825-4500 
Investor Relations Contact:
Scott Liolios or Ron Both
Liolios Group, Inc.
Tel 949-574-3860
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