UniPixel Reports First Quarter 2013 Results

UniPixel Reports First Quarter 2013 Results 
Company Achieves Record Net Income of $0.9 Million or $0.07 per
Diluted Share 
THE WOODLANDS, TX -- (Marketwired) -- 04/30/13 --   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 first quarter ended March 31, 2013. 
First Quarter 2013 Highlights 


 
--  Achieved record net income of $0.9 million or $0.07 per diluted share
    on $5.1 million in revenue.
--  Ordered two new printing and two plating machines, which will be
    modified with UniBoss(TM) pro-cap, multi-touch sensor technology.
    The printers will be capable of printing trace widths down to 5
    microns and each produce 1 million units or square feet per month in a
    roll-to-roll process.
--  Robert A. Berg was appointed to the new position of vice president of
    global sales. With more than 25 years of sales and marketing
    management experience in the touch solutions, printed and flexible
    circuits industries, he brings to UniPixel a strong track record of
    exceeding revenue and profitability targets, improving time-to-market
    performance, and establishing global sales channels and supply chain
    partnerships.
--  Enhanced UniPixel's IP portfolio with eight patent applications
    submitted during the quarter. The company's IP portfolio currently
    totals 79 patent applications submitted, with two patents issued.
    Enhancing the IP portfolio remains a priority for creating strategic
    value and establishing barriers to entry, and there are currently more
    than 30 patent applications the company is preparing to submit over
    the next six months.

  
Q1 2013 Financial Summary
 Revenue totaled a record $5.1 million in the
first quarter of 2013, as compared to marginal revenues in the same
year-ago quarter. The increase in revenue was primarily due to a $5.0
million payment under a new preferred price and capacity license
agreement for UniBoss. 
Selling, general and administrative (SG&A) expenses in the first
quarter of 2013 totaled $2.2 million, as compared to $0.9 million in
same year-ago quarter. The increase was primarily due an increase in
legal expenses, as well as an increase in salaries and benefits,
partially driven by an increase in restricted stock expense, bonus
accrual, and the number of employees. 
Research and development expenses in the first quarter of 2013
totaled $1.9 million as compared to $1.1 million in the same year-ago
quarter. The increase was primarily due to increased lab expense
related to prototype development of products based on the company's
performance engineered films. 
Net income was a record $0.9 million or $0.07 per diluted share in
the first quarter of 2013, as compared to a net loss of $2.0 million
or $(0.29) per basic and diluted share in the same year-ago quarter. 
Cash and cash equivalents totaled $15.7 million at March 31, 2013, as
compared to $13.0 million at December 31, 2012. Subsequent to the end
of the quarter, the company completed a $41.2 million net, equity
raise. 
Management Commentary
 "Our record quarter was the result of the
successful execution of our preferred price and capacity model for
UniBoss," said Reed Killion, president and CEO of UniPixel. "This
included $5.0 million in a non-recurring engineering milestone
payment from our major PC manufacturer licensee, marking strong
progress towards worldwide commercialization of our UniBoss touch
screen technology. The payment is helping to finance the ramp-up in
our manufacturing capacity to meet anticipated customer demand, as we
address a touch module market that Display Search expects to grow
from $13 billion to $32 billion by 2018.  
"In the current quarter, we've begun shipping initial batches of
sensors to our PC maker licensee. The initial shipment quantities on
the production line started at fifty moving to hundreds and then
thousands over the next several months. We also recently announced
the engagement of a major ecosystem partner as another preferred
price and capacity licensee to facilitate and finance the
development, introduction and production of products that feature
next-generation touch screens based on UniBoss. The license fees paid
under this agreement will be used to build out an additional one
million square feet per month of production capacity for UniBoss. 
"Just a couple weeks ago, we entered into a manufacturing and supply
agreement with Eastman Kodak to help build out this production
capacity as well as future capacity growth. Together with Kodak, we
have begun construction on a state-of-the-art manufacturing and
testing facility at the Eastman Business Park in Rochester, which has
over 100,000 square feet of manufacturing space for our UniBoss
roll-to-roll printing and plating lines. The site can easily be
expanded to meet future capacity growth demands. Kodak's
infrastructure allows us to be completely vertically integrated with
chemistry groups, PET films, ink formations, plating and mastering
all in-house for the manufacturing process. 
"We recently reached our target production equipment capacity of
60,000 square feet per month. We are now on track to ramp up capacity
to 200,000 square feet per month by the end of June, 700,000 by the
end of September, 1.3 million by January of 2014. We plan to build
out the equipment capacity of 10 million units a month by end of
2014. The increased capacity can be accomplished by expanding the
Rochester site and adding additional printing and plating lines while
increasing the throughput of printing and plating lines with
continuous process improvement implementations.  
"In all, over the course of the last several months we have met our
milestone deliverables, and have set the company on a solid course
for growth and profitability in 2013. Our focus for the remainder of
the year will be on building out equipment capacity and ramping
UniBoss production, while working closely with our global licensees
and manufacturing partners on new designs and production
opportunities. We will also pursue additional preferred price and
capacity licensees and expand our downstream relationships with LCD
panel manufactures, touch panel module manufactures and ODMs." 
Conference Call
 UniPixel President and CEO Reed Killion and CFO Jeff
Tomz will host a conference call later today to discuss the first
quarter and outlook for 2013, followed by a question and answer
period. 
Date: Tuesday, April 30, 2013
 Time: 4:30 p.m. Eastern time (3:30
p.m. Central time)
 Dial-In number: 1-480-629-9808
 Conference ID#:
4614874
 Webcast: http://public.viavid.com/index.php?id=104380 
The conference call will be broadcast live and available for replay
via the Investors section of the company's website at
www.unipixel.com. 
Please call the conference telephone number 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 May 30, 2013. 
Replay number: 1-858-384-5517
 Replay pin#: 4614874 
About UniBoss 
 A UniBoss touch-screen offers higher touch response
and sensitivity, superior touch distinction, better durability, and
lower power requirements. UniBoss offers the touch ecosystem the
unique advantages of metal mesh 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. The UniBoss manufacturing process
continues to be the only additive process that promises to reduce
manufacturing costs and supply chain complexity of current ITO and
other ITO replacement sensors by significantly minimizing
manufacturing steps. Other production advantages include lower
material costs and a simplified supply chain, as well as
extensibility to many sizes and form factors. 
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
owners. 


 
                                                                            
                                                                            
                              Uni-Pixel, Inc.                               
                        Consolidated Balance Sheets                         
                                                                            
                                                 March 31,     December 31, 
                                                    2013           2012     
                                               -------------  ------------- 
                                                (unaudited)                 
                    ASSETS                                                  
Current assets                                                              
  Cash and cash equivalents                    $  15,707,956  $  13,000,372 
  Prepaid expenses                                        --        160,320 
                                               -------------  ------------- 
                                                                            
    Total current assets                          15,707,956     13,160,692 
                                               -------------  ------------- 
                                                                            
Property and equipment, net of accumulated                                  
 depreciation of $2,750,788 and $2,531,917, at                              
 March 31, 2013 and December 31, 2012,                                      
 respectively                                      3,681,847      1,536,658 
Restricted cash                                       17,439         17,439 
                                               -------------  ------------- 
                                                                            
Total assets                                   $  19,407,242  $  14,714,789 
                                               -------------  ------------- 
                                                                            
     LIABILITIES AND SHAREHOLDERS' EQUITY                                   
                                                                            
Current liabilities                                                         
  Accounts payable                             $     419,518  $     348,683 
  Bonus accrual                                      273,675             -- 
                                               -------------  ------------- 
                                                                            
    Total current liabilities                        693,193        348,683 
                                               -------------  ------------- 
                                                                            
    Total liabilities                                693,193        348,683 
                                               -------------  ------------- 
                                                                            
Commitments and contingencies                             --             -- 
                                               -------------  ------------- 
                                                                            
Shareholders' equity                                                        
  Common stock, $0.001 par value; 100,000,000                               
   shares authorized, 10,385,386 shares issued                              
   and outstanding at March 31, 2013 and                                    
   9,854,268 shares issued and outstanding at                               
   December 31, 2012                                  10,385          9,854 
  Additional paid-in capital                      89,069,799     85,669,802 
  Accumulated deficit                            (70,366,135)   (71,313,550)
                                               -------------  ------------- 
                                                                            
    Total shareholders' equity                    18,714,049     14,366,106 
                                               -------------  ------------- 
                                                                            
Total liabilities and shareholders' equity     $  19,407,242  $  14,714,789 
                                               -------------  ------------- 
                                                                            
                                                                            
                              Uni-Pixel, Inc.                               
                   Consolidated Statements of Operations                    
                                                                            
                                                     Three Months Ended     
                                                         March 31,          
                                                --------------------------- 
                                                     2013          2012     
                                                ------------- ------------- 
                                                                            
Revenue                                         $   5,069,416 $       3,564 
                                                                            
Cost of revenues                                        3,036         1,373 
                                                ------------- ------------- 
                                                                            
Gross margin                                        5,066,380         2,191 
                                                                            
Selling, general and administrative expenses        2,180,067       929,069 
Research and development                            1,939,888     1,120,078 
                                                ------------- ------------- 
                                                                            
Operating income (loss)                               946,425    (2,046,956)
                                                                            
Other income                                                                
  Interest income, net                                    990         1,571 
                                                ------------- ------------- 
                                                                            
Net income (loss)                               $     947,415 $  (2,045,385)
                                                ------------- ------------- 
                                                                            
Per share information                                                       
  Net income (loss) - basic                     $        0.09 $       (0.29)
  Net income (loss) - diluted                            0.07         (0.29)
                                                                            
Weighted average number of basic common shares                              
 outstanding                                       10,068,092     7,142,307 
Weighted average number of diluted common                                   
 shares outstanding                                12,865,361     7,142,307 
                                                ------------- ------------- 

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