UniPixel Reports Fourth Quarter and Full Year 2013 Results

UniPixel Reports Fourth Quarter and Full Year 2013 Results 
THE WOODLANDS, TX -- (Marketwired) -- 02/26/14 --   UniPixel, Inc.
(NASDAQ: UNXL), a provider of Performance Engineered Films(TM) to the
touch screen, flexible printed electronics and display markets,
reported results for the fourth quarter and year ended December 31,
2013. 
Fourth Quarter 2013 Highlights 


 
--  Received three touch sensors purchase orders, one from the company's
    PC OEM partner, and shipped one of these orders in December from
    low-volume, lab-based production.
    
    
--  Commissioned the first of four plating lines that have been installed
    at the Kodak Rochester facility, a state-of-the-art manufacturing and
    testing facility within the Eastman Business Park in Rochester, New
    York. The company expects to commission the other three plating lines
    in the coming months, bringing the total plating lines to seven,
    including three plating lines at the Texas facility.
    
    
--  Received an automatic roll-to-roll electronic and optical tester at
    the Texas facility, which was installed in January. The company also
    installed semi-automated testers at the company's development lab and
    at the Kodak Rochester facility in the fourth quarter of 2013.
    
    
--  Appointed Bernard Marren and Carl Yankowski as interim co-president
    and co-CEO.
    
    
--  Expanded UniPixel's IP portfolio with two new patents issued, as well
    as submitting 18 new patent applications. The company's IP portfolio
    currently totals four U.S. issued patents, one Japan patent, and 111
    patent applications submitted.

  
Q4 and Full Year 2013 Financial Summary
 Revenue totaled $11,409 in the
fourth quarter of 2013, as compared to $2,030 in the fourth quarter
of 2012. The marginal revenues in the fourth quarter were generated
by the low-volume order delivered in December 2013. For the full year
of 2013, revenue totaled $5.1 million as compared to $76,154 in 2012.
The increase in 2013 was primarily due to a $5.0 million payment
received by the company's PC OEM licensee.  
Selling, general and administrative (SG&A) expenses totaled $3.1
million in the fourth quarter of 2013, as compared to $1.3 million in
the same year-ago quarter. For the full year 2013, SG&A totaled $9.9
million as compared to $4.0 million in 2012. The increase of SG&A in
both periods was primarily due to an increase in salaries and
benefits, partially driven by an increase in the number of employees,
restricted stock expense and stock compensation expense, as well as
an increase in legal expenses and depreciation expenses. 
Research and development expenses totaled $3.1 million in the fourth
quarter of 2013, as compared to $1.6 million in the fourth quarter of
2012. For the full year 2013, research and development expenses
totaled $10.4 million as compared to $5.1 million in 2012. The
increase in both periods was primarily due to increased salaries and
benefits, partially driven by an increase in the number of employees,
restricted stock expense and stock compensation expense, as well as
lab expense related to prototype development of products based on the
company's performance engineered films. 
Net loss was $6.1 million or $(0.50) per share in the fourth quarter
of 2013, as compared to a net loss of $2.9 million or $(0.30) per
share in the same year-ago period. Net loss was $15.2 million or
$(1.32) per share in 2013, as compared to a net loss of $9.0 million
or $(1.11) per share in 2012.  
Cash and cash equivalents totaled $39.4 million at December 31, 2013,
as compared to $13.0 million at December 31, 2012. 
Management Commentary
 "While we experienced a number of setbacks in
2013, including management transitions and a delayed start to the
roll-to-roll manufacturing of our touch sensors, we exited the year
in a stronger position to complete and commercialize our
manufacturing process," said Bernard Marren interim co-CEO, interim
co-president and chairman of UniPixel. 
"Our well-coordinated, focused technical work streams are leveraging
the deep knowledge and capabilities of our manufacturing partner,
Kodak, as well as the contributions of our ecosystem supply chain and
strategic partners. These work streams have been tackling particular
challenges of our unique touch sensor manufacturing process, such as
those involving bezel design and substrates. While accommodating the
unique sensor design requirements for each given commercial device,
we learned that some unique bezel designs print better than others.
We are also evaluating various support substrates in order to improve
and enhance our manufacturing capabilities. 
"Our ongoing efforts in solving technical issues as they have
developed supports our outlook for our commercial manufacturing
timeline. In addition, the know-how developed during this time has
contributed to our IP portfolio. As we advance these process
development activities, we continue to believe our additive,
roll-to-roll, flexible electronics process will be price and
performance competitive due to its lower cost base, especially when
compared to traditional photolithographic, subtractive, ITO-based and
ITO alternative touch sensor solutions. 
"So, our focus in the first half of 2014 will continue to be on
finalizing a high-volume manufacturing process that would enable
shipments of commercial volumes of sensors in the second half of
2014. We anticipate achieving certain progress milestones in the
second quarter of 2014 that will enhance our outlook regarding the
exact timing around volume commercial shipments, and we look forward
to reporting these and other activities as they develop."  
Personal Computer Original Equipment Manufacturer (PC OEM) Partner
Agreement Update
 UniPixel has revised its touch sensors Preferred
Price and Capacity license agreement with its PC OEM partner (signed
December 7, 2012) to waive the notebook limited exclusivity option.
The exclusivity waiver allows UniPixel the opportunity to sell its
touch sensors for use in competing notebook applications. There will
be no additional milestone payments recognized under the new terms
and conditions of the agreement, with the preferred pricing and
capacity aspects of the agreement remaining unchanged. The company
continues to work closely with its PC OEM partner in product design
and development. 
CEO Search
 As previously announced, the company has begun the search
for a new CEO and president. UniPixel has interviewed a number of
potential candidates, and plans to appoint a successor with a strong
history specific to manufacturing and operational excellence to take
advantage of UniPixel's opportunities in performance engineered
films. 
Conference Call
 UniPixel management will host a conference call
later today to discuss 2013 and the outlook for 2014, followed by a
question and answer period. 
The call will be webcast live here, as well as via a link in the
Investors section of the company's website at
www.unipixel.com/investors. Webcast participants will be able to
submit a question to management via the webcast player. 
Date: Wednesday, February 26, 2014
 Time: 4:30 p.m. Eastern time
(3:30 p.m. Central time)
 Webcast:
http://public.viavid.com/index.php?id=107684 
To participate in the conference call via telephone, dial
1-480-629-9664 and provide the conference name or conference ID
4665736. Please call the conference telephone number 5-10 minutes
prior to the start time so the operator can register your name and
organization.  
If you have any difficulty with the webcast or connecting to the
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, 2014, via the same link above, or
by dialing 1-858-384-5517 and entering replay ID 4665736. 
About UniPixel 
 Headquartered in The Woodlands, Texas, UniPixel,
Inc. (NASDAQ: UNXL) delivers Performance Engineered Films to the
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 roll-to-roll
electronics manufacturing process prints fine line conductive
elements on thin films. 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. 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
companies' respective Annual Report on Form 10-K for the year ended
December 31, 2013. 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
companies' respective 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.                               
                   Condensed Consolidated Balance Sheets                    
                                                                            
                                              December 31,    December 31,  
                                                  2013            2012      
                                             --------------  -------------- 
                                                                            
                   ASSETS                                                   
Current assets                                                              
  Cash and cash equivalents                  $   39,369,574  $   13,000,372 
  Account receivable, net                            11,409              -- 
  Prepaid expenses                                       --         160,320 
                                             --------------  -------------- 
                                                                            
    Total current assets                         39,380,983      13,160,692 
                                             --------------  -------------- 
                                                                            
Property and equipment, net of accumulated                                  
 depreciation of $4,769,453 and $2,531,917,                                 
 at December 31, 2013 and 2012, respectively     15,893,435       1,536,658 
Restricted cash                                      17,439          17,439 
                                             --------------  -------------- 
                                                                            
                                             --------------  -------------- 
Total assets                                 $   55,291,857  $   14,714,789 
                                             --------------  -------------- 
                                                                            
    LIABILITIES AND SHAREHOLDERS' EQUITY                                    
                                                                            
Current liabilities                                                         
  Accounts payable                           $    1,053,748  $      348,683 
  Deferred revenue                                5,000,000              -- 
                                             --------------  -------------- 
                                                                            
    Total current liabilities                     6,053,748         348,683 
                                             --------------  -------------- 
                                                                            
    Total liabilities                             6,053,748         348,683 
                                             --------------  -------------- 
                                                                            
Commitments and contingencies                            --              -- 
                                                                            
Shareholders' equity                                                        
  Common stock, $0.001 par value;                                           
   100,000,000 shares authorized, 12,244,714                                
   shares and 9,854,268 shares issued and                                   
   outstanding at December 31, 2013 and                                     
   2012, respectively                                12,245           9,854 
  Additional paid-in capital                    135,720,308      85,669,802 
  Accumulated deficit                           (86,494,444)    (71,313,550)
                                             --------------  -------------- 
                                                                            
    Total shareholders' equity                   49,238,109      14,366,106 
                                             --------------  -------------- 
                                                                            
Total liabilities and shareholders' equity   $   55,291,857  $   14,714,789 
                                             --------------  -------------- 
                                                                            
                                                                            
                                                                            
                              Uni-Pixel, Inc.                               
              Condensed Consolidated Statements of Operations               
                                                                            
                     --------------------------  -------------------------- 
                         Three Months Ended          Twelve Months Ended    
                            December 31,                December 31,        
                     --------------------------  -------------------------- 
                         2013          2012          2013          2012     
                     ------------  ------------  ------------  ------------ 
                                                                            
Revenue              $     11,409  $      2,030  $  5,081,574  $     76,154 
                                                                            
Cost of revenues            5,584           813         9,005        26,292 
                     ------------  ------------  ------------  ------------ 
                                                                            
Gross margin                5,825         1,217     5,072,569        49,862 
                                                                            
Selling, general and                                                        
 administrative                                                             
 expenses               3,056,974     1,314,166     9,888,535     3,961,667 
Research and                                                                
 development            3,089,627     1,579,050    10,384,350     5,112,855 
                     ------------  ------------  ------------  ------------ 
                                                                            
Operating loss         (6,140,776)   (2,891,999)  (15,200,316)   (9,024,660)
                                                                            
Other income                                                                
  Interest income,                                                          
   net                      6,117         1,578        19,422         6,852 
                     ------------  ------------  ------------  ------------ 
                                                                            
Net loss             $ (6,134,659) $ (2,890,421) $(15,180,894) $ (9,017,808)
                     ------------  ------------  ------------  ------------ 
                                                                            
Per share                                                                   
 information                                                                
  Net loss - basic   $      (0.50) $      (0.30) $      (1.32) $      (1.11)
  Net loss - diluted        (0.50)        (0.30)        (1.32)        (1.11)
                                                                            
Weighted average                                                            
 number of basic                                                            
 common shares                                                              
 outstanding           12,230,743     9,700,094    11,512,996     8,150,890 
Weighted average                                                            
 number of diluted                                                          
 common shares                                                              
 outstanding           12,230,743     9,700,094    11,512,996     8,150,890 

  
Investor Relations Contact: 
Ron Both 
Liolios Group, Inc. 
Tel 949-574-3860 
UNXL@liolios.com 
 
 
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