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UniPixel, Inc., a provider of Performance Engineered Films to the touchscreen and flexible electronics markets, reported financial results for the first quarter ended March 31, 2016.
Strategic Highlights for First Quarter 2016 included:
- Since January 1, 2016 the Company has announced a total of 14 program wins from major PC manufacturers.
- Awarded programs include laptops; tablets; and 2-in-1 convertible computers.
- The Company paid in full and retired senior secured convertible notes in February 2016 resulting in a debt-free balance sheet.
- The Company continues to make manufacturing process and yield improvements to maximize cost efficiencies.
Jeffrey A. Hawthorne, president and chief executive officer of UniPixel, said, "The first quarter of 2016 marks an important transformational point in the history of UniPixel. One year ago, UniPixel was a pre-production company with no orders or revenue. During the past year we made a key acquisition, expanded our management with highly experienced technology executives and leveraged our acquired technology and manufacturing capabilities. Over the past nine months we introduced our products to many of the world's Tier 1 PC manufacturers, had those products tested and evaluated, and announced 14 design wins since the beginning of the calendar year. We have made important and substantial progress in a short period of time in both expanding our customer base and continuously upgrading our manufacturing process."
"Our products are significantly differentiated from those that are currently in wide adoption," continued Mr. Hawthorne. "We see evidence that the market is shifting in favor of metal mesh, which is our technology base, as consumers are demanding devices that are thinner, lighter, faster with highly responsive touchscreens and advanced stylus capabilities, all of which are optimized with metal mesh technology. Our copper wire mesh touchscreen sensors and the ability to replace other materials in touchscreen module assemblies enable PC manufacturers to create products with those critically important attributes and uniquely positions UniPixel for growth in the coming years. Our recent program wins reflect the advantage of our unique technology and our creativity in designing real-world solutions for the next generation of computing devices."
Mr. Hawthorne concluded, "Looking ahead, the 14 design wins we have announced since January 2016 will move through the standard qualification process and into production during the second half of calendar year 2016 and early 2017. Our focus is to successfully execute on these programs, leverage off of these programs with our industry leading customers for additional wins, and drive our technology roadmap to expand our product offerings. We are very pleased with the sales and marketing results of the first quarter and look toward the rest of the year with great anticipation."
First Quarter 2016 Results:
For the three months ended March 31, 2016 revenues were $0.9 million compared to $0 for the three months ended March 31, 2015.
Cost of revenues was $4.2 million for the three months ended March 31, 2016 and $0 for the three months ended March 31, 2015 as the Company incurred startup costs and under-utilized fixed overhead costs at its Colorado Springs production facility, which the Company expects in the initial manufacturing phase. Cost of revenue includes certain non-cash charges, including amortization of certain prepaid licenses, stock-based compensation and depreciation of equipment as well as other non-cash charges, which totaled $1.2 million during the first quarter of 2016. Excluding these non-cash charges, adjusted cost of revenues was $3.0 million.
SG&A expense was approximately $1.8 million for the three months ended March 31, 2016 compared to $3.0 million for the three months ended March 31, 2015 as the Company transitioned from a pre-production stage company to a manufacturing and commercial sales organization. SG&A includes certain non-cash charges, including depreciation, stock-based compensation and severance, which totaled $0.5 million during the first quarter of 2016, and $2.0 million in the first quarter of 2015. Excluding these non-cash charges, adjusted SG&A was $1.3 million during the first quarter of 2016, and $1.0 million during the first quarter of 2015.
Research and development ("R&D") expense during the three months ended March 31, 2016 was $0.9 million compared to $2.7 million for the three months ended March 31, 2015. R&D includes certain non-cash charges, including stock-based compensation, which totaled $0.1 million during the first quarter of 2016, and $0.5 million in the first quarter of 2015. Excluding these non-cash charges, adjusted R&D was $0.8 million during the first quarter of 2016, and $2.2 million during the first quarter of 2015.
Adjusted EBITDA, a non-GAAP metric (see Table A), for the first quarter of fiscal 2016 was $(4.4) million, or $(0.12) per basic and diluted share compared to adjusted EBITDA of $(3.2) million or $(0.26) per basic and diluted share in the first quarter of fiscal 2015.
Net loss was $(8.4) million, or $(0.24) per basic and diluted share for the three months ended March 31, 2016, as compared to a net loss of $(5.7) million, or $(0.46) per basic and diluted share for the three months ended March 31, 2015.About UniPixel
UniPixel, Inc. (NASDAQ: UNXL) develops and markets Performance Engineered Films for the touchscreen and flexible electronics markets. The Company's roll-to-roll electronics manufacturing process patterns fine line conductive elements on thin films. The company markets its technologies for touch panel sensor, cover glass replacement, and protective cover film applications under the XTouch™ and Diamond Guard™ brands.