UniPixel Reports Fourth Quarter and Full Year 2011 Results

Thu Mar 8, 2012 4:05pm EST

* Reuters is not responsible for the content in this press release.

UniPixel, Inc. (NASDAQ: UNXL), a provider of UniPixel Performance
Engineered Films to the touch screen, flexible printed electronics,
lighting and display markets, reported results for the fourth quarter and
year ended December 31, 2011.

    Fourth Quarter and Full Year 2011 Operational Highlights

--  Completed on schedule the installation and qualification of new
    in-house UniBoss(TM) mastering equipment, which reduces mastering
    time to a few hours, versus the previous eight to sixteen weeks. The
    UniBoss new roll-to-roll production equipment was also installed and
--  Multiple touch panel suppliers and OEMs expressed interest and
    submitted requests for design and sampling of UniBoss enabled touch
    sensor solutions during the fourth quarter. This resulted in signing
    nine non-disclosure and material transfer agreements (NDA/MTA) in the
    fourth quarter of 2011 (which has since risen to 30).
--  Shipped multi-touch sensor samples under these newly signed NDA/MTA
--  Achieved a breakthrough in UniBoss production with a new capability to
    print very thin, flexible circuits on both sides of a single film
    simultaneously. This can dramatically reduce the cost of products
    which can take advantage of double-sided printed circuit film. This
    film can produce thinner, lighter and more reliable products, as well
    as open the door to new design opportunities and applications.
--  Full production qualified with three manufacturing partners for
    Diamond Guard(TM), Finger Print Resistant (FPR) film, and laminating
    adhesive. Diamond Guard is a new cover glass replacement film that can
    also be used as a protective cover film. It is super hard (rated
    greater than or equal to 6H), scratch-resistant, and has a
    glass-equivalent gloss finish, yet is very thin, light and flexible.
--  Expanded the company's IP portfolio with 49 new patent applications.
    An additional 17 patent applications are in process and planned for
    submission. To accelerate and enhance the patent application process,
    the company established an IP services agreement with MDB Capital, a
    leader in helping companies maximize the value of their IP.
--  Strengthened operational capabilities with the appointment of Seong
    (Peter) Shin as chief operating officer. As a former Samsung
    Electronics senior vice president, he brings deep experience in LCD
    panel technology and fabrication, process and architecture
    development, as well as major OEM/ODM product development and launches
    of display and notebook systems.


Management Commentary 

    "2011 was a year of extraordinary progress, as UniPixel continued to
transition from a development and IP-based company to a scalable
manufacturing company," said Reed Killion, UniPixel's president and CEO.
"We now have consumer electronics OEMs around the world extensively
testing our UniBoss and Diamond Guard products. During the year we also
strengthened our globally-oriented management team in preparation for the
next stage of our growth.

    "For the application of Diamond Guard as a cover glass replacement, OEMs
have continued to extensively test and qualify the product on their
prototype designs. We anticipate shipping initial commercial quantities
of Diamond Guard by the end of the first quarter with a production and
distribution partner, and foresee multiple design wins for Diamond Guard
in the second quarter.

    "For UniBoss, we are rapidly advancing the ability to provide OEMs with
not only the sensor pattern but the peripheral circuitry, including the
flex cable as a single unit. The industry is moving to this 'On Cell'
approach due to the cost advantages. Once fully implemented, it will
reduce the steps required for a fully functional touch screen from a
cumbersome 40 step process to the less than 10 steps with the UniBoss
design. The result is substantial savings in both labor and cost of

    "The substantial operational gains we made in 2011 set the stage for the
recently announced memorandum of understanding with Texas Instruments.
TI's vice president of Audio & Imaging Products stated that UniBoss
offers unparalleled cost and performance benefits that make it a perfect
match for TI touch screen controllers, and that together, we will bring
to market high-quality touch screen solutions at an extraordinarily low
cost. In addition to the tremendous resources this industry leader brings
to the table, they have provided a prized endorsement of our performance
film technologies. 

    "Such validations highlight the fact that we have become experts at
engineering micro and nano structures, as well as applying ultra-thin
conductive elements on film surfaces that can be used in a wide variety
of applications and markets. In 2012, we will continue to lay the
foundation designed to turn this expertise into revenue and profits for

    2011 Financial Summary
 Revenues totaled $195,200 in 2011, as compared to
$243,500 in 2010, reflecting the company's development stage status
transitioning to a production stage company.

    Selling, general and administrative (SG&A) expenses in 2011 totaled $4.2
million, as compared to $2.7 million in 2010. The increase in SG&A
expenses was primarily due to the issuance of stock options to employees
and related increase in stock compensation expense during 2011.

    Research and development expenses in 2011 totaled $4.5 million, as
compared to $2.6 million in 2010. The increase in R&D was primarily due
to stock compensation increase of $1.0 million, salary expense increase
of $0.3 million with the addition of employees and also lab expenses for
prototyping and development increase of $0.6 million.

    Net loss for the year was $8.6 million or $(1.20) per share for 2011, as
compared to a net loss of $3.8 million or $(1.05) per share in 2010.

    Cash and cash equivalents totaled $7.2 million at December 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 expenses.

    Conference Call
 UniPixel President and CEO Reed Killion, CFO Jeff Tomz
and CTO Robert Petcavich will host a conference call later today to
discuss 2011 and outlook for 2012, followed by a question and answer

    Date: Thursday, March 8, 2012
 Time: 4:30 p.m. Eastern time (1:30 p.m.
Pacific time)
 Dial-In Number: 1-877-941-4774
 Conference ID#: 4520455

    The conference call will be broadcast simultaneously and available for
replay via the Investors section of the company's Web site at
www.unipixel.com or by clicking here.

    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 and until April 8, 2012:

    Toll-free replay number: 1-877-870-5176
 International replay number:
 Replay pin number: 4520455

    About UniPixel, Inc.
 Headquartered in The Woodlands, Texas, UniPixel
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, 2011. 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, 2011, as well as other public filings with
the SEC since such date.

    Trademarks in this release are the property of their respective owners.

                              Uni-Pixel, Inc.
                   Condensed Consolidated Balance Sheets

                                                December 31,   December 31, 
                                                    2011           2010
                                               -------------  ------------- 

Current assets
  Cash and cash equivalents                    $   7,216,663  $  13,049,446 
  Accounts receivable, net                             4,550         77,889 
                                               -------------  ------------- 

    Total current assets                           7,221,213     13,127,335 
                                               -------------  ------------- 

Property and equipment, net of accumulated
 depreciation of $1,977,241 and $1,543,839, at
 December 31, 2011 and 2010, respectively          1,149,654         70,734 
Restricted cash                                       17,439         17,439 
                                               -------------  ------------- 

Total assets                                   $   8,388,306  $  13,215,508 
                                               -------------  ------------- 


Current liabilities
  Accounts payable                             $      87,468  $     341,541 
  Deferred revenue                                         -         85,906 
                                               -------------  ------------- 

    Total current liabilities                         87,468        427,447 
                                               -------------  ------------- 

    Total liabilities                                 87,468        427,447 
                                               -------------  ------------- 

Commitments and contingencies (Note 5)                     -              - 

Shareholders' equity
  Common stock, $0.001 par value; 100,000,000
   shares authorized, 7,142,307 shares and
   7,131,890 shares issued and outstanding at
   December 31, 2011 and 2010, respectively            7,142          7,132 
  Additional paid-in capital                      70,589,438     66,507,247 
  Accumulated deficit during development stage   (62,295,742)   (53,726,318)
                                               -------------  ------------- 

    Total shareholders' equity                     8,300,838     12,788,061 
                                               -------------  ------------- 

Total liabilities and shareholders' equity     $   8,388,306  $  13,215,508 
                                               -------------  ------------- 

                              Uni-Pixel, Inc.
              Condensed Consolidated Statements of Operations

                                                  Year Ended December 31,
                                                    2011           2010
                                               -------------  ------------- 

Revenue                                        $     195,237  $     243,519 

Cost of revenues                                      46,985         20,695 
                                               -------------  ------------- 

Gross margin                                         148,252        222,824 

Selling, general and administrative expenses       4,186,927      2,748,697 
Research and development                           4,542,735      2,551,226 
                                               -------------  ------------- 

    Operating loss                                (8,581,410)    (5,077,099)

Other income (expense)
  Gain on sale of intellectual property                    -      2,088,835 
  Debt issuance expense                                    -       (554,827)
  Interest income (expense), net                      11,986       (274,703)
                                               -------------  ------------- 

    Net loss                                   $  (8,569,424) $  (3,817,794)
                                               -------------  ------------- 

Per share information
  Net loss - basic                             $       (1.20) $       (1.05)
  Net loss - diluted                                   (1.20)         (1.05)

Weighted average number of basic common shares
 outstanding                                       7,138,426      3,628,454 
Weighted average number of diluted common
 shares outstanding                                7,138,426      3,628,454 
                                               -------------  ------------- 


Company Contact: 
Jeffrey Tomz, CFO
UniPixel, Inc.
Tel 281-825-4500

Investor Relations Contact:
Liolios Group
Scott Liolios or Ron Both 
Tel 949-574-3860

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