UniPixel (UNXL) Misses Q1 EPS by 2c; $3M Cash Burn

UniPixel (NASDAQ: UNXL) reported Q1 EPS of ($0.46), $0.02 worse than the analyst estimate of ($0.44).

Cash and cash equivalents totaled $20.7 million at March 31, 2015, as compared to $23.7 million at December 31, 2014.

"During the quarter, we continued to make progress improving the features and cost structure of our InTouch" and Diamond Guard" technology as we conducted extensive due diligence and evaluation of Atmel Corporation's XSense technology," commented Jeff Hawthorne, UniPixel's president and CEO. "We determined that by combining the best elements from XSense and our InTouch technologies, we expect to substantially reduce our go-to-market risk and provide a superior product platform, while better addressing the largest segments of the touch market comprised of touch sensors for mobile phones and tablets.

"We expect the application of our proprietary material science technology to enhance XSense's performance, functionality and particularly cost, while XSense brings to the table existing Tier-1 customers, an established revenue stream and a customer pipeline, superior touch sensor design and proven commercial volume manufacturing.

"Based on the expanded market opportunity, reduced go-to-market risk and partnership economics, we decided to focus exclusively on applying our technology to advance the XSense product platform.

"We continue to ship existing XSense touch sensors orders to a Tier 1 US based PC OEM customer for three touch sensor devices ranging from 8" to 11.6" in size. These shipments are expected to generate revenue in the current quarter.

"Looking at our customer pipeline, we have five touch sensor designs through initial qualification stage with our current customer and other Tier 1 PC OEMs based in the U.S. and Asia. With one of those U.S. based PC OEMs, we also have a touch sensor design in the final qualification stage. We have been meeting with potential customers in the U.S. and Asia to provide an update on the XSense acquisition, introduce the benefits of the combined operations and IP position, and to discuss program progress and potential order timing.

"Prior to the XSense acquisition, we did not provide revenue guidance given the uncertainty typical of an early stage product introduction. However, with XSense, we are currently shipping a finished product to a Tier 1 PC OEM customer, and have a pipeline of products in mid to late stage development. While we are in the early stages of integration of the XSense operations, at this point we anticipate XSense revenues of at least $10 million for the year. We expect operating expenses to total less than $4 million per quarter by the fourth quarter and to exit the year with gross margins greater than 20%. We anticipate further gross margin improvements in the first half of 2016, leading to profitability for the full year."

For earnings history and earnings-related data on UniPixel (UNXL) click here.

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