Uni-Pixel Inc. (NASDAQ:UNXL)
Uni-Pixel Inc. (NASDAQ:UNXL) says it generated a net loss of $7.7 million in Q1 2017, a slight improvement from a net loss of $8.4 million generated last year same quarter. Revenue for the quarter totaled $1.3 million compared to $0.9 million for Q1 2016.
Bolstering Investor Confidence
Selling, General, and Administrative expenses in the quarter totaled compared to $1.9 million as of last year same quarter. Research and development expenses, on the other hand, more than doubled to $2.9 million from $0.9 million. The increase was as a result of the company beginning fulfilling its 2016 program wins
Following the disappointing earnings report Chief Executive officer, Jaw Hawthorne, sought to bolster investor confidence by reiterating they are making several important developments that should have significant implication. According to the executive, many of their 2016 program wins are currently in their early stages of volume production with focus being on ramping up the programs.
However, Uni-Pixel Inc. (NASDAQ:UNXL) has not ruled out the possibility of experiencing challenges as they move to wrap up productions having experienced some headwinds in Q1.
“Launching multiple programs is not without challenges. For example, we did experience a major issue during the quarter with materials provided to us by one of our leading suppliers that caused significant yield issues. The vendor worked closely with us to identify the issues and provide the appropriate solutions, “said Mr. Hawthorne.
Customization of the device’s design also continues to pose significant challenges given that most of them use new technology that was not in previous models. However, the company has reaffirmed it remains flexible enough to accommodate some of the new technologies in its manufacturing process as part of an effort that seeks to bolster yields.
Ramping Up Production
During the quarter the company also expanded its manufacturing capacity with the delivery of a new high-speed coating system. The electronic film company says the new system will be used to provide enhanced protection coating for XTouch sensors.
The new manufacturing capability should go a long way in expanding the company’s Diamond Guard Capacity. In return the Management expects the new coating system to result in improved yields on larger sensors, compared to the previous coating equipment methodology.
Even on Uni-Pixel Inc. (NASDAQ:UNXL) posting a narrower first-quarter net loss, Wall Street still pushed the stock lower in the market. The stock was down by 10.83% in Thursday trading session, closing at lows of $0.5350 a share. A year ago the stock was trading at $2.08 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.