THE WOODLANDS, TX -- (Marketwire) -- 11/07/12 -- UniPixel, Inc.(NASDAQ: UNXL), a provider of Performance Engineered Films to the touch screen, flexible printed electronics, lighting and display markets, reported results for the third quarter ended September 30, 2012.

Q3 2012 Operational Highlights

Management Commentary
"During the third quarter we made substantial progress towards commercializing UniBoss and Diamond Guard across four key areas: qualifying multiple touch controllers with UniBoss, building out our downstream supply chain for UniBoss-based touch screens, establishing high-volume production capacity with Diamond Guard, and shoring up our balance sheet," said UniPixel president and CEO, Reed Killion.

"We took another major step towards commercialization this month with our collaboration with N-trig, provider of the DuoSense® pen and multi-touch user interface. We qualified functional prototypes that integrate N-trig's Duo Sense controller with the UniBoss pro-cap multi-touch sensor film. The performance increase over ITO proved significant in touch sensitivity and active pen based precision.

"Out of the many potential applications of our UniBoss technology, we're specifically focusing on touch screens because of the strong interest by major OEMs and consumer electronics ecosystem partners that are actively looking to replace ITO-based touch sensors in products scheduled as early as 2013 in a market that Display Search estimates will double by 2018 to $31.9 billion. But to be sure, we are not pursuing only the display touch panel sensors market with UniBoss, but have built and tested prototypes of non-display and gesture input devices that perform amazingly well straight out of the gate.

"The UniBoss roll-to-roll flexible electronics manufacturing process continues to be the only additive process we know of that reduces manufacturing costs and supply chain complexity of current ITO and other ITO replacement sensors by minimizing manufacturing steps from approximately 40 to 8 steps. We are sampling, testing and prototyping with global OEMs and ODMs that are interested in not only our touch sensor films cost advantages, but 30% higher touch response, superior resolution and better durability than ITO-based touch sensors.

"Our production qualification with Carestream Tollcoating for Diamond Guard™ Hard Coat film has opened the doors to addressing the escalation of interest from potential customers. We've finally been able to produce and ship volume of production-sized rolls for trials and testing on an array of product applications across a number of major industries.

"All of our resources and focus during Q3 have been on progress towards closing major OEM accounts with both our Diamond Guard and UniBoss products and working with their supply chains to understand the specifications necessary for large-scale integration with their production lines.

"We have two growth models for UniPixel. We have an organic growth model that gives us a steady and self funded path to volume capacity over the next two to three years and a partner funded model that increases capacity significantly over the next 12 to 24 months. In order to meet volume projections from OEM partners, we have offered a preferred price and capacity license agreement to those OEM and ecosystem partners that want to ensure production-level capacity of UniBoss touch sensors for their products and customers. We are in discussions with multiple OEMs and ecosystem partners in the consumer electronics, automotive and industrial product space and supply chain for these limited license opportunities."

Q3 2012 Financial Summary
In the third quarter 2012 the company did not record any revenues as it focused on advancing the development and market introduction of its flagship products, UniBoss and Diamond Guard.

Selling, general and administrative (SG&A) expenses in the third quarter of 2012 totaled $830,000, as compared to $846,000 in the same year-ago quarter. The decrease in SG&A expenses was primarily due to the decreased contract labor expense in the third quarter of 2012.

Research and development expenses in the third quarter of 2012 totaled $1.2 million, as compared to $1.0 million in the same quarter last year. The increase in R&D expenses was primarily due to increased lab expense related to prototype development.

Net loss was $2.0 million or $(0.24) per share in the third quarter of 2012, as compared to a net loss of $1.9 million or $(0.26) per share in the same year-ago quarter.

Cash and cash equivalents totaled $15.4 million at September 30, 2012, as compared to $7.2 million at December 31, 2011. The increase in cash was primarily due to a $12.3 million, net, equity raise completed in the third quarter of 2012.