NEW YORK (TheStreet) -- Shares of UniPixel Inc. (UNXL) are higher by 16.00% to $7.98 on Thursday morning following the company's announcement it has achieved a breakthrough in the roll-to-roll plating process of its touch screen sensors, overcoming previously reported issues through hardware modifications and chemistry configurations.
UniPixel is a production stage company that delivers performance engineered film to the display, touch screen, and flexible electronics market.
"The new process conditions have been successfully demonstrated in the roll-to-roll pilot production process, achieving a step-change improvement in plating fine-line conductive elements on its touch sensor film," the company said.
The company said it has a fully functioning pilot production line at its facility in Texas and it will be working with its partner Eastman Kodak Co. to move the improved technology to the production line in the Eastman Business Park, in Rochester, NY.
The companies are looking to begin commercial production later this year, a Kodak spokesman told the Democrat and Chronicle said.
Separately, TheStreet Ratings team rates UNI-PIXEL INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNI-PIXEL INC (UNXL) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- UNI-PIXEL INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, UNI-PIXEL INC reported poor results of -$1.27 versus -$1.13 in the prior year. For the next year, the market is expecting a contraction of 63.8% in earnings (-$2.08 versus -$1.27).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 753.4% when compared to the same quarter one year ago, falling from $0.95 million to -$6.19 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, UNI-PIXEL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for UNI-PIXEL INC is currently extremely low, coming in at 0.00%. It has decreased significantly from the same period last year.
- Net operating cash flow has significantly decreased to -$4.42 million or 275.23% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- You can view the full analysis from the report here: UNXL Ratings Report