NEW YORK (TheStreet) -- Shares of UniPixel (UNXL) were 6.7% to $1.13 on heavy trading volume Thursday after the touchscreen Performance Engineered Films maker announced new shipment of samples to a Tier 1 PC OEM customer.

UniPixel said it sent a shipment of touchscreen engineering samples to be assembled into touch panels to an Asia-based Tier 1 PC OEM which will evaluate the samples for use in a new 13.3-inch laptop.

The engineering samples feature UniPixel's XTouch touch sensor technology that uses a new hybrid-metal plating process and Diamond Guard resin coating. The XTouch technology helps improve the appearance of the sensors and the Diamond Gard resign eliminates the need for an extra film layer on the touch panel.

"We continue to execute on our technology roadmap that enables our strategy to expand the number of leading manufacturers that are actively considering UniPixel technology for new product offerings," President and CEO Jeff Hawthorne said in a statement.

"While we recognize that we will not win all of the projects for which our products are being evaluated, we know that leading PC OEMs are becoming more aware of our differentiated touch screen technology," he added.

About 1.8 million shares of UniPixel were traded by 10:16 a.m. Thursday, well above the company's average trading volume of about 255,000 shares a day.

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 a few notable 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 deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 159.6% when compared to the same quarter one year ago, falling from -$6.07 million to -$15.75 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.
  • Net operating cash flow has decreased to -$5.28 million or 45.24% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 83.91%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 44.44% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • UNI-PIXEL INC's earnings per share declined by 44.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, UNI-PIXEL INC reported poor results of -$1.79 versus -$1.27 in the prior year. This year, the market expects an improvement in earnings (-$1.54 versus -$1.79).
  • You can view the full analysis from the report here: UNXL Ratings Report