Chris Hofmann's  Instablog

Chris Hofmann
Send Message
Personal investor focused on small/micro cap stocks, often tech based, with a 6 to 18 month holding period.
  • Uni-Pixel Receives First Payment From PC Manufacturer 8 comments
    Mar 25, 2013 10:21 AM | about stocks: UNXL

    On Thursday, March 21st, Craig-Hallum analysts and other investors visited UniPixel (NASDAQ:UNXL) at its headquarters in Woodlands, TX. The next day, Friday March 22nd, Benzinga released the following:

    "Hearing Craig Hallum Says Uni Pixel May Have Received Cash Payment from Dell (Benzinga)"

    To further validate this receipt of payment, on Friday's call with Williams Financial Group, CEO Reed Killion stated the following when asked about reaching various payment milestones (emphasis mine):

    "We had to put the plating line in. Be up and running in a production level facility. The next is the starting of shipment of product in production level quantities. We expect to recognize this in Q2".

    Notice the change in tenses when referring to these two payments. This, to me, confirms that UniPixel has in fact received its first payment, estimated at $5M.

    Why is this important? It continues the on-going validation process of UniPixel's technology, showing that the PC Manufacturer (rumored to be Dell, but more and more sources, such as Benzinga above, are claiming it to be true) has verified the production progress and agrees that Unipixel is ready to start producing.

    From the same call, Unipixel also mentioned that they will begin this shipping process in April, at which point we can expect them to receive the second payment as well as begin capturing revenues from sales.

    Disclosure: I am long UNXL.

    Stocks: UNXL
Back To Chris Hofmann's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (8)
Track new comments
  • netmore
    , contributor
    Comments (37) | Send Message
    Thank you Chris. Why these payments won't be recognized in Q1?
    25 Mar 2013, 10:46 AM Reply Like
  • Chris Hofmann
    , contributor
    Comments (755) | Send Message
    Author’s reply » The $5M will be recognized in Q1, but this is a licensing fee, not revenues from sales. Sales begin in Q2, ramping up into Q3. I believe that RK stated that sales in volume will begin in June.
    25 Mar 2013, 10:50 AM Reply Like
  • Ivan Jimenez
    , contributor
    Comments (1025) | Send Message
    $5M is a very big licensing fee, are you sure this is not a pre-payment?
    28 Mar 2013, 10:28 AM Reply Like
  • Chris Hofmann
    , contributor
    Comments (755) | Send Message
    Author’s reply » Management had outlined that they expect to receive around $15M in licensing fees to expand production (as part of their Preferred Partnership structure) and it would be in 3-4 installments. They mentioned this on the Q4 call as well that they expected to receive $5M in Q1.
    28 Mar 2013, 10:33 AM Reply Like
  • Try Reading It
    , contributor
    Comments (8) | Send Message
    A licensing fee does not show up on a cash flow statement or balance sheet for a public company???
    29 Mar 2013, 11:27 AM Reply Like
  • Chris Hofmann
    , contributor
    Comments (755) | Send Message
    Author’s reply » I'm confused by the question 'Try Reading It'. The $5M will be recognized in Q1 and I would expect to see it as cash flow or on the balance sheet in the Q1 10-Q.
    29 Mar 2013, 11:29 AM Reply Like
  • Howard Perry
    , contributor
    Comments (8) | Send Message
    But the real question is, "How good is their product in comparison to Carclo (CAR.L) (CCEGF.PK)?"


    What is your take on Adam Gefvert's SA article of March 28th?
    1 Apr 2013, 05:27 PM Reply Like
  • Chris Hofmann
    , contributor
    Comments (755) | Send Message
    Author’s reply » I wrote a detailed reply to Adam as well as many shorter replies:



    In short.... his one "expert", Ivan Jimenez, posted a comment saying that he is not an expert and is, in fact, cautiously bullish on UNXL, not short.


    Adam has numerous inaccuracies throughout his article.
    1 Apr 2013, 05:44 PM Reply Like
Full index of posts »
Latest Followers

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.