There were big holes in the conference call.
The word yield was not even mentioned and no one even asked.
The people asking the questions were the usual UNXL pumpers Willians Financial and Craig Hallum.
The hardest question was ask by Ladenburg:
Ladenburg Q. "if you had to deliver touch sensors like next week, could you meet their quality demands in your opinion?"
Reed A. "We are not finished with the inline test relative to electrical test."
Prior they have talked about concerns that the inline testing could damage the delicate sensor it seems that they have not solved this issue. This is a problem with UniBoss whereas XSense uses multilayer coating with a Adherent Layer that works like a primer to ensure that the ink sticks in and will not fall off. Also UniPixel has mentioned problems with having the resin stick to the film that they said they partially solved by changing films.
Ladenburg Q. "Does the product meet the requirements?"
Reed A. "Electrically and from ability to put it together, transmission, all the things that you look for in a sensor. Yes."
There is a big hole in this answer because he specified certain property and said Yes referring to those properties but: What about other properties? He said "yes" but it was a conditional "yes". We already know that the inline testing have not been set up so they have no way indentify if they have a good sensor.
About the test units they said:
"These prototypes were evaluated by our PC partner and downstream conversion partners as a part of an ongoing prototype approval process."
That means they are not qualified yet... "on going process" can mean anything like "we had to built new ones" and "our last batch didn't work".
Also: "As previously reported, due to a push out of the production release date, the PC platform center design was changed and we are submitting new centers for evaluation and approval."
For some reason UniPixel had to change the design. I don't buy that it was because of the PC side but I believe it was because UniBoss didn't meet specs. I wouldn't be surprised in UniPixel has moved to a bigger micron size. UniPixel is so proud of their 6 micron process that they didn't mentioned it once.
People hear what they want to hear. I have seen the UniPixel arguments and I have seen the holes. The red flags are there if people want to see them that's up to them. UniPixel is not ready for production and they might never be.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
Additional disclosure: I have never shorted UNXL. I'm not that type of investor. I'm long ATML. I believe that Neonode is a bigger treat to Atmel than what UniPixel will ever be. I don't believe UniBoss will ever be a viable product. Maybe they have a future in printed electronics but that's all.