UniPixel Investor Presentation Dec 2015 NASDAQ: UNXL

UniPixel
Q3 2015
NASDAQ: UNXL
Disclaimer
All statements in this presentation that are not based on historical fact are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended
including the statement that UniPixel’s integrated technologies are expected to provide enhanced yields at a
lower cost, thereby expanding UniPixel’s competitiveness in the touch screen market. While management has
based any forward-looking statements contained herein on its current expectations, the information on which
such expectations were based may change. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors,
many of which are outside of our control, that could cause actual results to materially differ from such
statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set
forth under Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014.
We operate in a highly competitive and rapidly changing environment, thus new or unforeseen risks may arise.
Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual
results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking
statements. Anyone reviewing this presentation is also urged to carefully review and consider the other various
disclosures in the company's Annual Report on Form 10-K, quarterly reports on Form 10-Q and Current Reports
on Form 8-K.
Trademarks in this release are the property of their respective owners
2
A Powerful Transformation
UniPixel’s new, experienced team has transitioned from technology R&D to Commercial ramp
Acquired Atmel’s touch sensor IP; integrated into UniPixel’s solution – producing a best-of-breed product
UniPixel’s material science capabilities and roll-to-roll experience can drive down cost significantly
UniPixel SAM for touch: $5B targeting tablets, laptops, Ultrabooks, 2 in 1’s, automotive, industrial
Currently shipping sensors for three tablets, one 2-in-1 Notebook and two printers
3
$7B TAM for Touch Screen Technology
 UniPixel’s XTouch addresses a multi-billion dollar TAM
for touch sensors
Touch Screen TAM
($ Billion)
 ProCap technology is the largest segment of the
overall Touch Module market
$7.3
 1.2B units in 2015 going to 1.5B units forecasted in
2019
 Initially targeting a SAM of $5.2B in 2015, staying
relatively constant through 2019
$7.1
 Metal Mesh is quickly taking share as the preferred
high quality sensor approach
 Market characterized by increasing units with slight
decrease in ASPs
 Our Roll to Roll process and patented sensor
technology enable us to stay ahead of market cycles
2015F
2016F
2017F
2018F
2019F
Source: DisplaySearch
4
UNXL Serving a $5B SAM
 ProCap SAM is the largest part of TAM
 Mobile phone market (<6”) is the largest touch
segment: $3.6B in 2015
 Tablet market (>7”) is the 2nd largest touch
segment: $1.1B in 2015
ProCap and On-Cell Touch
Market Segments
$5B
$4B
 Notebook market (>11”) estimated at $136M in 2015
$3B
 Automotive market at 29M units in 2013 forecasted
to grow to 60M units in 2018 or 15.8% CAGR*
$2B
 Mobile phone using commodity sensors
characterized by low ASPs and GMs; metal mesh will
emerge as larger/curved displays scale
$1B
$0B
2015F
2016F
2017F
Mobile Phone Tablet PC
Notebook PC
2019F
Automobile
Others
Source: IHS/DisplaySearch
* Source: IHS/DisplaySearch
2018F
5
XTouch Strategic Market Segments
High
Tablets
Segment
Attractiveness
Auto
Notebook PC /
PC Display
High
Priority
Future
Target
Markets
Smart-phones
Wearable
Industrial
Appliances
Med
Med
High
Fit with XTouch
6
We Address OEMs Most Important Needs
 XTouch enables such features as narrow
borders, edgeless designs, thinner
devices, curved touch surfaces, and
improved linearity
 The high-precision conductive and
protective elements in UniPixel touch
screen assemblies allow for greater
responsiveness and clarity
Thinner
Lighter
Faster
7
XTouch Advantages
Flexible sensor material enables
innovative product designs
Copper-based mesh using
our patented design
~90% light transmission*
Thin borders: 1.5mm
or less
-For brighter display and thinner
stack height
Low Sheet Resistance (<10 Ω/sq.)
-For ease of Use by Finger or Stylus
-For reduced weight
Narrow Bond Area
compared to GFF
-For low cost and high reliability
(* With anti-reflective coating or optical bonding)
8
ITO-Alternative Technology Players
Metal Mesh Must Offer all Features
Advanced Features
Term / Description
Companies
Low Resistance
Better noise immunity and lower power
consumption
Double Sided
Avoids XY layer alignment Moiré Moiré
problems
< 5 μm Width
Resolves mesh visability problem
Copper Wiring
More durable as it avoids the silver metal
migration problem
Patented Metal Mesh Design
Reduces effective resistivity to enable thin cover lens,
and better touch and stylus performance
XTouch does not have the yellow tint of ITO, improving clarity of the display.
XTouch soft copper enables curved designs compared with ITO non-flexible, brittle oxide.
9
XTouch Manufacturing Flow
Basecoat
Electrical
Test
Expose
Dev/Plate
HybridMetal
Roll
Inspection
Liner /
Singulation
Sheet
Inspection
Overcoat
Package /
Ship
10
Management
Jeff Hawthorne
President and CEO
33+ years of senior management and advanced technology product development experience.
Sr. VP and GM – Veeco MOCVD Business
President and CEO – Photon Dynamics (acq’d by Orbotech)
Christine Russell
CFO
CFO of Vendavo (acq’d by Francisco Partners); EAG; Virage Logic (acq’d by Synopsys), OuterBay
Technologies (acq’d by HP), Ceva (Nasdaq: CEVA), Persistence Software, Cygnus Solutions
Director and Audit Committee Chair of QuickLogic Corporation (Nasdaq: QUIK)
Chairman of Silicon Valley Directors Exchange (SVDX)
Served as Director and Audit Committee Chair of Peak International
Jalil Shaikh
COO
VP / GM of Atmel
CEO Ranch Energy Systems; Validity Sensors (acq’d by Synaptics); and Zeevo (acq’d by Broadcom)
Senior management roles @ Broadcom (Nasdaq: BRCM); Silicon Image; Trident Microsystems
Robert Petcavich
CTO
Sr. VP & CTO of Lumera Corporation
Chairman, CEO and CTO at: Alife Medical Inc.; Polytronix Inc.; Planet Polymer Inc.; Alphascribe Express
Inc.; Material Sciences Corp.; Texas Instruments (NYSE: TXN)
Brett Gaines
VP – Marketing
Director of Business Development of Touch Materials at Atmel
VP Strategic development, Silicon Image
Manager of Business Development, Sun Microsystems
Mark McCloud
VP – Sales
25+ years at HP in Emerging Technology, supply chain strategic procurement, and process development
engineering
11
Patent Map
Issued +
Pending
UNXL
Diamond
Guard
Material
Manufacturing
Sensor
Design
22
12
26
14
Atmel License
CIT License
65
7
Sensor
Feature
Sensor
Module
Device
33
5
9
18
Total issued (pending)
UNXL – 16 (58)
Atmel – 37 (75)
CIT – 7 (18)
12
Growth Catalysts



Market’s relentless pursuit for more responsive, thinner and lighter mobile devices

XTouch metal mesh offers the best overall user experience and is the high end performance choice by OEMs

Patented sensor design allows 0.4 mm or thinner glass cover lens which is difficult for competition

New technology for laptop computers will offer the thinnest stack, lowest cost, highest performance with high
barrier of entry for competition
Future-ready

Patented edgeless industrial design

Ready for flexible displays
Introduction of AAPL pencil and success of MSFT Surface enabling Stylus-based apps


High Integration


UniPixel is ahead of the curve. XTouch enables the best active stylus performance and also enables use of
a significantly lower-cost passive stylus ~ $2
Integrated FPC reduces cost and increases product reliability, simplifies supply chain
Expanding Capacitive Touch Market

Laptops, Tablets, Automotive, Peripherals, Industrial, IoT devices
13
Income Statement
($000)
Three Months Ended
Nine Months Ended
Mar 31, 2015
7
Jun 30, 2015
1,362
Sept 30, 2015
1,498
Sept 30, 2015
2,867
Cost of revenues
7
3,420
4,701
8,128
Gross margin
-
(2,058)
(3,203)
(5,261)
Selling, general and administrative expenses
2,966
3,678
1,722
8,368
Research and development
2,723
1,476
1,494
5,690
(5,688)
(7,213)
(6,418)
(19,319)
4
170
(3,602)
(3,429)
(5,684)
(7,044)
(10,020)
(22,748)
-
(8,701)
-
(8,701)
Net income
(5,684)
(15,745)
(10,020)
(31,449)
Adjusted EBITDA
(3,194)
(3,810)
(4,420)
(11,424)
-
(1,703)
(1,964)
(3,037)
Revenue
Operating income
Other income (expense), net
Net income from continuing operations
Discontinued operations
Non-GAAP Gross Margin
14
Adjusted EBITDA
($000)
Net income
Three Months Ended
Mar 31, 2015
Jun 30, 2015
Nine Months Ended
Sept 30, 2015
Sept 30, 2015
(5,684)
(15,745)
(10,020)
(31,449)
Discontinued operations
-
8,701
-
8,701
Debt issuance cost amortization
-
376
451
827
Gain on change in warrant liability
-
(3,900)
(1,092)
(4,992)
Accretion of discount on convertible notes
-
3,122
4,049
7,171
232
193
422
1,566
2561
1,285
5,412
Stock compensation expense
541
408
380
1,329
Restricted stock issuance
387
344
330
1,061
-
90
4
94
(3,194)
(3,810)
(4,420)
(11,424)
Other income/expense
Depreciation & Amortization
Severance
Non-GAAP Adjusted EBITDA
(4)
15
Balance Sheet
($000)
Cash
Account receivable, net
8,182
Accounts payable
1,098
932
Accrued liabilities
5,340
Inventory
1,178
Notes Payable
2,635
Prepaid licenses
4,900
Total current liabilities
9,073
Prepaid expenses
1,006
978
Royalty liability
1,403
17,176
Long term debt
461
Other current assets
Total
Property and Equipment
1,935
Prepaid licenses
6,867
Total
Convert at 9/30/15
Derivative value (warrant)
Accretion on convertible note
Note payable carrying value
25,978
Total
10,937
Total shareholders’ equity
15,041
Total
25,978
$6,425
989
(4,779)
$2,635
16
Cap Table
Sep 30, 2015
Common stock
WAEP
19,467
Outstanding options/restricted stock
2,943
$7.26
Outstanding warrants
1,442
$8.81
Total capitalization
23,853
17
Thank You!