Uni-Pixel Inc (NASDAQ:UNXL) has announced that it plans to shut down its division in Texas as part of its restructuring efforts to streamline its expenses, cut costs and boost flexibility.
The idea behind the decision to shut down its location in Texas is to free up capital that will then be diverted to fund the company’s projected growth. UniPixel’s R&D’s operations will be shifted to the company’s facility in Colorado Springs. This will allow the firm to eliminate the overlapping operational responsibilities in the U.S as well as Asia, and in turn, lead to lower operational expenses.
UniPixel plans to do this by combining them in Asia.UniPixel plans to kick off the cost streamlining within the second half of this year and it is expected to save roughly $2 million to $3 million before the end of the year.
“Assigning certain overlapping technical skills from the U.S. to Asia will enhance our customer support capabilities. Co-locating R&D with the manufacturing team in Colorado Springs will result in cost savings and achieve better product development synergies,” stated UniPixel CEO, Jeff Hawthorne.
Teaming up with GIS
Hawthorne further pointed out that his company is focused towards more growth in the future and that UniPixel has a strong product development pipeline that includes DiamondTouch. The latter is a hard coating that substitutes cover glass. The CEO also noted that one of the key points of focus for the company includes flexible or foldable technologies. He also mentioned that the firm is currently in a joint development program with General Interface Solutions (GIS) to develop touch sensor technology for his company.
GIS is a subsidiary of FOXCONN TECH CO TWD10 (OTCMKTS:FXCOF) and it is based in Taiwan. The two announced their joint partnership on June 21 this year. UniPixel will design and manufacture the sensors while GIS is expected to integrate the sensors into the display stack. UniPixel COO, Jalil Shaikh stated that his company was pleased to be working together with GIS especially on a project that will introduce revolutionary foldable display for handsets and wearable devices.
UniPixel stock closed the latest trading session on Wednesday at $0.400.
