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What: Shares of UniPixel popped temporarily today, up by as much as 11% after the company received a milestone payment for its UniBoss license.
So what: The company received a $5 million payment from its recently announced capacity license with Eastman Kodak, which was inked to facilitate the development, introduction, and production of products using its UniBoss sensor film. The amount will be recorded as deferred revenue in the second quarter and UniPixel will use the funds to build out additional production capacity.
Now what: CEO Reed Killion said the payment marked a major milestone on the company's path toward a worldwide commercial rollout, and that the ramp-up schedule is on track. The news follows a 26% plunge on Friday after a handful of negative rumors, including one that suggested that Apple could become a direct competitor after the Mac maker filed a patent application. Analysts discredit this notion, saying that Apple's patent does not threaten UniPixel. The milestone payment may have sparked a rebound rally, but shares have since given up all gains and then some.
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The article Why UniPixel Shares Popped Temporarily originally appeared on Fool.com.
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