Flexpoint (FLXT) Grows Revenue with New Client Additions
December 15, 2016 1:27 pm ET
Flexpoint Sensor Systems Inc. (OTCBB: FLXT), developer of the patented Bend Sensor® technology, reported revenue that nearly tripled and a net loss that nearly halved during the third quarter of 2016. Since then, the company has attracted several new customers in the wearables, medical, and virtual reality industries, where its sensors are being used for cutting-edge applications that deliver the greatest price performance, best-in-class technical performance and customization that differentiates Flexpoint from virtually any other comparable technology.
In this article, we will take a closer look at these new customer additions and where the company is headed over the coming quarters.
New Purchase Orders
Flexpoint received several new purchase orders from Turkey-based Turtela Technology Solutions on November 30, 2016. Since 2015, the company has been working with the Bend Sensor® technology to develop and commercialize its glove-based technology. The company’s turSOS and turGLOVE products incorporate the sensor technology to help the hearing-impaired convert Turkish sign language into speech (TurSOS) in real-time as well as (TurGLOVE) for a variety of applications including virtual/augmented reality.
On December 13, 2016, the company announced a production purchase order from ZeroUI – the CES 2016 award-winning developer of Ziro. This marks the 2nd 2016 CES Award winning product to feature the Flexpoint Bend Sensor®- See also (fully patented) Mettis Trainer® in the health, fitness and Biotech category. The ZeroUI modular robotics toy kit leverages wireless and mobile technologies along with a Bend Sensor®- enabled wearable glove technology. In addition to the Ziro, the company has several new technologies under development in the virtual reality, augmented reality, Internet of things, and wearables markets.
Flexpoint’s management team believes that Bend Sensor® orders from these clients and other previously announced clients will start to ramp up in 2017 and 2018 as their products are widely commercialized. In turn, these purchase orders could translate to tangible revenue on the company’s income statement, reduce its net losses, and increase shareholder value over the long-term. Investors may want to keep an eye on the company’s press releases to keep abreast of these new purchase orders.
Reflecting recent, consistent revenue attainment results, Flexpoint’s third quarter financial results point to growing revenue and a narrowing net loss as it approaches profitability on a cash flow basis. Revenue increased 191% to $104,364, net operating losses nearly halved to $181,521, and net losses fell from $736,246 to $445,785. Management indicated that it continues to receive recurring purchase orders from a Fortune 100 toy manufacturer, a global auto manufacturer which continues to progress the technology through to production rollout, and multiple medical device companies that progress through to regulatory approval for their Bend Sensor® featured solutions.
The company’s management team continues to finalize long-term revenue generating production contracts across several industries. While these contracts may take time to materialize, they will generate long-term recurring revenue when they are signed, which could translate to significant shareholder value. Management believes that significant revenue and profitability could be achievable by late next year as these contracts are finalized.
In the meantime, investors can acquire the company’s stock at a valuation of just $5.6 million, which could be a significant discount from its long-term value. The stock has a several potential near-term catalysts as it continues to sign new partnership agreements and purchase orders, while the eventual signing of its automotive contract could prove a turning point.
The Bottom Line
Flexpoint Sensor Systems Inc. (OTCBB: FLXT) has developed an innovative and patented Bend Sensor® technology that has application across several multi-billion dollar industries. As evidenced by new purchase orders, the technology is quickly gaining traction within the marketplace as a low-cost and less bulky solution. Investors could see these contracts translate to significant revenue and profitability over the coming years as terms are finalized.
For more information, visit the company’s website at www.flexpoint.com.