Growth in Product Portfolio and Revenues for Flexpoint
DRAPER, Utah, Feb. 6, 2013 /PRNewswire/ -- Flexpoint Sensor Systems, Inc. (OTCQB: FLXT) today discussed the developmental history, current status, and revenues associated with its portfolio of commercial applications.
For a number of years Flexpoint was considered a research and development company with a unique sensor technology, but without any commercialized products. A conscious decision was made to target some smaller industries, develop specific products for those industries and market those products. The last couple of years Flexpoint has been focused on building a number of smaller sensor products which have been commercialized products to get the Bend Sensor® technology before the public and potential customers. The success of this effort placed us in a position where our technology has been accepted in a variety of different industries. This validation by multiple companies of the feasibility, reliability and cost effectiveness of our sensors and its numerous applications has created a platform where we are now able to pursue the larger contracts. What is particularly exciting is that this momentum has been built on several different products and with a variety of different Companies. We expect revenues from these products to grow as we develop and market the sensor to other larger industries. We are now in position to realize the rewards of those efforts.
2012 saw the completion of a burst disc application for industrial systems. This project has taken over three years to complete development and required governmental certifications and represents a significant breakthrough in the industrial sector for Flexpoint. Our customer has indicated that initial volumes for this product will be approximately 8,000 units annually. Revenues from this application are expected to ramp up in the coming years as additional products are completed and offered through Flexpoint's partner.
In January, Intertek submitted its largest order to date for their Protek Passenger Awareness system for ambulances. The order for 100 complete units is double the number of units sold last year and signifies the progress that Intertek has made over the past several years. The company expects orders to increase significantly over the coming years as legislation that would mandate the use of these systems progresses through Congress.
Another project that has been under development is a pigment mixing/flow application for an industrial color company. This project has been developed in close cooperation with the engineering group of the end user who has an immediate use for the product and has incorporated a number of innovative designs and application our Bend Sensor® technology, including increased resistance to high industrial temperatures. Upon completion of this product, Flexpoint has other end users who have expressed an interest in this unique product.
Flexpoint has also made strides in the development of its medical applications, including a medical bed prototype and a colonoscope application. The medical bed has a number of potential clients and could begin generating revenue by the end of 2013. Both applications represent key inroads into the highly lucrative medical industry, and are likely to feature prominently in Flexpoint's future growth.
Flexpoint has been working closely over the past three years with a Major OEM on a steering wheel horn pad that is scheduled to replace the existing horn assembly in two vehicle platforms, (a platform consists of a model series for a manufacturer), with an additional two platforms, currently under consideration for this steering wheel horn pad. These initial applications are expected to yield approximately $1 million in annual, ongoing revenues. Flexpoint's customer for this product is attracted to the cost savings and reduction in material usage made possible by the single-layer Bend Sensor®. It is anticipated that the revenue from this application will grow over time as the steering wheels in additional vehicle platforms are fitted with Flexpoint's horn pad and additional features are added.
As development has progressed, the company has developed additional products with the same OEM. This leading automaker has begun development on seat and pedestrian safety applications that utilize the Bend Sensor's high degree of sensitivity and unparalleled response time. An initial platform for a seat application has already been identified by the OEM, and could yield revenues in the $1 million per year range.
Pedestrian safety applications are a new, cutting-edge field in the U.S. automotive industry and are on their way toward becoming the next standard safety feature for all vehicles. Flexpoint's Bend Sensor® is capable of determining whether a vehicle has struck a human or an inanimate object within 3 thousandths of a second -- far faster than competitors, and at a lower cost. Flexpoint is uniquely positioned to capture this burgeoning market with its superior Bend Sensor® technology. The company is working closely with the OEM on the development, testing and integration of this technology into their vehicles. Revenues from these safety systems could easily eclipse $3-4 million annually and steadily increase from there as adoption of these technologies is mandated in future platforms.
As Flexpoint further develops and delivers on these automotive applications, the company expects to achieve $15-$20MM in annual sales in the automotive industry. This is based on additional products and platforms being added.
"We had a new technology with limited commercial application. I felt it was critical to generate revenues and provide crucial proof of concept for Bend Sensor® technology," said Flexpoint CEO Clark Mower. "In 2012, we saw the completion of many of those projects and have seen them begin to generate revenues as they have reached commercialization and gained entry into various markets. We are now seeing increased revenues from these products and we expect this trend to continue over the coming year as we add several new products to our portfolio. We believe that we have built a strong core of commercial products that will continue to build momentum over the coming year. Several major projects, particularly in the automotive industry, have achieved key benchmarks over the past year. We expect production on automotive products to begin late this year or early next year. We are working diligently on completion of seat occupancy technology for busing companies and flow sensor applications and look forward to strong revenue streams from these applications.. Above all, we feel that our efforts over the past three years have put us on increasingly firm footing and we expect to transition from a company with strong potential to a company delivering consistent financial performance during 2013."
Flexpoint Sensor Systems (OTCQB: FLXT) is an innovative technology firm specializing in developing products that feature the Company's patented Bend Sensor® and related technology. The Bend Sensor® is a groundbreaking sensing solution that is revolutionizing applications in the automotive, safety, medical and industrial industries. The Bend Sensor's single-layer, thin film construction cuts costs and mechanical bulk while introducing a range of functions and stylistic design possibilities that have never before been available in sensing technology. Flexpoint's technology and expertise have been recognized by the world's elite business and academic innovators for over 17 years. The company is setting a new standard for sensing solutions in the "smart" age of technology.
This press release contains certain forward-looking statements. Investors are cautioned that certain statements in this release are "forward-looking statements" and involve both known and unknown risks, uncertainties and other factors. Such uncertainties include, among others, certain risks associated with the operation of the company described above. The Company's actual results could differ materially from expected results.
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