Flexpoint Reports Expectations for 2012

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Jan 19, 2012, 08:15 ET

DRAPER, Utah, Jan. 19, 2012 /PRNewswire/ -- Flexpoint Sensor Systems, Inc. (OTCBB: FLXT) http://www.flexpoint.com today announced the results of last year's operations and expectations for 2012.

The Company, prior to 2004, developed a sensor which led to a large contract in the automotive industry. The Company recognized that the automotive industry is an industry that could use the Flexpoint technology in many applications. Contracts in the automotive industry can be highly lucrative because of the high volume and long duration nature of contracts available in the industry.

This became our initial focus from 2005 until 2008. As the Company concentrated on developing relationships and products for the automotive industry, the Company realized that these major long term contracts would take significant time to develop. During this time, the Company generated significant interest in the sensor and its technology from several smaller non-automotive industries Recognizing that the technology has application in many other industries, the Company announced that we were going to modify the business model to pursue products that would begin to generate revenue, while continuing to pursue the more lucrative automotive products. We indicated that the revenues from these applications would be small but we expected them to increase through the years, both through the increasing use and expanded application of the sensor technology. Management realized that by having success in these other applications the Company could accomplish three major purposes. It would produce income to help defray the ongoing operational expenses, it demonstrated the commercial viability of the technology in the market place and it attracted additional clients and applications for the technology.

As we announced last month the Company has made the transition from a development company to a manufacturing company. We currently have 15 non-automotive clients utilizing the company's technology and sensors in commercialized products. These products have proven that we have several competitive advantages which include reliability, durability and versatility as well as a cost savings. It has also demonstrated our ability to manufacture and produce sensors.

In 2011, the first year of significant manufacturing of products for these industries, we sold universal, pressure, flow and vibration sensors to various companies including Card Access, MSI, Intertek, Bridgepoint and theater companies. Our product is also used in various applications with the Military and NASA. Last year the Company realized revenue of approximately $75,000 from these products. Many of these products will bring recurring sales and we expect the volume of sales to existing clients to increase as their market grows. While sales for many of these existing products are initially small, several have the potential for significant market growth and production increases over the coming years. We expect that revenues from these existing applications will increase at least four to five times in 2012, with the potential for several of the current applications to be significantly greater and continue to grow in the future.

We also have several new products that have been in the development and testing stages which we expect to go into commercial production and begin producing revenues this year. These include passenger detection, burst detection and flow meters for various industries. They will also include a product with multiple partners for the trucking industry and, of course, one or more products in the automotive industry. As the Company has moved through the process of developing and evaluating applications for its technology, the Company has recognized the viability of additional applications. In addition to the applications mentioned above, we are currently working on development of other non-automotive applications.

Clark Mower, President of Flexpoint stated, "We have been successful in bringing many products into commercial production. We are gratified at the progress that has been made and excited that the success has verified the commercial viability of the Bend Sensor technology. We have achieved many milestones, both from an engineering and negotiation standpoint. In the first half of 2012, our company will no longer be viewed as just a company with strong potential, but as a company which is achieving the financial success that shareholders deserve. We are currently working with some of the largest and most respected companies in their respective industries. We also have several products that are in the advanced development and testing stages that we expect to go into commercial production this year. We expect to see a significant increase in both the number of clients and in the revenues from production. We have also advanced the automotive applications during this process and expect multiple products on many platforms moving forward. We are working to bring the first automotive application that we disclosed last year into production. We anticipate announcing full year end results in late March and anticipate a number of positive developments this year."

Forward-Looking Statements

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.

Flexpoint Sensor Systems
Clark Mower, President, 801-568-5111

Brokers and Analysts:
Chesapeake Group, 410-825-3930

SOURCE Flexpoint Sensor Systems, Inc.