STOCKHOLM, May 8, 2019 /PRNewswire/ -- Link
to Neonode-Q1-2019 Earnings Press Release
Neonode Inc. (NASDAQ: NEON), the optical interactive sensing
technology company, today reported financial results for the three
months ended March 31, 2019.
"We are executing on our business plan, and see a
growing number of customer design activities for both licensing and
module projects. I am happy with the progress we are
making and I am confident that we are on the right track to achieve
revenue growth and profitability," said Håkan Persson, CEO of
Neonode Inc.
FINANCIAL SUMMARY FIRST QUARTER 2019
- Net sales totaled $2.0 million
compared to $2.4 million for the same
period last year.
- Net loss totaled $0.6 million
compared to a net loss of $0.7
million for the same period last year.
- Loss per share totaled $0.07
compared to a loss per share of $0.12
for the same period last year.
- Net cash used in operating activities totaled $0.5 million compared to $0.6 million for the same period last year.
BUSINESS HIGHLIGHTS DURING THE QUARTER
- Release of zForce CORE 1.5 with strong customer interest.
- Signed agreement with Convergence to sell zForce sensor modules
in North America.
BUSINESS HIGHLIGHTS SINCE THE END OF THE QUARTER
- Signed collaboration agreement with FineTek who will serve as a
system integrator and future electronic manufacturing partner for
Neonode zForce technology.
- Assigned a portfolio of patents to Aequitas Technologies LLC as
part of an agreement to share potential proceeds generated from a
licensing and monetization program.
- Received purchase order for sensor modules of approximately
$0.6 million from industry leading
medical device OEM who will use our sensor module in a retrofit
touch display system for an X-Ray machine. Delivery expected to
begin in June 2019.
THE CEO'S COMMENTS
We have reshaped our business, working methodology and processes
to become more market and customer focused. Our business plan now
targets specific markets and use cases providing a solid customer
base and pathway to future growth and profitability. There are no
shortcuts or easy fixes in the development of our embedded sensor
business, but I am satisfied with the progress we are making.
Our strategy going forward is centered around the following
initiatives:
- Capitalize and build on our successful Touch Interaction
business by increasing our market position and sales reach. We
provide solutions for both high and low volume product
implementations through an expanded use case offering. We have an
established track record with our touch on display solutions and
will use our strong presence to grow our market
share.
- Capture growth opportunities for our Mid-Air Interaction and
Object Sensing solutions in automotive entry systems. The
automotive market is one of the new technology frontiers and
represents a significant market opportunity for us to leverage our
existing relationships with Tier 1 suppliers and OEMs to gain
additional market share.
Our targeted use cases for basic touch, high-image quality
display touch, ruggedized display touch and entry systems for
automotive systems allow us to capitalize on our competitive
advantages in high value markets.
We have a growing number of design activities for both sensor
modules and licensing applications with existing and new customers.
The latest release of our touch on display license technology has
been very well received and is generating opportunities for
printers, e-readers and automotive in-vehicle infotainment (IVI)
systems. We expect that two of our most important printer customers
will increase and expand printer shipments with our technology. We
are also in final license negotiations with a new Chinese printer
customer for a solution targeting the Chinese market. We are
performing an in-depth analysis of the automotive IVI market and
are engaging with all relevant OEM and Tier 1 supplier partners for
discussions and pre-design activities.
In our module business, we are beginning to receive initial
orders for production volumes from our medical device, taximeter
and aircraft instrumentation customers. We anticipate that order
volumes will expand over time. Our tailgate solution for automotive
entry systems has been well received and we expect to be entering
into first evaluation projects soon. We are completing relevant
testing to meet automotive ISO9001, ISO 16750 and GMW 3175
certification requirements.
Increasing our reach and effectiveness of marketing and sales is
a continuous activity. In order to improve our sales presence in
the U.S. market we have signed a marketing and sales agreement with
Convergence Promotions LLC to coordinate our expanding network of
sales representatives in the U.S. We have increased our marketing
and trade show activities to support this new sales relationship
and to increase awareness of our selected use case offerings. After
the quarter ended we entered into a system integrator and
manufacturing partner cooperation agreement with Finetek Co. Ltd of
Korea supporting both our licensing and module business in
Asia and globally. We plan to
further grow our presence in Asia
by replicating our model with Convergence and are evaluating and
negotiating with qualified sales and marketing partners in the
region.
In summary, we are executing on our plan and see positive
customer response with numerous discussions ongoing and actual
shipments happening. This makes me confident that we are on the
right track to achieve revenue growth and profitability.
FINANCIAL OVERVIEW FOR THE QUARTER
Revenues for the first quarter of 2019 decreased by 15% year
over year, mainly due to a $0.3
million decrease in license fees from one printer customer,
as a result of their decision to move to an alternative technology
platform. Operating expenses continued on a run rate below plan,
down by 20%, and net loss decreased by 24% compared to the first
quarter 2018. Cash used by operations decreased by 18% year over
year, and cash and accounts receivables totaling $7.6 million allows us to continue to execute
according to our plan. Our first quarter Form 10Q is available for
download from the Investors section of our website at
neonode.com.
Financial Overview
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Amounts in USD
thousand unless otherwise stated
|
|
Q1
|
|
|
Q1
|
|
|
Q1
|
|
|
Full year
|
|
|
Full year
|
|
Net sales
|
|
|
$ 2,012
|
|
|
|
$ 2,375
|
|
|
|
$ 2,332
|
|
|
|
$
8,538
|
|
|
|
$10,241
|
|
Net sales growth
%
|
|
|
(15.3)%
|
|
|
|
1.8%
|
|
|
|
(25.5)%
|
|
|
|
(16.6)%
|
|
|
|
0.3%
|
|
Gross margin
%
|
|
|
95.0%
|
|
|
|
98.1%
|
|
|
|
95.5%
|
|
|
|
89.2%
|
|
|
|
77.1%
|
|
Operating
profit/loss
|
|
|
$
(668)
|
|
|
|
$
(879)
|
|
|
|
$
(878)
|
|
|
|
$(3,877)
|
|
|
|
$(5,476)
|
|
Operating margin
%
|
|
|
(33.2)%
|
|
|
|
(37.0)%
|
|
|
|
(37.7)%
|
|
|
|
(45.4)%
|
|
|
|
(53.5)%
|
|
Net cash used in
operating activities
|
|
|
$
(454)
|
|
|
|
$
(561)
|
|
|
|
$
(104)
|
|
|
|
$(2,859)
|
|
|
|
$(5,581)
|
|
Cash and cash
equivalents
|
|
|
$
5,822
|
|
|
|
$
4,907
|
|
|
|
$
5,796
|
|
|
|
$
6,555
|
|
|
|
$
5,796
|
|
Total
Assets
|
|
|
$12,947
|
|
|
|
$12,963
|
|
|
|
$13,127
|
|
|
|
$13,242
|
|
|
|
$13,127
|
|
Equity
ratio
|
|
|
469.0%
|
|
|
|
65.3%
|
|
|
|
59.9%
|
|
|
|
74.0%
|
|
|
|
59.9%
|
|
Revenue Distribution by Business Model
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Revenue Distribution
By Business Model .
|
|
Q1
|
|
|
Q1
|
|
|
Q1
|
|
|
Full year
|
|
|
Full year
|
|
License
fees
|
|
|
$ 1,942
|
|
|
|
$ 2,323
|
|
|
|
$ 2,121
|
|
|
|
$ 7,954
|
|
|
|
$ 8,684
|
|
Sensor
modules
|
|
|
50
|
|
|
|
52
|
|
|
|
210
|
|
|
|
227
|
|
|
|
814
|
|
Non-recurring
engineering
|
|
|
20
|
|
|
|
0
|
|
|
|
1
|
|
|
|
357
|
|
|
|
743
|
|
License Fee Revenue Distribution per Market
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
License Fee Revenue
Distribution Per
Market
|
|
Q1
|
|
|
Q1
|
|
|
Q1
|
|
|
Full year
|
|
|
Full year
|
|
Printers
|
|
|
$1,283
|
|
|
|
$ 1,570
|
|
|
|
$1,124
|
|
|
|
$5,490
|
|
|
|
$5,330
|
|
E-Readers and
Tablets
|
|
|
163
|
|
|
|
234
|
|
|
|
400
|
|
|
|
837
|
|
|
|
1 206
|
|
Automotive
|
|
|
496
|
|
|
|
519
|
|
|
|
597
|
|
|
|
1,627
|
|
|
|
2,148
|
|
PATENTS
On May 6, 2019, Neonode assigned a
portfolio of patents to Aequitas Technologies LLC. The portfolio
contains two patent families comprising nine US patents, five
non-U.S. patents and three pending U.S. patent applications. The
assignment provides Neonode the right to share potential proceeds
generated from a licensing and monetization program.
ORGANIZATION AND STAFF
Neonode Inc., a Delaware Incorporated Company, with its
executive head office in Stockholm,
Sweden are organized in four wholly owned subsidiaries
located in Sweden, Japan, Korea and Taiwan and with a majority owned subsidiary in
Kungsbacka, Sweden. At the end of
the first quarter, our company had a workforce of 55 people,
including ten consultants compared to a workforce of 53 people at
the same date last year. Our workforce primarily is located in
Sweden.
FUTURE REPORTING DATES
Q2 Interim Report 2019 August 14, 2019
Q3 Interim Report 2019 November 6,
2019
FOR MORE INFORMATION, PLEASE CONTACT:
CONTACT:
Investor Relations
David Brunton
Email: david.brunton@neonode.com
CFO
Lars Lindqvist
E-mail: lars.lindqvist@neonode.com
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/neonode/r/neonode-reports-first-quarter-ended-march-31--2019-financial-results,c2806640
The following files are available for download:
https://mb.cision.com/Main/17297/2806640/1039773.pdf
|
PDF
|