Neonode Inc. (NASDAQ:NEON), the optical interactive sensing
technology company, today reported financial results for the three
months ended March 31, 2018.
First Quarter 2018 Business Metrics
- Revenue was $2.4 million, up 2% compared to prior year
- 40% increase year over year for license fees from printer
customers
- Net loss of $0.7 million, or $0.01 per share, compared to $0.9
million, or $0.02 per share, prior year
- Cash used by operations $0.6 million compared to $1.6 million
prior year
- Two new OEM sensor module development projects;° Automotive
external door sensors° Aeronautic instrument panel sensors
“As the new CEO of Neonode, I am excited to explore all the
opportunities in front of us. Looking ahead, we will continue to
capture the full potential of the profitable, royalty-based license
business, working with existing and new customers. The licensing
business generates steady cash flows, enabling us to focus on the
long-term growth potential we see in our zForce AIR sensor modules.
Building on our relationships with high-quality customers and our
strong technology, and working in close collaboration with the
right partners, we are laying the foundation for substantial sensor
module shipments. We have already taken the first steps and we see
a clear path forward,” said Hakan Persson, CEO of Neonode.
On January 1, 2018, Neonode adopted the new revenue recognition
standard ASC 606. The total net impact of the adoption of ASC 606
is a $0.2 million reduction in total license fee revenues reported
in the first quarter of 2018 versus using the old accounting
standard. Net revenue for the first quarter of 2018 was $2.4
million which is up 2% compared the same quarter last year. The
2018 net revenues are primarily comprised of license fees while the
net revenues for the comparable quarter last year includes $2.1
million of license fees plus $0.2 million from AirBar sales.
Net loss for the first quarter of 2018 was $0.7 million, or
$0.01 per share, compared to net loss of $0.9 million, or $0.02 per
share, for the first quarter of last year.
Operational cash used was $0.6 million for the first quarter of
2018, significantly down compared to $1.6 million for the same
quarter last year. Cash was $4.9 million and accounts receivable
was $2.0 million as of March 31, 2018 and we had 58.6 million
shares of common stock, 1.4 million stock options and 11.2 million
warrants to purchase common stock outstanding at March 31,
2018.
Conference Call Information
The Company will host a conference call Tuesday, May 8, 2018 at
10AM Eastern Daylight Time (EDT)/4PM Central European Time (CET)
featuring remarks by, and Q&A with, Hakan Persson, CEO, Lars
Lindqvist, CFO and David Brunton, Head of Investor
Relations.
The dial-in number for the conference call is toll-free: (877)
539-0733 (U.S. domestic) or +1 (678) 607-2005 (international). To
access the call all participants must use the following Conference
ID: #6490936. Please make sure to call at least five minutes before
the scheduled start time.
To register for the call, and listen online, please click:
https://event.on24.com/wcc/r/1654579-1/9A24F02DA48A7F4C5FDE8A6EC25C7187
For interested individuals unable to join the live event, a
digital recording for replay will be available for 30 days after
the call's completion – 5/8/2018 (13:00PM EDT) to 6/8/2018 (23:59PM
EDT). To access the recording, please use one of these Dial-In
Numbers (800) 585-8367 or (404) 537-3406, and the Conference ID
#6490936.
For more information, please contact:
Investor Relations: David BruntonEmail:
david.brunton@neonode.com
CFOLars LindqvistE-mail: lars.lindqvist@neonode.com
About Neonode
Neonode Inc. (NASDAQ:NEON) develops, manufactures and sells
advanced sensor modules based on the company's proprietary zForce
AIR technology. Neonode zForce AIR Sensor Modules enable touch
interaction, mid-air interaction and object sensing and are ideal
for integration in a wide range of applications within the
automotive, consumer electronics, medical, robotics and other
markets. The company also develops and licenses user interfaces and
optical interactive touch solutions based on its patented zForce
CORE technology. To date, Neonode’s technology have been deployed
in more than 59 million products, including 3 million cars and 56
million consumer devices.
NEONODE, the NEONODE logo, ZFORCE, ZFORCE AIR, AIRBAR and the
AIRBAR logo are trademarks of Neonode Inc. registered in the United
States and other countries. ZFORCE CORE is a trademark of Neonode
Inc.
For further information please visit www.neonode.com
Safe Harbor Statement
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These include, but are not limited to,
statements relating to expectations, future performance or future
events, and product cost, performance, and functionality matters.
These statements are based on current assumptions, expectations and
information available to Neonode management and involve a number of
known and unknown risks, uncertainties and other factors that may
cause Neonode's actual results, levels of activity, performance or
achievements to be materially different from any expressed or
implied by these forward-looking statements.
These risks, uncertainties, and factors are
discussed under "Risk Factors" and elsewhere in Neonode's public
filings with the U.S. Securities and Exchange Commission from time
to time, including Neonode's annual report on Form 10-K, quarterly
reports on Form 10-Q, and current reports on Form 8-K. You are
advised to carefully consider these various risks, uncertainties
and other factors. Although Neonode management believes that the
forward-looking statements contained in this press release are
reasonable, it can give no assurance that its expectations will be
fulfilled. Forward-looking statements are made as of today's date,
and Neonode undertakes no duty to update or revise them.
|
NEONODE INC. |
CONDENSED CONSOLIDATED BALANCE
SHEETS |
(In thousands, except share and per share amounts) |
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2018 |
|
|
2017 |
|
ASSETS |
|
(Unaudited) |
|
|
(Audited) |
|
Current assets: |
|
|
|
|
|
|
Cash |
|
$ |
4,907 |
|
|
$ |
5,796 |
|
Accounts
receivable and unbilled revenue, net |
|
|
1,982 |
|
|
|
1,010 |
|
Projects
in process |
|
|
35 |
|
|
|
1 |
|
Inventory |
|
|
1,241 |
|
|
|
1,154 |
|
Prepaid
expenses and other current assets |
|
|
1,655 |
|
|
|
1,836 |
|
Total
current assets |
|
|
9,820 |
|
|
|
9,797 |
|
|
|
|
|
|
|
|
|
|
Investment in joint
venture |
|
|
3 |
|
|
|
3 |
|
Property and equipment,
net |
|
|
3,140 |
|
|
|
3,327 |
|
Total
assets |
|
$ |
12,963 |
|
|
$ |
13,127 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable |
|
$ |
722 |
|
|
$ |
509 |
|
Accrued
payroll and employee benefits |
|
|
1,007 |
|
|
|
1,081 |
|
Accrued
expenses |
|
|
139 |
|
|
|
177 |
|
Deferred
revenues |
|
|
553 |
|
|
|
1,248 |
|
Current
portion of capital lease obligations |
|
|
563 |
|
|
|
568 |
|
Total
current liabilities |
|
|
2,984 |
|
|
|
3,583 |
|
|
|
|
|
|
|
|
|
|
Capital lease
obligations, net of current portion |
|
|
1,515 |
|
|
|
1,681 |
|
Total
liabilities |
|
|
4,499 |
|
|
|
5,264 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
equity: |
|
|
|
|
|
|
|
|
Series B
Preferred stock, 54,425 shares authorized with par value $0.001 per
share; 83 shares issued and outstanding at March 31, 2018 and
December 31, 2017. (In the event of dissolution, each share of
Series B Preferred stock has a liquidation preference equal to par
value of $0.001 per share over the shares of common
stock) |
|
|
- |
|
|
|
- |
|
Common
stock, 100,000,000 shares authorized with par value $0.001 per
share; 58,594,503 shares issued and outstanding at March 31, 2018
and December 31, 2017, respectively |
|
|
59 |
|
|
|
59 |
|
Additional paid-in capital |
|
|
192,820 |
|
|
|
192,808 |
|
Accumulated other comprehensive loss |
|
|
(193 |
) |
|
|
(99 |
) |
Accumulated deficit |
|
|
(182,855 |
) |
|
|
(183,745 |
) |
Total
Neonode Inc. stockholders’ equity |
|
|
9,831 |
|
|
|
9,023 |
|
Noncontrolling interests |
|
|
(1,367 |
) |
|
|
(1,160 |
) |
Total stockholders'
equity |
|
|
8,464 |
|
|
|
7,863 |
|
Total
liabilities and stockholders’ equity |
|
$ |
12,963 |
|
|
$ |
13,127 |
|
|
|
|
|
|
|
|
|
|
|
NEONODE INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(In thousands, except per share amounts) |
(Unaudited) |
|
|
|
Three months ended March 31, |
|
|
|
2018 |
|
|
2017 |
|
Revenue: |
|
|
|
|
|
|
License fees |
|
$ |
2,323 |
|
|
$ |
2,121 |
|
Sensor modules |
|
|
52 |
|
|
|
210 |
|
Non-recurring
engineering |
|
|
- |
|
|
|
1 |
|
Total revenues |
|
|
2,375 |
|
|
|
2,332 |
|
Cost of revenues: |
|
|
|
|
|
|
|
|
Sensor modules |
|
|
45 |
|
|
|
101 |
|
Non-recurring
engineering |
|
|
1 |
|
|
|
4 |
|
Total cost of
revenues |
|
|
46 |
|
|
|
105 |
|
|
|
|
|
|
|
|
|
|
Total gross margin |
|
|
2,329 |
|
|
|
2,227 |
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
Research and
development |
|
|
1,518 |
|
|
|
1,315 |
|
Sales and
marketing |
|
|
556 |
|
|
|
702 |
|
General and
administrative |
|
|
1,134 |
|
|
|
1,088 |
|
|
|
|
|
|
|
|
|
|
Total operating
expenses |
|
|
3,208 |
|
|
|
3,105 |
|
Operating loss |
|
|
(879 |
) |
|
|
(878 |
) |
|
|
|
|
|
|
|
|
|
Other expense: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
14 |
|
|
|
17 |
|
Total other expense,
net |
|
|
14 |
|
|
|
17 |
|
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes |
|
|
(893 |
) |
|
|
(895 |
) |
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
7 |
|
|
|
74 |
|
Net loss including
noncontrolling interests |
|
|
(900 |
) |
|
|
(969 |
) |
Less: Net loss
attributable to noncontrolling interests |
|
|
207 |
|
|
|
96 |
|
Net loss attributable
to Neonode Inc. |
|
$ |
(693 |
) |
|
$ |
(873 |
) |
|
|
|
|
|
|
|
|
|
Loss per common
share: |
|
|
|
|
|
|
|
|
Basic and diluted loss
per share |
|
$ |
(0.01 |
) |
|
$ |
(0.02 |
) |
Basic and diluted –
weighted average number of common shares outstanding |
|
|
58,595 |
|
|
|
48,845 |
|
|
|
|
|
|
|
|
|
|
|
NEONODE INC. |
CONDENSED CONSOLIDATED STATEMENTS OF
COMPREHENSIVE LOSS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
Three months ended March 31, |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(900 |
|
) |
|
$ |
(969 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments |
|
|
(94 |
) |
|
|
|
7 |
|
Comprehensive loss |
|
|
(994 |
|
) |
|
|
(962 |
) |
Less: Comprehensive
loss attributable to noncontrolling interests |
|
|
207 |
|
|
|
|
96 |
|
Comprehensive loss
attributable to Neonode Inc. |
|
$ |
(787 |
|
) |
|
$ |
(866 |
) |
|
|
|
|
|
|
|
|
|
|
|
NEONODE INC. |
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
Three months ended March 31, |
|
|
|
2018 |
|
|
2017 |
|
Cash flows from
operating activities: |
|
|
|
|
|
|
Net
loss (including noncontrolling interests) |
|
$ |
(900 |
) |
|
$ |
(969 |
) |
Adjustments to
reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Stock-based compensation expense |
|
|
12 |
|
|
|
20 |
|
Depreciation and amortization |
|
|
278 |
|
|
|
160 |
|
|
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts
receivable |
|
|
224 |
|
|
|
542 |
|
Projects
in process |
|
|
(34 |
) |
|
|
(159 |
) |
Inventory |
|
|
(114 |
) |
|
|
(845 |
) |
Prepaid
expenses and other current assets |
|
|
163 |
|
|
|
(31 |
) |
Accounts
payable and accrued expenses |
|
|
122 |
|
|
|
18 |
|
Deferred
revenues |
|
|
(312 |
) |
|
|
(341 |
) |
Net cash
used in operating activities |
|
|
(561 |
) |
|
|
(1,605 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
Purchase
of property and equipment |
|
|
(133 |
) |
|
|
(104 |
) |
Net cash
used in investing activities |
|
|
(133 |
) |
|
|
(104 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
Principal
payments on capital lease obligation |
|
|
(143 |
) |
|
|
(58 |
) |
Net cash
used in financing activities |
|
|
(143 |
) |
|
|
(58 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash |
|
|
(52 |
) |
|
|
(3 |
) |
|
|
|
|
|
|
|
|
|
Net decrease in
cash |
|
|
(889 |
) |
|
|
(1,770 |
) |
Cash at beginning of
period |
|
|
5,796 |
|
|
|
3,476 |
|
Cash at end of
period |
|
$ |
4,907 |
|
|
$ |
1,706 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure
of cash flow information: |
|
|
|
|
|
|
|
|
Cash paid
for income taxes |
|
$ |
7 |
|
|
$ |
4 |
|
Cash paid
for interest |
|
$ |
14 |
|
|
$ |
17 |
|
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