STOCKHOLM, Nov. 6, 2019 /PRNewswire/ -- Neonode Inc.
(NASDAQ: NEON), the optical interactive sensing technology company,
today reported financial results for the three and nine months
ended September 30, 2019.
"There is significant interest for Neonode's sensor and
license technology in the automotive and other key markets but in
our business, we have to accept long lead times in acquiring new
customer contracts. Having said that, we are not satisfied with the
development over the last 12-18 months. Our newly recruited CEO,
Dr. Urban Forssell, brings a deep
understanding of the automotive markets and has successfully
managed embedded technology operations throughout his career. He
will add a lot of energy to the company and continue to focus the
business on all selected markets and use cases while driving
ongoing cost efficiencies throughout the company. The company's
ability to convert the strong customer interest into revenue
generating contracts is the absolute key moving forward", said
Ulf Rosberg, Board Chairman of
Neonode.
FINANCIAL SUMMARY FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2019
- Net sales totaled $1.3 million
and $5.0 million for the three and
nine months ended September 30, 2019 compared to $1.9 million and $6.2
million, respectively, for the same periods last year.
- Operating expenses totaled $2.4
million and $8.0 million for
the three and nine months ended September
30, 2019 compared to $2.5
million and $8.7 million,
respectively, for the same periods last year.
- Net loss totaled $1.1 million and
$2.9 million for the three and nine
months ended September 30, 2019
compared to a net loss of $0.8
million and $2.5 million,
respectively, for the same periods last year.
- Loss per share totaled $0.12 and
$0.33 for the three and nine months
ended September 30, 2019 compared to
a loss per share of $0.14 and
$0.42, respectively, for the same
periods last year.
- Net cash used in operating activities totaled $2.9 million for the nine months ended
September 30, 2019 compared to
$2.3 million for the same period last
year.
HIGHLIGHTS SUBSEQUENT TO SEPTEMBER 30,
2019
- In October 2019, Hakan Persson resigned as Chief Executive
Officer and the Board of Directors appointed Urban Forssell as new Chief Executive Officer,
effective latest January 1, 2020. Mr.
Forssell has most recently served as Vice President and General
Manager at Öhlins Racing AB. His positions at Öhlins Racing have
included responsibility for sales and marketing of MC and
Automotive suspension systems, research and development, and
quality assurance.
THE CEO'S COMMENTS
"We have focused on sales, cost efficiency, marketing and
technology development during the past few months and now expect to
capitalize on our efforts while keeping our cost reduction focus.
Over the course of the year, we participated in numerous relevant
trade and industry shows where our latest version of our license
and sensor module technologies have been well received. Our sales
partner networks in North America
and Japan have a growing number of
opportunities which are in the evaluation and product development
phase. We have signed with a sales partner in China, Serial Microelectronics, and they are
in the final stages of product orientation and is beginning initial
sales efforts. In addition, our distributor, Digi-Key has shipped a
significant number of evaluation kits globally, primarily to
industrial accounts in the U.S. and Asia. The leads generated through this channel
are continuously being qualified by our local representatives and
sales partners", said Maria Ek,
Neonode interim CEO and CFO.
"We are engaged with automotive OEMs and their Tier 1 suppliers
in projects such as tailgate sensors and infotainment systems,
military ruggidized control panels and medical device control
panels to name a few. We are encourgaged by the increasing pipeline
of customer discussions and activities that is being driven by the
combination of our internal and external sales groups", continued
Ms. Ek.
"In summary we have increased our sales and distribution network as
well as our understanding of the market for Neonode's technology.
The task going forward will be to deliver revenue by focusing on
the best opportunities", concluded Ms. Ek.
FINANCIAL OVERVIEW FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2019
All of our sales for the three and nine months ended September 30, 2019 and 2018 were to customers
located in the U.S., Europe and
Asia.
Our net revenues for the three and nine months ended
September 30, 2019 are $1.3 million and $5.0
million, respectively, and include revenues earned from
technology license fees, NRE and module sales. Revenues for the
three and nine months ended September 30,
2019 decreased by $0.6
million, or 32%, and $1.1
million, or 19%, year over year, respectively.
Our total license fees for the third quarter 2019 decreased by
$0.4 million, or 24%, primarily due
to the adoption of a new technology platforms by an e-reader and a
printer customer in the fourth quarter of 2018, resulting in a 96%
decrease in total e-reader license fees and a 31% decrease in total
printer license fees for the comparable quarters. The decrease in
license fees from these two customers is partially offset by a 61%
increase in license fees from our automotive customers.
In addition, non-recurring engineering revenue for the third
quarter 2019 decreased $0.3 million,
or 99% compared to 2018 due to NRE fees related to an automotive
entry system project recorded in the third quarter of 2018.
Revenues from sensor module sales increased $0.1 million, or 144%, compared to the third
quarter in 2018. The overall decrease in revenues for the
comparable nine month periods is primarily due to the same customer
activities.
Operating expenses for the three months ended September 30, 2019 are in line with the same
period in 2018 but is lower by 8% for the nine months ended
September 30, 2019 due to lower
administrative payroll and professional fees compared to the same
period in 2018. Net loss for the three and nine months ended
September 30, 2019 increased by
$0.3 million, or 34% and $0.5 million, or 19% compared to the same periods
in 2018.
Cash used by operations during the nine months ended
September 30, 2019 increased by
$0.6 million, or 26% year over year.
Cash and accounts receivables totaling $5.0
million on September 30, 2019
is sufficient to execute according to our plan. Our third quarter
Form 10-Q is available for download from the Investor Section of
our website at www.neonode.com.
Financial Overview
Amounts in USD
thousand unless otherwise stated
|
|
Three months
ended
September 30,
|
|
|
Nine months ended
September 30,
|
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
Net sales
|
|
|
$
1,310
|
|
|
|
$
1,923
|
|
|
|
$
5,032
|
|
|
|
$
6,174
|
|
|
Net sales decline
%
|
|
|
(31.9)
|
)%
|
|
|
|
|
|
|
(18.5)
|
)%
|
|
|
|
|
|
Gross margin
%
|
|
|
95.1
|
%
|
|
|
82.4
|
%
|
|
|
95.3
|
%
|
|
|
92.3
|
%
|
|
Operating
loss
|
|
|
$
(1,189)
|
)
|
|
|
$
(934)
|
)
|
|
|
$
(3,171)
|
)
|
|
|
$ (2,974)
|
)
|
|
Operating margin
%
|
|
|
(90.8)
|
)%
|
|
|
(48.6)
|
)%
|
|
|
(63.0)
|
)%
|
|
|
(48.2)
|
)%
|
|
Net cash used in
operating activities
|
|
|
|
|
|
|
|
|
|
|
$
(2,873)
|
)
|
|
|
$ (2,275)
|
)
|
|
Revenue Distribution by Business Model
|
|
2019
|
|
|
2018
|
|
|
|
|
2019
|
|
|
2018
|
|
Revenue Distribution
By Business Model
|
|
Q3
|
|
|
Q3
|
|
|
|
|
Nine
months
|
|
|
Nine
months
|
|
License
fees
|
|
|
$
1,213
|
|
|
|
$
1,597
|
|
|
|
|
|
$
4,622
|
|
|
|
$
5,681
|
|
Sensor
modules
|
|
|
95
|
|
|
|
39
|
|
|
|
|
|
368
|
|
|
|
176
|
|
Non-recurring
engineering
|
|
|
2
|
|
|
|
287
|
|
|
|
|
|
42
|
|
|
|
317
|
|
License Fee Revenue Distribution per Market
|
|
2019
|
|
|
2018
|
|
|
|
|
2019
|
|
|
2018
|
|
License Fee Revenue
Distribution Per Market
|
|
Q3
|
|
|
Q3
|
|
|
|
|
Nine
months
|
|
|
Nine
months
|
|
Printers
|
|
|
$
805
|
|
|
|
$ 1,159
|
|
|
|
|
|
$
3,162
|
|
|
|
$
3,830
|
|
E-Readers and
Tablets
|
|
|
8
|
|
|
|
190
|
|
|
|
|
|
124
|
|
|
|
700
|
|
Automotive
|
|
|
400
|
|
|
|
248
|
|
|
|
|
|
1,336
|
|
|
|
1,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Link to full press release:
https://www.neonode.com/neonode-reports-third-quarter-ended-september-30-2019-financial-results/
FOR MORE INFORMATION, PLEASE CONTACT:
Investor Relations
David Brunton
E-mail: david.brunton@neonode.com
Chief Financial Officer
Maria Ek
E-mail: maria.ek@neonode.com
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/neonode/r/neonode-reports-third-quarter-ended-september-30--2019-financial-results,c2955219
The following files are available for download:
https://mb.cision.com/Main/17297/2955219/1136721.pdf
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