STOCKHOLM, March 11, 2020 /PRNewswire/ -- Neonode Inc.
(NASDAQ: NEON), the optical interactive sensing technology company,
today reported financial results for the fiscal year ended
December 31, 2019.
FINANCIAL SUMMARY FOR THE FISCAL YEAR ENDED DECEMBER 31,
2019:
- Revenue of $6.6 million, a
decrease of 22.2% compared to prior
year
- Operating expenses of $11.7
million, an increase of 1.7% over the prior
year
- Net loss attributable to Neonode, Inc. of $5.3 million, or $0.60 per share compared to $3.1 million, or $0.52 per share for prior
year
- Cash used by operations of $3.5
million compared to $2.9
million for prior year
THE BOARD OF DIRECTOR'S CHAIRMAN SUMMARY
New Executive Leadership
The 2019 financial results are below our expectations. The
addition of Urban Forssell as our
CEO gives the company experienced top level leadership to take the
company to
profitability.
- Throughout his career as a CEO and senior management Dr.
Forssell successfully managed sales and engineering operations of
technology-based products
companies.
- Dr. Forssell also brings a deep understanding of the automotive
and other
markets.
- The company's ability to convert the strong customer interest
into revenue generating contracts is key moving forward.
Evaluating a Listing on NASDAQ
Stockholm
- The company's Board of Directors is evaluating a dual public
company listing on both Nasdaq Stock Market in the U.S. and the
Nasdaq Stockholm in
Sweden.
- The company's headquarters, management team and all critical
operations are located in Stockholm,
Sweden.
- A significant number of the company's shareholder base is
located in Sweden and we believe
growing each
month.
- A dual listing provides a more efficient marketplace for the
shareholders in Sweden and
Europe.
- In summary, we believe a Nasdaq Stockholm listing will enhance
overall shareholder value.
THE CEO'S COMMENTS
"I began my tenure as CEO at the beginning of the year and
accepted the exciting challenge of turning the company into a
profitable, customer-focused business. We have a very good base to
build upon in the form of a strong technology and IP portfolio
along with an impressive customer list and a well-recognized brand.
We have also identified some very attractive new markets and
specific customer applications for our technology. We are currently
engaged with several new customer projects in the automotive,
medical and avionics markets. These projects will help us grow our
revenues in the short and medium term. We are also in discussions
with several customers concerning strategic partnerships that will
support our long-term growth. Overall, we are positioning the
company to grow revenues in our targeted B2B markets," said
Urban Forssell, CEO of Neonode.
"The COVID-19 Corona virus outbreak may have a negative impact
on the company's growth and overall business because of the risk
for a global economic slowdown and more direct negative effects of
the virus outbreak on our customers' businesses. We are closely
monitoring the developments to mitigate the aforementioned risks
but also recognize potential opportunities with our optical touch
and gesture control for medical and other systems," concluded Dr.
Forssell.
FINANCIAL OVERVIEW FOR THE FISCAL YEAR ENDED DECEMBER 31, 2019
Net revenue for fiscal 2019 was $6.6
million, a 22.2% decrease, compared to 2018. License fees
were the majority of our total revenue in the past two years and
decreased by 25% in 2019 as compared to 2018, primarily due to a
87% decrease in license fees earned from our e-reader customers and
27% decrease in license fees earned from our printer customers
partially offset by a 13% increase in license fees from our
automotive customers.
In October 2017 we began selling
our sensor modules. We are focusing our efforts on our key markets
such as: automotive, medical devices and industrial applications.
During 2017, we entered into a U.S. distribution agreement with
Digi-Key and they currently have a range of sensor modules and
development kits for sale. We currently have supply agreements for
sensor modules with 4 customers. We sold $560,000 and $227,000 of sensor modules in 2019 and 2018,
respectively.
Non-recurring engineering fees ("NRE") decreased 66.4% in 2019
as compared to 2018 due to a decline of new license customers and
related NRE design projects. In 2019 and 2018, 0% and 80%
respectively of our total NRE fees were earned from automotive
projects. In 2019, 62% of total NRE fees were earned from avionics
design projects.
Our combined total gross margin was 90% in 2019 compared to 89%
in 2018. The slight increase in total gross margin in 2019 as
compared to 2018 is primarily due to higher margin on sales of
sensor modules which was partially offset by an increase in
valuation reserves for slow moving and obsolete inventory and lower
gross margins on our NRE projects in 2019. Our operating expense
increased slightly in 2019 compared to 2018 and our overall
operating expenses remain within budget.
Net loss attributable to Neonode, Inc. for fiscal 2019 was
$5.3 million, or $0.60 per share, compared to a net loss of
$3.1 million, or $0.52 per share, in fiscal 2018.
In fiscal 2019, our cash used by operations was $3.5 million compared to $2.9 million in fiscal 2018.
Cash and accounts receivable totaled $3.7
million and working capital was $2.4
million at December 31, 2019
compared to $8.4 million and
$8.2 million at December 31, 2018, respectively.
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-year-ended-december-31--2019-financial-results,c3057078
The following files are available for download:
https://mb.cision.com/Main/17297/3057078/1209427.pdf
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