STOCKHOLM, Nov. 10, 2021 /PRNewswire/ -- Neonode Inc.
(NASDAQ: NEON), today reported financial results for the three and
nine months ending September 30,
2021.
FINANCIAL SUMMARY FOR THE THREE MONTHS ENDED September 30,
2021:
- Revenue of $1.0 million, a
decrease of 36% compared to the same period in the prior year.
- Operating expenses of $2.7
million, a decrease of 12% compared to the same period in
the prior year.
- Net loss of $1.7 million, or
$0.15 per share, compared to
$1.6 million, or $0.16 per share, for the same period in the prior
year.
- Cash used by operations of $1.6
million compared to $1.8
million for the same period in the prior year.
- Cash and accounts receivable of $6.3
million as of September 30,
2021, compared to $12.2
million as of December 31,
2020.
FINANCIAL SUMMARY FOR THE NINE MONTHS ENDED September 30, 2021:
- Revenue of $4.3 million, an
increase of 23% compared to the same period in the prior year.
- Operating expenses of $9.0
million, an increase of 16% compared to the same period in
the prior year.
- Net loss of $4.9 million, or
$0.43 per share, compared to
$4.3 million, or $0.45 per share, for the same period in the prior
year.
- Cash used by operations of $5.0
million compared to $3.7
million for the same period in the prior year.
THE CEO'S COMMENTS
"During the third quarter our revenue was negatively impacted by
COVID-19 driven lock-downs in our key Asian markets. The impact of
these lock-downs was exacerbated by global supply chain constraints
due to semiconductor component shortages, which resulted in a
reduction in license fees earned from our printer and automotive
customers. These developments resulted in a temporary slowdown in
the progress we experienced in the first half of the year where we
saw increasing traction with elevator and kiosk customers using our
Touch Sensor Modules ("TSMs") and stable license revenues. During
this renewed lock-down phase, sales of our TSMs have been
negatively impacted because our partners who are providing retrofit
solutions have been unable to freely access their customer
locations to install their contactless touch kits. Some elevator
and kiosk projects have also been delayed due to of supply-chain
issues related to semiconductor component shortages," commented Dr.
Urban Forssell, CEO of Neonode.
"We continue to build our sales pipeline with an increasing
number of development and pilot projects underway for elevators
plus an array of public space kiosks, such as contactless touch
systems in airport and retail self-check-in/out kiosks, and our
sales pipeline continues to improve. We are pleased to see that
these sales efforts are now being turned into commercial decisions
to install our solutions with the next step to place purchase
orders. Asian customers are leading the way, but we see increasing
interest in our contactless touch technology and our TSM solutions
from European and North American customers as well," said Dr.
Urban Forssell.
"To ensure we maintain ample liquidity during this current
period of market uncertainty related to the ongoing pandemic, in
October 2021, we sold an aggregate of
1,808,000 shares of our common stock in a registered direct
offering to certain Swedish and European investors, which, combined
with sales under our existing at-the-market facility provided
approximately $14.5 million of cash,
net of placement agent fees and other offering expenses. The net
proceeds will be used for continued investments in sales and
marketing to create greater awareness and support for the expected
growth of our TSM production volumes. We believe we are now well
capitalized to navigate the current headwinds and continue to grow
the company and increase shareholder value," concluded Dr.
Forssell.
FINANCIAL OVERVIEW FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2021
Net revenues decreased by 36% for the three months ended
September 30, 2021 as compared to the
same period in 2020. The decrease is primarily due to overall
global supply-chain constraints and more specifically semiconductor
component shortages within the printer and automotive markets
combined with renewed pandemic-driven lock-downs in our key
markets. For the nine months ended September
30, 2021 as compared to the same period in 2020 we saw a 23%
increase in total net revenues. The increase was mainly due to
higher license fees and higher TSM sales earned primarily in the
first half of the year before COVID-19 driven lock-downs were
implemented in our key markets. Elevator and kiosks customers in
Asia have been first adopters for
our contactless touch technology and as expected, most of our sales
are related to retrofit solutions due to long product development
cycles.
Our total gross margin was 90% and 86% for the three and nine
months ended September 30, 2021,
respectively, and 87% and 90% for the three and nine months ended
September 30, 2020, respectively. For
the three and nine months ended September
30, 2021, gross margin related to product sales was 28% and
31%, respectively compared to 30% and 31% for the same periods in
2020, respectively. Our operating expenses decreased 14% in the
three months ended September 30, 2021
compared to the same period in 2020, primarily due to one-time
legal costs in 2020. Operating expenses increased 15% in the nine
months ended September 30, 2021,
compared to the same period in 2020, primarily due to adding
headcount in all departments in 2021 to position the company for
future growth.
Net loss attributable to Neonode was $1.7
million and $4.9 million for
the three and nine months ended September
30, 2021, respectively, and $1.6
million and $4.3 million for
the same periods in 2020 respectively. Cash used by operations was
$1.6 million and $5.0 million for three and nine months ended
September 30, 2021, respectively,
compared to $1.8 million and
$3.7 million in the same periods of
2020, respectively. This was primarily the result of a higher net
loss and increased inventory to secure our future product
deliveries.
Cash and accounts receivable totaled $6.3
million and working capital was $6.2
million as of September 30,
2021, compared to $12.2
million and $10.4 million as
of December 31, 2020, respectively.
During the three and nine months ended September 30, 2021, we sold an aggregate of
93,553 shares of common stock under our at-the-market facility
("ATM facility"), resulting in net proceeds of approximately
$593,000 after payment of commissions
of $18,000.
In October 2021, we sold an
aggregate of 1,808,000 shares of our common stock at a price of
$7.75 per share to certain Swedish
and other European investors in a registered direct offering. We
received net proceeds of approximately $13.1
million from the offering after deducting placement agent
fees and other offering expenses. We also sold an aggregate of
142,169 shares under our ATM facility with aggregate net proceeds
to us of $1.4 million.
For more information, please contact:
CONTACT:
Investor Relations
David Brunton
E-mail: david.brunton@neonode.com
Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/neonode/r/neonode-reports-quarter-ended-september-30--2021-financial-results,c3450643
The following files are available for download:
https://mb.cision.com/Main/17297/3450643/1493944.pdf
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Neonode Inc 3Q 2021
Earnings Release
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