STOCKHOLM, May 11, 2022
/PRNewswire/ -- Neonode Inc. (NASDAQ: NEON), today reported
financial results for the three months ended March 31, 2022.
FINANCIAL SUMMARY FOR THE QUARTER ENDED MARCH 31, 2022:
- Revenue of $1.3 million, a
decrease of 20.8% compared to the same period in the prior
year.
- Operating expenses of $2.6
million, a decrease of 12.2% compared to the same period in
the prior year.
- Net loss of $1.4 million, or
$0.10 per share, compared to
$1.6 million, or $0.14 per share, for the same period in the prior
year.
- Cash used by operations of $2.3
million compared to $2.0
million for the same period in the prior year.
- Cash and accounts receivable of $16.3
million as of March 31, 2022,
compared to $18.7 million as of
December 31, 2021.
THE CEO'S COMMENTS
"Despite challenging market conditions that continued to affect
our overall business in the first quarter of 2022, I am pleased to
see that our revised strategy, with a focus on our Touch Sensor
Modules ("TSM") business for leading elevator and interactive kiosk
customers as well as new applications for automotive customers, is
beginning to show results. We are encouraged by the growing
interest in our contactless touch solutions and our TSMs from
elevator and interactive kiosk customers in Asia, Europe
and North America, which we are
working to capitalize on," said Dr. Urban
Forssell, Neonode's CEO.
"We are also continuing to see a growing interest in our
solutions for object detection, gesture sensing and driver and
in-cabin monitoring from automotive customers and continue to see
opportunities to license our well-proven, high-performance touch
technology to customers in the military and avionics, medical and
industrial automation segments. We are working to win new
development projects with customers in these segments that will
pave the way for increased license revenues in the future when
their products enter mass production. We continue to execute on our
strategy and continue to see big potential to grow in the coming
years," continued Dr. Forssell.
"Despite these promising developments, our overall results for
the first quarter of 2022 were impacted by the fact that customers
in several of our key markets, particularly Asia, are still being affected by lock-downs
associated with the COVID-19 pandemic and many of them are also
experiencing supply chain constraints due to a shortage of
semiconductor components, which in turn is negatively affecting
their businesses and delaying their development projects and new
product launches, which ultimately affects our business," concluded
Dr. Urban Forssell.
FINANCIAL OVERVIEW FOR THE QUARTER ENDED MARCH 31, 2022
Net revenues for the quarter ended March
31, 2022 were $1.3 million, a
20.8% decrease compared to the same period in 2021. For the 2022
period, license revenues were $1.1
million, a decrease of 14.7% compared to the 2021 period.
The decrease is primarily the result of component shortages within
the printer and automotive markets related to the COVID-19
pandemic, which in turn impacted our license revenues for the first
quarter of 2022.
Revenues from product sales were $0.1
million, a decrease of 58.6%. In the first half of 2021 we
saw an increase in product sales. In the second half of 2021 and
continuing in the first quarter of 2022, product sales were
negatively impacted due to COVID-19 driven lock-downs in
Asia. Our elevator and kiosks
customers in Asia have been first
adopters of our contactless touch technology and as expected, most
of our initial TSM sales are related to retrofit solutions, and are
more limited. New customer equipment launches can take 6 to 18
months, or even longer, before a customer is ready to begin mass
producing.
Gross margin related to products was 65.3% for the first quarter
of 2022 compared to 23.9% for the same period in 2021. Adjusting
for AirBar revenues and costs, the products gross margin was 61.9%
for the first quarter of 2022 compared to 25.9% for the same period
in 2021. Our operating expenses decreased 12.2% for the first
quarter of 2022 compared to the same period in 2021, primarily due
to lower professional fees and depreciation and amortization.
Net loss attributable to Neonode for the three months ended 2022
was $1.4 million, or $0.10 per share, compared to a net loss of
$1.6 million, or $0.14 per share, for the same period in 2021.
Cash used by operations was $2.3
million in the first quarter of 2022 compared to
$2.0 million for the same period in
2021. The increase is primarily the result of increased inventory
to secure our future product deliveries.
Cash and accounts receivable totaled $16.3 million and working capital was
$17.9 million as of March 31, 2022 compared to $18.7 million and $19.1
million as of December 31,
2021, respectively.
A reconciliation of adjusted gross margin products to gross
margin for the three months ended March 31,
2022 and 2021, is provided in the financial schedules that
are part of this press release. An explanation of this non-GAAP
financial measure is also included under the heading "Non-GAAP
Financial Measures."
For more information, please contact:
CONTACT:
Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
Chief Executive Officer
Urban Forssell
E-mail: urban.forssell@neonode.com
About Neonode
Neonode Inc. (NASDAQ:NEON) is a publicly traded company,
headquartered in Stockholm, Sweden
and established in 2001. The company provides advanced optical
sensing solutions for contactless touch, touch, gesture control,
and in-cabin monitoring. Building on experience acquired during
years of advanced R&D and technology licensing, Neonode's
technology is currently deployed in more than 80 million products
and the company holds more than 100 patents worldwide. Neonode's
customer base includes some of the world's best-known Fortune 500
companies in the consumer electronics, office equipment,
automotive, elevator, and self-service kiosk markets.
NEONODE and the NEONODE logo are trademarks of Neonode Inc.
registered in the United States
and other countries.
For further information, please, visit www.neonode.com
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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. 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
SEC 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.
Non-GAAP Financial Measures
In addition to presenting our financial results in accordance
with accounting principles generally accepted in the United States ("GAAP"), we use adjusted
gross margin to measure our financial performance. We define
adjusted gross margin products as gross margin products excluding
AirBar sales revenues and costs. We believe adjusted gross margin
products is a meaningful measure because it reflects the
performance of our TSM business, which is our current focus.
Non-GAAP financial measures should not be considered as
alternatives to the most directly comparable GAAP financial
measures. Our use of adjusted gross margin products, a non-GAAP
financial measure, has important limitations as an analytical tool
because it excludes some, but not all, items that affect the most
directly comparable GAAP financial measure. You should not consider
adjusted gross margin in isolation or as substitutes for analysis
of our results as reported under GAAP. Our definition of non-GAAP
adjusted gross margin may not be comparable to similarly titled
measures of other companies, thereby diminishing its
utility.
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SOURCE Neonode