Le Lézard
Classified in: Transportation, Science and technology, Business, Covid-19 virus
Subjects: ERN, ACC

Neonode Reports Quarter Ended June 30, 2022 Financial Results


STOCKHOLM, Aug. 11, 2022 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON), today reported financial results for the three and six months ended June 30, 2022.

FINANCIAL SUMMARY FOR THE THREE MONTHS ENDED JUNE 30, 2022:

FINANCIAL SUMMARY FOR THE SIX MONTHS ENDED JUNE 30, 2022:

THE CEO'S COMMENTS

"Our overall sales and results for the second quarter of 2022 were below expectations and 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. Many of our customers are also having to navigate supply chain constraints due to a shortage of semiconductor components and other issues they are faced with in the current economic climate, slowing their product sales, and in some cases their development and launches of new products, which affects our business negatively," said Dr. Urban Forssell, Neonode's CEO.

"Our products business continues to develop and we are seeing a growing interest in our Touch Sensor Modules ("TSM") from elevator customers and interactive kiosk manufacturers in the transportation, retail, hospitality, and medical segments. To date we have had the best traction in Japan and South Korea, but other markets such as China, Western Europe, and North America are also showing potential. Together with our distributors and value-added resellers we continue to work to expand the TSM business and increase our sales volumes," continued Dr. Forssell.
 
"In our efforts to re-vitalize our licensing business we focus on automotive OEM and tier 1 customers, and we are encouraged by the interest we are seeing for our object detection, gesture sensing and driver and in-cabin monitoring solutions. Short- and medium-term the revenue potential is sales of non-recurring engineering services in application development projects linked to new vehicle platforms. These projects pave the way for increased license revenues in the medium- and long-term when vehicles based on the new platforms start being produced. We continue to execute on our strategy and remain optimistic about the potential to grow this business in the coming years," concluded Dr. Forssell.

FINANCIAL OVERVIEW FOR THE THREE MONTHS ENDED JUNE 30, 2022

Net revenues for the quarter ended June 30, 2022 were $1.3 million, a 26.3% decrease compared to the same period in 2021. For the 2022 period, license revenues were $1.0 million, a decrease of 29.8% compared to the same period in 2021. 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 second quarter of 2022.
 
Revenues from product sales during the second quarter were $0.2 million, a decrease of 39.3% compared to the same period in 2021. In the first half of 2021 several early adopters of our technology developed and launched retrofit solutions, which affected our TSM sales positively during this period. However, our product sales for the second quarter of 2022 continue to be negatively impacted by COVID-19 driven lock-downs in Asia and we are also affected by the comparatively long development and launch periods, often 12 to 18 months, or longer, for customer new equipment solutions, which slow down our sales growth.  

Gross margin related to products was 55.7% for the second quarter of 2022 compared to 38.7% for the same period in 2021. Our operating expenses decreased 13.7% for the second quarter of 2022 compared to the same period in 2021, primarily due to lower staff expenses and depreciation and amortization.
 
Net loss attributable to Neonode for the three months ended June 30, 2022 was $1.5 million, or $0.11 per share, compared to a net loss of $1.7 million, or $0.14 per share, for the same period in 2021. Cash used by operations was $2.9 million in the second quarter compared to $1.4 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 $13.5 million and working capital was $16.4 million as of June 30, 2022 compared to $18.7 million and $19.1 million as of December 31, 2021, respectively.

For more information, please contact:

Investor Relations
Fredrik Nihlén
E-mail: [email protected] 
Phone: +46 703 97 21 09

Chief Executive Officer
Urban Forssell
E-mail: [email protected]
Phone: +46 734 10 03 59

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/neonode/r/neonode-reports-quarter-ended-june-30--2022-financial-results,c3612714

The following files are available for download:

https://mb.cision.com/Main/17297/3612714/1613645.pdf

Neonode Inc 2Q Earnings Release

https://news.cision.com/neonode/i/neonode-2q-earnings-august-2022,c3076605

Neonode 2Q Earnings August 2022

SOURCE Neonode


These press releases may also interest you

at 12:59
UltraSense Systems, an emerging leader in automotive semiconductor Human Machine Interface (HMI) Controllers and HMI touch system designs, will be showcasing how its TouchPoint Q Controller adds force sensing to multiple sizes of off-the-shelf touch...

at 12:48
More than a century after Titanic's tragic maiden voyage, the stories of love, heroism, sacrifice, courage, and loss born from that fateful night endure. Now, E/M Group and RMS Titanic, Inc. are honored to bring these stories to Warsaw, Poland when...

at 12:45
Intoxalock, the leading ignition interlock device in the U.S., proudly announces Kambria Cook, a student at Arizona State University as the recipient of its $3,000 Drunk Driving Prevention Scholarship. This initiative further demonstrates...

at 11:32
Electrification, autonomy, and vehicle ownership saturation are causing a technological revolution in the automotive sector. These automotive meta-trends are driving drastic changes in electronic component requirements and present a high-volume...

at 11:30
"I thought there should be a way to ensure that a key fob battery is always charged and operational for wireless communication with a vehicle," said an inventor, from Simpsonville, S.C., "so I invented the LEGENDARY KEY FOB STATION. My design would...

at 11:17
VinFast Auto today announced the launch of Sony's new online entertainment service, RIDEVU, on its VF 8 electric car model in the U.S. As the world's first automobile manufacturer to launch RIDEVU, VinFast reaffirms its commitment to providing...



News published on and distributed by: