STOCKHOLM, Nov. 9, 2023 /PRNewswire/ -- Neonode Inc.
(NASDAQ: NEON) today reported financial results for the three and
nine months ended September 30,
2023.
FINANCIAL SUMMARY FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023:
- Revenue of $1.0 million, a
decrease of 17.5% compared to the same period in the prior
year.
- Operating expenses of $2.2
million, an increase of 6.3% compared to the same period in
the prior
year.
- Net loss of $1.3 million, or
$0.08 per share, compared to
$0.8 million, or $0.06 per share, for the same period in the prior
year.
- Cash used by operations of $1.8
million compared to $0.5
million for the same period in the prior
year.
- Cash and accounts receivable of $19.4
million as of September 30,
2023 compared to $16.3 million
as of December 31, 2022.
FINANCIAL SUMMARY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2023:
- Revenue of $3.5 million, a
decrease of 9.1% compared to the same period in the prior
year.
- Operating expenses of $7.8
million, an increase of 2.8% compared to the same period in
the prior year.
- Net loss of $4.2 million, or
$0.27 per share, compared to
$3.7 million, or $0.27 per share, for the same period in the prior
year.
- Cash used by operations of $4.1
million compared to $5.7
million for the same period in the prior year.
THE CEO'S COMMENTS
"Our licensing revenues in Q3 were slightly lower than in Q2 and
the same period last year, but our licensing business shows good
long-term stability and licensing revenues year-to-date are on a
similar level as last year. Our product sales revenues in Q3 were
higher than in Q2 but, because of the slow sales in the first half
of the year, products sales revenues during the first nine months
are significantly lower than in the same period last year," said
Dr. Urban Forssell, Neonode's
CEO.
"We are addressing the lack of growth in our business in
different ways. Strategically we continue to evaluate the different
market segments in which we are active and prioritize the ones
where our products have the greatest potential. Tactically we also
constantly monitor our sales performance and adjust resource
allocation to maximize our chances of winning new businesses and
creating beachheads from which we can expand further. We feel that
we are on the right track in the challenge to grow our business and
return to profitability and are encouraged by the interest for our
different products and offerings that we receive from customers,
especially in the Automotive, Medtech, and Interactive Kiosk
sectors. We are therefore optimistic about the future growth
potential for our business," concluded Dr. Forssell.
FINANCIAL OVERVIEW FOR THE QUARTER ENDED SEPTEMBER 30, 2023
Net revenues for the quarter ended September 30, 2023 were $1.0 million, a 17.5% decrease compared to the
same period in 2022. For the 2023 period, license revenues were
$0.8 million. This is a decrease of
20.0% compared to the 2022 period and is caused by lower sales
volumes for our customers during the third quarter of 2023.
Revenues from product sales for the quarter ended September 30, 2023 were $0.2 million, a 5.2% increase compared to the
same period in 2022. We continue with the focused marketing and
sales campaigns and updates to our partner network.
Gross margin related to products was negative 39.3% for the
third quarter of 2023 compared to 48.4% in the same period in 2022.
The gross margin for products varies with the product mix. The
gross margin for products for the three months ended September 30, 2023 is impacted by a one-time cost
related to a customer claim.
Operating expenses increased by 6.3% for the third quarter of
2023 compared to the same period in 2022, primarily due to higher
professional fees.
Net loss attributable to Neonode for the three months ended
September 30, 2023 was $1.3 million, or $0.08 per share, compared to a net loss of
$0.8 million, or $0.06 per share, for the same period in 2022.
Cash used by operations was $1.8
million in the third quarter of 2023 compared to
$0.5 million for the same period in
2022. The increase is primarily the result of component purchases
in the third quarter of 2023.
Cash and accounts receivable totaled $19.4 million and working capital was
$22.7 million as of September 30, 2023 compared to $16.3 million and $19.1
million as of December 31,
2022, respectively.
For more information, please contact:
Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
Phone: +46 703 97 21 09
Chief Executive Officer
Urban Forssell
E-mail: urban.forssell@neonode.com
Phone: +46 734 10 03 59
The following files are available for download:
https://mb.cision.com/Main/17297/3872555/2419047.pdf
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