STOCKHOLM, Sweden, Feb. 28,
2024 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON)
today reported financial results for the fiscal year ended
December 31, 2023.
FINANCIAL SUMMARY FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023:
- Revenue of $4.4 million, a
decrease of 21.5% compared to the prior year.
- Operating expenses of $10.7
million, an increase of 4.9% compared to the prior
year.
- Net loss of $10.1 million, or
$0.66 per share, compared to
$4.9 million, or $0.36 per share, for the prior year.
- Cash used by operations of $6.3
million, compared to $6.8
million for the prior year.
- Cash and accounts receivable of $17.1
million as of December 31,
2023 compared to $16.3 million
for the prior year-end.
THE CEO'S COMMENTS
"The decrease in our sales revenues 2023 was a disappointment.
In particular, the negative development of our Touch Sensor Module
("TSM") product business was unsatisfactory and led us to the
decision to sharpen our strategy and focus on licensing going
forward, as announced on December 12,
2023. We are currently phasing out our TSM product business
and will close our production unit in Kungsbacka, Sweden, later this year. Existing customers
and value-added resellers are offered to place last-time-buy orders
for TSMs for delivery during Q1 and Q2. In parallel, we are
offering customers to license the TSM technology to set up their
own TSM production, which several customers have responded
positively to," said Dr. Urban
Forssell, Neonode's CEO.
"Our licensing revenues were also lower in 2023 than in the
previous year. This is mainly due to our legacy customers' product
sales slowing down in Q3 and Q4, combined with high inventory
levels at some customers. The breakthrough driver monitoring
software win with a leading commercial vehicle manufacturer, which
we announced on December 6, 2023, was
the result of several years' dedicated work by our commercial and
technical teams and is a stepping stone for us in our quest to
revitalize and grow our licensing business," continued Dr.
Forssell.
"We are pleased to see that our recent driver monitoring
software win has boosted the interest in our driver and in-cabin
monitoring solution among other vehicle manufacturers and tier 1
system suppliers. We are currently working hard to capitalize on
this momentum. We also see interesting opportunities with our
head-up display obstruction solution and with our touch and
touchless human-machine interaction offerings. In summary, we are
optimistic about the future growth potential for our business. We
are also confident that our new, sharpened strategy with a full
focus on licensing will help us increase our efficiency and reach a
positive cash flow in shorter time than with our previous strategy
that combined licensing with product sales," concluded Dr.
Forssell.
FINANCIAL OVERVIEW FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023
Net revenues for fiscal 2023 were $4.4
million, a 21.5% decrease compared to 2022. License revenues
were $3.8 million, a decrease of
14.9% compared to 2022. The decrease is caused by lower sales
volumes for our customers during 2023.
Revenues from product sales for fiscal 2023 were $0.6 million, a 37.7% decrease compared to 2022,
mainly due to low customer demand.
Revenues from non-recurring engineering for fiscal 2023 were
$26,000, an 87.3% decrease compared
to 2022, mainly due to fewer projects.
Gross margin related to products was negative 630.6% for fiscal
2023 compared to 22.0% in 2022. The gross margin for products in
2023 is impacted by one-time costs related to a customer claim,
impairment loss on inventory and a loss on an earlier purchase
commitment.
Our operating expenses increased by 4.9% for fiscal 2023
compared to 2022, primarily due to higher marketing costs,
professional fees, and payroll and related costs.
Net loss attributable to Neonode for fiscal 2023 was
$10.1 million, or $0.66 per share, compared to a net loss of
$4.9 million, or $0.36 per share for 2022. Cash used by operations
was $6.3 million in fiscal 2023
compared to $6.8 million for 2022.
The decrease is primarily the result of fewer components purchased
in 2023.
Cash and accounts receivable totaled $17.7 million and working capital was
$16.8 million as of December 31, 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/17297/3936513/2634654.pdf
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Neonode - 4Q and 2023
Full Year Earnings Release
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https://news.cision.com/neonode/i/neonode-reports-2023-financial-results,c3271881
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Neonode Reports 2023
Financial Results
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SOURCE Neonode