STOCKHOLM, SWEDEN – May 8, 2018 – Neonode Inc. (NASDAQ: NEON), the optical interactive sensing technology company, today reported financial results for the three months ended March 31, 2018.
First Quarter 2018 Business Metrics
– Revenue was $2.4 million, up 2% compared to prior year
– 40% increase year over year for license fees from printer customers
– Net loss of $0.7 million, or $0.01 per share, compared to $0.9 million, or $0.02 per share, prior year
– Cash used by operations $0.6 million compared to $1.6 million prior year
– Two new OEM sensor module development projects; Automotive external door sensors and Aeronautic instrument panel sensors
“As the new CEO of Neonode, I am excited to explore all the opportunities in front of us. Looking ahead, we will continue to capture the full potential of the profitable, royalty-based license business, working with existing and new customers. The licensing business generates steady cash flows, enabling us to focus on the long-term growth potential we see in our zForce AIR sensor modules. Building on our relationships with high-quality customers and our strong technology, and working in close collaboration with the right partners, we are laying the foundation for substantial sensor module shipments. We have already taken the first steps and we see a clear path forward,” said Hakan Persson, CEO of Neonode.
On January 1, 2018, Neonode adopted the new revenue recognition standard ASC 606. The total net impact of the adoption of ASC 606 is a $0.2 million reduction in total license fee revenues reported in the first quarter of 2018 versus using the old accounting standard. Net revenue for the first quarter of 2018 was $2.4 million which is up 2% compared the same quarter last year. The 2018 net revenues are primarily comprised of license fees while the net revenues for the comparable quarter last year includes $2.1 million of license fees plus $0.2 million from AirBar sales.
Net loss for the first quarter of 2018 was $0.7 million, or $0.01 per share, compared to net loss of $0.9 million, or $0.02 per share, for the first quarter of last year.
Operational cash used was $0.6 million for the first quarter of 2018, significantly down compared to $1.6 million for the same quarter last year. Cash was $4.9 million and accounts receivable was $2.0 million as of March 31, 2018 and we had 58.6 million shares of common stock, 1.4 million stock options and 11.2 million warrants to purchase common stock outstanding at March 31, 2018.
Conference Call Information
The Company will host a conference call Tuesday May 8, 2018 at 10AM Eastern Daylight Time (EDT)/4PM Central European Time (CET) featuring remarks by, and Q&A with, Hakan Persson, CEO, Lars Lindqvist, CFO and David Brunton, Head of Investor Relations.
The dial-in number for the conference call is toll-free: (877) 539-0733 (U.S. domestic) or +1 (678) 607-2005 (international). To access the call all participants must use the following Conference ID: #6490936. Please make sure to call at least five minutes before the scheduled start time.
To register for the call, and listen online, please click:
For interested individuals unable to join the live event, a digital recording for replay will be available for 30 days after the call’s completion – 5/8/2018 (13:00PM EDT) to 6/8/2018 (23:59PM EDT). To access the recording, please use one of these Dial-In Numbers (800) 585-8367 or (404) 537-3406, and the Conference ID #6490936.
For more information, please contact:
Neonode Inc. (NASDAQ:NEON) develops, manufactures and sells advanced sensor modules based on the company’s proprietary zForce AIR technology. Neonode zForce AIR Sensor Modules enable touch interaction, mid-air interaction and object sensing and are ideal for integration in a wide range of applications within the automotive, consumer electronics, medical, robotics and other markets. The company also develops and licenses user interfaces and optical interactive touch solutions based on its patented zForce CORE technology. To date, Neonode’s technology have been deployed in more than 59 million products, including 3 million cars and 56 million consumer devices.
NEONODE, the NEONODE logo, ZFORCE, ZFORCE AIR, AIRBAR and the AIRBAR logo are trademarks of Neonode Inc. registered in the United States and other countries. ZFORCE CORE is a trademark of Neonode Inc.
For further information please visit www.neonode.com
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, and product cost, performance, and functionality matters. 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 U.S. Securities and Exchange Commission 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.