STOCKHOLM, SWEDEN – November 9, 2015 – Neonode Inc. (NASDAQ: NEON), the optical interactive sensing technology company, today reported financial results for the three and nine months ended September 30, 2015.
• Revenues increased 176% compared to Q3 2014
• Signed license agreement with leading Japanese printer OEM
• Received royalties from five tier 1 automotive suppliers, up from three last quarter
• Exceeded 200,000 total infotainment systems using zForce technology as of Q3 2015
• Increased to 19 car models launched using zForce technology for the in-car infotainment system, up from 17 as of last quarter
• Strengthened balance sheet through a $6.1 million underwritten public offering in October 2015
“The Company saw increased customer traction across all our markets throughout the nine months of 2015,” said Neonode’s CEO Thomas Eriksson.
“Our automotive division continues its impressive growth performance with development of new technologies, such as our zForce DRIVE steering wheel currently undergoing road testing and our entry systems which is also in the testing phase with auto OEMs. Our customers continue to add to the number of models of production ready cars using our zForce Core for the in-car infotainment systems. We’re also pleased to report that our zForce technology is in the number one selling car in China, the Buick Excelle GT, and the number one and two best-selling SUVs in China, the Haval H6 and the Baojun 560, based upon sales figures in the China auto WEB September issue,” added Mr. Eriksson.
“Our five global printer customers continue to be on plan with their development and production release of new printer models worldwide and our PC customers are on plan to release products with our technology in 2016,” concluded Mr. Eriksson.
Financial Results for the three and nine months ended September 30, 2015
Net revenues for the three and nine months ended September 30, 2015 were $3.1 million and $8.2 million, respectively, compared to net revenues for the three and nine months ended September 30, 2014 of $1.1 million and $3.0 million, respectively. Net revenues for the three and nine months ended September 30, 2015 included $2.0 million and $5.4 million, respectively, from technology license fees and $1.1 million and $2.8 million, respectively, in non-recurring engineering services (“NRE”) related to touch solutions for customers. Net revenues for the three and nine months ended September 30, 2014 included $0.6 million and $1.9 million, respectively, from technology license fees and $0.5 million and $1.1 million, respectively, in NRE services.
The increase of 176% in net revenues for the three months ended September 30, 2015 compared the same period in 2014 and an increase of 171% for the nine months ended September 30, 2015 compared to same period in 2014 is primarily due to an increase in license fees from e-reader, printer and automotive customers, plus NRE revenues.
The license fee revenue distribution per market for the third quarter 2015 is 32% for printers, 16% for automotive and 52% for e-readers compared to 54% for printers and 46% for e-readers in the third quarter 2014.
Gross margin was $2.2 million and $6.2 million for the three and nine months ended September 30, 2015, respectively, compared to $0.7 million and $2.0 million for the same periods in 2014, respectively. Total operating expenses were $3.6 million and $11.3 million for the three and nine months ended September 30, 2015, respectively, compared to $3.9 million and $13.1 million for the same periods in 2014, respectively.
Net loss was $1.4 million and $5.2 million for the three and nine months ended September 30, 2015, respectively, compared to a net loss of $3.2 million and $11.1 million, respectively, in the comparable periods in 2014.
Net cash used by operating activities was $2.1 million and $4.9 million for the three and nine months ended September 30, 2015, respectively, compared to $3.0 million and $9.1 million, respectively, for the same periods in 2014. Cash and accounts receivable totaled $1.4 million at September 30, 2015 compared to $7.2 million at December 31, 2014. Subsequent to the quarter end, Neonode completed a $6.1 million underwritten public offering on October 13, 2015.
Conference Call Information
The Company will host a conference call Monday November 9, 2015 at 10AM Eastern Standard Time (EST) featuring remarks by, and Q&A with, Thomas Eriksson, 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: #61045701. 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 – 11/9/2015 (13:00PM EST) to 12/9/2015 (23:59PM EST). To access the recording, please use one of these Dial-In Numbers (800) 585-8367 or (404) 537-3406, and the Conference ID #61045701.
Neonode Inc. (NASDAQ:NEON) develops and licenses optical interactive sensing technologies. Neonode’s patented optical interactive sensing technology is developed for a wide range of devices like automotive systems, printers and office equipment, PC devices, monitors, mobile phones, tablets and e-readers, toys and gaming devices. NEONODE, the NEONODE Logo, ZFORCE and MULTISENSING are trademarks of Neonode Inc. registered in the United States and other countries. ZFORCE CORE, ZFORCE PLUS and ZFORCE DRIVE are trademarks of Neonode Inc. All other trademarks are the property of their respective owners. For more information please visit 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.
Copyright Neonode Inc. 2015. All rights reserved. Neonode is a registered trademark of Neonode Inc.
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