Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Neonode reports decreased Q3 licensing revenues, stable YTD

EditorVenkatesh Jartarkar
Published 11/10/2023, 12:01 PM
Updated 11/10/2023, 12:01 PM
© Reuters.

In a recent earnings call, Neonode Inc. (NASDAQ: NEON) unveiled its financial results for the third quarter of 2023. The call, hosted on Thursday, was led by CEO Urban Forssell and CFO Fredrik Nihlén, who shared insights into the company's performance and financial health.

During the call, Forssell provided a legal disclaimer and discussed the company's earnings in detail. Despite a proactive increase in sales activities, Neonode experienced a downturn in licensing revenues in the third quarter due to reduced sales volumes from key customers. Nevertheless, year-to-date licensing revenues have remained consistent with the previous year's figures.

Forssell also noted an improvement in product sales for the quarter, crediting enhanced sales efforts. However, he acknowledged that the company did not meet its targets for the first nine months of the year, attributing this shortfall to a sluggish start.

CFO Nihlén presented a breakdown of the quarterly financials. Neonode's Q3 revenues reached $1 million, marking an 18% decrease from the same period last year. Licensing revenues fell by 20% to $0.8 million, while product revenues saw a slight 5% increase to $0.2 million. A significant one-time customer claim cost led to a negative 39% gross margin for products. Additionally, operating expenses climbed by 6% to $2.2 million, driven by intensified marketing and sales initiatives. The company's net cash burn from operating activities rose sharply by 272% to $1.8 million.

In conclusion, Forssell highlighted Neonode's ongoing projects, particularly their developments in interactive kiosks and medical technology devices. Despite facing challenges this quarter, Neonode remains focused on advancing these areas as part of its growth strategy.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.