Neonode Reports 2024 Financial Results

Rhea-AI Summary

Neonode (NASDAQ: NEON) reported its fiscal year 2024 financial results, showing revenues from continuing operations of $3.1 million, down 18.8% year-over-year. The company posted a loss from continuing operations of $5.9 million, or $0.37 per share, compared to $5.1 million in 2023.

License revenues decreased 29.3% to $2.7 million, primarily due to lower demand in printer and passenger car touch applications. However, non-recurring engineering revenues increased significantly by 1,519.2% to $0.4 million, driven by a DMS project with a commercial vehicle OEM and a new agreement with NEXTY Electronics.

The company maintained stable operating expenses at $9.5 million and ended the year with $17.2 million in cash and accounts receivable. Following the discontinuation of Touch Sensor Module manufacturing, Neonode is now focusing entirely on technology licensing through its MultiSensing® and zForce® platforms.

Positive

• Significant growth in non-recurring engineering revenues (+1,519.2% YoY)
• New commercial vehicle OEM contract for MultiSensing DMS software
• New agreement with NEXTY Electronics for zForce technology
• Reduced cash burn from operations ($5.6M vs $6.3M in 2023)
• Strong liquidity position with $17.2M in cash and receivables

Negative

• Total revenue declined 18.8% to $3.1M
• License revenue dropped 29.3% to $2.7M
• Increased net loss to $5.9M from $5.1M year-over-year
• Higher loss per share of $0.37 compared to $0.33 in 2023
• Declining demand in legacy printer and car touch applications

STOCKHOLM, March 21, 2025 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON) today reported financial results for the fiscal year ended December 31, 2024.

FINANCIAL SUMMARY FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024:

• Revenues from continuing operations of $3.1 million, a decrease of 18.8% compared to the prior year.
• Operating expenses from continuing operations of $9.5 million, a decrease of 0.2% compared to the prior year.
• Loss from continuing operations of $5.9 million, or $0.37 per share, compared to $5.1 million, or $0.33 per share, for the prior year.
• Cash used by operations of $5.6 million, compared to $6.3 million for the prior year.
• Cash and accounts receivable of $17.2 million as of December 31, 2024, compared to $16.8 million for the prior year-end.

THE CEO'S COMMENTS

"Last year marked an important year of transition for Neonode as we discontinued Touch Sensor Module ("TSM") manufacturing and positioned ourselves for a future fully focused on technology licensing. Our licensable technology platforms, MultiSensing® and zForce®, continued to generate customer interest in 2024 – resulting in non-recurring engineering ("NRE") fees from customer projects, which we expect to generate license revenues once these projects enter the production phase," said Fredrik Nihlén, Neonode's interim President and CEO and CFO.

"While we are seeing a decline in revenues from our legacy business within printer and car touch applications, we are confident that we are now well-positioned to capitalize on opportunities in new applications within automotive safety and touch displays. As a testament to this, last year, we announced an award by a leading commercial vehicle original equipment manufacturer ("OEM") to supply MultiSensing driver monitoring system ("DMS") software. Neonode's zForce-based TSM technology was also selected by NEXTY Electronics for their next-generation amusement machines. We continue to develop our technology platforms and are working closely with customers and prospects to deliver innovative licensable solutions that enhance our market position and expand the applications addressable with our technology," concluded Mr. Nihlén.

FINANCIAL OVERVIEW FOR THE FISCAL YEAR ENDED DECEMBER 31, 2024

Revenues from continuing operations for fiscal 2024 were $3.1 million, an 18.8% decrease compared to 2023. License revenues were $2.7 million, a decrease of 29.3% compared to 2023. The decrease was mainly due to lower demand for our legacy customers' products within printer and passenger car touch applications, offset by revenues from new licensing customers.

Revenues from non-recurring engineering for fiscal 2024 were $0.4 million, a 1,519.2% increase compared to 2023, mainly attributable to the DMS project with the commercial vehicle OEM customer that was announced at the end of 2023 and the new agreement with NEXTY Electronics for an evolution of our licensable TSM technology.

Operating expenses from continuing operations for fiscal 2024 were $9.5 million, a 0.2% decrease compared to 2023.

Loss from continuing operations for fiscal 2024 was $5.9 million, or $0.37 per share, compared to a loss from continuing operations of $5.1 million, or $0.33 per share for 2023.

Cash used by operations was $5.6 million in fiscal 2024 compared to $6.3 million for 2023. The decrease was primarily due to fewer component purchases following the phaseout of TSM manufacturing.

Cash and accounts receivable totaled $17.2 million and working capital for continuing operations was $16.1 million as of December 31, 2024, compared to $16.8 million and $16.1 million as of December 31, 2023, respectively. Our financial position and liquidity provide stability and enable us to execute our strategy to secure more licensing opportunities for our innovative technologies.

For more information, please contact:
Interim President and Chief Executive Officer and Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
Phone: +46 703 97 21 09

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/neonode/r/neonode-reports-2024-financial-results,c4122334

The following files are available for download:

https://mb.cision.com/Main/17297/4122334/3335924.pdf	Neonode - 4Q and 2024 Full Year Earnings Release 2025-03-21
https://news.cision.com/neonode/i/neonode-4q-fy24-earnings-pr,c3389339	neonode-4q-fy24-earnings-pr

 

View original content:https://www.prnewswire.com/news-releases/neonode-reports-2024-financial-results-302408053.html

SOURCE Neonode

FAQ

What was Neonode's (NEON) revenue performance in fiscal year 2024?

Neonode reported revenues of $3.1 million in FY2024, representing an 18.8% decrease compared to 2023.

How much did Neonode's (NEON) license revenues decline in 2024?

License revenues decreased by 29.3% to $2.7 million in 2024 due to lower demand in printer and car touch applications.

What was the growth in Neonode's (NEON) non-recurring engineering revenues for 2024?

Non-recurring engineering revenues increased by 1,519.2% to $0.4 million in 2024.

How much cash and accounts receivable did Neonode (NEON) have at the end of 2024?

Neonode had $17.2 million in cash and accounts receivable as of December 31, 2024.

What strategic changes did Neonode (NEON) implement in 2024?

Neonode discontinued Touch Sensor Module manufacturing to focus entirely on technology licensing through MultiSensing® and zForce® platforms.