Neonode Reports Quarter Ended June 30, 2024 Financial Results
Rhea-AI Summary
Neonode Inc. (NASDAQ: NEON) reported financial results for Q2 2024. Revenues increased 18.7% to $1.4 million, driven by higher non-recurring engineering and product sales. However, licensing revenues decreased 43.9%. The company reported a net loss of $1.7 million ($0.11 per share), compared to $1.5 million ($0.10 per share) in Q2 2023. Operating expenses decreased 1.6% to $2.7 million. Cash and accounts receivable totaled $14.4 million as of June 30, 2024.
Neonode's interim CEO and CFO, Fredrik Nihlén, noted increased interest in their driver and in-cabin monitoring solutions. The company is phasing out its products business to focus on licensing, which led to last-time buy orders from customers. Despite challenges, Neonode sees promising opportunities in touch and touchless human-machine interaction technologies.
Positive
- Revenues increased 18.7% year-over-year to $1.4 million in Q2 2024
- Product sales increased 641.7% compared to Q2 2023
- Non-recurring engineering revenues increased 750.0% year-over-year
- Operating expenses decreased by 1.6% compared to Q2 2023
Negative
- Net loss increased to $1.7 million in Q2 2024 from $1.5 million in Q2 2023
- Licensing revenues decreased 43.9% year-over-year
- Gross margin for products declined to 26.0% from 66.7% in Q2 2023
- Cash used by operations increased to $1.2 million from $0.6 million in Q2 2023
- Cash and accounts receivable decreased to $14.4 million from $17.1 million at the end of 2023
News Market Reaction
On the day this news was published, NEON gained 1.57%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
FINANCIAL SUMMARY FOR THE THREE MONTHS ENDED JUNE 30, 2024:
- Revenues of
$1.4 million 18.7% compared to the same period in the prior year. - Operating expenses of
$2.7 million 1.6% compared to the same period in the prior year. - Net loss of
$1.7 million $0.11 $1.5 million $0.10 - Cash used by operations of
$1.2 million $0.6 million - Cash and accounts receivable of
$14.4 million $17.1 million
FINANCIAL SUMMARY FOR THE SIX MONTHS ENDED JUNE 30, 2024:
- Revenue of
$2.4 million 0.6% compared to the same period in the prior year. - Operating expenses of
$5.6 million 0.9% compared to the same period in the prior year. - Net loss of
$3.8 million $0.25 $2.9 million $0.19 - Cash used by operations of
$3.1 million $2.3 million
COMMENTS OF THE INTERIM PRESIDENT AND CHIEF EXECUTIVE OFFICER ("CEO") AND CHIEF FINANCIAL OFFICER ("CFO")
"Our revenues increased in the second quarter of 2024 compared to the same quarter last year. Non-recurring engineering revenues increased and were mainly attributable to the ongoing Driver Monitoring System ("DMS") project with the Original Equipment Manufacturer ("OEM") of commercial vehicles customer that was announced at the end of last year. Product sales also increased in the second quarter compared to the same quarter last year, mainly as a result of last time buy orders from customers to secure supplies, following our decision to focus solely on licensing going forward and to phase out our products business. Licensing revenues decreased compared to the same quarter last year, mainly due to the demand for our legacy customers' products being lower. Gross margin in the second quarter of 2024 compared to the same quarter last year declined and was the result of increased cost of revenue due to increased product sales and non-recurring revenues combined with decreased licensing revenues. Although our operating expenses decreased in the second quarter of 2024 compared to the same quarter last year, the decline in gross margin led to a higher net loss," said Fredrik Nihlén, Neonode's interim President and CEO and CFO.
"Our driver and in-cabin monitoring solutions keep attracting attention, which is positive. We find this promising and believe that our solution is not only competitive but also scalable and flexible, making the solution attractive to both commercial vehicle and passenger car manufacturers. We also keep seeing interesting licensing opportunities for our touch and touchless human-machine interaction offerings in addition to the first touch sensor module technology license agreement announced earlier this year," concluded Mr. Nihlén.
FINANCIAL OVERVIEW FOR THE QUARTER ENDED JUNE 30, 2024
Revenues for the quarter ended June 30, 2024 were
Revenues from product sales for the quarter ended June 30, 2024 were
Revenues from non-recurring engineering for the second quarter of 2024 were
Gross margin related to products was
Our operating expenses decreased by
Net loss for the second quarter of 2024 was
Cash and accounts receivable totaled
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
The following files are available for download:
Neonode - 2Q 2024 Earnings Release | |
https://news.cision.com/neonode/i/neonode-2q-2024-earnings-2000,c3323257 | neonode-2q-2024-earnings-2000 |
View original content:https://www.prnewswire.com/news-releases/neonode-reports-quarter-ended-june-30-2024-financial-results-302217940.html
SOURCE Neonode
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