Neonode Reports Quarter Ended September 30, 2024 Financial Results
Rhea-AI Summary
Neonode (NASDAQ: NEON) reported Q3 2024 financial results, focusing on its continuing licensing business after discontinuing its products division in Q4 2023. Q3 revenues were $0.8 million, slightly down 0.2% year-over-year, with a net loss of $1.0 million ($0.07 per share). For the nine months ended September 30, revenue decreased 21% to $2.5 million, with a net loss of $4.4 million. The company highlighted new TSM technology agreements with NEXTY Electronics and YesAR, while noting decreased licensing revenues from legacy customers in printer and passenger car applications. Cash and accounts receivable stood at $18.6 million as of September 30, 2024.
Positive
- New TSM technology agreements secured with NEXTY Electronics and YesAR
- Non-recurring engineering revenues increased 2,575% in Q3 2024
- Operating expenses decreased by 2.7% in Q3 2024
- Cash used by operations improved from $1.8M to $1.3M year-over-year
- Strong liquidity position with $18.6M in cash and accounts receivable
Negative
- Q3 2024 revenues decreased 0.2% year-over-year
- Nine-month revenues declined 21% compared to prior year
- License revenues decreased 12.6% in Q3 2024
- Net loss increased to $4.4M for nine months vs $3.5M prior year
- Lower demand from legacy customers in printer and passenger car applications
News Market Reaction
On the day this news was published, NEON declined 2.57%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
FINANCIAL SUMMARY FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2024
- Revenues from continuing operations of
$0.8 million 0.2% compared to the same period in the prior year. - Operating expenses from continuing operations of
$2.0 million 2.7% compared to the same period in the prior year. - Net loss from continuing operations of
$1.0 million $0.07 $1.1 million $0.07 - Cash used by operations of
$1.3 million $1.8 million - Cash and accounts receivable of
$18.6 million $17.1 million
FINANCIAL SUMMARY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
- Revenue from continuing operations of
$2.5 million 21.0% compared to the same period in the prior year. - Operating expenses from continuing operations of
$7.2 million 2.9% compared to the same period in the prior year. - Net loss from continuing operations of
$4.4 million $0.28 $3.5 million $0.22 - Cash used by operations of
$4.4 million $4.1 million
BUSINESS HIGHLIGHTS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024
- Several ongoing discussions with potential customers regarding Touch Sensor Module ("TSM") technology and the MultiSensing® platform.
- TSM technology agreement with NEXTY Electronics, an electronics-trading company within the Toyota Tsusho Group, for sensor development and manufacturing of the next-generation amusement machines for a leading manufacturer in
Japan's amusement market. - TSM technology agreement with YesAR to develop and build holographic infotainment solutions for its customers in the automotive and elevator segments, as well as other market segments.
"Our revenues from the continuing licensing business decreased in the third quarter of 2024 compared to the same quarter last year. However, non-recurring engineering revenues related to our new lines of business increased and were mainly attributable to the driver monitoring system ("DMS") project with the original equipment manufacturer ("OEM") of commercial vehicles customer that we announced at the end of last year. Licensing revenues from legacy customers within printer and passenger car touch applications decreased compared to the same quarter last year, mainly due to lower demand for their products. Cash used by operations decreased in the third quarter 2024 compared to the same quarter last year, as we discontinued component purchases after phasing out TSM manufacturing," said Fredrik Nihlén, Neonode's interim President and CEO and CFO.
"We remain positive toward the prospects of generating new projects and business with our driver and in-cabin monitoring solutions, which continue to generate positive attention from OEMs and suppliers to the automotive industry. Our flexible and scalable approach to driver and in-cabin monitoring presents manufacturers and their suppliers with a cost-effective and efficient platform for securing compliance and automotive innovation for years to come. We also see a growing market interest in licensing our cost-effective and proven touch interaction solutions," concluded Mr. Nihlén.
FINANCIAL OVERVIEW FOR THE QUARTER ENDED SEPTEMBER 30, 2024
Revenues from continuing operations for the quarter ended September 30, 2024 were
Revenues from non-recurring engineering for the third quarter of 2024 were
Our operating expenses from continuing operations decreased by
Net loss from continuing operations for the third quarter of 2024 was
Cash used by operations was
Cash and accounts receivable totaled
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
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The following files are available for download:
Neonode - 3Q 2024 Earnings Release | |
https://news.cision.com/neonode/i/neonode-3q-earnings-november-2024,c3349266 | Neonode 3Q Earnings November 2024 |
View original content:https://www.prnewswire.com/news-releases/neonode-reports-quarter-ended-september-30-2024-financial-results-302297554.html
SOURCE Neonode
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