Neonode Reports First Quarter Ended March 31, 2018 Financial Results

Neonode Inc (NASDAQ:NEON), the optical interactive sensing technology company reported financial results for the three months ended March 31, 2018.

The company said that the revenue was $2.4 million which is two percent up compared to prior year. The company saw a 40 percent increase year over year for license fees from printer customers. However, the company had a net loss of $0.7 million or $0.01 per share compared to $0.9 million or $0.02 per share in the prior year.

As quoted in the press release:

First Quarter 2018 Business Metrics

• Cash used by operations $0.6 million compared to $1.6 million prior year
• Two new OEM sensor module development projects;
  ° Automotive external door sensors
  ° Aeronautic instrument panel sensors

“As the new CEO of Neonode, I am excited to explore all the opportunities in front of us. Looking ahead, we will continue to capture the full potential of the profitable, royalty-based license business, working with existing and new customers. The licensing business generates steady cash flows, enabling us to focus on the long-term growth potential we see in our zForce AIR sensor modules. Building on our relationships with high-quality customers and our strong technology, and working in close collaboration with the right partners, we are laying the foundation for substantial sensor module shipments. We have already taken the first steps and we see a clear path forward,” said Hakan Persson, CEO of Neonode.

On January 1, 2018, Neonode adopted the new revenue recognition standard ASC 606. The total net impact of the adoption of ASC 606 is a $0.2 million reduction in total license fee revenues reported in the first quarter of 2018 versus using the old accounting standard. Net revenue for the first quarter of 2018 was $2.4 million which is up 2% compared the same quarter last year. The 2018 net revenues are primarily comprised of license fees while the net revenues for the comparable quarter last year includes $2.1 million of license fees plus $0.2 million from AirBar sales.

Net loss for the first quarter of 2018 was $0.7 million, or $0.01 per share, compared to net loss of $0.9 million, or $0.02 per share, for the first quarter of last year.

Operational cash used was $0.6 million for the first quarter of 2018, significantly down compared to $1.6 million for the same quarter last year. Cash was $4.9 million and accounts receivable was $2.0 million as of March 31, 2018 and we had 58.6 million shares of common stock, 1.4 million stock options and 11.2 million warrants to purchase common stock outstanding at March 31, 2018.

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