Customer Experience

COVID impact clips Neonode 2022 sales, earnings

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March 13, 2023

Neonode Inc., a provider of contactless touch, touch, gesture control and in-cabin monitoring technology, reported a sales and earnings decline for fiscal 2022 caused by component shortages related to the COVID-19 pandemic, according to a press release. Highlights include:

• Net revenues for fiscal 2022 were $5.67 million, a 2.8% decrease, compared to 2021.
• For 2022, license revenues were $4.5 million, a decrease of 6.6% compared to 2021. The decrease is primarily the result of component shortages within the printer and automotive markets related to the COVID-19 pandemic.
• Revenues from product sales were $1 million, and in line with 2021. For the full year 2022 product sales continued to be negatively impacted by COVID-19 driven lockdowns in Asia.
• Net loss improved from $6.5 million in 2021 to $4.9 million in 2022.
• Loss per share improved from 54 cents to 36 cents in the comparative years.

Shares traded today at $6.83 against a 52-week range of $3.30-$14.75.

The $5.67 million in annual revenue beat analyst expectations by $670,000 while the EPS loss of 36 cents missed expectations by 6 cents, according to Seeking Alpha.

"During the first half of the year our sales and business development continued to be hampered by pandemic-driven lock-downs and uncertain market outlooks for several of our customers, causing them to push new product development and launches into the future," Dr. Urban Forssell, CEO, said in the press release. "Global supply chain constraints also affected several of our customers due to the lack of semi-conductors and other key components. Both factors had an adverse effect on our growth and financial performance.

"During the third and fourth quarters we saw indications that the situation in several of our key markets, for instance China, Japan and Korea, started to normalize, a trend which we expect to continue in 2023. We therefore remain optimistic about our ability to significantly grow our business in 2023 and the years to come," continued Forssell.