Software

Neonode reports Q2 2022 revenue decline

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August 11, 2022

Neonode Inc., which provides optical sensing solutions for contactless touch, touch, gesture control and in-cabin monitoring, reported a decline in revenue for Q2 2022 against the prior year period, largely on account of the impact of coronavirus pandemic lockdowns, according to a press release. Highlights include:

• Net revenues fell 26.3% from$1.72 million in Q2 2021 to $1.3 million for the quarter ended June 30, 2022.
• Net loss improved from $1.66 million to $1.55 million in the comparative quarters.
• Loss per common share on both a basic and diluted basis improved from 14 cents to 11 cents.
• License revenues were $1 million, a decrease of 29.8% compared to the same period in 2021, primarily the result of component shortages within the printer and automotive markets related to the COVID-19 pandemic.
• Cash used by operations was $2.9 million in the second quarter compared to $1.4 million for the same period in 2021, primarily the result of increased inventory to secure future product deliveries.
• Revenues from product sales during the second quarter were $200,000, a decrease of 39.3% compared to the same period in 2021.

In the first half of 2021 several early technology adopters developed and launched retrofit solutions, which affected sales positively during this period. However, sales for the second quarter of 2022 continued to be negatively impacted by COVID-19 driven lock-downs in Asia.

The company was also affected by long development and launch periods, often 12 to 18 months or longer, for customer new equipment solutions, which slow down sales growth.

Shares traded today at $4.54 against a 52-week range of $3.70-$12.42.

The $1.3 million in quarterly revenue missed analyst expectations by $100,000, according to Seeking Alpha.

"Our overall sales and results for the second quarter of 2022 were below expectations and were impacted by the fact that customers in several of our key markets, particularly Asia, are still being affected by lockdowns associated with the COVID-19 pandemic," Dr. Urban Forssell, CEO, said in the press release. "Many of our customers are also having to navigate supply chain constraints due to a shortage of semiconductor components and other issues they are faced with in the current economic climate, slowing their product sales, and in some cases their development and launches of new products, which affects our business negatively."