Neonode, Inc. (NASDAQ:NEON)
Neonode, Inc. (NASDAQ:NEON) reported yet another disappointing quarter on the earnings front, having posted a net loss of $0.9 million for Q1 2017. The net loss was more than double a net loss of $400,000 posted in Q4. Revenues also took a hit in the quarter in what the company says is as a result of a decrease in engineering development fees.
Neonode Q1 Results
Revenues in the quarter came in at $2.3 million, down from $3.1 million reported in Q1, 2016. Neonode, Inc. (NASDAQ:NEON) says it expects revenues to increase in the second quarter on license fee increases. The developer of touch-based sensors also expects its revenue base to receive a boost from sales of embedded sensor modules sales and of AirBar.
Operating expenses in the quarter totaled $3.1 million, a 19% reduction from $3.8 million as of Q1 of 2016. Neonode, Inc. (NASDAQ:NEON) is planning to reduce expenditures on this front to $3 million going forward. The company also invested $0.8 million in inventory in the quarter, having manufactured 15,000 AirBar modules.
Chief executive officer, Thomas Eriksson, has sought to dispel concerns about the company’s growth prospect by reiterating the quarter marked an inflection point. According to the executive, they have started to pay more attention on the embedded sensor modules segment having already taken steps to come up with new offerings for the market.
“We are working with several OEM customers on high volume applications using our embedded sensor modules, such as the new generation of flexible and curved displays. In addition, we signed supply agreements with three new OEM customers to deliver modules to them in 2017,” said Mr. Eriksson.
Neonode, Inc. (NASDAQ:NEON) module business is set to receive a major boost on sales, the company having signed a sales agreement with DigiKey in the quarter. DigiKey is a global distribution company that is going to distribute some of Neonode’s products on the global market.
During the quarter Neonode also signed an OEM agreement for the development of embedded sensor modules that are to be used in flexible OLED displays. The company also signed three new OEM supply agreements for its embedded sensor modules, having also added 2 new printer customers.
Neonode, Inc. (NASDAQ:NEON) poor run in the market continues, the stock having shed 23.6% in market value on posting first-quarter net loss. The stock is currently trading at lows of $1.23 a share and closing in on its 52-week lows of $0.96 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.