Neonode (NEON) 10 Mar 222021 Q4 Earnings call transcript

Hello, everyone. Thank you for standing by and welcome to Neonode's Fourth Quarter and Full-Year 2021 Earnings Conference Call. All lines have been placed on mute to prevent any back ground noise. After the speakers' remarks, there will be a question-and-answer session with the company's covering analyst. [Operator Instructions] At this time, for opening remarks and introductions, I would like to turn the call over to David Brunton, Neonode's Head of Investor Relations. and conference. ahead go please start the David,

Welcome call, quarter we you for corporate and On today's joining us. update. a will provide XXXX results and financial thank full-year and review our fourth

of details of the Alana XXXX. Forssell; Gordon. of items today's our include will Fredrik On company results update our strategies, of and and interest. CEO, customer our is present Marketing, Nihlen; Fredrik financial business the call into CFO, will other activities Urban Director Our Urban for our activities strengthen full-year comment we for on opportunities. grow customer the and create our fourth to strategies, will and to solutions Alana our overall quarter demand do and brand, our will the sales. market products other give insights work

typically may I'd of or other forward-looking or to statements. risk these projects confidence, now than anticipate, facts The forward-looking the ahead. continue and I XX-K, are to quarterly make future statements the XX-Q differ business, results your will statements. highlights is factors risk believe, risks, tend, with this may Neonode to position estimate, the expected Therefore, today's is over forward-looking are Neonode's which and actual concerning expressly or on or statements. results. and other involve report statements. guides, operating similar we qualifications reports the historical what update call statements targets, remarks with in conference presentations. expect, these Urban, and implied go words to disclaims from attention obligation outcome who other do All please statements. the on presentation but Neonode's other presentation, other limited by like subject expressions to any uncertainty give are in forward-looking reports be this contained affect and These forward-looking materially that following describe SEC will intent Neonode may filed and guarantee factors Urban, performance financial not which Before that to include other by objection Such identify used not to directed. annual forward-looking will,

and sales customers also many slowed today's navigate experienced during Thank COVID-XX due which we also to our our to also supply restrictions continued Highlights like lack travel the presentation, Dave welcome pandemic. from challenges this to work. Lockdowns of of our negatively. sales companies, due and Several our have development fourth side. headwinds to hindered semiconductor my you, chain quarter of business call the and components, affected

of issues our of nicely. at started diminish rebounded end to Some these the the license and year revenues

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relentlessly later topics the please results XXXX will the the these without for ahead. fourth ado, and give and And further years licensing Fredrik, I and areas to continue business growing work our business we We all and pandemic revitalize are and feel a very navigate to the We focus on and brings continued to Alana return the quarter will in to in during strengthen full-year I and positioned come. NRE our to to our of grow product improvements also XXXX. to challenges financial grow the with business who presentation. the Fredrik, the the present business with competitiveness. well our now word go

you, Thank Urban.

points our section the XXXX financial here. the XX-K from quarter the only release earnings of can for XXXX, year with In time, details Investor during performance neonode.com. on and our find interest summarize the will available and full-year You website, of fourth download our the key I

XXXX. of $X.X million, million. to XXXX XXXX. an increase X% a was is Our X% That to decrease of total [$X] for compared revenue compared Product reached for XXXX revenues

constraints of half second primarily due the for XXXX chain sales, experienced During half in into In The saw of slowdown second to and several strict the component customers in first more of specifically, a also where supply semiconductor markets. slowdown we countries and of continuing shortages by effect the are revenues. a half positive an was lockdowns sales imposed trend printer affecting XXXX, XXXX, government global active. the within the we our the and in they automotive

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the margin, was probably for positive Long-term, the as increase, expenses medium-term, governmental gross around pressure we the issue by will in to lost and our at XXXX been we introduced look see XX% to received the related in short from If as onetime have time customers are gross continue due effect be customers. revenues profit confident margin impacted quality inventory the and of from business now was TSM can our for products the a to costs of and our year, to at effects, and have these The because but the write-downs, consists is support, will XXXX, for expenses that for margins X% is a a was AirBar fourth adjusted effects during levels percentage proven for we on the gross for issue relationship which full-year issue we increased TSM. which products restored, to due quality gross the we quality to decrease to the same the margin quarter The adjust saw XXXX XXXX we quarter in the orders of of our The and margins we by compared in that shifts gross only extra new Operating fourth pandemic. XXXX, is Our with got onetime X% lower XX at resolved XX%. margin customer purchase points. during we onetime margin heavily last The volumes the affected that XXXX. trend operating gross up XXXX. a see in remaining and with is XXXX.

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be to today. you Thank a here pleasure Urban. much, so It's

that brand, more Neonode bit today talk So that at also to Urban to just doing to me the we're in the develop team doing we've to the a the help we're work and sales the into has particular but pipeline. doing to work specifically, position build early-stage about the invited marketing give been here Neonode of here insight in work

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our on continue now direct will to will and of which have more connection defined targeted with So course, elevators application is, focus kiosks. we areas, But we our segments.

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out, important trying sector Urban for is This Neonode. same the for quarter automotive, journey a we're as pointed this very

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national and event the you also innovation America the pictures in photos, the self-service So can transportation from France. see public in in some

with it you So to over back I said, you. that will hand Thank Urban.

close end concluding remarks. this And some the I will us round today you. to Thank brings and of our presentation by sharing off some

and XXXX. slightly XXXX the Our slow during grew compared our the quarter, to revenues full-year but TSM fourth during was sales rebounded license

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Q&A. Dave So with that, and over to you,

the Thanks, Von from Q&A now Jesper we our open Urban. [Operator call with take Koch question from analysts. I'll Redeye. Instructions] for first And will our

open. is line Your

guys. Hi,

that is talked say you supply-demand the component your in now situation licensing So sales being QX, about balanced. shortage more you dampening and

that automotive levels? revenues would normalized you at So say printers more current is from and the

Yes.

ask you is automotive market rebound little back on compared that for to and to it rebounded of little like nature and the actually we'd a this. ask printers quarter If the actually and held where bit It revenues it the in licensing me, immediately full-year and issues like answer components and ago, We saw was other underlying the the quarter certainly if the third then our in stable up three year fourth you weeks the demand shows a strong lack has nicely me a like stable the before. for customers. due a were semiconductor level,

So yes, stable. it's

Ukraine have this, the the least. crisis with can expect general But that's feeling and demand we underlying Now see. economic stable, to is downturn that at my from we

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announced wins your continue far design about optimistic solutions, And there. to so any have but monitoring you and in-cabin so not driver be

you see a about you could the you make little So talk bit optimistic? that things that

Yeah, we continue to work on this.

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Okay. Thanks.

to your military the of -- in the -- pipeline opportunities, licensing sales respect pipeline the opportunities. didn't with show with in sales you So any slide

military So lost? I being should has large announced or this customer interpreted been wondering was a as more previously opportunity if be the that already customer this

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the the Japan. day announced partnership you you the as presentation with mentioned and other in X-Eleven, just So

also the you potential time could project about talk and customer? current status and see the So that frame on this the that for you

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OEM. provide during if presentation. update that fall you I major able Thanks wondering a any for announced elevator was you're to agreement the with interesting on the

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on then sales. question it. general got Yes, more a product And

impacted half by have on has product and second improved. XXXX during As what sales you of lockdowns year, on. situation removal last of far -- so And mean seen on lockdowns mentioned, the you so effect I I pandemic were now in this you negatively and year mean the

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this the being certainly So helping restrictions that are is now lifted.

this will to of in Asia few in terms few mean Yes. continue I sales. ahead sales sensor And in split – expect see years so or sales? you terms product the mean of do expect you a then terms have geographical most I what years modules. far sales touch kind of geographical mean you look in you in final had a question of you a maybe segment, Do ahead, if I

people We living similar. and a think Singapore and kiosks countries Korea, also they’re lot there rich and systems Greater they countries Malaysia; and with lot Japan, that quite China of there’s and a of IT like and Asia have East

in way of opportunities think continue also the and have Europe we the will they Western the probably actually North we So that lead to for rest But world. sizable America. market

and is know. to this usually U.S., relationship. to markets XX, I biggest XX, Europe, India way IT China, something markets. one Japan, It’s at like then are XX, So top don’t the see these where it are the Western look long-term And Korea, just overall maybe;

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there So France. for new news businesses stay regarding in tuned

from Schwab Craig our And we take question Christian next with will Hallum.

on is of Christian. This Tyler behalf

First sorry missed and question, if Urban, it. I'm I a follow-up

level of a of for to about as far On of that going as we should the a be thing? should Japan in be Is How up? of this that? Is from of units? how the that about timeline X-Eleven the quarters more pilot opportunity ramp kind kind timeline couple next thinking ramp, kind thinking this multiyear we

this don't know, year partners X-Eleven. far I they they've you happy want this to impression Obviously that they have they together of during Japan. very our But really is with consortium the are tests I working done actually so mentioned are ask here. pushing it's my to in X, initial companies ramp and X and a up

the X-Eleven say are frame rollout to XX look now. this launch with should that at for be And X-Eleven getting months they that I So push Japan. we that from would nationwide should time

as opportunities sounds kiosks restaurant. is sushi stores size opportunity, then or win? could of opportunity your XX,XXX well It maybe a size a these kind the different you rank significant probably like more And maybe Could of comparably opportunities? X-Eleven than as maybe kind order elevator across you of some comparatively the

well. for have minimarts by have say for give lot developed it convenience solutions quite okay, already push strongly them not space. good there you interesting a to as hope Retail number kiosk And I point-of-sale the actually I we store of the something. that's instance or very, we subsegments to multiply different of and as already launch per in stores. going realized, and then X-Eleven's opportunity. and will of But you a interactive super you will terminals are and launch and if be X-Eleven in that of to several very mean self-checkout in and any competitors we certain obviously some a you numbers believe self-checkout, start supermarkets detailed Japan, the

subway stations, bus where there and effect a in and train large snowball stations that it for. that her as and check-in, baggage we the Transportation say kiosks we information opportunity lily hoping another aviation -- airport or the call similar effect drop, sizable besides that's market. water where are slides, on. we have are kiosks can stations, So so ticketing, I do would Elena That's

and check-in, in then on airports growth airports so we terminals anything restaurants, want the and exploding stations let train stations hotels hospitality, that just do around you that include and those rate look We check-out if hotels, in all is more do bus kiosks the you work. employees have which in is They both all and on space. installed And And shops. and fast from coffee to self-service the for restaurants in in the to base have also food lobby are common and remove to global and you yourself. the

the four So probably looking that within segments and elevators we're at active elevators, kiosks retail restaurant and the Top transportation kiosks, kiosks kiosks. are major

the on any back line turn at I over questions time. further no this presenters the to are There will our for closing program additional or remarks.

to let in XX are want at Neonode and you meet any for call all for social this you're know to Stockholm offices us neonode.com and members thank the Details on next also invited I will you the media March posted in with Urban, We that want interested follow-up website And to be of you on and if joining call, team. and days. Alana today. to come to of kind other during Fredrik Neonode on and our few the our

at swing happening the what's kinds if take stuff. all look a So and then headquarters and town, by in of on can you you're at

So Have good a you. the call that Thank today. very ends day.

you your conclude program. does Thank This today's for participation.

disconnect at time. any You may