Neonode (NEON) 9 Nov 232023 Q3 Earnings call transcript

Hi and a warm welcome to the Neonode Q3 2023 Earnings Call.

So we'll start with a company presentation by the CEO and CFO of Neonode, followed by a Q&A session by the company's analysts.

So with that said, I welcome Urban Forssell, CEO of Neonode. Please take us through.

Thank you, Jesper, and welcome to our Q3 earnings call. Urban our myself, Fredrik is presenters Forssell; CFO, and Nihlén. Today's

will part go read presentation, I summary into we of the this aloud disclaimer. of the disclaimer. and Before moment main our a a please legal read take

and contains forward-looking Neonode contain Incorporated. statements presentation and This written management company its of oral an may statements. The

use statements financial of sales growth, events. They future statements information current about or and sales development include product efforts. and expectations, also cash, performance about include introduction, Forward-looking financial and opportunity results, strategy plans, potential matters market may regulatory

expectations achievements Forward-looking actual information of statements are other factors based are on advised and management carefully and risks, of a materially implied other uncertainties performance to assumptions, its be factors. or expressed various company levels different number and that risks, to investors involve and these any and may company's the the activity, forward-looking Prospective unknown uncertainties by or to consider these and known available statements. cause from results,

are management statements. included today's and company Any forward-looking to The date. this its of as made no or in revise of update duty forward-looking undertakes statements presentation

been company its information public provided is has and by based it been well company such This by The own believes herein from presentation that the information which sources. accurate as derived on information information obtained of from from information prepared as Certain the contained has be the are may reliable. industry sources sources.

such accuracy such you. of independently the However, the company information. not information and guarantee verified cannot has Thank

jump quarter the today's short points join of again the a Today, move agenda, main of with a Jesper key we a fairly summary for a will and he of will short Q&A Fredrik presentation. update. results our right will quarter. and Fredrik's this we after of it I us the presentation. strategy into introduction, this, highlights third as mentioned financial this, of with into And and the in give After presentation, session. and And through business we will the have the take us And part share

of year-to-date. Summary and points quarter third the key also for

revenues volumes reporting quarter. decreased And this do somewhat. third sales customers lower with to in licensing certain for Our this the quarter has

year-to-date, par period with on we However, year. are same last the

we as has So that's last why full license same for say the revenues that level so stable the year. year on been far

deals in focus activity that Product third proves of quarter, we this, grateful level through our sales the and on obviously, and are for, off. and is increased paying and closing pushing improved sales it

the we in year first targets quarters X made the start slow X has the that for this However, first are months. below

And to earnings adjust discussed our improve in our strategies sales previous tactics continue we have calls, and to as sharpen and performance. we

improve working to We and on customers. satisfied we to And performance encouraged with are we are not the are by date, hard also and from interest existing new level that. we our get

although So to the quarter. similar previous this quarter was

turn this our also we the can and We a growth, significantly that we team very business future, the on in believe of cash around and we are have optimistic years. in place and a that continue and flow right the improve have to coming track view that create

financial over as these who for hand take points So Fredrik? summary, results quarter. to through us I third Fredrik X will with the the a summary

Urban. you, Thank

our license lower same is volumes at as Investors to XX% QX the a just for Revenues release compared the key presentation, in and decrease earnings our You summarize can on $X section. I million. this website, -- will XX-Q was I'll Urban the as year. just of XX%, our sales level last License quarter same revenues at of Year-to-date, customers. XXXX, million There the find neonode.com, for was under a this due is third the $X.X quarter. said. revenues decrease is There to and are points.

and from was our focus million within and last period certain an X% to year. sectors same increase of activities products on We the maintained in Revenues increased $X.X QX, compared sales marketing.

to Gross QX was to QX a customer effect -- XXXX onetime last due margin QX XX% XX%. level XXXX adjust in the which negative claims. is that, due same the of XXXX, for are This costs in is some for for If same products we quarter at quarter at year. we as

to marketing QX was increased sales. the X% for to and an compared mainly It's activities period year. $X.X It's same expenses last million of within increase Operating XXXX. due

$X.X operating for QX had net [ XXXX, ]. increase million We activities burn, XXX% in an cash of

we XXXX. components we And of effect and took production explanations that quarter. QX XXXX QX didn't this. that X In purchased for unit, is do to a currency we in our have exceptionally because XXXX, QX We in low

$XX.X accounts September cash million XXXX. of XXXX, an XX, from increase and it's $X.X have receivable We of in as year-end million

cash So still front. we are on stable the

will hand I the word Urban. that, With you, back to

followers new an Thank old to and and And followers, our strategy you, about our and Fredrik. here presentation you, update just business. also give continue

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with also to Medtech So but sector, starting Medtech especially obviously, push from analytical we instruments, benefit in the devices other solutions. see, can touchless also we continue our

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happy X years, of have not sales, levels last the activity our repeat performance I our in year, we continue and especially to sales are and to this, increased that adjust date. In and this we with marketing we

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of events, only events medic through several joined is some different in here. third events, way types quarter, events the and also we automotive and other events, one shown And

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December, we will are also January, CES events. few upcoming in and York the now prepare, events, in world for to In and we Vegas a industry. in working And New we November, show then have Las big and the also hard show join the retail NRF

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have in lot the in we that a things and future. hope wins announce We some exciting making, the of can near new we business

Q&A to This And presentation. me into the end we go the now takes promised, will the of as session.

right. you Great. Thank so presentation. for that much All

but that HUD call able talk and announce perhaps offering. we automotive win. Could you about end with in design start the the -- and last very optimistic didn't we'll you already industry had, sounded what the around QX what's procurements the conference in And you're the development happening So to promise, seeing? just you before the you a being and of about DMS

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enter we solutions perfect the they suppliers, to phase. have interesting. perhaps are, in some now doing other have presentation, in projects, that's sort that And of cases, And the greatest we interest. I obviously are Quite things way. the in of not where in and like They have explain into tried second had experience with or we other see the now experiences sourcing a their round of and they some are then a why slightly sort from chance first second we different customers to and the have

compare would mean about I the And interest the Tier from and the the see, you Do Good. the DMS. HUD Xs from meanings the the right. versus -- -- how the offering like OEMs or? you or and difference OEMs any you see do All the

Yes.

in So is DMS regulatory not. difference big requirements driven in But that it's markets, Europe. other one by

in we But something expect that May or China, of then the come in driven. come. it's U.S. DMS exactly instance. but will branding in comfort not more for as Europe, the driven be same type regulations will So also and this

a before, new to these in starting topic. motor this NHTSA markets, federal a for on this want preclude America of solution. in before safety And instance, sort to some releases North standard vehicle Even they offering manufacturers good by

warning to turn not sign any the you your guard, any as on remove Head-up all vehicles the you driver on important display backup but kind or another to is if is safety vehicle. must by type and of this I driven legislation, of directly wrong, without please tried also, head-up because rely something the sell cannot show that explain you display, stop only information

this OEMs And look going differently. interior the feel course, And electrification. it has to the different And with chance. some we it's the do they use So want achieve in and are where our it's of because a -- vehicle. They want space there is indeed, to see to direction. of of

go this. when So want there electric little a you to a bit vehicle, fully they is sort Tesla, to experiment. this triggered And company, also has of that

is everyone interior. now So thinking about

way cost. the as is done to much do it. in need by driven And always don't also same I we've that believe very We this

years screens. a this for you that XX towards give I as trend final bigger comment bigger been there's XX, and So

You of features. curve and so examples and massive passengers. and touch driver from very And displays high-resolution the Chinese color very, in talk with front we costly. some are about have They pillar-to-pillar displays the on, OEMs displays

to bigger and simply way into the move spiral head-up displays And obviously, screens. effective competing and complexity bigger for a than So manufacturers with more much altogether. break cost is that that cost is to

let's but is quite a in this very time. industry. But how the So takes see long everything a end, plays automotive out, dynamic

we launched have royalties. this And development to is X, sales we new Then production, years. have are of long start get then X then a can So you where cycles. and phase into the solutions a

active It up offering was say, for than But Neonode increase to offerings with other forward, our licensed detection. like head-up And DMS vehicles significantly have X going closing this the display technology X.X also to million. we developed and And that with or product since automotive more million hope a we us, and obstruction have at industry first years is very there technology. least important the date, XX been automotive sector to for we XXXX.

right. All

kind more base, changing question more towards forward, seems so sales. the cost you product -- perhaps industry, I mean, How this also going then and less part you, how Fredrik. that the it focus what And of like do promising. on your does like also automotive are one for you Sounds in but affect see? you're

our Well, we we're business that current to focusing towards see automotive.

refocusing for growing So that are it's base that we we cost and not looking it's the base, our that cost are our future. in

but news -- to get that expand So good on need of we also sense. we if out there, some course,

engineering implementation? part For the, yes, of the

Yes.

here, going from all so questions. no we and other have That's right. have questions good analysts? Thank All for luck other No, Good. any you of Okay. Do we coming my other questions. forward. much

Thank you.

Thank you.