Neonode missed the mark during the second quarter 2022
The Swedish optical sensing solutions provider struggled with COVID-19 driven lock-downs in Asia, component shortages within the printer and automotive market during the company’s second quarter. But the company remains optimistic about its growth potential.
Net revenues for the second quarter amounted to USD 1.3 million, a 26.3% decrease compared to the same period in 2021. License revenues were USD 1.0 million during the period, a decrease of 29.8% compared to the same period in 2021.
The company says that the decrease is primarily the result of component shortages within the printer and automotive markets related to the COVID-19 pandemic, which in turn impacted Neonode’s license revenues for the second quarter of 2022.
Revenues from product sales during the second quarter were USD 0.2 million, a decrease of 39.3% compared to the same period in 2021. In the first half of 2021 several early adopters of Neonode’s technology developed and launched retrofit solutions, which affected the company’s TSM sales positively during this period. However, the company’s product sales during the second quarter of 2022 continue to be negatively impacted by COVID-19 driven lock-downs in Asia.
“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 lock-downs associated with the COVID-19 pandemic. 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,” said Dr. Urban Forssell, Neonode's CEO in the quarterly report.
Gross margin related to products was 55.7% for the second quarter of 2022 compared to 38.7% for the same period in 2021. Net loss for the second quarter was USD 1.5 million, compared to a net loss of USD 1.7 million for the same period in 2021.
“We continue to execute on our strategy and remain optimistic about the potential to grow this business in the coming years,” concludes Dr. Forssell.