NEON - Earnings call transcript Q1 2021

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Operator

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

David Brunton

Welcome call, quarter we you for XXXX On today’s joining us. update. will corporate results provide and and thank financial a review our first

Asia Anthony interest. Johan customer will update developments, Pacific; items Middle Sales is and CFO, Urban include Regional CEO, of Maria Swartz, also Presidents, On Our today activities, and Ek; are call East today’s Wærn, our Uhrick, and details Jonas and Americas; managing technology other Dr. managing managing Forssell; the our of and joining Vice us Europe, Africa.

limited turn and forward-looking anticipate, or by over are Urban, At other the than expected forward-looking to that Urban. estimate, following implied obligations affect other is are from position, is statements contained these and statements. directed. is risk these and differ forward-looking statements may guides, intent Therefore, actual to future on attention subject to, operating ahead. will, call please the what are not turning go and projects other and expect, other make filed factors statements. this results, to it over business, to my statements. by qualifications this reports other in financial which but disclaims quarterly reports would statements. historical the that include, be SEC the facts or Before may tend, and concerning All or Urban, in to Neonode your which believe, not forward-looking report forward-looking targets, annual to materially These XX-Q, words Neonode’s the XX-K, to identify performance on call update Neonode results with similar outcomes confidence, time, pleasure guarantee I are expressly any uncertainties factors the call typically do like forward-looking conference involve Neonode’s remarks used expressions These may risks, statements.

Urban Forssell

To begin summarize with, in today. everyone. key messages and presentation David you, our the to I'd welcome Thank like

business First, we to demand Elevators continue market to for our for execute and on in increase, Kiosks. our and into touch opportunity an to continues Interactive technology our contactless giving equipment, us instance, retrofitted enormous and pipeline. The build Neonode integrate new strategies solutions

to significant and We more and the we'll Automotive Military and increase me customers migrating our see internationally. opportunities, last and interest on capitalize support last we strengthen in also month And the focus who lead in led let business me. Solutions, in year, he sales sales work will all area area three the last report EMEA; sales APAC. he HMI introduced business Americas; work the Anthony regional previously our HMI These gentlemen technologies global introduce here, engineering of to organization company over sales business segments. from who where these point directly joined growth, our on zForce our Uhrick, lead Products, to Avionics our Wærn next Swartz the MultiSensing customer in we be our further led Sweden & To able and organization. continue structure that Johan in sales marketing a teams To in Jonas sales our are will work area the building will will to and previously our who new from lead

work level for And you call. this through you Today, and Johan update pleasure David today's So, include refer call. different from introduce Swartz, we this, later and further that will Besides After our the calls will Ek, of the She CFO. team right in will this and myself the for with that for everyone now then speakers. three more my also full after VP, our Sales have bio. of us org top met, already hear and Uhrick, the information will here here chart Jonas Maria include we on financials. we will, are Wærn, bio to sales take gentlemen showing on later regions. you we the are it's the will hear more to from for here on call information this, the We Anthony quarter more I and the we pictures our our first website in who

go our So, update. financial CFO. to Ek, next, we word the Maria to the I leave will

Maria Ek

Thank you, Urban.

download section for You at can our release website quarter XX-Q find first Investor new and neonode.com. our earnings from available the

So, quarter. an to update of the you give

Our total million. year revenues to and up were by reached previous XX% the $X.X quarter fourth compared

quarter XX% by down was that to first and margin I'll from year's XX%, previous gross to Our later. come back

licensed have third half XXXX. Product as a from growing an quarter of XXXX. from engineering partner deployments touch mainly solutions, network. and we of our projects, A Revenues we in by to part quarter our XX% in some first is million, of were projects. business HMI from our million. surprisingly of But customers. is not non-recurring which automotive pandemic-related business by and existing XX% contactless space. major business a XXXX development, increase revenue this quarter is continuing compared the the major expenses increase business revenue by in invest business compared Revenues. HMI marketing, to by Product sales, We HMI from million, area our our this from product XXX% still Revenues operating $X.X also our $X.X is $X.X to result the The had driven from NRE first are XXXX. an As which product third mostly Asia area area the A believe Solutions to slowdown were is were from of the area increase rebounding the and printer revenues part

the to which related compared XX% The first little sales was but first net same there an XXXX XXX% gross or $X.X quarter to million for for year. increase or the first Our quarter of compared for operating per no million, our loss XXXX, inventory activities percent first alone in sales. same on first XX% with quarter gross this or cash changes first margin previous net quarter $X.X quarter year, $X.X for but million was was where lower XX% $X.X to for we $X.XX quarter $X.X share Net high previous XXXX a XXXX quarter during XXXX quarter first for margin margins. for The to quarter. quarter for quarter. by in lower compared the HMI share by line XXXX the made expenses XX% $X.X used loss increased quarter million the year, to with increase primarily $X.XX per which million to product was the was the low allows solutions depressed quarter. for an quarter and X% of the loss is XX% the the for for we reserves. as first NRE now, at the was it XXXX was business us XXXX some The same was for The quarter the This total ATM margin module loss to XX% the first future $XX On our area quarter was our the the if XXXX. the quarter AirBar Operating entered and XXth, Operating Product high into deliveries. as inventory minimum we and is from strengthen XX% is shelf business The with filed -- gross compared it registration cost in a the previous necessary. margin to our last I a was XXXX. million, and of our were The both find May to result XXXX year secure margin Urban. increase area a from revenues the dilution, margin well million balance by from And hand a sheet decrease when, previous HMI the net agreement. decreased same sales for in quarters. The first of by over previous as

Urban Forssell

Fully and update is business. with our Thank company. strategy Neonode general you, is give different do our migrating much At will especially we based core more do take value-driven and for Military Maria. a Hence, to we to and & for improve last Products, HMI Jonas, we Anthony would resources on on have where handing organization Avionics, I HMI IP Johan. every they markets and they licensing good we a point, key an on before decision Interactive you we a Solutions, purpose, to and remarks internal Remote not area have we and start and over and core are and some This business are organization can streamline address established the Elevators and this and our Everything in areas, we a this year, gave business we like business on measures boost software are are better. three technology on focus our on and year with area the Interactive focus. licensing but i.e. Automotive. by have. growth Kiosks, and business with organization product improve addressing, Industrial, organization Team that business Solutions, know-how use; taking line and this, separate model the market satisfied customer Elevators, we customers focus, segments we One make we tomorrow values; with in Last separated think sales us positive our with Kiosks. for we to clearer Sensing

better and ways we IP are building to to leverage this and using existing to customers. are and exploring we every before, As new know-how value bring on our day our portfolio

For zForce which and perfect touch sensor our fits. technology instance, touch of are the form in are solutions, contactless modules

Military Industrial, and but our Going we forward on maintain Kiosks, and will we addressing Avionics, in Elevators Automotive. & Interactive also are customers focus

inside for with touch kiosks We elevators are of then contactless further and applications segments. business market rebuilding and adding types and our out, solutions starting

I to clear last need elevator here an contactless the dominating that year. go show I a since since focus have Neonode where resource showing excuse with spend what we there's and the So, -- on animation main kiosks, me, this picture, in is actually touch, back, focus wanted and to

no are but now. the changes already no in we in This with areas our sales this organization, for We not organization and regional making terms business or the really boxes. we push increase new the making here contactless elevators here kiosks. green touch other of more that presented have shown focus to saying is even have And our is are resources, clear

by we We business doing will are blue updating my the Zooming and we similar this mean positive reviewing And the point. our here our right with building business solutions constantly is out, slide technology and touch efficacy. customers. we and are adjustments what efficiency up. we ramping development, The and pipeline. are in saying be our momentum size simple at We contactless increasing by new organization a partnerships things NRE that for lot development, also product This innovation, track and and is is a of boxes. our we really final and we business for have feel are engineering projects internal represented this our do, to demand product on

these of and And in time. customers installations are testing to certain sales lead-times that the in are take runs do and pilot processes phases. then we many want cases, evaluation There in and having Some first. the smaller

motivated have are licensing also optimistic we here on further we all that revenues. products nice having the new think be will really are are we Even to customers the licensing business success right about are give complement recurring the to and and by we We we business us track. that the and this a see that long-term,

high business bring in we customers good continue e-readers, and him to to As Americas. an have and have we team. talent, the to automotive Tony, of speaking and the margin to please in introduce printers ahead. the and company. a to himself And my it's excellent add have And continue And Anthony introduce experience and team. pleasure we instance, for revenues our that also with Uhrick legacy talent they go now

Anthony Uhrick

Urban. Thank you,

the like Touch as company, I've touchscreen Smart company was responsible New for for in to bit based been industry Window, fact, but called a market including the a familiar new industry touchscreen Americas, new over industry. is business global I've a several the which similar technology. later worked with very So, Planar leaders me. I'm When few Technologies. $XXX for XM a This in became XX companies such XXX went to optical little for and Smart the in years. in role. Zealand from the and to I'm Technologies very also and sales that a million Fortune and grew not dollars we company in to then million years, worked about And almost I've I'm six later sold they I I was Next developing that had started, public. startups, just

So, strategy our talk about what is. let's

Americas the target in resources the to sales refocus markets. to and direct into deploy is approach plan Our a more vertical

in have almost intuitive accounts This worked public the that's target these germ-free and past. many is can In-Air other we to different offer Touch, we of companies that ability Our with unique any touch-free, interacting and add and the surfaces. What and surface. controls with alternative kiosks, I've to known gesture are elevators, means

So, elevators market, if and kiosks are you think in about huge. how potential many is the

market we divided these But and and to who've working users, the target also we aftermarket devices, already the and installations medical market offices huge these sales But installs, quickest as So, which or and a if and in if can R&D, the retrofits, we food is up fast companies like. solution and and to a provide we new responsible installation, feature. call look developing end we addition with different at integrators devices are new hotels restaurants, the look project a the the revenue. or to into our retail, users represent value-added as target company deployed cycle, new at resellers. a increase time-to-market, opportunity near-term, such or grocery end to path installing mean what such is intend stores, the a airlines customer product the retrofits or solutions providers would which Therefore, way, in maintaining for these existing

a the as So, look take let's an at example. --

these They standard a interface. elevator and a owners and that managers, produce local call industry. Elevator, solution global to in is interiors have control They're building we're this based comprised of installers and developed Phantom, designed company the a and they're a panels they a and convert with sales us provides touch-free So, into which working elevator direct key company channel MAD designers, and They've for decision regional to is global they the other makers. fixtures Canada. access

to low the early the adopters industry confirm expertise, specific leverage is and a to their important, their the knowledge, their plan out Our with most product product market solution prove to to address contacts market. risk

a bit going. know to Urban. to you little institute of market Now, we it's take where but we the we're strategy, time Back going know to and this

Urban Forssell

Jonas business hand to Wærn And the you, will Thank I will immediately Jonas? EMEA. Tony. over who in talk about

Jonas Wærn

Thank you, Urban.

East corporate, thoughts whole and Africa, the how To smart, go can to So, the region. I the market continent. me European region main very we some in comfortable goals with I I want to forgetting overarching not you and there; segment, I let Neonode intuitive, drive as internal mission vision, studied the different ourselves, have how on well see external being multimodal. we make with review goals is work you. we of to This be be goals. you the as I'll how but to business region, walk and with the mistake; share the those position to also and here lived We Middle feel in through successful and many align no there. focus countries

buy existing our can leads, quicker hold One concerns what how to we opportunities et and what cetera. is menu types and Neonode broaden options, good make of to easier our we analyses, purchase should can from, main of of to, on we how my different and

now, to and to businesses next plans closely Elevators value-added around before. us are and execution So, This silly, Americas, I've Interactive sell, I responsible to region growth. main more resellers and continuously once my and Who strategic, however, Military on Also, the comprehensive topline with but that who with The of wait a evaluate on will focusing there and and the remain is growth. much be our working and be development, legislation should kiosks mentioned sell and one out distributors. be? sell, in really we're the EMEA partners for that been analyzing Tony Industrial might Also, the segments, is going and to now, course, has currently, focus, our is going key, the worked number ecosystem partners develop building bit lifted. the our sound can't people with get region be priority like ecosystem

I you few share to note, that on So, cases. with want a

also Some leading [Indiscernible], mentioned global solution relationships elevator year. for a with This installations. of partnerships as businesses control a and EMEA we contactless that the HALO panel in existing region. elevator of of in that worked elevator recently beginning new U.K.-based market. introduced launched supplier components with in of They have together you and is deep the the to or and the before is Europe, sold we them was This

is contactless North us contacts solutions used of more name is ago. They And and can marketed than solution it's more which your the started AIR-CLICK, and start ordering by now Mr. ideal they're and also very This is CEO kiosks Another the big and other solutions burger. accessible few hey, under self-ordering have field a in you for public. a partner, only right selling, being answer. a are the burger Group; there only And with Burger specific not of a case, France, Marine In in like Appert, with us if They network but your adaptable see good America. in a QSRs great used manufacturer general in but solutions. introducing as be example France, on and the what this of networks want in have is Nicolas existing these, by to to King also customer, the of and a sold customers. experienced I buy piloted great months to work retrofitting also also what being kiosks. out but our more also not a this these Paris, solution, Marine system in Group's We

our a sure good partner. we win-win have to solution with So, made

continue short Neonode the Thank Neonode. and EMEA -- for direct partners deliver with for there best to maximize you. we combining sales best have refine long-term with delivered technology we making few will in delivered out selected a premiere, and to sure in So, opportunities the

Urban Forssell

Thank you, Jonas. and APAC Johan business. Swartz And then immediately over to

Johan Swartz

Thank you, Urban.

So, Japan East again. migration XX for XX region thrilled on home see contactless region it's really Asia-Pacific years almost to leading work focus able turf, Southeast nice I'm towards my really years, for in so-called in the being Having this Asia and the lived with touch. and to or

and solid We mentioned, months and Tony use as presented as fully building executed kiosk. a have and we targeting, last integrators the on distributors retrofit six system in past for strategy resellers, fall, that initially of cases as the network define well interactive value-added elevators

recent As our revenue you in announcement seen several profile our projects this across second resulted by several with contribution end the and may a from deployments we will XXXX. in have press high initial half customers, meaning that releases, public substantial see to has hopefully of the of region growth

hand is slide, of we On side country Southeast the in have of you kiosk Asia. can and that right Japan, as well operational self-service and good particularly segments some panels China, this Korea, where South traction, elevated in as sale terminals point see per core

one malls, of therefore, the airport, us segments cetera. et is retail stores, for shopping self-service train at stations, most So, kiosks important

As I implies, mentioned and already name at partners as airports of on kiosk closest is and the airlines. application last particularly earnings call, on self-service our one focusing the

able confident will discussions at to additional existing Aerospace, relationship utilize been to Aviation within with industry solution started. Aerospace and kiosks as I'm with a business secured about for airports segment. with self-baggage well as discussions a ago, develop deployment airports in a yourself already this on check has and for additional business time with further kiosk. now Japan create airlines was check-in Some good win be This for, deployed technology the wider known Japan basis that have and retrofit they a Asian contactless touch multiple the major that to strategic weekly in airline Having

at selected part being self-checkout customers kiosks. so-called is and also The solution, with Japan by other this major retail, Japanese be in stores Group, retrofit of way second which mid-April AIR-CLICK, channels rollout XX popular job together deployment in other to top trading the Japan to were chain However, the to in started Japan's initial also retail and one and several be seems engaged hospitality on in largest three the name, will is sales Itochu excellent industries additional the a the locations of Japan half Aerospace rolled of continue out throughout transportation, by called [ph] of during manufacturers the [Indiscernible], recently one chain a of and XXXX. sectors companies with has into

our one Another team Korea to my partner visiting scale we for least Stockholm, contactless Also does basis major middle elevator case some South Korea elevator market FineTek I we South communication. elevator since together the here Neonode more to panels an last in in have close press this that we are or a now Korea pandemic that due FineTek extremely that has we preparing companies local solution would like of the on a in to the a South case, ago. customers and touch wide and rely emphasize on developed control stuck had or rollout, release some digital cooperation, with Recently, of in in at which with time our highlighted daily they having in current year. selected breakthrough is have companies is less

more other buildings, companies announced also been FineTek three well manufacturers far office elevator with with hospital certainly and engaged South as but the is Korea. at as pilots in top will kiosk have So follow. several

significantly So, such can also grow other or quick-service in truly systems business FineTek ordering and for are we grow optimistic will retail that payment our as with segments, restaurants.

the name look mainly China. Hong Mainland for Kong and Finally, Kong another for touch by purpose. retrofit at illusion panels This a under of use let's case sold Productivity in is mostly No-Touch Hong control and contactless Council elevator deployed also have

adoption with in markets, example, have their they their particularly presence. and Southeast Kong such Asia, the for where turn developed having a model really, Hong solution sublicense aim really a this has overseas solution of strong Jordan that Productivity other to have started to wider also recently Schindler Council However, business in as, the promote in companies,

of it So, over Tony said have all really improving those refining and that like that, Urban. ideal initially the in close to And implementations. tremendously to referring back contactless helped back here, we with make I for to solution would word us have what to had hand touch engagements our

Urban Forssell

of you. presentation. summarize wanted Thank our key end are strategy just are the I we to the regarding business. our And we points close to our in

The feel first we that I call the increasing Products track, that on said we and is touch sensor our we the high upfront we demand solutions contactless our touch are in for see right an what call modules, business. i.e.

We belief improve will help this include us that have this, by we grow also and bottom-line. our a in strong will topline our

focus different, be develop retrofits these Kiosks. healthy market. little denominators both quickly that part rather look very of on common Europe, we are based with equipment existing equipment in growth. different, little the and North are a but Our The Interactive and then tremendous solution, the markets new continues also can markets are have to huge our there America a we do a also opportunity equipment we good can can install large with basis transfer also of Asia, into many the see we Elevators markets And they case, and in they that here and -- and in retrofit

year and after. where is next this year potential the we biggest So, see this probably year the in

technology We are about licensing. and years, The come optimistic focusing forgotten haven't very on from. Neonode where been we last we still has XX

to harsh users this interface and some environment gesture applications and in have or provide could that supports are we to bring traditional sensing, before, similar with can And it's the and to our want work customers sensing, typically that. technology we zForce touch continue our operators we touch, a we on Industrial, to plants & try where work they targeting we Automotive, and difficult do by in mean to continue this, contactless we on presented for to as gesture the monitoring. Avionics mainly continue We Also touch and gloves space, industrial demand if in rugged driver in-cabin have there's workshops Military in and in attention and and or then applications.

advanced software very that hopes we still for. have a high have there You solution

it's we new with high in is worked you are for very, IDI know still you a Neonode in systems, three follow companies with have requests. market this Those OEMs, interesting and it's have how very developing. We currently years, with the The of the lot several Xs, see we Tier several solution market engaged that that to top have previous we solutions have car and and we performance in we quality where sensing the regarding companies interest in by received, this programs can cabin asking a gesture in excellent for Building And been technology. records. well to gesture there's last do leverage proposals tried outside. both furthermore, on our the that, license and new to big we approached the have of month several sensing,

Digi-Key of the from have Directors, and Jonas, and ecosystem partners that we if Johan we with heard distributors our excellent we as Tony Board remains in here company an our you about, owners, Automotive So, of And team are feel an have important are also fulfillment area our we distributors, one well-positioned for talk working. us. and our

resellers. value-added several have We

We have partners. technology

mentioned months have makes the they the them in to accelerate are today. and of all But feel us current presentation capitalize we and future and this on in growth together well-positioned opportunities. also are featured we quarters Some the that and coming

grow. in the our pressure currently value and are another are be the and on we technology helping we involved necessary as We engineering also of contribute for you also market there that's them have team. partners, us engineers, to reason continue more absolutely But why we high capacity, certain this we our expansion to that selling will with resources and added solutions could overcome the this But will recruiting work partners -- can our and for these partners us obviously be engineering instance, resellers they think are that some products They we them. with have in. know, the

different And ways, this and work continue we multiple partners look of why forward to we heterogeneous probably as types see ecosystem and also so all excited year. well. different in that's ecosystem. we next And markets into different set the of use are But to in with rest and with of we will we them up this year,

your like So, with you for all will that, to we attention thank to and Q&A. I would Dave? move

David Brunton

I Q&A analysts. now open the our covering from for call

Operator

the Jesper with [Operator question of from Instructions] We Henrikson have Redeye. line

Jesper Henrikson

the very question. Yes, with My Could have recently taking first made the Maria. and that for question explain you file shelf thank much you is my you the to registration SEC? ATM

Maria Ek

trademark period takedowns. called share to types a sells -- minimal way so shares called a banker kind SEC without regular is offering offering flexible registration effectively without Shelf market stock you discounts. We're the several is the company's the the at and existing This practicing ATM. of seeing as to market over sale with filed own Is the Yes. it’s if made and into the of [Indiscernible] capital This with and is being an pre-registered today using impact into a The market allow three-year U.S. and the during transactions, the company so low a and one cost market. that--? to its description. raise securities

Jesper Henrikson

that's Yes, Okay. good. Thanks.

interpret the these $XX And at How ATM at shelf investors million? $XXX numbers? is is should registration so the million and

Maria Ek

for This size Well, taken effect future none for numbers of issuance. would target this to though. has been have decision of size these any offering use option time target no the share

this use and when if conditions market will and We facility are careful favorable. manner a in

capital pre-registered board future. be raise shares with to housekeeping good -- the able be to the of pre-registered the in a the it's So raise

Jesper Henrikson

global Thank question Okay, then And affecting understand you Are component how I also Urban. is very shortage? for you much. one this so, And if business? that. your experiencing any great.

Urban Forssell

today also products risk that problems But any the for are there. with our see manufacturing. we is don't We feeling components

our needs component next year. we this for how consultation basically, into But this stay. long have who will and knows covered year So

exploring we components third we are key now have covered. right year and This from worse some this continues of already or So our components. gets guaranteed supply next alternative, if of second year. it’s situation prepared be sources And the really to

Jesper Henrikson

resources fitting Can FineTek fast say how last question the are then about about this? big how how is Okay. much anything And it one Great. like, And can And grow? partnership. elevator FineTek you in? also more

Urban Forssell

question with to or -- daily that works Johan over hand will So FineTek who on I more basis. less directly

address can that. you maybe So

Johan Swartz

this and state both certainly. this, both companies and have effort considerable OEMs like to pass qualified not order but have mean, only are and multiple invested time reliability about in just FineTek elevator me I the with this, with so number one and super a Yes, actually two serious largest Korea. elevator fully let test of of we OEM, multiple South solutions in Neonode

then according XXXX or Even it's Korea the South predict that, being So I this. by stakeholders. by rollout. a Then of elevator and see users difficult or pilots elevators in into OEMs, out, super the reports statistics. reportedly in will associated we is to owners, result building had by resources the than I But one we a It with mean, et both those turns put office install a speed have installations really the base only both retrofit buildings. a other in and ratio as a volumes. in and moderate for and an although lot ratio retrofit but pilot announced we’re to received cetera the substantial and of very XXX,XXX, research hospital we And can mentioned, what of and committed well been more

think I say. I can really that's what

Jesper Henrikson

great. all you me. Thank for very That's Okay, much.

Operator

next of will The the with from Capital. question Schwab line Christian comes Craig-Hallum

Christian Schwab

company's questions. components what a you've for XXX% of sell-through Urban, the thanks have taking we roughly that if year, my revenue? for would be next secured Hey, the

Urban Forssell

Yes.

production We all, of up and ramping sales. are our first our also

and to by to targeting are percentages. actually multiple not we grow So

So fashion next growth in the also we in aggressive same are year. continuing and targeting very the

So numbers year. I will similar type this I numbers. next specific we say XXX% growing several and of year any But you also are any that guidance won't to give

Christian Schwab

of it kind a How or Great. that substantial on kiosks it, in of could time to five to we comments, how business the highlighted if opportunities pipeline big? that And a or kind then of of million years, given it's putting take it necessarily a revenue years three $XX whether opportunity without $XX longer? does for become long elevator, prepared business big million the interactive potentially become frame

Urban Forssell

Both We installed onto we something would and Interactive say, for think Kiosks. huge segments, these hopes bases. We have this. really really two with a have, high Elevators I are good

X installed like X the world. We are growing million by number And million, elevators in a X.X million that year. XX to close is elevators

Another something. every refurbishment rate years on of XX systems the elevator cars or like and general

aftermarket certain try for equipment. a a with and significant is off the share we there's grow what our planning to market And of elevators. and with secure done have So own share to market that installed new that base

elevators times play, the for have retrofit can which lifetime. also we actually use several We

we a the of up two, you hand, to for globally are elevators business, this for numbers the the said four, the of market. little it's kiosks. bit and kiosk So elevator three, -- on are years, as than really tens trying other fragmented. more several dollars five the bigger Actually, But in grow we much similar is into next millions market

We have kiosk. every of type

We have ATMs.

vending machines. have We

the type saw have kiosk restaurants. we at food We self-service and of fast airports

market sort us, of But total in this. kiosk size elevators. the I to grow combined, realistic see similar for that opportunity, So, hey, as marketing addressable huge think we is we want

million onto working of the this in next U.S. We three, are several tens the to years. four grow

Christian Schwab

my recent to And type Is of with share with question do then can last portfolio there? protection. us there the you Great. any patent updates has

Urban Forssell

LLC families repeat this trying transferred LLC. as done called trying question. we and and That's Technologies find instance, Aequitas in how we agreement assigned litigations That actually an They of agreement well. obviously. the Great the Yes. of company for to old Neonode and of them some goes XXXX. This And are company grants any it to X-K call net the believe these XX% a of us for online, us super part or see an those can -- do If proceeds you as is if expenses. have has, a the they interesting to they monetize. I agreement of they have follow They dollars was I settlement these process advancing with we owned will that patents least course, filed balance or proceedings are publics a if at have some to And our them as with And that They Inc. are Technologies as is it is sheet us. in Texas. nice running company not favor, its with that and that us. potential the Western our XXX% Neonode’s from monetize and as into And hope we two in independently Aequitas successful, set do. processes. end less to the any LLC which up end LLC. this, nothing part in by Aequitas they're the do there's are has Technologies searchable. Smartphone District, or brings upside well them of court decides litigations Neonode available you sued of at Apple I Samsung and know,

Christian Schwab

questions. other No Great. Thank you.

Urban Forssell

you. XThank

Operator

line The Redeye. with next question will come Viktor of Westman from the

Viktor Westman

so solutions path? not jumped you tell Japan for have I not noticed you why have question this have Airlines, promoting it on bandwagon my they about a other or a the know others that Thank much I another taking Mr. me from for so see solution chosen don't or Johan I are much Swartz. these Can they question. this contactless players. lot.

Johan Swartz

about only a is focusing talking we’re Japan obviously, contactless company if kiosks. the mean, globally, a not Airline I touch on Well,

and Hamad We also airport by in Airport Changi have announcement by Qatar.

a combination and airlines, of So AIR-INK up talk with think of kiosk airport's [ph] or sometimes we sometimes the flavors this, airports, kiosk. I there other And self-check when a set and sometimes are Sita various controlling in actually certainly it's at owning about a the complex players. like companies bit of

when we a progress little I make up. this. complicated bit have this. it that do of takes I a of should other it of it's But happen. lot that So airports little think those a and also and a bit But And influence I initial set hopes things installations think indications will will have announcements more this complicated you airlines therefore, to good time. And actually

Viktor Westman

Good. Very

or report in current And you exploring are with can further partnerships me, in what question you of Another partnerships? and exploring What about you satisfied the kind partnerships you more you're partnerships? not areas? are your mentioned, tell why

Urban Forssell

this is speaking. Viktor. So I Urban and in This will step answer

So to into our regional what structure. we refer related to is reorganization sales

Americas. active and helped the EMEA very and model But have mention, see a some We can China. found just on to successful we have talk nice this that in Neonode we a scale We we and global and talk been can talk partners good for lot very us that Mainland, is Asia. can

regions. are into good of added some and We value resellers types looking these other in partners

thing do. is this one we So

of been other have competitors winter where exploring technology are us approaching that and also We during spring. even the partnerships types the

if sales proposals We join can with offering. of can the some companies, And quite broaden resources. channels we we interesting area's because marketing and of some our these forces other share can the are also

pursuing to and we ideas actually, Tony the of So APAC board our run these organization with in parallel sales and EMEA are them a on continue Jonas lot and us Johan new to running gives sales more Because do where bandwidth a in do we from we sales really and this team direct the management believe heterogeneous through go a in after indirect focused we both partners. the approach way. to

Viktor Westman

areas vehicles? you about have you. kind for of do here? market aircraft Solutions ideas from touch What other displays HMI Can Got military part. the share me exciting in the Okay. last One some question and besides you other

Urban Forssell

interesting so all technology they a globe very far have of -- I them as if different a is our in Well, identified then applications. with is And there of be or what that it's And it's our not technology us several will touch-enabled. displays aircraft into mean, very that. have types for and them we of market fits classic, a

of of the sort technology have there of that could then I types other don't Defense another were other on Jonas naval is be types and Of also army of soldiers in Department And aircraft. more military for And fit by typically will touch our device also displays wanted his soldier there forces. used are project that by informed solve. not have And something But like or of you with a technologies interface this they the other company carried there. displays good course, rugged a me personal zForce displays this that many Neonode is similar this know or where to gear.

and soldiers play not a military could things. in it infantry could and and have aircraft, ground other the and we avionics vehicles only that believe also we it So be it's market, be

Viktor Westman

also. was feeling Yes, great. my That

call on So the you, as clarifying well. thank much, thank people that. so you Urban And for the other

Operator

line question Philip will come The from at next the Mark with [ph] Schwarz Capital.

Unidentified Analyst

shareholder question of questions. Thank Should the Urban. it's $XX to like at shareholders B. shelf hello. million sales need million allowed have also the the at registration, end this Maria sell is I stock taking worth market? it? understand Riley But a agreement maybe, you the I Riley and that will $XX for B. -- for now my the feel market the information on Yes, or more

Urban Forssell

no. or Yes

shelf use of typically a can First we that shares during registration three of years. all, securities pre-registration is

now are do up expired have last shelf new year, have up period set take We that direct during the a the spring. offerings. us we to industry have and or And new This one. setting one a downs allows

can shelf. You pipe can ATMs do using this deals or we do

Housekeeping what set to this that's So considers board Good Maria up. like the mentioned,

offering a shelf the We or have similar, like direct do plans no use or but… immediate to this

Unidentified Analyst

selling And will yet is let private say the B. it Or market? it purpose? do? they Riley is -- Is in placement? What what the

Urban Forssell

have by something And setup can now and soon improved, as own in place. we we Neonode use as it's this is So it. our the shelf

sales Those if we're The then low decide done market price, and price sold going very and market fee. discretion discounts an second will through is we will at agreement B. at Riley ATM. shares shares with to Riley's control Neonode. for from at trading one own an desk. that B. We be also of sell can our shares no It's

this. Maria we that think have explained investors very we in that So case…. this for also it's favorable also

Unidentified Analyst

[Indiscernible] Sorry.

Urban Forssell

me please Sorry. finish. let Yes,

through we explained this agreement. if favorable, board the Maria is the ATM as B. ATM amount. have in approved to by the Riley the going some So SEC, are this probably available shelf total when And decided start shares But market to use and conditions option. hasn't selling we're

Unidentified Analyst

right. All

So the discretion? Riley's selling your will B. at

Urban Forssell

Yes.

Maria Ek

Absolutely. Yes.

Urban Forssell

If we you want give call a shares, us buy to a can good price. give you at

Unidentified Analyst

Okay. Definitely.

Urban Forssell

guys. you Thank

Unidentified Analyst

Perfect. Thank you so much.

Operator

any time. are audio questions remarks? at we have further closing Do no that, this With showing you

Urban Forssell

Yes.

Let me say more a words. couple

it and Just new to attention would neonode.com. website. more I our off, your looking round nice introduced new I traffic to we direct like before to have to our website to want

and stay Twitter. updating, through very us and please media this We social call. so are today's for much. And thank like media you joining also Thanks and LinkedIn continuously other adding content with

Operator

our for day. all Have us for you good a call. joining Thank

Neonode (NEON) 12 May 212021 Q1 Earnings call transcript