Earnings call transcript Q1 2023

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Jesper Von Koch

Hi and welcome to the Neonode Q1 2023 Earnings Call.

We will start today by an accompanying presentation by the company, followed by a presentation of the Q1 results. After that, we will continue with a Q&A session in the end.

So with that said, I welcome on stage the company’s CEO, Urban Forssell. Welcome.

Urban Forssell

Jesper. you, Thank my from to QX our And side call. earnings also welcome me be CFO, will call and managed Today’s by our Fredrik Nihlen. And and the let the company of you. start a call, with through me before this go disclaimer main we content legal presentation

shown the will the screen So summarize text and here. it please on read I

its oral forward-looking contain statements. This related statements Neonode may and presentation contains Inc, management of written and the company and

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

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

and industry own by based the sources. information sources. sources Certain The contained obtained as believes company of that its carefully prepared risks, are information Prospective are advised these provided statements today’s has information been company presentation revise as in duty forward-looking this update its on information undertake to uncertainties the Any from from derived herein been factors. statements. well no as date. from investors forward-looking of management to accurate has and is information reliable. public made company presentation which other may by or and it the included such are consider The This various be

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

through updates. points like here. And go Q&A, brief And will I the presentation, back would word to a go key share quarter. after his business today. a which, the will summary the will from your I QX with this, financial which I for give for through will the to and patience. you give who stage some next fairly Fredrik After I come will Thank of agenda brief we to the this, Jesper results. After lead go

summary QX. points of a So key for

were revenues by printer in semiconductors to during semiconductor years, been our of quarter. situation the customers worldwide issues that shortage supply stabilized. and improve. automotive situation now customer conclude sales is to And this, hampered begun our the by we X has Several licensing supply improve. Our first and stable of the Also, have last and this have starting other lack

are our it, our regret a just Product turn, good revenues license our below stable the fact. to that’s compared but level and QX, volumes on license sales We and So targets. quarters. in in was previous

start the the Christmas after year. And products in customers fact by So markets, New of in year. and the end that held we’ve many last that some had Year the of of our lot a holidays see And in markets key case slow. the also, QX our indeed, many businesses the up were back in slow we Chinese a product stocked sales of is

after levels of inventory the high last on sitting fourth were they So quarter year.

And I and on have we that later. will we elaborate point, segments on key the our continue to the to that strategy. execute in beachheads identified, is Third more establish focus

deviation or major So no change strategy. in

laid strategy the for continue have We the we on to our execute plans year. and

and internationally. the and and quite that both good also to talent to experience I’m engineering say market sales talent We Sweden recruiting are currently teams, right in for is recruiting new glad our now, and to add

recently, some team. So we have strong made the we very board glad are that to on in recruitments bring

QX here financial the at the presentation. I beginning without word Fredrik up will I of to points here go the wanted So who give results. to through further come these were the now four the And key highlight ado, and

Fredrik Nihlen

I you, the a do of will results Thank this in Urban. financial summary presentation.

XX-Q That License compared decrease last You XXXX an more increase earnings Total revenues to of in SEKX.X million. the for last SEKX.X reached X% same revenue release. a reached is QX period our of is year. and X% That can details million. find compared to year.

said, said, the improved customers As customers is so products for we million, TSM decrease issue XXXX semiconductor shortages revenues. Urban our when for has QX quarter with also have, printer the up, and a – are as slow – also we year-on-year. was delivered has us, student. Urban we $X.X within a but automotive in within from stocked been our have XX% and of Revenue QX

activities of products X% was XXXX mix, QX compared period same same NOKX.X expenses gross by period reached the have QX increase product varies XX% decrease the of and payments. cash It The but is in we to quite timing with NOKX.X and year. It’s points an Gross compared level combination receivable accounts that last the XX%. decreased year. of a products higher XXXX for percentage an burn Operating margin operating in good. was to customer Net of It’s for we QX XX less components the is think offset margin, is XXXX. is in – a It mainly due million professional increase with last bought million. to the fees. for customer

NOKXX.X March good million balance from $X.X of of of in XXst million. used in ATM cash XXXX. an January. of as have earnings XXXX, a previous increase we and we the quite disclosed the we call, accounts It’s year-end receivable as So And

leave I to with the Urban. And word you, will back that,

Urban Forssell

And website me. Excuse through Fredrik. you, system SEC. our EDGAR usual, as Thank the at on our also you find release the course, of detailed and earnings

We customers. kiosk that customers our products. the selling this way vision focus business And mention and automotive and we focus do humans machines I licensing will in passing, on customers is just Next, technology products interact. our to business. In a elevator business, and on by licensing and update. transform printer in our We brief sensor interactive

are driven they mainly in, work in cabin we that areas application key monitoring. Our

in where object solution our cost-efficient prove that now for head-up objects general, We very to on putting good application alternative and scaling detection, can sitting very, we work head-up a display more displays. detect the top on of head-up and also up efficient, in on emphasis displays, for particular OEMs also is

one to contactless similar. In applications of in touch flavors. touch rugged can keypads, even touch. on mainly business, we continue holographic call gloves focus is customers And – front instance, on talk in have users special and gloves, touchless displays and, working and where require touch of now, work for other or etcetera, and sensing. using case, today, touch lot gesture in and also for about thick our products keyboards, that right a the We comes features operate this these requirements touch on our we two that the their

this, sensing. products our will are holographic display ideal. and show and example We soon. touch I making And here, images Also So rugged for gesture work an sensor interactive. on

we software this, Camera-based work several that this. the of on is have humans focus continues to as course, we interaction perception. underpins, we an to Neonode applications monitoring earnings calls video but we also monitoring And the lot HMI, driving last area, what summarize regarding work the and streams. speaking mentioned year, have. that this offering in machine track of in driver And and So increasing a in-cabin offer, are heavily solutions human our in in before, detect we can also in now

great from several feedback customers. have We

the major can a important we ongoing that have with competition out we working currently this there we platform offer from X year. OEM, news with on is a present relations of stand scalability work in that may can and also and couple of targets later are features And we and Tier and on flexible the software together really these we what hope And focus very scalable what We vehicles. a that suppliers.

our types the for now, out customers driver applications them. focus current we this, indeed, customers solve platform or well. coming scales be RFQs wave But They also as types well features that of other of of strength X that is features the on ideal. problem it monitoring. software in-cabin from the that offering is right and safety the Tier lot the first to want and can to And a that our very or other OEM realize. efficiently can in And monitoring requirements follow The

here. will marketing this engineering efforts of in for increase sales also in a And we sure. focus going forward, So area, and lot

rugged about company contactless up – spreading forward. and doing with sort touch about and Swedish Structube, as Structube an and meters, infrared good end hope we before works slowly, this it of to taxi launched state-of-the-art line of And touch mentioned taxi here that of I technology this for have steadily. example meters, and scale we that been their here, incorporates a well, for by launch working going a for example cooperation they really, last a have a product before, but received product – one our but recent just new really also year, them well we their is touch products with

Here hotels an luxury a recent can anything. London, you implementation of is super-nice hotel that Clarges, in without at operate example touching now

your go the the desired the with but floor, to finger. you of can or So, wave hand

for communication as content very there around and nice well. go please So, this pictures this our and also marketing check around some is

bottom social illustrate picture. you in marketing, on lot and marketing, And interviews a by YouTube the our in Imagine channel, different the a channels, of and media you content But picture. both and videos so-called but we in similar. our snapshot want at This see continue terms from of production, other to this it and I do still of campaigns speaking to also little the find types is Video, live media link media digital of and

is and marketing focus our and scale this, in of put lot continue a up So, invest to being into activities. we

it X the with And also in and has also but lockdowns do active lifted, for instance, years world. ago, are of in course, more of other in parts being physical Compared to, much events. China, restrictions to we travel say,

where North of we both in is visited Europe example we America. here approach. of QX, in And marketing So, course, Asia, our an a and different sector-based number use events,

closely of the the automotive prepare the in QX, are show second over business related number and other that a our So, And are half a and year, we events. want January have our In maybe number NRF in the licensing. electronics events segments to in we of for started events CES already of to And also interactive have some that targeting, the and events for we to have we coming penetrate, show U.S. kiosks our up June. for key events of we for the products course, elevate

have you So, us our come at if to and you chance, technology company. a we introduce and our to visit and events, to help you will please these

And Jesper up invite of I short attention, this, are I with session. and thank you quickly the for we And bottom the at for a your presentation. Q&A

Jesper Von Koch

for Perfect. Thank much that so you presentation.

– customer, your you do regarding And will so first, move an with the industry. working in on directly say are OEM we mention Tier that can’t that with Xs? or so work into this my you OEM you really the it and But through is always the Q&A now and name you automotive

Urban Forssell

That’s it’s vehicle manufacturers very a directly. we as trend But wanting to very good a have software-defined control the that’s we think know. over features several on actually question. going case, trend software the vehicles you for is vehicle And and years, in work of nowadays, this And apparent. the I the in – been also

content are So, seems of quite hardware. to for looking have And they chosen they group seems sourcing offering. in our software have it’s then now the it separate group, idea with a They hardware happy for the this case, to special be this a and and that companies.

and yes, on side are we indeed, discussions And cases, we the But one it be working the Tier go for resources team the company, parallel. also they in to different course, it some up us, of X X other here. because of they a Tier case, directly. obviously, being this better interesting customers small have through And have relations in in Xs or also support with two would Tier have supplier. great So, will to

Jesper Von Koch

target? of or you on the is OEMs so any And that specific it market

Urban Forssell

follow that target is. specific disclose it it being not in continue a to but Yes, Sweden. and can headquartered have I plan share and work will here, on this. we Stockholm, a I here we

third. Of in Europe Asia course, and we the look North primarily place and first maybe in second, America

gives that idea some working. where of So, are we you

Jesper Von Koch

of the business, And and accounts we you what Alright. largest they if at some where an just then expect? on should update in give products are could your

Urban Forssell

Yes.

have we So, in is different business products probably tried as on. the and completely calls something from the so business previous explain to licensing earnings

But to medium-sized customers, at are We very this bigger working a number can we And here with win large are fairly a working we course, get from standard order if sell just volumes customer, large – small the of and or and of a point, bigger orders. customer product. we very, be even them.

a that or it’s sort in can steadily, but means but slowly, they that several been Rolex you ongoing is for So, hasn’t – while, ongoing slowly cases, move of say.

can increased But be year-by-year. totally we that but So, this should two this or will that and be cannot either this we expected trend expect will what expect steadily, is quarter-by-quarter one that there change slowly, and continues, you that everything. business not

can Although top for in that to you and have a hope built be going on you we hard put house. you work practice eventually, it’s quite that, more actually see more nice the and bricks

And with we push, or to partners are and why we a of a of organization, also want still to probably that strategy, in think track, course, continue do partners can this, push we some the our and push we lot lot it But different marketing. And building we adjustments so this push. that’s So, are marketing we but are is the and to we right never with work we through the partners. making to remember, continue push, on to accelerate. be and enough, the we

Jesper Von Koch

don’t have questions more any I for today. Alright.

today’s that So, concludes presentation.

Urban Forssell	Chief Executive Officer
Fredrik Nihlen	Chief Financial Officer
Jesper Von Koch	Redeye

Neonode (NEON) 11 May 232023 Q1 Earnings call transcript