Neonode Inc.'s third-quarter and nine-month financial results for the period ending September 30, 2023, revealed a downturn in earnings, an upswing in operating expenses, and an increase in net loss compared to the previous year. The company's CEO, Dr. Urban Forssell, however, stressed the long-term stability of their licensing business and outlined strategic measures being taken to foster growth.
For the quarter ending September 30, Neonode reported a 17.5% decline in net revenues to $1.0 million, compared to the same period in 2022. Licensing revenues also saw a fall of 20.0% to $0.8 million due to lower sales volumes.
Contrastingly, product sales revenue for the quarter marked a slight increase of 5.2% to $0.2 million compared to the same period last year. Despite this, a negative gross margin of 39.3% was reported for Q3 2023 compared to a positive gross margin of 48.4% in Q3 2022. This downturn was attributed to a one-time cost related to a customer claim.
The company's operating expenses rose by 6.3% to $2.2 million during this quarter. For the nine months ending on September 30, Neonode reported revenues of $3.5 million, down by 9.1% compared to the same period in the previous year.
Despite lower licensing revenues in Q3 due to decreased sales volumes, Forssell emphasized the enduring stability of their licensing business and highlighted measures being implemented for business growth. These include evaluating potential market segments and adjusting resource allocation accordingly.
While the latest financial results show a challenging period for Neonode Inc., the company's leadership appears committed to navigating through these difficulties with strategic adjustments and a focus on long-term stability.
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