Neonode Earnings Presentation Q3 2018 · 2018-11-08 · •Net loss reduced to $0.8M compared to...
Transcript of Neonode Earnings Presentation Q3 2018 · 2018-11-08 · •Net loss reduced to $0.8M compared to...
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Neonode Earnings Presentation Q3 20188 November, 2018Håkan Persson, CEO Lars Lindqvist, CFODavid Brunton, Head of Investor Relations
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Forward Looking Statements
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, adopted pursuant to the Private Securities Litigation Reform Act of 1995.
Statements that are not purely historical may be forward-looking. You can identify some forward-looking statements by the use of words
such as "believes," "anticipates," "expects," "intends" and similar expressions. Forward looking statements involve inherent risks and
uncertainties regarding events, conditions and financial trends that may affect Neonode’s future plans of operation, business strategy,
results of operations and financial position. A number of important factors could cause actual results to differ materially from those
included within or contemplated by such forward-looking statements, including, but not limited to risks relating to the uncertainty of
growth in market acceptance for Neonode technology, a history of losses since inception, Neonode’s ability to remain competitive in
response to new technologies, the costs to defend, as well as risks of losing, patents and intellectual property rights, a reliance on current
and future Neonode customers’ ability to develop and sell products that incorporate Neonode technology, customer concentration and
dependence on a limited number of customers, the uncertainty of demand for Neonode technology in certain markets, the ability to
manage growth effectively, dependence on key members of Neonode management and development team, limited experience in
conducting operations internationally, and the ability to obtain adequate capital to fund future operations, For a discussion of these and
other factors that could cause actual results to differ from those contemplated in the forward-looking statements, please see the discussion
under ‘‘Risk Factors’’ contained in Neonode’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 and in Neonode’s
publicly available filings with the Securities and Exchange Commission. Forward-looking statements reflect Neonode’s analysis only as of
the date hereof. Actual events or results may differ materially from the results discussed in or implied by the forward-looking statements.
We do not undertake any responsibility to update or revise any of these factors or to announce publicly any revisions to forward-looking
statements, whether as a result of new information, future events or otherwise.
NEONODE
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Third quarter update
• Selected for technology evaluations by several automotive OEM’s• Q3 revenue decrease of 17% YoY• Headwinds in the Chinese vehicles market• Printer license fees affected by Canon shifting to new product platform
• Net loss reduced to $0.8M compared to $1.1M in Q3 2017• Cash used reduced to $0.8M compared to $1.7M in Q3 2017
Events after the quarter• Customer acceptance of zForce AIR for a display in a medical device• Purchase Order received for initial supply of sensors for Taxi Meters
NEONODE
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
NEONODE
Key Execution Areas Execution ProgressIdentify targeted use cases for Touch, Mid-Air Interaction and Object sensing
• Identified concrete use cases for targeted segments: Automotive, Consumer Electronics, Medical & Major Appliances
Focused sales effort • Sales process established• Engaged with all license customers• Targeted module sales to selected segments• Started to establish partner network
Increased marketing to create awareness
• Increased event participation• Improved website content• Improved visual communication• New Interactive Demo Units
Technology improvements to increase competitiveness
• New version of Core with enhanced performance and customer Bill of Material• Cost down of zForce Air
Preparing for volume production • Automotive certification in progress• Tuning production process• Identified production partner
Key Execution Areas
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Capitalizing on Market Opportunities
• Increase licensing revenue from existing customers for both current
and new models.
• Drive sales of sensor modules leveraging relationships with key
customers within automotive and new customers in selected
strategic segments.
• Use marketing, third party sales and systems integrators to create
market coverage, pipeline and sales
• Grow NRE revenues from customer driven development projects –
automotive and licensing projects.
NEONODE
Door Collision Avoidance
IVI Virtual Trackpad
Trunk Opener
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Touch Interaction Mid-Air Interaction Object Sensing
DIRECT SALESAutomotive
Consumer Electronics
PARTNER SALESOther Segments(Medical devices, Industrial, Retail, Major Appliances)
Focus Segments and Use Cases
NEONODE
Entry SystemDoor Collision
AvoidancePinch protection
Touch on DisplayRugged DisplaySmart Surface
Touch on DisplaySmart Surfaces
Touchless Touch
Accident Avoidance
Pinch protection
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Customer Progress
Touch Interaction Mid-Air Interaction Object Sensing
Evaluation
• 2 Auto interior touch & touch on window,
• AI home device & consumer displays
• Lawn mower• Washing machine & refrigerator• DigiKey 509 evaluation kits
• Auto tailgate & trunk entry
• Rollable display• Smart store
• Auto collision detection & pinch detection
Prototype• Auto steering wheel &
infotainment system
Pre-Production• Auto taxi meter• Medical display• Aeronautics instrument display• Printer display
• Auto collision detection
NEONODE
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Summary of Technology Platforms
zForce CORE – LicensingStable platform that enables very accurate touch on a display.
Release of new version 1.5 in final stage. (Version 2.0 in concept design)
• Cost reduction
• Improved performance
zForce AIR – Licensing or Sensor ModuleA new level of freedom of design, ease of integration and flexibility.
Key Focus
• Auto certification
• Preparing for mass production
• Larger form factors
NEONODE
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Q3-2018: Financial Summary
• Q3 revenue decrease of 17% YoY
• License fees $1.6M,modules $22K and NRE’s $287K compared to license fees $2.1M and modules $36K in Q3 2017
• Net loss of $0.8M or $0.01 per share compared to $1.1M or $0.02 per share loss in Q3 2017
• Expenses at $2.5M
NEONODE
0,00,51,01,52,02,53,03,5
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
Revenues ($M)
License Fees NRE Modules
-2
-1,5
-1
-0,5
0Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
Net Income ($M)
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Q3-2018: License Revenues
• License fees decreased 23% YoY
• Printer license fees decreased 16%. Mainly related to HP and Canon
• Automotive license fees decreased 45% YoY
• License customers shipped 2.4 million products during Q3 2018, accumulated >64 million since 2011
NEONODE
0,0
0,5
1,0
1,5
2,0
2,5
3,0
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
License Fee Revenues ($M)
e-Readers Printers Automotive
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Cash and Balance Sheet Summary
• Working capital of $4.6 million as of September 30, 2018
• $2.7 million in cash and $1.5 million in accounts receivables as of September 30, 2018
NEONODE
GroupBalanceSheetSummary($M)
Q3-2017 Q4-2017 Q1-2018 Q2-2018 Q3-2018Total Assets 15.7 13.1 13.0 11.2 9.7Equity 10.9 7.9 8.5 7.0 6.0Equity Ratio 69% 60% 65% 63% 62%Cash 6.9 5.8 4.9 3.7 2.7Current Liabilities 3.9 3.6 3.0 2.9 2.4Working Capital 8.2 6.2 6.8 5.6 4.6
-3
-2,5
-2
-1,5
-1
-0,5
0
Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18
Cash Used By Operations
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Copyright Neonode © 2001-2018 All rights reserved. Stockholm – San Jose – Seoul – Tokyo – Taipei Nasdaq (NEON)
Outlook
• We have focused the company on capturing market share where we have a distinct advantage.
• We have the building blocks to increase our revenue from licenses, NRE and sensor sales.
• We have been accepted as a sensor module supplier to a global medical device company creating a foundation to be included in future models.
• We will increase our marketing efforts to showcase the capability of our technology.
• My confidence is very high that we are on the right path to get to profitability.
NEONODE