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During the call, Forssell provided a legal disclaimer and discussed the company’s earnings in detail. Despite a proactive increase in sales activities, Neonode experienced a downturn in licensing revenues in the third quarter due to reduced sales volumes from key customers. Nevertheless, year-to-date licensing revenues have remained consistent with the previous year’s figures.
Forssell also noted an improvement in product sales for the quarter, crediting enhanced sales efforts. However, he acknowledged that the company did not meet its targets for the first nine months of the year, attributing this shortfall to a sluggish start.
CFO Nihlén presented a breakdown of the quarterly financials. Neonode’s Q3 revenues reached $1 million, marking an 18% decrease from the same period last year. Licensing revenues fell by 20% to $0.8 million, while product revenues saw a slight 5% increase to $0.2 million. A significant one-time customer claim cost led to a negative 39% gross margin for products. Additionally, operating expenses climbed by 6% to $2.2 million, driven by intensified marketing and sales initiatives. The company’s net cash burn from operating activities rose sharply by 272% to $1.8 million.
In conclusion, Forssell highlighted Neonode’s ongoing projects, particularly their developments in interactive kiosks and medical technology devices. Despite facing challenges this quarter, Neonode remains focused on advancing these areas as part of its growth strategy.
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