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Neonode Reports Quarter Ended June 30, 2012 Financial Results

Stocks in this article: NEON

Neonode Inc. (NASDAQ: NEON), the MultiSensing touch technology company, today reported financial results for its second quarter and six months ended June 30, 2012.

Second Quarter Highlights:

  • Total net revenues increased 598% to $2.0 million
  • 23 design wins during the quarter for a wide range of consumer electronic devices, bringing the total for the year to 40
  • Signed 3 new licensing agreements during the quarter for a total of 7 in the first 6 months of 2012.
  • Joined Russell Global, Russell 3000® and Russell Microcap® Indexes
  • Was named a Gartner Cool Vendor for 2012

Neonode CEO Thomas Eriksson stated, “We are extremely excited about the strong momentum we have built up with our customers and partners, which is evidenced by the 23 design wins in the second quarter. These design wins are across all strategically important high volume market segments. Since we launched our single chip MultiSensing controller in January 2012, we have attained a total of 40 design wins. We expect a majority of these design wins to result in commercialized products within the next 6 to 18 months, some as early as end of 2012.”

“With the Neonode NN1001 controller chip, now in full production, we deliver competitive low cost/high performance solutions with state of the art user interfaces for all type of devices in any market. The design wins for our MultiSensing touch technology this year, has firmly expanded our positioning into several new device categories and market segments such as Mobiles, Office equipment, Tablets, Laptops, Toys and Automotive. We have signed several multi-year license agreements with some of the largest companies in each market segment."

Financial Results for the Second Quarter of 2012

For the second quarter ended June 30, 2012, net revenues increased 598% to $2.0 million, compared to $283,000 for the same period in 2011 as a result of license fees related to customer product shipments plus an increase in our engineering fees. Cost of revenues for the second quarter of 2012 increased 108% to $494,000, compared to $238,000 for the second quarter of 2011 due to engineering development activities related to new customer products. Product R&D for the second quarter of 2012 increased 287% to $1.5 million, compared to $382,000 in the second quarter of 2011 due to an increase in staffing in Sweden and the US offices. R&D expense for the second quarter of 2012 includes $178,000 of non-cash stock option and warrant expense compared to $72,000 for the same quarter in 2011. Sales and marketing expenses for the second quarter of 2012 increased 373% to $1.7 million, compared to $363,000 in the second quarter of 2011 due to an increase in our sales staffing levels and marketing activities. Sales and marketing expense for the second quarter of 2012 includes $918,000 non-cash stock option and warrant expense compared to $23,000 for the same quarter in 2011. General and administrative (G&A) expenses for the second quarter of 2012 increased 84% to $1.7 million from $921,000 in the second quarter of 2011 due primarily to salary expense, legal expenses related to patent filings, corporate and SEC compliance and customer contracts. G&A expense for the second quarter of 2012 includes $1.2 million non-cash stock option and warrant expense compared to $88,000 for the same quarter in 2011.

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