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Neonode Reports Quarter Ended September 30, 2012 Financial Results

Stocks in this article: NEON

Financial Results for the Third Quarter of 2012

For the third quarter ended September 30, 2012, net revenues increased 30% to $1.7 million, compared to $1.3 million 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 third quarter of 2012 increased slightly to $337,000, compared to $333,000 for the third quarter of 2011. Product R&D for the third quarter of 2012 increased 277% to $1.5 million, compared to $385,000 in the third quarter of 2011 due to an increase in headcount in our engineering groups. Sales and marketing expenses for the third quarter of 2012 increased 124% to $920,000, compared to $411,000 in the third quarter of 2011 due to an increase in our sales staffing levels and marketing activities. General and administrative (G&A) expenses for the second quarter of 2012 increased 110% to $1.1 million from $518,000 in the third quarter of 2011 due primarily to staffing increases, legal expenses related to patent filings, corporate and SEC compliance and customer contracts. Total operating expense for the third quarter of 2012 includes $607,000 non-cash stock option and warrant expense compared to $42,000 for the same quarter in 2011.

Adjusted EBITDA, as defined, was a loss of $1.5 million for the quarter ended September 30, 2012, compared to a loss of $311,000 for the same period in 2011.

Net loss for the third quarter was $2.1 million, or $0.06 loss per share, compared with net loss of $1.9 million, or $0.07 loss per share, for the comparable quarter last year.

Financial Results for the Nine Months ended September 30, 2012

For the nine months ended September 30, 2012, net revenues increased 128% to $4.8 million, compared to $2.1 million 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 nine months ended September 30, 2012 increased 49% to $1.1 million, compared to $726,000 for the same period of 2011 due to an increase in engineering development activities related to new customer products. Product R&D for the nine months ended September 30, 2012 increased 247% to $3.6 million, compared to $1.0 million in the same period of 2011 due to an increase in headcount in our engineering groups. Sales and marketing expenses for the nine months ended September 30, 2012 increased 205% to $3.4 million, compared to $1.1 million in the same period of 2011 due to an increase in our sales staffing levels and marketing activities. General and administrative (G&A) expenses for the nine months ended September 30, 2012 increased 64% to $3.8 million from $2.3 million in the same period of 2011 due primarily to salary expense, legal expenses related to patent filings, corporate and SEC compliance and customer contracts. Total operating expense for the nine months ended September 30, 2012 includes $3.0 million of non-cash stock option and warrant expense compared to $517,000 for the same period in 2011.

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