Neonode Inc. (NEON) saw its loss narrow to $5.29 million, or $0.12 a share for the year ended Dec. 31, 2016. In the previous year period, the company reported a loss of $7.82 million, or $0.19 a share.
Revenue during the year dropped 8.12 percent to $10.21 million from $11.12 million in the previous year. Gross margin for the year expanded 2091 basis points over the previous year to 86.90 percent. Operating margin for the year stood at negative 50.37 percent as compared to a negative 69.24 percent for the previous year.
Operating loss for the year was $5.14 million, compared with an operating loss of $7.70 million in the previous year.
In 2016 we focused investments in the development of our technology and highly automated manufacturing processes. We are now able to offer embedded hardware sensors to our customers which allows them to reduce time to market for their products. Selling modules enable us to enter new markets and earn higher profits compared to licensing," said Thomas Eriksson, Neonode chief executive officer. "We reached a key milestone in December when we started shipping our first consumer electronics product, AirBar." "In 2016 licensing revenue increased driven by our automotive and printer customers. Automotive license revenues increased 126 % over 2015 and printer license revenues increased 64 %. Our customers continue to release new products and we expect license revenues to continue to increase in 2017. We now have licensing, modules and consumer products contributing to our total revenues," concluded Mr. Eriksson.
Operating cash flow remains negative
Neonode Inc. has spent $6.25 million cash to meet operating activities during the year as against cash outgo of $8.06 million in the last year.
The company has spent $0.98 million cash to meet investing activities during the year as against cash outgo of $0.20 million in the last year.
Cash flow from financing activities was $7.80 million for the year, up 45.25 percent or $2.43 million, when compared with the last year.
Cash and cash equivalents stood at $3.48 million as on Dec. 31, 2016, up 12.78 percent or $0.39 million from $3.08 million on Dec. 31, 2015.
Working capital increases sharply
Neonode Inc. has recorded an increase in the working capital over the last year. It stood at $3.06 million as at Dec. 31, 2016, up 101.12 percent or $1.54 million from $1.52 million on Dec. 31, 2015. Current ratio was at 1.66 as on Dec. 31, 2016, up from 1.40 on Dec. 31, 2015.
Days sales outstanding went up to 36 days for the year compared with 30 days for the same period last year.
At the same time, days payable outstanding went up to 329 days for the year from 101 for the same period last year.
Debt increases substantially
Neonode Inc. has witnessed an increase in total debt over the last one year. It stood at $1.19 million as on Dec. 31, 2016, up 249.41 percent or $0.85 million from $0.34 million on Dec. 31, 2015. Total debt was 12.24 percent of total assets as on Dec. 31, 2016, compared with 5.74 percent on Dec. 31, 2015. Debt to equity ratio was at 0.29 as on Dec. 31, 2016, up from 0.19 as on Dec. 31, 2015.
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