Neonode Inc. (NEON) saw its loss narrow to $0.87 million, or $0.02 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.37 million, or $0.03 a share.
Revenue during the quarter dropped 25.54 percent to $2.33 million from $3.13 million in the previous year period. Gross margin for the quarter expanded 1449 basis points over the previous year period to 95.50 percent. Operating margin for the quarter stood at negative 37.65 percent as compared to a negative 41.12 percent for the previous year period.
Operating loss for the quarter was $0.88 million, compared with an operating loss of $1.29 million in the previous year period.
"This quarter has been an inflection point for Neonode. Over the past several quarters we have been focused on our new line of embedded sensor modules incorporating our zForce Air technology for OEM customers. We took concrete steps during the first quarter to further develop the market for our new offerings. After our investments in production technology, we now have a stable manufacturing process that supports our growing business. During the quarter, we signed an agreement with DigiKey to support the global rollout of our sales and market efforts for our module business. DigiKey is a leading global electronic components distribution company that also provide global sales and marketing support," said Thomas Eriksson, Neonode chief executive officer.
Operating cash flow turns negative
Neonode Inc. has spent $1.60 million cash to meet operating activities during the quarter as against cash inflow of $0.02 million in the last year period.
The company has spent $0.10 million cash to meet investing activities during the quarter as against cash outgo of $0.16 million in the last year period.
The company has spent $0.06 million cash to carry out financing activities during the quarter as against cash outgo of $0.02 million in the last year period.
Cash and cash equivalents stood at $1.71 million as on Mar. 31, 2017, down 41.97 percent or $1.23 million from $2.94 million on Mar. 31, 2016.
Working capital increases sharply
Neonode Inc. has recorded an increase in the working capital over the last year. It stood at $2.10 million as at Mar. 31, 2017, up 1,677.97 percent or $1.98 million from $0.12 million on Mar. 31, 2016. Current ratio was at 1.49 as on Mar. 31, 2017, up from 1.03 on Mar. 31, 2016.
Days sales outstanding went up to 45 days for the quarter compared with 29 days for the same period last year.
At the same time, days payable outstanding went up to 994 days for the quarter from 168 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 $1.15 million as on Mar. 31, 2017, up 240.95 percent or $0.81 million from $0.34 million on Mar. 31, 2016. Total debt was 13.62 percent of total assets as on Mar. 31, 2017, compared with 6.14 percent on Mar. 31, 2016. Debt to equity ratio was at 0.36 as on Mar. 31, 2017, down from 0.66 as on Mar. 31, 2016.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
