Neonode Launches Sharpened Strategy with Full Focus on Its Licensing Business
STOCKHOLM, SWEDEN, December 12, 2023 — Neonode Inc. (NASDAQ: NEON) today announces a new, sharpened strategy with full focus on its licensing business. Consequently, Neonode will phase out its Touch Sensor Module (“TSM”) product business through licensing of the TSM technology to strategic partners or outsourcing.
Neonode has been successful in licensing technology historically and the management team sees the largest potential for future growth and profitability in this area. The focus will be on licensing of the advanced MultiSensing® platform for driver and in-cabin monitoring and the proven optical sensing technology zForce®, including the above-mentioned TSM technology, which supports touch, gesture sensing, as well as object detection features. The recent business win with a leading commercial vehicle manufacturer to supply driver and in-cabin monitoring software to this manufacturer’s global range of vehicles, as announced on December 6, demonstrates the competitiveness of MultiSensing and has accelerated Neonode’s strategy shift.
Neonode will focus all its efforts and resources on licensing by reallocating marketing, sales, and engineering resources from the product team to the licensing team and by external recruitments. The new strategy will lead to some reductions in the workforce, which mainly will affect consultants and personnel in Sweden and involves customary union negotiations.
“We will now put full focus on our licensing business and allow customers to license our unique and advanced TSM technology to create bespoke products and solutions that bring value to end customers. Our product business did not reach our business goals, but feedback on the products and prototypes that we and our partners have developed using our TSMs has been very positive and shows that our technology is relevant and has a large intrinsic value. We therefore see great potential in licensing this technology to existing and new customers in the years to come,” states Dr. Urban Forssell, CEO of Neonode.
“Through the realignment of our strategy that we are now announcing we will concentrate our resources on licensing. We believe this will unleash the full potential of Neonode and increase the impact of our innovative solutions in line with our vision to transform the way humas and machines interact,” concluded Dr. Forssell.
For more information, please contact:
Chief Executive Officer
Urban Forssell
E-mail: urban.forssell@neonode.com
Phone: +46 734 10 03 59
Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
Phone: +46 703 97 21 09
About Neonode
Neonode Inc. (NASDAQ:NEON) is a publicly traded company, headquartered in Stockholm, Sweden and established in 2001. The company provides advanced optical sensing solutions for contactless touch, touch, gesture control, and in-cabin monitoring. Building on experience acquired during years of advanced R&D and technology licensing, Neonode’s technology is currently deployed in more than 95 million products and the company holds more than 100 patents worldwide. Neonode’s customer base includes some of the world’s best-known Fortune 500 companies in the consumer electronics, office equipment, automotive, elevator, and self-service kiosk markets.
NEONODE and the NEONODE logo are trademarks of Neonode Inc. registered in the United States and other countries.
For further information please visit www.neonode.com
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Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include, but are not limited to, statements relating to our expectations for growth, the competitiveness of our technology, the ability of Neonode’s new strategy to unleash the full potential of Neonode, future performance or future events. These statements are based on current assumptions, expectations and information available to Neonode management and involve a number of known and unknown risks, uncertainties and other factors that may cause Neonode’s actual results, levels of activity, performance or achievements to be materially different from any expressed or implied by these forward-looking statements.
These risks, uncertainties, and factors include risks related to our reliance on the ability of our customers to design, manufacture and sell their products with our touch technology, the length of a customer’s product development cycle, our dependence and our customers’ dependence on suppliers, the COVID-19 pandemic, the global economy generally and other risks discussed under “Risk Factors” and elsewhere in Neonode’s public filings with the SEC from time to time, including Neonode’s annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. You are advised to carefully consider these various risks, uncertainties and other factors. Although Neonode management believes that the forward-looking statements contained in this press release are reasonable, it can give no assurance that its expectations will be fulfilled. Forward-looking statements are made as of today’s date, and Neonode undertakes no duty to update or revise them.
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