Neonode Launches Sharpened Strategy with Full Focus on Its Licensing Business

Rhea-AI Summary

Neonode Inc. (NASDAQ: NEON) announces a new strategy shift, focusing on its licensing business by phasing out its Touch Sensor Module product business and reallocating resources to the licensing team. The company aims to leverage the advanced MultiSensing platform and optical sensing technology to drive future growth and profitability.

STOCKHOLM, Dec. 12, 2023 /PRNewswire/ -- 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:

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

The following files are available for download:

https://mb.cision.com/Main/17297/3891400/2485145.pdf	Neonode Strategy Realignment
https://news.cision.com/neonode/i/strategy-realignment-banner,c3247687	Strategy Realignment Banner

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SOURCE Neonode

FAQ

What is the new strategy announced by Neonode Inc. (NASDAQ: NEON)?

Neonode Inc. (NASDAQ: NEON) has announced a new strategy with full focus on its licensing business, phasing out its Touch Sensor Module product business.

What technology will Neonode focus on licensing?

Neonode will focus on licensing the advanced MultiSensing platform for driver and in-cabin monitoring and the proven optical sensing technology zForce, including the TSM technology.

What are the implications of the new strategy on the workforce?

The new strategy will lead to some reductions in the workforce, mainly affecting consultants and personnel in Sweden, involving customary union negotiations.

Who is the CEO of Neonode Inc. (NASDAQ: NEON)?

Dr. Urban Forssell is the CEO of Neonode Inc. (NASDAQ: NEON).

How can I get more information about the strategy realignment?

For more information, you can contact the Chief Executive Officer, Dr. Urban Forssell, or the Chief Financial Officer, Fredrik Nihlén, through the provided email and phone contacts.