NEXTY Electronics Selects Neonode's Touch Sensor Module Technology for the Japanese Amusement Market

Rhea-AI Summary

Neonode Inc. (NASDAQ: NEON) has announced a new license agreement for its Touch Sensor Module (TSM) technology with NEXTY Electronics , part of the Toyota Tsusho Group. The agreement, focused on the Japanese amusement market, includes an upfront technology access fee and future royalties, with an estimated value of US$2–3 million over the next four to five years.

NEXTY Electronics will manufacture TSMs in Japan using Neonode's latest offering, primarily based on surface-mount technology (SMT). This technology enables touch interactivity on larger displays and surfaces at a lower cost than alternatives. The decision to license Neonode's TSM technology is seen as a vote of confidence in Neonode's licensing-focused business strategy and innovative technologies.

Positive

• New license agreement with NEXTY Electronics for Touch Sensor Module technology
• Estimated value of US$2-3 million over 4-5 years
• Expansion into Japanese amusement market
• Technology enables touch interactivity on larger displays at lower cost

Negative

• None.

Insights

Technology Licensing Expert

This deal marks a significant milestone for Neonode, showcasing the company's successful pivot towards a technology licensing business model. The agreement with NEXTY Electronics, valued at $2-3 million over 4-5 years, validates Neonode's Touch Sensor Module (TSM) technology in the competitive Japanese amusement market. The surface-mount technology (SMT) based TSM offers a cost-effective solution for large displays, potentially opening up new market opportunities. This partnership not only provides immediate revenue through the upfront technology access fee but also ensures a steady stream of royalties, enhancing Neonode's financial stability. The deal's structure aligns with industry best practices for technology licensing, balancing upfront payments with ongoing royalties. For investors, this agreement signals Neonode's ability to monetize its intellectual property effectively and expand its presence in specialized markets.

Market Analyst

Neonode's entry into the Japanese amusement market through NEXTY Electronics is a strategic move that could yield significant benefits. Japan's amusement market, known for its technological innovation and high standards, serves as an excellent showcase for Neonode's TSM technology. This deal could potentially lead to further adoptions in adjacent markets or geographies. The estimated value of $2-3 million over 4-5 years, while modest in absolute terms, is substantial for a company of Neonode's size (market cap: $188 million). It represents a 1-1.6% boost to annual revenue, assuming even distribution. More importantly, this agreement could serve as a reference case for future licensing deals, potentially accelerating Neonode's growth in the touch technology sector. Investors should monitor for any follow-on agreements or expansions into other markets as indicators of the technology's broader appeal and Neonode's execution capabilities.

STOCKHOLM, Sept. 25, 2024 /PRNewswire/ -- Neonode Inc. (NASDAQ: NEON) ("Neonode") is pleased to announce a new license agreement for an evolution of its licensable Touch Sensor Module ("TSM") technology. NEXTY Electronics Corporation ("NEXTY Electronics"), an electronics trading company of the Toyota Tsusho Group, has selected Neonode's TSM technology for sensor development and manufacturing of the next-generation amusement machines for a leading manufacturer in Japan's amusement market. The agreement includes an upfront technology access fee and future royalties and is estimated to have a value of US$2–3 million over the next four to five years.

NEXTY Electronics chose to license Neonode's latest TSM offering, primarily based on surface-mount technology ("SMT"), which enables touch interactivity on larger displays, surfaces and projected planes at a lower cost than alternative solutions. Easily integrated using a single-sided TSM sensor, Neonode's touch interaction technology delivers exceptional performance and value to any touch-operated application. NEXTY Electronics will manufacture the TSMs in Japan for delivery to companies in the Japanese amusement market as well as in other markets that desire high quality, cost-effective touch functionality on large displays and surfaces.

"After extensive evaluation, we have found Neonode's SMT-based TSM to be a great fit for the Japanese amusement market, enhancing operational performance without compromising the beauty of the content displayed on the screen. We have worked closely and productively with Neonode for years and look forward to strengthening our partnership further with this license agreement," said Mikio Takano, NEXTY Electronics' Executive Officer.

"We are excited to deepen our relationship with NEXTY Electronics, a trusted, value-added reseller of Neonode's products, as we continue our transformation into a company that is fully focused on technology licensing. NEXTY Electronics is intimately familiar with our products from its time as a TSM reseller, and its decision to license and manufacture our TSM technology is a vote of confidence for our licensing-focused business strategy and innovative licensable technologies," said Fredrik Nihlén, Neonode's interim President and Chief Executive Officer and Chief Financial Officer.

For more information, please contact:
Interim President and Chief Executive Officer and Chief Financial Officer
Fredrik Nihlén
E-mail: fredrik.nihlen@neonode.com
Phone: +46 703 97 21 09

Vice President Marketing & Sales
Johan Swartz
E-mail: johan.swartz@neonode.com
Phone: +46 707 64 35 44

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/neonode/r/nexty-electronics-selects-neonode-s-touch-sensor-module-technology-for-the-japanese-amusement-market,c4042522

The following files are available for download:

https://mb.cision.com/Main/17297/4042522/3021101.pdf	NEXTY Electronics Selects Neonode’s Touch Sensor Module Technology
https://news.cision.com/neonode/i/nexty-electronics-selects-neonode-s-touch-sensor-module-technology-for-the-japanese-amusement-market,c3337051	NEXTY Electronics Selects Neonode’s Touch Sensor Module Technology for the Japanese Amusement Market

 

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SOURCE Neonode

FAQ

What is the value of Neonode's new license agreement with NEXTY Electronics?

The license agreement with NEXTY Electronics is estimated to have a value of US$2-3 million over the next four to five years.

What market is Neonode's Touch Sensor Module technology targeting through this agreement?

The agreement targets the Japanese amusement market, specifically for next-generation amusement machines for a leading manufacturer.

What technology is Neonode licensing to NEXTY Electronics?

Neonode is licensing its latest Touch Sensor Module (TSM) technology, primarily based on surface-mount technology (SMT).

How does Neonode's TSM technology benefit the amusement market?

The TSM technology enables touch interactivity on larger displays and surfaces at a lower cost than alternative solutions, enhancing operational performance without compromising content display quality.