Cowen and Company is firm on its Outperform rating and $13 price target for Neonode (Nasdaq: NEON) following the company's Q4 results issued early Thursday.
Analyst Robert Stone noted that revenue was light due to some royalties in arrears and the loss of $.08 per share was in-line with views. At Y.E. 2013, there were 33 license agreements with OEMs and ODMs, but only twelve customers were shipping. GM was 78% (vs. St. 81%) on cost/mix of NRE. Operating expenses were $3.8MM (vs. St. $4.4MM), the analyst said.
Stone is still positive on Neonoda's printing segment, seeing the first round hitting stores soon and more SKUs appearing throughout 2014 and into 2015.
On Neonode's PC wins: Customers likely won't be named until products are in stores, but contract wins could be announced sooner with more specifics about which type of products are involved. We believe entry-level consumer notebooks could be ready as soon as "back to school" and almost certainly in time for the Holiday shopping season. NEON technology should be a fraction of the cost of traditional ITO sensor + capacitive controller solutions, helping drive Win8 touch PC penetration via lower price points, Stone commented.
On e-Readers, Stone sees Neonode's technology driving low-cost offerings and possibly reigniting the segment.
In-Line Q4 Results Shouldn't Dampen Spirits on Neonode (NEON); PC May be Opportunity - Cowen
Cowen and Company has Neonode (Nasdaq: NEON) at Outperform with a price target of $13 into the company's Q4 report, Thursday, March 6th.
Analyst Robert Stone sees Q4 results in-line with consensus views and is modeling a loss of $0.06 per share with revenue of $2.3 million. The analyst commented, "License revenue should come mainly from e-readers and children's tablets. Our 92.2% GM estimate (vs. St. 81.3%) reflects a lower mix of NRE; but cost of NRE can have a bigger impact when license revenue is low. Operating expenses may be above our model on market development."
Stone sees the first printers in production and should be in the channel within the next month or two. Both the print segment and automotive are likely to be back-half weighted for 2014.
"We believe that Neonode solutions may offer a total cost less than half of traditional capacitive touch (controller chip + laminated sensor) solutions. This should allow PC OEMs to offer touchscreen notebooks closer to the price of models without touch, helping drive adoption", Stone said.
Stone is also looking at FY14 EPS of $0.31 with revenue of $42 million.
The reality is that is not how the game is played.... Smart successful long-term investors get that and use that to their advantage... Inexperienced speculators that need immediate gratification don't.
Lars Lindqvist, Neonode Director and former CFO of Ericsson Mobile Phones (95' - 2002) bought 10,000 shares on 1/8 @$6.21 through stock option exercise. This is most likely a sign that something positive happened or is happening at the company whether it's CES or with the printer products etc. All of the negative talk is baseless speculation.