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Neonode Inc

Research update

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Neonode: The module strategy well on track

The main event in the Q3 was the USD 11 million modules deal for one 2018 car model, verifying that the new module strategy is working as planned. In addition, an agreement with Autoliv to go to market with Neonode-based steering wheel modules has been closed, which is promising given Autoliv’s 25 percent steering wheel market share. Together these events verifies our positive view of Neonode.

The first batch of AirBars to Ingram sold out immediately and Neonode’s partners indicate major volumes of 500 000 for 2017, implying revenue of over USD 17 million. With the AirBar potential yet to be seen we believe our estimates have a major upside risk.

We reiterate our base case of USD 3.7 and fair value range of USD 1.2 – 6.2.

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