Neonode Launches Sharpened Strategy With Full Focus On Its Licensing Business
Portfolio Pulse from Benzinga Newsdesk
Neonode Inc. (NASDAQ:NEON) is shifting its business strategy to focus entirely on its licensing business, phasing out its Touch Sensor Module (TSM) product business. The company plans to license the TSM technology to strategic partners or outsource it. This decision follows the success in licensing technology, particularly the MultiSensing platform and zForce optical sensing technology. A recent deal with a leading commercial vehicle manufacturer has further validated the company's competitive edge and catalyzed this strategic pivot. Neonode will reallocate resources from the product team to the licensing team and reduce its workforce, mainly affecting consultants and personnel in Sweden.
December 12, 2023 | 2:24 pm
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Neonode is concentrating on its licensing business, moving away from its TSM product business. This strategic move is expected to streamline operations and focus on areas with higher growth potential and profitability.
Neonode's decision to focus on licensing, where it has seen historical success, suggests a positive outlook for the company's growth and profitability. The recent deal with a vehicle manufacturer adds credibility to their technology and strategic direction. However, workforce reductions could have short-term negative sentiment. Overall, the market may respond positively to this clear focus on a more scalable and potentially more profitable business model.
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