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Cowen Keeps Neonode (NEON) at Outperform; PCs, and Printers, and e-Readers...Oh, My!

March 7, 2014 11:50 AM EST Send to a Friend
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Price: $2.15 -2.27%

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    3 Buy, 0 Hold, 0 Sell

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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.

Stone is looking for FY14 loss of $.08 per share with revs of $14.5 million (from priro estimates calling for EPS of $.31 and revs of $42 million).

For an analyst ratings summary and ratings history on Neonode click here. For more ratings news on he company, click here.

Neonode closed at $7.08 yesterday, with a 52 week range of $4.70 - $8.84.




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