Neonode Inc. reported decreased revenue and earnings for the third quarter of 2021 due to supply chain issues, according to an earnings report.

Net revenues decreased by 36% to $1 million for the three months ended Sept. 30, 2021 as compared to the same period in 2020. The decrease is primarily due to overall global supply-chain constraints and more specifically semiconductor component shortages within the printer and automotive markets combined with renewed pandemic-driven lockdowns in key markets.

Net loss attributable to Neonode was $1.7 million and $4.9 million for the three and nine months ending Sept. 30, 2021, respectively, compared to $1.6 million and $4.3 million for the same periods in 2020, respectively.

Earnings per share fell from 16 cents to 15 cents for the comparable quarters.

The $1 million in revenue missed analyst expectations by $950,000 and the 15-cent EPS loss missed by one cent, according to Seeking Alpha.

Shares traded today at $9.63 against a 52-week range of $4.56-$12.42.

"During the third quarter our revenue was negatively impacted by COVID-19 driven lockdowns in our key Asian markets," Dr. Urban Forssell, CEO of Neonode, said in the press release. "The impact of these lockdowns was exacerbated by global supply chain constraints due to semiconductor component shortages, which resulted in a reduction in license fees earned from our printer and automotive customers. These developments resulted in a temporary slowdown in the progress we experienced in the first half of the year where we saw increasing traction with elevator and kiosk customers using our touch sensor modules and stable license revenues.

"During this renewed lockdown phase, sales of our TSMs have been negatively impacted because partners providing retrofit solutions have been unable to freely access their customer locations to install their contactless touch kits," Forssell said. "Some elevator and kiosk projects have also been delayed due to of supply chain issues related to semiconductor component shortages."

For the nine months ended Sept. 30, 2021 as compared to the same period in 2020, the company reported a 23% increase in total net revenues mainly due to higher license fees and higher TSM sales earned primarily in the first half of the year before COVID-19 driven lockdowns were implemented in key markets.

For an update on how the coronavirus pandemic has affected kiosks, click here.

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