Neonode Inc. (NASDAQ: NEON) (“Neonode”) is pleased to announce a new license agreement for an evolution of its licensable Touch Sensor Module (“TSM”) technology. NEXTY Electronics Corporation (“NEXTY Electronics”), an electronics trading company of the Toyota Tsusho Group, has selected Neonode’s TSM technology for sensor development and manufacturing of the next-generation amusement machines for a leading manufacturer in Japan’s amusement market. The agreement includes an upfront technology access fee and future royalties and is estimated to have a value of US$2–3 million over the next four to five years.
NEXTY Electronics chose to license Neonode’s latest TSM offering, primarily based on surface-mount technology (“SMT”), which enables touch interactivity on larger displays, surfaces and projected planes at a lower cost than alternative solutions. Easily integrated using a single-sided TSM sensor, Neonode’s touch interaction technology delivers exceptional performance and value to any touch-operated application. NEXTY Electronics will manufacture the TSMs in Japan for delivery to companies in the Japanese amusement market as well as in other markets that desire high quality, cost-effective touch functionality on large displays and surfaces.
“After extensive evaluation, we have found Neonode's SMT-based TSM to be a great fit for the Japanese amusement market, enhancing operational performance without compromising the beauty of the content displayed on the screen. We have worked closely and productively with Neonode for years and look forward to strengthening our partnership further with this license agreement,” said Mikio Takano, NEXTY Electronics’ Executive Officer.
“We are excited to deepen our relationship with NEXTY Electronics, a trusted, value-added reseller of Neonode’s products, as we continue our transformation into a company that is fully focused on technology licensing. NEXTY Electronics is intimately familiar with our products from its time as a TSM reseller, and its decision to license and manufacture our TSM technology is a vote of confidence for our licensing-focused business strategy and innovative licensable technologies,” said Fredrik Nihlén, Neonode’s interim President and Chief Executive Officer and Chief Financial Officer.
