Neonode, Inc (NASDAQ:NEON) announced that it has signed a supply contract, with an automotive OEM in the US, for its zForce AIR sensor modules. The company noted that its sensors would be used for the development of vehicle entry systems, in addition to a wide array of applications used by other automotive customers of the company. NEON claimed that the contract is worth more than $11 million, with its term starting in the 3Q2017.
Conventionally, the zForce AIR is used in AirBar, a device used in displays to add touch and gesture sensing capabilities. However, lately the sensor has been used in a number of automotive applications as well and is found in over 30 different car models. Gunnar Fröjdh, the VP of automotive sales at NEON, expressed his pleasure at seeing the sensors being used for entry systems. He further claimed that this was a sign that Neonode was all set to become a strong force in the automotive segment.
Thomas Eriksson, the CEO of Neonode, pointed out that the automotive industry offers large and stable long-term growth opportunities for his company and is a part of their global expansion plans. He also pointed out that the zForce Air sensors are currently being used in over 1 million cars. Mr. Eriksson was of the view that this reflected on the reliability and performance of these sensors, with regard to the industry.
Recently, the company made headway in its corporate strategy, when it announced that it had successfully relocated its AirBar assembly process to Malaysia, as the demand for the product continues to rise. On the other hand, its facility in Sweden would now be solely focused on the development of zForce AIR sensor modules. Salutica Allied Solutions is now serving as an assembly partner for the company. The management was of the view that this move would help optimize its supply chain, giving it greater efficiency and scalability.
Neonode, Inc (NASDAQ:NEON) completed the October 14 trading session with a gain of 24.87% in terms of its share value, on a trade volume of 3.98 million, to close at $1.23 per share.