Neonode AB files for bankruptcy

Neonode AB, the Swedish subsidiary of the U.S.-based company Neonode, Inc., has filed a petition for bankruptcy in Sweden.

The company, which makes the Neonode N2, first introduced in 2004, has faced a rocky period since the summer when it failed to meet guidance for earnings and dealt with a recall of the N2 due to "reception issues." 

"For the past six months we have focused on turning the business around and solving the financial situation of Neonode AB," Neonode CEO and Chairman Per Bystedt said in a statement. "We continue to have great belief in our technology and believe we have a competitive product in the Neonode N2 but without sufficient funds we cannot continue operations."

At the time of the summer upheaval, the company admitted that it had pushed into too many markets too quickly. Yet the touchscreen N2, predating the dominance of the iPhone, seems to have dragged the company down. Neonode remained stagnant and other companies innovated in the touchscreen device market. Neonode said it intends to continue operating as a technology licensing company.

For more:
- see this Engadget post [1]
- see this release
[2]- see FierceWireless' N2 unboxing [3]

Related Articles:
Neonode [4] expects to ship 200,000 phones in 2008
Neonode [5] - Top Wireless Company 2007: FierceWireless, Fierce 15

[2]