Tough Quarter for Tobii

Eye tracking hardware and software firm Tobii AB has announced results for the second quarter of 2020, with revenue down to SEK 332 million (US $37.75m) - an organic decline of 6%.

Tobii operates through three business units: Dynavox, which makes specially designed computers for use by people with special needs due to medical conditions; Tobii Pro, which develops and sells eye tracking equipment and services for commercial and academic use; and Tech, which supplies eye tracking technology for integration into consumer electronics and other products. The firm is headquartered in Sweden and has just over 1,000 employees.

The group says the pandemic had a 'Strong negative impact' on Q2 revenue, 'offset in part by positive momentum in large parts of the business'. Gross margin declined from 69% to 65%,partly due to non-recurring write-downs. Operating loss was little changed at SEK -45m / $US 5.1m (-47m / $5.3m in Q2 2019), due to a substantial reduction in the loss made by the Tech division cancelling out a bad quarter for Tobii Pro (SEK -24m / $2.7m vs SEK -2m / $0.23m a year earlier, and an organic decline in revenue of 33%). Operating costs dropped 20% compared with the second quarter of 2019, as a result of a program implemented during the quarter whose measures included staff reduction by about sixty consultants and employees.

Q2 saw the launch of Tobii's latest Glasses product, version 3, 'securing [the firm's] world-leading position in wearable eye tracking'; while Dynavox introduced advanced eye tracking outdoors and added apps like Spotify, Facebook and Netflix to its special needs products; and Tobii Tech launched a gaming-optimised eye tracker and strengthened partnership with PC manufacturer Lenovo.

CEO Henrik Eskilsson (pictured) sums up: 'Due to Covid-19, the second quarter of 2020 was one of the most challenging in Tobii's history. Given the circumstances, I am proud that Tobii managed to improve our operating result for the quarter compared with the same period in 2019, an accomplishment that would not have been possible without the fantastic efforts of all of Tobii's employees, who did an amazing job. Activity in the organization has been high with creative sales activities, several important product launches, advances with Tobii Aware to Lenovo and key milestones in major projects within VR. In summary, we are well prepared for continued uncertainty and well positioned to resume growth soon after restrictions in society are lifted. Our ambition is to achieve profitability shortly thereafter'.

Web site: www.tobii.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.