New CEO Faces Challenges at Unprofitable Tobii

Eyetracking tech firm Tobii has reported an organic decline of 10% in net sales to SEK 193m ($US 21.4m), and EBIT of SEK -196m ($US -21.7m), in the fourth quarter. Excepting non-cash write-offs of goodwill, fair value adjustments and project write-offs, EBIT was SEK -1 million ($US -111k).

The Swedish firm creates technology for companies, universities and research institutes, for applications in healthcare, education and training, gaming, extended reality and automotive. In December 2023 it announced a radical refocusing of its business with the acquisition of vehicle interior sensing firm AutoSense, adding c.250 full-time staff and forming a new segment within the Tobii Group. Former CEO Anand Srivatsa has just completed a transition before departing the company, with former Ericsson exec Fadi Pharaon (pictured) now in the role.

Tobii has tried a number of changes to its leadership and business structure over the last decade in the pursuit of profitability, and has found long-term improvement elusive, but says it initiated a cost reduction program in Q3 which has already resulted in cost savings of SEK 43m ($US 4.8m) during Q4.

Pharaon says of the figures: 'During a quarter where geoeconomics and currency-related headwinds contributed to generally weak sales, we continued to execute on our plan for a strengthened financial position.' Among the many factors driving the decline in sales he cites a 'cautious market', 'trade barriers that continue to affect product sales in the USA and in China', the failure of new business deals to 'materialize in the anticipated rate' for AutoSense, and weaker-than-expected development of the international automotive market.

'I have a clear goal' says Pharaon, 'to reach a long-term sustainable positive cash flow, which enables growth that is both value-creating and resilient.' He expands: 'To reach this goal, our highest priority is to focus on sales and commercial initiatives while we continue to adjust our costs. By doing so, we will achieve a more predictable financial profile while still maintaining the innovation capacity that has always differentiated Tobii and will continue to be instrumental for the company's long-term success. I'm glad to have gotten started and I feel so much energy and enthusiasm for continuing to drive the progress of the company together with the organization.'

The firm is on the web at www.tobii.com .