'Strained' Tobii 'Evaluating Options' for Autosense

In interim results for Q3 2026, eyetracking pioneer Tobii has reported a decline in net sales, along with losses due largely to a write-off, and says it is 'evaluating all alternatives' in a strategic review of its Autosense business. Nevertheless, the group says 'underlying' results are improving.

Net sales saw a 12% organic decline to SEK 140m ($US 14.05m), and the firm's reported EBIT loss was SEK -217m ($US -21.8m), of which SEK -180m was a write-off mainly relating to legacy DMS technology developed before the acquisition of Autosense in December 2023.

At the time of the Autosense buy, Tobii said it was aiming for 'leadership' in the Automotive Interior Sensing market, combining its own technology and expertise with those of Autosense to form a new segment within the Tobii Group. The deal involved no up-front cash or shares payment, but required c.$30m - structured as a promissory note at 8% interest - to be paid in three annual instalments starting in 2027; with a secondary payment of $15m to be be paid in four annual instalments starting in 2028, and additional earn-outs possible in 2031. Tobii said at the time that it expected revenue in its other two segments to decline after 2024, while the Autosense business would grow rapidly to dominate the group - it forecast revenue of SEK 30-50m in 2024 and around SEK 500m in 2028.

This appears not to have run to plan. In its latest statements the group says its Products & Solutions business 'will become its cash-generating core', whereas recently-appointed CEO Fadi Pharaon says the company is continuing a strategic review of options for Autosense, with 'all alternatives' on the table in order to strengthen Tobii's 'strained' financial position. The Board, management, principal shareholders and external advisors are working to strengthen Tobii's balance sheet 'which is necessary in order to address the strained liquidity and meet the group's financial commitments.' These commitments include repayments of COVID-related tax deferrals in the first quarter of 2027, as well as the first payment to Xperi for Autosense in the second quarter. For the latter, Tobii is in 'ongoing negotiations' with Xperi.

Despite all this, Pharaon pointed to 'improved underlying results': net sales once adjusted for a pre-purchase deal with Dynavox and non-recurring revenue in the comparison quarter, grew by 16%, while the Products & Solutions business showed positive organic growth in the quarter, driven in part by 'a gradual normalization in China.'

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.