TIDMSEE
RNS Number : 7090W
Seeing Machines Limited
03 August 2018
3 August 2018
Seeing Machines Limited
Year end trading update
Seeing Machines Limited (AIM: SEE, "Seeing Machines", the
"Group"), the advanced computer vision technology company that
designs AI powered operator monitoring systems to improve transport
safety, has published a trading update for the financial year to 30
June 2018.
Total sales revenue was A$30.7 million, an increase of 127%
year-on-year (2017: A$13.5 million) and within the range of the
previous guidance published on 21 May 2018. Revenue momentum
accelerated through the year with sales in H2 being more than 9%
higher than in H1.
Gross profit increased year-on-year (2017: A$nil), principally
attributable to a greater proportion of the revenue coming from the
high-margin Automotive, Off-Road and Rail markets. Fleet margin
also improved year-on-year due to the high-margin fleet monitoring
Monthly Recurring Revenue ("MRR") from its growing connected
customer base.
Overall gross margin was impacted by the previously-announced
delays to shipments of, and higher-than-expected final hardware
costs associated with, Fleet Guardian Gen 2. Gross margin is
expected to be below the Board's expectations for FY2018, with a
consequent impact on gross profit for the year.
Cash and cash equivalents at 30 June 2018 totalled A$43.4
million (GBP24.6 million).
In January 2018, Seeing Machines completed a GBP35 million
(gross) fundraise, alongside a GBP2.4 million offer to existing
shareholders to accelerate its investment in its AI platform and
product development, as well as to scale its infrastructure and
global footprint in order to meet sustained customer demand for its
leading-edge Driver Monitoring Systems ("DMS") solutions.
Notable highlights during the period include:
-- Production awards secured with two premium German automotive
OEMs and a global US-headquartered automotive OEM.
-- A further production award with a Chinese OEM confirmed in
July 2018, taking the number of awarded programmes to five, with
numerous new vehicle models launching in the 2019-2022
timeframe.
-- Projected automotive revenue from this booked business to be
recognised from 2019 to 2026 is in the range of A$110 million based
on initial models included in the corresponding agreements. The
addition of further models is currently in discussion.
-- Recent design awards saw the launch of the Group's
proprietary FOVIO Chip. The Group's ability to deliver its DMS
technology on the FOVIO Chip broadens its addressable market
considerably, particularly given the timeframes in which OEMs are
beginning to implement semi-automated driving technology and
incorporating DMS to enhance safety and meet pending regulatory
guidance globally.
The FOVIO Chip will also be leveraged across the business to
provide the Seeing Machines DMS platform across multiple transport
sectors.
-- The Automotive business now has established offices in two
additional important markets, Germany and Japan, where its local
people are supporting the growing DMS requirements of existing and
potential automotive Tier 1 customers.
-- The Fleet business had over 10,000 units connected with more
than 300 customers worldwide as at 30 June 2018. As the business
transitions to channel sales, working closely with its distribution
partners, a small number of flagship multi-national accounts will
be managed directly. These accounts are mostly focused on passenger
transportation, which is higher value and includes major
international brands such as Coach USA and First.
-- Guardian Gen 2 successfully launched and, despite initial
manufacturing delays, over 5,500 units now shipped to distribution
partners.
-- Jack Boyer OBE was appointed non-executive director and
Chairman designate in July, and, at the same time, Ken Kroeger was
returned as CEO on a permanent basis.
The Group expects to publish its audited year end results in
late September 2018.
The financial results in this announcement are based on the
unaudited management accounts for the year to 30 June 2018.
Ken Kroeger, CEO, commented:
"The key driver for our rapid revenue growth last year was our
Fleet business, with sales more than 89% up in that division. As we
develop our channel strategy and further refine the business model,
we look forward to continued growth.
"Automotive sales was the other major contributor with a 5x
increase in sales on the prior year. As we are now working with an
increasing number of automotive Tier 1 customers globally and are
actively engaged on programs with five OEMs in North America,
Europe and China, we are considered a world-leader in DMS for
automotive applications.
"We are also continuing to develop the significant opportunities
with global market leaders in the Aviation and Rail segments.
Following the signing of the extended partnership agreement with
Progress Rail in 2017, we received its maiden revenue for this
business unit in FY18."
Enquiries:
Seeing Machines Limited www.seeingmachines.com +61 2 6103 4700
Ken Kroeger, Executive Chairman & CEO
Sophie Nicoll, VP Marketing & Communications
Cenkos Securities plc (Nominated Adviser and
Joint Broker)
Neil McDonald/Beth McKiernan/Pete Lynch +44 131 220 6939
Canaccord Genuity Limited (Joint Broker) +44 20 7523 8000
Simon Bridges/Richard Andrews/Alexander Napier
Instinctif Partners +44 20 7457 2077
Kay Larsen/Chantal Woolcock/Adrian Duffield
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
About Seeing Machines
Seeing Machines (LSE: SEE), a global company headquartered in
Australia, is an industry leader in computer vision technologies
which enable machines to see, understand and assist people. The
Company's machine learning vision platform has the know-how to
deliver real-time understanding of drivers through Artificial
Intelligence (AI) analysis of heads, faces and eyes. This insight
enables Driver Monitoring Systems (DMS), which monitor
driver/operator attention and can identify drowsiness and
distraction across multiple transport sectors.
Seeing Machines develops DMS for the Automotive, Commercial
Fleet, Aviation, Rail and Off-Road markets. The Company has offices
in Australia, USA, Europe and Asia, and delivers multi-platform
solutions ranging from embedded software and processors to
aftermarket system and service solutions to industry leaders in
each vertical.
DMS is now considered a core safety technology for the
Automotive industry, particularly with the development of
semi-autonomous and self-driving cars. DMS is also increasingly
seen to be an integral safety feature across the Commercial
Transport & Logistics industry globally.
www.seeingmachines.com
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END
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