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Seeing Machines experiencing "relentless drumbeat of interest" in its driver monitoring technology

Last updated: 15:24 17 Oct 2017 BST, First published: 14:24 17 Oct 2017 BST

Self-driving car
Semi-autonomous cars present a fabulous market opportunity for Seeing Machines

The current financial year is set to be another of strong top-line growth for Seeing Machines Limited (LON:SEE), the computer vision technology firm.

It is just over a month since the company reported a doubling of revenues in the year to the end of June 2017, and now the company reckons it will triple its revenues in the current financial year, with sales expected to fall within the range of A$38mln to A$43mln.

READ Seeing Machines sees revenue double; eyeing US$100mln in annual revenues within two years

The following year, the driver fatigue monitoring specialist expects sales to surge to somewhere in the range of A$78mln to A$88mln.

Total contract bookings, which provide high visibility of future revenue, are expected to further outstrip this growth due to the nature of the Fleet SaaS (software-as-a-service) recurring revenue model and advance multi-year contract wins of the Automotive business.

The company acknowledged that current balance sheet constraints means it has had to cut its coat according to its cloth and rein in planned investments until it has completed its discussions with shareholders and prospective new investors.

This fact is prudently reflected in the modest pull-back in top line growth outlook as outlined.

READ: Seeing Machines boss spies huge opportunity in the automotive market

The company remains enthused by the large and fast-growing multi-faceted market opportunities in Commercial Fleet, Automotive and other segments.

The company's Fleet business has strong momentum with a current pipeline of sales opportunities close to A$200mln with growing engagements with larger fleets in USA, new opportunities in EMEA, a growing ecosystem of strong distribution partners in APAC and new global Telematics channel partners, such as Mix Telematics and GeoTab.

In the Automotive sector, the increasing implementation of advanced driver assistance systems seems unstoppable, which bodes well for the company's FOVIO driver monitoring technology.

In the words of Seeing Machines, the company is seeing a relentless drumbeat of interest and demand accelerated by the recent Euro NCAP Driver Monitoring System mandate and the recent public launch of the company's technology in the GM Cadillac Super Cruise, which is a market first launch of DMS enabled "hands-free" driving.

READ: Seeing Machines' FOVIO driver monitoring system makes its debut in the Cadillac CT6

“The company looks forward to advancing its growth strategy and concluding its associated capital financing plans, to enable it to leverage its unique FOVIO AI Vision platform, to continue to build a leading global business in multiple high-growth markets,” the statement concluded.

“The trading update notes an A$200m pipeline of opportunities; however, prudent resource constraints have forced a slowdown in spending on the Fleet business roll-out with a knock-on impact to this year’s revenue and losses,” observed house broker finnCap.

The broker tweaked its forecasts accordingly, but noted that Seeing Machines is still demonstrating extremely strong sales growth for this year and next.

By fiscal 2019, the OEM (original equipment manufacturer) Automotive, Rail and Aerospace divisions should all be making strong sales contributions to augment the Fleet division growth, the broker said.

Success for the loss-making company is close – finnCap predicts a move into the black in fiscal 2020 – with Cadillacs using FOVIO to enable the first hands-free semi-autonomous capability already on US roads.

“A growing ecosystem of Tier-1 automotive suppliers will take it worldwide,” the broker predicted.’s revenue and losses,” observed house broker finnCap.

The broker tweaked its forecasts accordingly, but noted that Seeing Machines is still demonstrating extremely strong sales growth for this year and next.

By fiscal 2019, thee OEM (original equipment manufacturer) Automotive, Rail and Aerospace divisions should all be making strong sales contributions to augment the Fleet division growth, the broker said.

Success for the loss-making company is close – finnCap predicts a move into the black in fiscal 2020 – with Cadillacs using FOVIO to enable the first hands-free semi-autonomous capability already on US roads.

“A growing ecosystem of Tier-1 automotive suppliers will take it worldwide,” the broker predicted.

Shares in Seeing Machines were up 4.4% at 3.125p in mid-afternoon trading.

--- adds broker comments ---

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