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Seeing Machines driven higher by new contract with German car giant

Last updated: 14:05 30 Oct 2017 GMT, First published: 08:34 30 Oct 2017 GMT

driverless car
The deal is expected to be worth somewhere between A$10mln and A$15mln, although it has the potential to be worth upwards of A$25mln

Seeing Machines Limited (LON:SEE) shares jumped higher after the eye-tracking and facial recognition specialist won a new contract with a German car giant.

The AIM-listed company will supply its FOVIO driver monitoring system (DMS) technology to the “premium German automotive partner” for use in its new car models, which are scheduled for mass production in 2020.

READ: Seeing Machines teams up with Emirates to try to improve airline safety

FOVIO can analyse a driver’s head pose, eyelid movements and eye-gaze (even through sunglasses). That data is then processed to give real-time information on the driver’s attention state focus and drowsiness levels.

DMS technology is typically used to enable intelligent advanced driver-assistance systems and semi-autonomous driver systems.

Seeing said this new deal, which is in conjunction with a “major Tier 1 automotive partner”, is expected to be worth somewhere between A$10mln and A$15mln, although it has the potential to be worth more than A$25mln.

"We are proud to be awarded this benchmark DMS program from both an OEM and Tier 1 with state-of-the art requirements,”said Seeing’s general manager of automotive, Nick DiFiore in a statement.

“Their confidence in us is a testament to the leading-edge nature of our FOVIO DMS technology, which is the culmination of years of innovative development and hard-earned Automotive application expertise by our team.”

READ: Seeing Machines says regulatory developments support case for driver monitoring systems

In a note to clients, analysts at ‘house’ broker finnCap commented: “A premium German OEM has now selected Fovio for its mass-market models; volume production and royalties will commence in 2020, so there will be no immediate change in forecasts but more importantly this indicates that Fovio will be used in a wide range of marques and models; the undoubted market leader in DMS, it will eventually see widespread use in the global automotive industry.”

finncap has a 12p share price target for Seeing Machines.

In afternoon trading, Seeing Machines shares were up 11.4%, or 0.50p at 4.88p.

 -- Adds analyst comment, updates share price -- 

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