Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) hailed a record first-half result as revenues rose 54% and a strengthened balance sheet meant it is “fully funded to deliver on its current business plan” and on track to meet expectations for the full year.
The AI driver-monitoring technology specialist said it expects to report revenue of US$24.4mln for the six months to 31 December 2022, up from US$15.8mln a year earlier.
Just over 46,000 of its Guardian driver fatigue, distraction and accident prevention units that were connected at the half-year stage, which it said secured annualised recurring revenue of US$12.7mln, compared to US$11.9mln a year earlier.
The company was also able to boast 15 automotive program wins across 10 individual automotive manufacturers, covering more than 160 vehicle models and with a cumulative initial lifetime value standing at US$321mln.
Growth of cars on the road using its technology has been “consistent” over the past five quarters, it said, despite the expected seasonality effects on car sales and supply chain challenges for automotive manufacturing generally.
Seeing Machines DMS is now in early stages of production across six individual programs with four car manufacturers, while the Aftermarket arm’s access to some components was limited by the industry’s supply chain issues.
There was US$52.7mln cash at the end of December, up from US$41mln, with the balance sheet strengthened during the period via the collaboration with Magna International, which came with a loan note investment of up to US$47.5mln, of which US$30mln has been drawn down so far, overseen by newly appointed chief financial officer Martin Ive.
“As the number of vehicles fitted with our technology increases, Seeing Machines is now firmly established as an industry leader in the interior sensing market where our driver and occupant monitoring systems have become mission-critical technology in the quest for greater transport safety,” said chief executive Paul McGlone.
He said enhanced regulation and other long-term growth drivers in the industry were underpinning increasing demand from customers across the OEM and Aftermarket segments globally.
“As we advance our feature set and launch the next generation of Guardian, our market leadership position, strong balance sheet and scalable operating model means we are confident of significant continued growth and meeting FY2023 expectations, despite the above mentioned and well documented global supply chain challenges.”