Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) reported first-half results in line with guidance and announced that production has begun on its largest-ever contract, a US$82 million (£64.4 million) interior cabin monitoring program for a large German automotive manufacturer.
Underlying revenue growth in the six months to 31 December was up 28% to US$25.6 million compared to a year earlier, as flagged in a pre-close update.
When including one-off Magna Electronics exclusivity payments, reported revenue growth was 5%.
OEM revenue from Automotive and Aviation was US$11.4 million, down from US$14 million last time, though high margin-per-vehicle royalty revenue from automotive production increased 35% to US$4.2 million
Annualised recurring revenues were up 22% to US$14.5 million, while aftermarket (fleet and off-road) revenue increased 38% to US$14.3 million.
Seeing Machines penned a net loss of US$19.8 million compared to US$4.5 million a year earlier.
Development expenditure is expected to reduce in the second half.
Net operating cashflows improved to a net outflow of US$1.1 million from US$6.8 million, with the company stressing it maintained a disciplined focus on working capital management.
Cash of US$22.2 million was in the bank at the half-year stage, with a receivables and inventory balance of US$31.1 million with working capital unwind of $5-6 million expected in the second half.
Looking to the rest of the year, Seeing Machines has a typical weighting to the second half, and the board has retained its expectations that the full-year financial performance will be in line with consensus.
Chief executive Paul McGlone hailed the start of the cabin-sensing project with the German OEM client on schedule, stating: “We look forward to volume from the ramping up over the course of the next few quarters as production gets into full swing."