'Favourable regulatory tailwinds' look set to drive the performance of Seeing Machines Ltd (AIM:SEE, OTC:SEEMF), which reaffirmed its target of being cash flow break-even in the current financial year.
Edicts such as the Europewide General Safety Regulation (GSR) look set to drive continued demand for the company's in-car monitoring technology, which has applications across the wider transportation sector.
"Despite broader market dynamics in the automotive sector, our business continues to gain momentum and meet expectations on both revenue and cash," said CEO Paul McGlone.
"The group's performance has been supported by favourable regulatory tailwinds as the global market for driver and occupant monitoring systems matures, further boosting demand across all our targeted transport sectors and driving our growth prospects."
His comments accompanied results for the 12 months ended June 30, which showed that Seeing Machines' revenues grew 17% to $67.6 million while posting a loss of $17.9 million as it grew a commercial head of steam. More importantly, it exited the year with $23.4 million in the bank, which will sustain it to break even.
"Our focus remains on reducing operating costs, as achieving cash flow break-even is our top priority and we are reaffirming our expectation to achieve a cash flow break-even run rate in financial year 2025," said CEO McGlone.
"By delivering efficiencies and a disciplined approach to management, I'm confident that we will be able to successfully navigate increasing geopolitical complexity, to deliver strong medium- and long-term performance."
Operationally, Seeing Machines entered a collaboration with Valeo to expand global automotive partnerships and integrated the AI-focused Asaphus Vision in Berlin.
Automotive programme wins added $71 million in cumulative lifetime value, reaching a total of $392 million. The company’s installed base of monitored vehicles more than doubled to over 2.2 million.
In aviation, a collaboration with Collins Aerospace for eye-tracking solutions commenced, alongside continued work with Qantas.
Aftermarket highlights included a new license agreement with Caterpillar, which generated a $16.5 million upfront fee and led to successful tests of the Guardian system with bus manufacturers meeting new European safety standards.