Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) said on Tuesday that its driver and occupant monitoring technology is now installed in more than 3.7 million vehicles, a sharp increase of 36% over the previous quarter, as European carmakers prepare for stricter safety regulations coming into force next year.
The company designs artificial intelligence-powered systems that monitor drivers for signs of distraction or drowsiness.
These systems are being adopted in greater numbers as the European Union’s General Safety Regulation comes into effect in July 2026.
The regulation will require new cars sold in the region to be fitted with camera-based driver monitoring systems, which alert drivers if they are not paying attention.
In addition, the European New Car Assessment Programme will soon begin awarding higher safety ratings to vehicles that include such technology.
Quarterly performance
Seeing Machines’ automotive technology has now been fitted to 3,730,201 vehicles worldwide, up from 2,211,422 a year earlier.
In the fourth quarter alone, 488,294 vehicles were produced with the company’s systems onboard, a rise of 36% compared with the previous quarter, when production volumes reached 358,162.
This latest figure also marks a 28% increase from the same period last year, when production stood at 381,215 units.
For the full financial year ended 30 June, automotive production volumes totalled more than 1.5 million, an increase of around 35% compared with the 1.125 million recorded the previous year.
Hardware sales for the company’s Guardian product, which is aimed at commercial fleets and logistics operators, also posted strong growth.
Sales of the new Guardian Generation 3 hardware more than doubled quarter on quarter, reaching 2,536 units in the three months to the end of June, compared with 1,151 units in the previous quarter and 288 units in the second quarter.
In the first quarter, hardware sales stood at 1,491 units. Annual Guardian hardware sales for the year were 5,466 units.
Recurring annual revenue from Guardian, excluding sales to Caterpillar, was steady at $13.5 million for the fourth quarter, little changed from $13.4 million in the previous quarter.
Business momentum
Paul McGlone, chief executive, said: “The significant rise in automotive production volumes demonstrates that the industry is ramping up to comply with upcoming EU safety regulations.
"Seeing Machines’ ability to deliver advanced driver and occupant monitoring solutions to leading car brands worldwide, now spanning nine programmes at start of production across Europe and North America, is industry-leading and we are proud of this success.”
The company has also begun production on new programmes in Europe and North America, some of which are subject to minimum volume guarantees.
Under these agreements, Seeing Machines receives a prepayment of royalties, which are recognised in production volumes as they are delivered.
Guardian Generation 3 production has increased to around 2,000 units per month, according to the company. The sales pipeline is described as expanding globally, with further growth expected as customer trials are completed in North America and Europe.
McGlone added: “The expanding global sales pipeline underscores widespread market interest, and we would anticipate a further ramp-up in sales as a number of customer trials conclude.
"These Q4 figures leave the company well positioned as we kick off the new financial year and focus on achieving our initial key target of cashflow break-even run rate by the end of this calendar year.”