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Seeing Machines (LON:SEE), the developer of eye-tracking technology, said it expects to deliver its first driver monitoring product for the automotive market in the current financial year.
Its success to date has been based on a fatigue monitor called the DSS used in the mining sector that is the focus of its tie-up with Caterpillar.
It is now working on an in-car system with TK Holdings, part of Takata Corp, which supplies many of the major automotive firms.
“Our first product in this market will be delivered during the 2016 financial year, and with ongoing discussions with major automotive customers we are confident that this sector will become a significant contributor to our business,” Seeing Machines said.
Ken Kroeger, chief executive and MD, told an interview that he expected the first manufacturer to launch the first product at the LA motor show at the end of January next year and the first car to become available shortly after that.
"It used to be a question of if this would ever happen - now, it's really a question of when, and right now there is at least six or seven manufacturers that plan to launch driver monitoring as part of their vehicles between now and 2021," he said.
On the size of the opportunity, he added: "There are very few players that do what we do. We have something special that other companies don't."
News of the automotive product came as the group unveiled its annual results, which showed the technology firm made significant financial headway in the period, while operationally diversifying its product base.
It recorded progress across a host of fields including rail, commercial fleets and aviation.
Seeing Machines posted a 20% increase in turnover to A$21.2mln in the 12 months to June 30. But having ratcheted up significantly its research and development efforts it was loss-making – to the tune of A$10.2mln.
That said, there was a 70% increase in the number of DSS units it shifted in the period and financially the group is in a strong position with cash reserves of US$14.2mln.
Looking ahead, Kroeger said, aside from the revenue producing fleet product, the focus was on getting the automotive product into the hands of as many manufacturers as possible. He also said he expected to see rapid growth in the aviation sector in the next 18 months.
Earlier, group chairman Terry Winters said: "Seeing Machines set ambitious goals for the 2015 year.
“While the significant downturn in global mining markets meant that we didn't achieve the upper level of our growth objectives, we still shipped a record number of products, achieved record full year revenues and better than budgeted net income results for the year ended 30 June 2015.
“Strong demand continued for the company's DSS products and services for the global mining sector.
“Our DSS sales performance has been aided by our strong relationship with Caterpillar and our growing relationships with the Caterpillar global dealer network and the increased reach these dealers bring to our distribution capabilities.
“We were also very pleased to see manufacturing commenced and the first new lower cost road fleet products shipped into this new and very large market segment.
“We are very excited about the level of interest we are receiving from long distance fleet transport operators and note that this market is larger than the mining segment by orders of magnitude.
“The company's clear leadership in designing and developing driver monitoring systems technology has led to a very significant contract to supply our technology to one of the largest global car manufacturers and substantial interest from other leading global car producers.”
The results passed muster with specialist growth company broker finnCap, which repeated its ‘buy’ advice and 12p price target. At 1.35pm, the shares were changing hands for 4.6p each.
“Overall we are now seeing the move to a more profitable model in DSS and a broadening of the revenue streams as the other markets begin to open up,” said analyst Lorne Daniel.
“The board is confident of continued strong revenue growth in full-year 2016.”