Seeing Machines (LON:SEE) has moved to a more profitable model for its DSS driver fatigue monitoring products, house broker finnCap noted after Monday’s results.
The primary customers for the DSS system are mining companies, so a 7% year-on-year increase in DSS revenues is impressive, given the travails currently being experienced by the industry.
The broker predicted there will be a broadening of revenue streams as new markets open up.
Meanwhile, the new Fleet business brought in A$2.6mln revenue during just two months of ownership, which finnCap says bodes well for the future.
“As expected, overheads and resultant loss have ramped up sharply as the group scaled up commercial development and R&D; the company has raised substantial funds to facilitate a rapid roll-out of its leading-edge technology,” finnCap noted.
“However, the group ended the year with A$14.4m net cash and a further A$12mln due from CAT this year under the post-Y/E [year-end] deal,” it added, as it reiterated its 12p target price.
Seeing Machines shares were up 2.8% at 4.625p in mid-afternoon trading.