Seeing Machines Limited (LON:SEE) delivered an exciting update on its breakthrough driver monitoring system (DMS) alongside interim results, which recorded a near 600% rise in revenues and a decisive move into profitability.
The AIM-listed pioneer of eye-tracking technology said Monday it and its partner Takata, the Japanese auto parts firm, had landed a follow-on order for the next-generation DMS.
The customer is an unnamed but “global” car manufacturer that took the first version of the technology.
This second order is expected to embed the Seeing Machines system in more than ten higher-volume, 2018 vehicle models.
In fact, Seeing Machines is gaining a lot of traction for the DMS, which is becoming a key component for semi-autonomous driving systems.
It is in “ongoing discussions” with 13 other car makers, which is why the group is working on “strategic and commercial options to maximise the value of this very large market opportunity”.
To that end it has appointed advisors based in the world tech hub of Palo Alto, California, to “optimise” the firm’s structure and “best fund and execute these plans”.
Seeing Machines said it is currently investigating the option of pursuing these plans for DMS via a separately-funded operation, solely focused on the automotive industry.
“If the company pursues this option, we expect to retain a significant equity stake,” investors were told.
The news on the automotive business did, to some extent, overshadow what can best be described as stellar first-half results from Seeing Machines.
In the six months ended December, revenues grew 594% to A$29.3mln, boosted by a A$21.8mln licensing fee from the mining digger and dump-truck maker Caterpillar, which uses Seeing Machines’ in-cab driver fatigue monitoring systems.
The upshot was an A$11.2mln profit, which compared with an A$4.3mln loss at the same point last year.
"We believe this [Caterpillar] partnership validates our approach of, first, seeding the market with our technology, then building brand recognition and proving out a successful business case for our customers, then finally transitioning to a licensing arrangement with a market leader who has better channels to market and the size to deploy our technology in volume,” said chief executive Ken Kroeger.