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The Markets
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The Markets
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Hardware & electrical equipment

Seeing Machines eyes higher annual revenue

Vehicle operator monitoring company set to boost revenue by 77%

A deal with Caterpillar Inc. (NYSE:CAT) helped safety monitoring technology group Seeing Machines Limited (LON:SEE) to report higher annual revenue..

Seeing Machines forecast pre- and post-tax trading for the full year to June 30 in line with market expectations, with revenue for the year of A$33.6m.

That was 77% higher than the previous financial year's total revenue of A$18.9m, excluding an A$2.4m Australian government research and development tax incentive.

The revenue came from the sale of goods and services and license fees and included A$21.8m from US digger maker Caterpillar Inc.due to a global product development, licensing and distribution agreement.

Caterpillar takes over all costs and commercial responsibilities for making, marketing, selling, support and remote monitoring of the DSS rugged off-road product suite.

Caterpillar continues to commercially engage Seeing Machines in supporting the engineering of DSS.

The Caterpillar agreement also gives Seeing Machines a royalty stream for both hardware sales and all DSS supporting services, although royalties for the quarter to June 30 were US$150,000 lower than the previous quarter due to longer than expected sales cycles with certain customers.

But Seeing Machines said in a trading statement: "Caterpillar's forecasting confirms that the number of technology trials and the overall volume of sales opportunities continues to increase."

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