Seeing Machines Limited (LON:SEE) shares jump[ed 10% higher on Thursday after the group confirmed a contract win with an original equipment manufacturer (OEM) in the German car industry.
The unnamed company wants to incorporate Seeing Machines’ FOVIO driver monitoring technology into new models planned for mass production from 2021.
READ: Seeing Machines confirms negotiations with third new automotive OEM to deliver its driver monitoring systems
The contract win won’t come as a total surprise as the company confirmed in early March it was in talks with an OEM to deliver its FOVIO system.
Seeing Machines has been selected in conjunction with three major Tier 1 automotive suppliers to deliver the programme covering much of the OEM model portfolio.
The programme has an estimated revenue value of A$25mln based on the initially included models and lifetime volume projections; however, volume projections can change materially and, as is typical in automotive industry contracts, there are no guarantees on the level of overall revenues beyond engineering milestone payments, Seeing Machines cautioned.
The European New Car Assessment Programme (NCAP) has listed driver monitoring systems (DMS) as a proposed primary safety feature in their "Road Map 2025" from 2020, so Seeing Machines believes that there is significant potential for the OEM programme to grow significantly in revenue through increased DMS feature penetration and volume across all vehicle models.
Further evidence of technology leadership
"This further award in Europe is evidence of our technology leadership as we continue to expand our position with premium Automotive OEMs to deliver world-class driver monitoring technology,” said Nick DiFiore, general manager of Automotive at Seeing Machines.
“We are thrilled to be working with an industry leading OEM and look forward to increased opportunities for our Automotive business in general around the world, as we further grow our ecosystem of Tier 1 partners to deliver our FOVIO platform products," he added.
In afternoon trading, Seeing machines shares were up 10.4% at 5.3p.
-- Adds share price --