Revenue for the financial year just ended at driver monitoring systems specialist Seeing Machines Limited (LON:SEE) is expected to be slightly ahead of management’s guidance.
Revenue for the year to the end of June is expected to clock in at A$31.8mln, up from A$30.7mln the year before.
Software-as-a-service (SaaS) revenue from the company’s vehicle fleet solution, Guardian, increased by more than 89% year-on-year to A$5.7mln; in conjunction with contracted recurring royalty payments in mining, the SaaS contributing represents annualised recurring revenue of more than A$12mln as at 30 June 2019.
The total projected value of contracted revenue for the Automotive business is now in the range of A$170mln to A$200mln, up from A$110mln at the end of June 2018, with the majority of this expected to be recognised in the 2021-2024 period based on projected lifetime original equipment manufacturing volumes.
The technology firm ended June with cash of A$64.3mln.
"These results are very pleasing and I'm happy to say, slightly ahead of expectations,” said Paul McGlone, the chief executive officer of Seeing Machines.
“2019 was somewhat challenging for Fleet but a deep dive into the business has seen us turn that division around. We have worked particularly hard at increasing the high-quality recurring revenues in both Fleet and Mining. Management believe the current value of those contracted revenues alone underpin the existing market valuation of Seeing Machines, before appreciating the self-evident value of the considerable and growing order book in our Automotive division. We are also seeing increasing activity in the Aviation division and opportunities to leverage our IP [intellectual property] across all transport sectors,” he added.
Seeing Machines currently has a market capitalisation of just under £150mln.
"In addition to the progress made with our customers, we've made important internal changes. Management is now in place to deliver on existing and potential programmes across its transport sectors as momentum for driver monitoring and enhanced safety continues to step up around the world,” said McGlone.