Seeing Machines Limited (LON:SEE) has refreshed its supply agreement with chip manufacturer Xilinx for its in-car monitoring system Fovio.
Unveiling the new agreement at its capital market day, Seeing Machines also said it had reduced the build cost of its Guardian fatigue monitoring system while Fleet Complete has been appointed to sell Guardian to the oil and gas sector in Australia.
Under the new agreement with Xilinx, the Fovio Chip will be supplied directly to Seeing Machines' automotive Tier 1 customers to reduce supply chain risks and lower the cost.
In its fleet business, the cost of the hardware for the Guardian driver monitoring technology for commercial vehicles has been reduced by 21%.
This reduction is expected to save around A$8.4mln on next year's order
Fleet Complete, meanwhile, has over 33,000 connections in Australia and 500,000 globally.
Paul McGlone, Seeing Machines chief executive, said: “Our partnership with Xilinx has been nurtured over several years and our renewed agreement for supply of the FOVIO Chip directly to our Tier 1 automotive customers seeks to leverage the particular strengths of each company to their benefit and that of our customers.
"In addition, we believe the outcome of our negotiations with our manufacturing partner, coupled with the strong momentum across the Fleet business and the strengthening relationships with distributors and other partners, will improve the division's profitability and cash flow, and will also help fund the Company through to profitability", McGlone added.