Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) shares jumped 7% after the company won its largest contract for its FOVIO Driver and Occupant Monitoring System with an existing customer and global Automotive Tier-1 supplier.
The contract, which is with a leading German automaker and has an initial lifetime value of A$125mln, brings the total of Original Equipment Manufacturers (OEMs) that Seeing Machines has won business from to eight, the computer vision technology company said.
The deal covers an expansive number of vehicle models with mass production scheduled from early 2024, it said.
While representing the largest awarded Driver Monitoring System (DMS) programme so far, there is also “significant upside potential” based on OEM expansion plans, the company said.
READ: Seeing Machines revenues jump after 'dramatic turn' in driverless technology landscape
Nick DiFiore, senior vice president and general manager Automotive at Seeing Machines, commented: "This award is special as it is underpinned by many of the key market tenets we have been planning for and investing in, to differentiate Seeing Machines.
“This includes the rapid DMS market expansion due to automotive safety regulations including Euro NCAP and GSR, the move to combine occupant monitoring with driver monitoring for premium cabin features, and the need to achieve improved system cost, performance, and reliability at scale through smart system design, including advanced optical path developments and deeply embedded AI software using optimized accelerated heterogeneous processing.
“While this award affirms both our strategic and technology direction, and our continued leadership position in the automotive DMS/OMS space, the size of the award also marks an unmistakable market turning point from DMS as a niche need for semi-autonomous driving safety to a mainstream Advanced Driver Assistance (ADAS) imperative."
Seeing Machines has so far won a total of 11 automotive programmes for eight individual OEMs, spanning an estimated 95 vehicle models.
The cumulative initial lifetime value of all Seeing Machines won programmes currently stands at more than A$325mln.
Shares climbed 6.93% to 10.80p in opening trade.