Seeing Machines Ltd (AIM:SEE, OTC:SEEMF) said the next 24 months will see a “step-change” in opportunity as regulation drives additional growth in demand for its driver monitoring technology and it launches the next generation of its hardware.
For the year ended 30 June 2022, the company reported revenue of A$54.4mln, up 15% on the previous year, of which royalty revenue was up 141% to A$5.5mln.
There was also a 67% rise in non-recurring engineering revenue, a lead indicator for future automotive royalty revenue.
Aftermarket revenue increased 13% to A$39.8mln.
Gross profit grew by 17.3% to A$24.4mln, while a A$4.4mln increase in corporate costs due to investment to support growth led to a post-tax loss of A$25.3mln, up from A$17.4mln a year earlier.
Corporate costs rose by A$4.39mln to A$17.21mln (2021: A$12.82mln) with a combination of one-off and incremental costs that support organisational scale and sustainable growth. Maintained focus on business performance and cost optimisation has partly offset the increase, which will stabilise in future years.
Net cash and cash equivalents at 30 June 2022 totalled A$58.8mln, which was before the post-period collaboration agreed with Canadian auto parts maker Magna to develop a driver monitoring system (DMS) in the rear-view mirror location with a US$65mln (A$103mln) investment in the company.
Chief executive Paul McGlone said Magna deal and its investment “has ensured that Seeing Machines is positioned to win more market share and secure our place as an industry leading provider of DMS and OMS [occupant monitoring systems).
“Balance sheet strength is critical to our customers having the confidence in our financial capacity to deliver on our long-term innovation pipeline and commercial commitments.”
He said the Automotive business is “thriving” and Seeing Machines is working through a new wave of requests for quotes (RFQs) from carmakers in Europe, North America and Asia.
Once this is complete McGlone said, “we will be able to clearly demonstrate this leadership position and affirm our predicted market share”.
“The Aftermarket business is expanding and despite some supply chain challenges, the next 24 months will see a step-change in opportunity as regulation drives additional growth and we move to the next generation of our Guardian hardware.”
Finally, he pointed to the Aviation sector, where the company is engaged on key opportunities associated with simulated training as well as air traffic control monitoring for its eye-tracking technology.
In a world first, Air Ambulance Victoria will also work with the company to install an operator monitoring solution inside the cockpit, while elsewhere in aviation customers and partners include Collins Aerospace, the Royal Australian Air Force and Airservices Australia.
“We have no clear competition here and I am delighted to see this business shaping up to be in a position to add significant value to the company in the near future," he added.