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31 Mar 2021 | 09:59

Seeing Machines losses narrow as recurring revenues improve

(Sharecast News) - Computer vision technology company Seeing Machines reported operational revenue of AUD 18.1m (£10.01m) in its first half on Wednesday, up from AUD 15.8m a year earlier, reflecting comparative growth of 15% year-on-year. The AIM-traded firm said underlying revenue growth using constant currencies was 19% over the prior year.

It said aftermarket fleet and off-road revenue was ahead 17% for the six months ended 31 December at AUD 15m, while annualised recurring revenues including royalties was up 17.4% at AUD 15.5m.

Original equipment manufacturer (OEM) revenue from automotive and aviation was 5% firmer at AUD 3.1m.

Seeing Machines reported a net loss of AUD 16.8m, which was 33% narrower than the first half of the 2020 financial year, while cash at period end on 31 December was AUD 52.3m, up from AUD 47.4m a year earlier.

The board said its cost-saving initiatives, introduced at the height of the Covid-19 pandemic, had resulted in improved cost base management aimed at contributing to better operational performance and an improved cash balance.

Seeing Machines said it was continuing to trade in line with expectations for the 2021 financial year, adding that 'Guardian' connections were expected to accelerate as coronavirus challenges subsided with the global vaccine rollout.

It said the second half was expected to see incremental growth in aftermarket-related revenue.

As the company expected to be in production with existing OEM customers on more than 30 distinct car models within the next two calendar years, the current makeup of automotive revenue was set to change from non-recurring revenue to "significantly higher" margin-based royalty revenue.

"The first half of the 2021 financial year has been pleasing and we are buoyed by the progress in gleet, as well as the significant increase in request for quotation (RFQ) activity in automotive across key markets, as carmakers ready themselves for mounting safety standards and technology advances inside the cabin, all supported by camera-based driver monitoring systems (DMS)," said chief executive officer Paul McGlone.

"We are now in production on five car models, working across three OEMs, and that is set to ramp up significantly over the coming two years."

McGlone said the company was seeing interest from both UK- and US-based institutional investors, as DMS became more relevant across the company's key transport sectors.

"We are now positioned to look beyond the near term and leverage our strengthened balance sheet to grow company opportunities across core markets."

At 0937 BST, shares in Seeing Machines were down 3.99% at 9.51p.
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