TIDMSEE
RNS Number : 9450J
Seeing Machines Limited
22 August 2023
Seeing Machines Limited ("Seeing Machines" or the "Company")
22 August 2023
FY2023 Trading Update & quarterly Key Performance Indicators
Q4 FY2023
Record-breaking quarter with Seeing Machines' class-leading
technology now installed in over 1,000,000 vehicles
Trading for 12 months ended 30 June 2023 was ahead of
expectations
Seeing Machines Limited (AIM: SEE, "Seeing Machines" or the
"Company"), the advanced computer vision technology company that
designs AI-powered operator monitoring systems to improve transport
safety, provides a trading update for the year ended 30 June 2023
("FY2023") and quarterly Key Performance Indicators ("KPIs") for
the quarter ended 30 June 2023.
Key Financial Highlights:
- Reported Revenue for FY2023 is expected to be US$57.8m,
representing a 49% increase on FY2022 and ahead of the top of end
market expectations [1]
- Annualised Recurring Revenues increased by 27% year on year to US$13.6m
- Strong balance sheet, with cash [2] at 30 June 2023 of US$36.8m
Key Operational Highlights:
- Exclusive collaboration with Magna International to jointly
deliver driver and occupant monitoring system (DMS/OMS) technology
integrated into the rear-view mirror also brought US$65m investment
into the Company, strengthening Seeing Machines' balance sheet and
fully funding the business to deliver on its current business
plan
- Martin Ive appointed as CFO bringing significant public company experience
- Additional OEM program award increased the total Automotive
cumulative initial lifetime value of all programs won to date to
US$321m
- Exclusive licence Agreement signed with world's largest Tier 1
Avionics company, Collins Aerospace
Q4 FY2023 KPI highlights:
- Cars on road increased by 143% over 12 months to 1,086,176 units (Q4 FY22: 447,225)
- Annual production volume increase of 101% to 638,951 vehicles (FY2022: 317,491)
- Monitored Guardian connections increased 30% during the last
12 months to 51,975 units (Q4 FY2022: 39,892)
- Total Guardian hardware sales for FY2023 of 14,779 units, with
Q4 achieving record sales of over 10,000 units as backlog demand
met following easing of earlier supply chain constraints
Paul McGlone, CEO of Seeing Machines, said : "We are very
pleased with the progress made during what was a record quarter,
and throughout the year, across both our Automotive and Aftermarket
divisions. Crossing the 1 million threshold for the numbers of cars
on the road with Seeing Machines' technology installed, up 143%
year on year, represents a major milestone and a great achievement.
With supply chain constraints now easing, our Guardian business
continues to go from strength to strength, with over 51,000 heavy
vehicles now connected, an annual growth rate of 30%. We can now
expect Aviation to be a meaningful contributor to the Company's
revenue and looming regulatory deadlines are driving the rapid
adoption of Driver Monitoring Systems by automotive manufacturers.
Our per-unit, margin accretive royalty model leaves us well
positioned to capitalise on the opportunities ahead."
Seeing Machines is well positioned across all key transport
sectors as growth momentum continued to accelerate in FY2023. The
Aftermarket business has expanded, with 30% annual growth.
Guardian, the Company's aftermarket product, is now connected to
over 51,000 vehicles globally, contributing to the Group's
expanding Annualised Recurring Revenue performance. As Europe's
General Safety Regulation comes into effect in 2024, the "After
Manufacture" market (factory fit for Bus and Truck vehicles)
presents growing opportunities and Seeing Machines' plans are well
advanced as commercial vehicle manufacturers seek to sell compliant
vehicles.
In Automotive, the Company has now won 15 individual programs
with 10 OEM customers. The cumulative total initial lifetime
revenue for the awarded programs currently stands at US$321m, with
significant upside potential, and the majority of this program
revenue is expected to be recognised over the period to 2028.
Despite some recent delays in OEM program awards, the Company
maintains its expectation for Automotive market share to reach 40%,
by volume. This expectation is based on an average of respected
third-party analyst [3] views of total market penetration, together
with Seeing Machines' view of specific current and expected OEM
opportunities through to 2032, as well as historical win rates for
the Company.
Licensing the Company's software into carefully chosen segments
has also ensured a leadership position for Seeing Machines across
key vertical markets within Automotive, in the rear-view mirror
with Magna as previously announced, and more recently in
Aviation.
Seeing Machines' Aviation business has now officially launched
following the recently agreed exclusive licence with Collins
Aerospace, generating licence revenue over three years of US$10m,
to jointly develop pioneering eye-tracking solutions for the
Aviation industry. Collins will also pay the Company Non-Recurring
Engineering (NRE) payments to develop specific solutions, which
will evolve into potential future royalty payments as shipsets are
released to customers. This collaboration brings together the
companies' collective expertise in navigation, communication,
sensor technology, flight controls and aviation system design to
accelerate innovation and safety across the industry, unimpeded by
any close competition, as of today.
Quarterly Key Performance Indicators (KPI's) for Q4 FY2023
Automotive Production Volumes:
Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023 FY2023
----------------------
Production FY2023 112,077 141,747 173,802 211,325 638,951
---------- ---------- ---------- ---------- --------
% Growth Qtr on
Qtr 6% 26% 23% 22%
---------- ---------- ---------- ---------- --------
Q1 FY2022 Q2 FY2022 Q3 FY2022 Q4 FY2022 FY2022
---------- ---------- ---------- ---------- --------
Production FY2022 53,783 60,205 98,113 105,390 317,491
---------- ---------- ---------- ---------- --------
% Growth Comparative 108% 135% 77% 108% 101%
---------- ---------- ---------- ---------- --------
Aftermarket (Guardian):
Q4 FY2022 Q1 FY2023 Q2 FY2023 Q3 FY2023 Q4 FY2023
-----------------------
Monitored connections 39,832 41,415 46,018 49,046 51,975
---------- ---------- ---------- ---------- ----------
% Growth Qtr on
Qtr 6% 4% 11% 7% 6%
---------- ---------- ---------- ---------- ----------
Units sold, yet
to be connected 10,706 9,698 6,085 4,913 7,630
---------- ---------- ---------- ---------- ----------
Seeing Machines delivered a strong quarter on quarter increase
in Automotive production volumes with the Group's technology now
installed in over 1 million vehicles. This performance has helped
to drive high-margin royalty revenue growth, as current programs
increase in volume and more programs start production. We expect
this trend to continue, driven by rapidly approaching regulation
deadlines and the increasing take-up of Level 2 automation driving
features by consumers.
In Aftermarket, annual Guardian hardware sales have grown by
11%, with previous supply issues now largely overcome. Monitored
connections of 51,975 excludes the sale of over 5,700 Guardian
units, upgrading customers from Generation 1 to Generation 2, as
Australia phases out its 3G networks in favour of 4G over the next
12 months.
The Company expects to publish its audited year end results on
16 October 2023.
Enquiries:
Seeing Machines Limited +61 2 6103 4700
Paul McGlone - CEO
Sophie Nicoll - Corporate Communications
Stifel Nicolaus Europe Limited (Nominated
Adviser and Broker) +44 20 7710 7600
Alex Price
Fred Walsh
Nick Adams
Ben Burnett
Dentons Global Advisors (Media Enquiries)
James Styles
Jonathon Brill
seeingmachines@dentonsglobaladvisors.com +44 20 7664 5095
About Seeing Machines (AIM: SEE), a global company founded in
2000 and headquartered in Australia, is an industry leader in
vision-based monitoring technology that enable machines to see,
understand and assist people. Seeing Machines is revolutionizing
global transport safety. Its technology portfolio of AI algorithms,
embedded processing and optics, power products that need to deliver
reliable real-time understanding of vehicle operators. The
technology spans the critical measurement of where a driver is
looking, through to classification of their cognitive state as it
applies to accident risk. Reliable "driver state" measurement is
the end-goal of Driver Monitoring Systems (DMS) technology. Seeing
Machines develops DMS technology to drive safety for Automotive,
Commercial Fleet, Off-road and Aviation. The company has offices in
Australia, USA, Europe and Asia, and supplies technology solutions
and services to industry leaders in each market vertical.
www.seeingmachines.com
[1] Consensus expectations for FY2023 are revenue of
US$53.9m
[2] Working capital increased due to the timing of Guardian
inventory deliveries, leading to an increased level of inventory
and receivables at 30 June 2023. Inventory levels are sufficient to
support demand for H1 FY2024 and will unwind along with receivables
in the first half of FY24.
[3] Blended view of Semicast Research Ltd, "ADAS &
Automotive Vision-based Driver Monitoring Systems (2023 Edition)"
and ABI Research, "ADAS and Autonomous Driving Semi-Annual Update,
May 12 2021."
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