REG - Seeing Machines Ltd - FY2023 Trading Update & Q4 KPIs

Seeing MachinesAnnouncement

22/08/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230822:nRSV9450Ja&default-theme=true

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 
(#_ftn1)

-     Annualised Recurring Revenues increased by 27% year on year to
US$13.6m

-     Strong balance sheet, with cash 2  (#_ftn2) 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  (#_ftn3) 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)           +44 20 7664 5095

 James Styles

Jonathon Brill

 seeingmachines@dentonsglobaladvisors.com
 (mailto:seeingmachines@dentonsglobaladvisors.com)

 

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 (http://www.seeingmachines.com)

 

 

 1  (#_ftnref1) Consensus expectations for FY2023 are revenue of US$53.9m

 2  (#_ftnref2) 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  (#_ftnref3) 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."

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTPBMMTMTJTBLJ