4th Sep 2018 10:53
LONDON (Alliance News) - Shares in Seeing Machines Ltd dropped Tuesday as the company said it expects revenue for financial 2019 to be "materially below current market expectations" due to delays and higher-than-anticipated costs.
Shares in the driver monitoring technology firm plunged 22% to 8.0 pence each on the back of the news.
The company said its results will be hit by delays to the manufacture and shipping of its second-generation Fleet hardware, Guardian, due to a global shortage in short lead-time components.
Additionally, the company said that the cost reductions to be delivered by the updated Guardian product are "unlikely to be achieved in the short to medium-term" in the absence of further redesign, optimisation and improvements in the production cycle.
As a result of the ongoing issues with its Fleet business, Seeing Machines said it will conduct a review of the unit to "ensure the most effective deployment of the company's capital, leadership and engineering resources to enhance value for shareholders over the medium-to long-term".
Despite the problems with the Fleet business, in the Automotive unit the company said it is working with a growing number of leading automotive customers, with "numerous new vehicle models launching in the 2019-2022 timeframe".
Related Shares:
Seeing Machines