27th Mar 2025 13:26
(Alliance News) - Seeing Machines Ltd on Thursday said its pretax loss narrowed while revenue fell slightly in the first-half of its financial year as it reduced costs.
The Canberra-based designer of artificial intelligence powered operator monitoring systems said its pretax loss narrowed to USD18.5 million in the six months to the end of December from USD19.8 million.
Revenue fell 1.7% to USD25.3 million from USD25.7 million, while profitability was helped by a 26% decline in cost of sales to USD11.3 million from USD15.2 million.
Seeing Machines said gross profit increased 23% to USD14.0 million from USD10.6 million due to improved revenue mix and increased license fees, including high-margin royalty revenue from Automotive production volumes.
The firm said the number of cars on the road with Seeing Machines technology increased by 90% to 2.9 million units from 1.5 million a year ago.
Following a review of the organisation, Seeing Machines said it has reduced annualised operating expenses by USD12 million.
"Combined with expected increases in Aftermarket revenues and gross margin, as well as anticipated growth in global adoption of [driver monitoring systems] as transport safety regulations ramp up in Europe by July 2026, the board expects that Seeing Machines will achieve a cash flow break-even run rate during the calendar year 2025," the company said.
The company did not declare an interim dividend, unchanged from the previous year.
Chief Executive Officer Paul McGlone said: "Our teams continued to make strong operational progress over the period, underpinned by our best in class technology and strong financial position, despite a backdrop of global automotive industry volatility. To ensure we are best placed to achieve our objectives in the current environment, we have taken fast and decisive action to reorganise the management structure, lower our cost base and enhance efficiency across our engineering and corporate functions."
Seeing Machines said the company was "well positioned" for the coming year, despite volatility in the automotive sector.
It expects performance to be in line with consensus expectations for financial 2025, with risks mitigated by guaranteed portions of royalty revenue expected within the original time frame.
Consensus expectations for financial 2025 are for revenue to decrease to USD58 million from USD67.6 million and the adjusted earnings before interest, tax, depreciation and amortisation loss to narrow to USD28.9 million from USD38.9 million.
"We remain laser focused on execution and delivery - getting programmes successfully to production to support acceleration of high margin royalty revenue," said CEO Paul McGlone.
"We will continue to pursue opportunities driven by the compelling structural tailwinds across our key target markets of Asia, Europe, and the US, where we expect our transport customers to increase installations of driver and occupant monitoring system technology, driven by unavoidable road safety regulatory developments."
Shares in Seeing Machines were down 3.7% to 2.21 pence in London on Thursday afternoon.
By Michael Hennessey, Alliance News reporter
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