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Seeing Machines Loss Widens On Rising Costs Amid Strong Revenue Growth

12th Mar 2018 10:36

LONDON (Alliance News) - Driver monitoring technology firm Seeing Machines Ltd said Monday its interim loss widened on higher costs despite revenue growing more than three time on strong automotive and fleet sales.

For the six months ended December, pretax loss widened to AUD16.7 million or GBP9.5 million, from AUD14.1 million, or GBP8.0 million the year prior. This was despite revenue growing more than three-fold to AUD14.7 million from AUD4.0 million.

Profit performance was hurt by a significant rise in costs. Research and development costs rose to AUD10.5 million from AUD6.3 million, customer support and marketing rose to AUD5.5 million from AUD4.4 million and occupancy and facilities expenses rose to AUD3.5 million from AUD1.1 million.

Revenue was particularly helped by a massive seven-fold rise in automotive revenue to AUD6.9 million from AUD992,934 the year prior. This was after milestone payments associated with a program with a German automotive original equipment manufacturer in conjunction with a "major" tier 1 automotive partner. The program was announced in October 2017 and saw it deliver its FOVIO driver monitoring system.

Fleet revenue also grew to AUD5.9 million from AUD1.6 million.

"We have had a busy first half with very pleasing revenue results achieved across the business," Executive Chairman & Interim Chief Executive Officer Ken Kroeger said.

"Some of our highlights - such as the debut of the FOVIO driver monitoring platform in GM's Cadillac CT6 Super Cruise which is being touted as a "semi-autonomous industry game-changer", the program design win with a premium German OEM as well as our collaboration with Emirates and continued strength in the Fleet business - reaffirms our commitment to the company's multi-transport sector strategy. We continue to focus on delivering significant value to shareholders but have not lost sight of our commitment to safety as fundamental to Seeing Machines' foundations."

Seeing Machines added it expected the year to be "very much" second half weighted. As such, it expects full year result to be in line with management expectations.

Shares in Seeing Machines were 0.6% lower at 4.92 pence on Monday.


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Seeing Machines
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