31st May 2016 10:45
LONDON (Alliance News) - Seeing Machines Ltd reiterated Tuesday that its full year revenue will be "significantly higher" than the previous year due to a one off licence fee from Caterpillar Inc, although it said excluding this fee, its other sales and service revenue will be lower as it transitions its business.
The company, which makes vehicle operator monitoring technology, said following on from a licensing deal with Caterpillar last September it has successfully transitioned its "ruggedised" Driver Safety System business.
Caterpillar now manages the supply chain for this product and has taken over sales and after sales support. Seeing Machines said that under the first quarter of these arrangements, it has delivered revenue of more than USD400,000, and higher revenue is expected for Seeing Machines' final quarter to end-June.
This has confirmed Seeing Machines' belief that Caterpillar's global distribution network will exceed what its own direct sales would have, and despite a soft resources sector, Caterpillar remains confident of building the business to focus on non-mining activities.
Seeing Machines expected its total revenue for the year to end-June to be "significantly higher" than the AUD19.0 million it reported the previous year, due to the one off licence fee from Caterpillar of AUD21.9 million.
However, its other sales and service revenue will be lower due to the shift in the business and change in revenue profile.
In its Fleet business Seeing Machines said it continues to build momentum. It is exploring opportunities to partner with fleet telematics companies on an integrated diver monitoring and safety product, and it is active discussions with several global telematics providers.
In its Automotive business the company has signed a term sheet for a US based investment firm to invest in a separately funded company solely focused on Seeing Machines' technology in the automotive market. If this goes ahead, Seeing Machines would retain a "significant equity stake" in the spin out, it said.
Shares in Seeing Machines were down 11% at 3.12 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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