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Seeing Machines sees revenue double; eyeing US$100mln in annual revenues within two years

Excluding the impact of a hefty one-off payment from Caterpillar last year, Seeing saw like-for-like revenues double in the year to June, driven by another strong performance from its Guardian fleet division
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Seeing Machines is targeting underlying breakeven by the end of FY19

Seeing Machines Limited (LON:SEE) saw like-for-like revenues soar once again last year and the eye-tracking technology specialist has now set its sights on turning over US$100mln by the end of 2019.

The Australia-based, London-listed group has enjoyed rapid top line growth as increasingly safety conscious manufacturers integrate its technology into their planes, trains and automobiles.

FY17 like-for-likes double, driven by Guardian

Its Guardian fleet division – an in-cab driver fatigue monitoring technology – is currently the main revenue driver and helped overall like-for-like sales to more than double in the year ended 30 June to A$13.6mln (2016: A$6.1mln).

READ: Seeing flags strong full-year performance

In fact, sales in this business almost tripled to A$9.1mln, (2016: A$3.3mln) thanks to new customer wins and it expects this momentum to continue over into FY18, supported by contributions from new telematics partners.

Seeing also has its automotive division which is the home of its Fovio driver monitoring system (DMS). It’s in the relatively early stages but revenues still grew by 49% to A$1.6mln (A$1.1mln).

Big prizes up for grabs in automotive

The world’s first ‘hands-free’ semi-autonomous car from “a leading US OEM” is due to launch later this year which will incorporate Seeing Machines’ technology and that should provide a boost to the top-line next time around.

Automotive is perhaps where the biggest potential prize resides for the firm, with market research suggesting that demand for driver monitoring solutions will grow from below US$1bn now to over US$13mln within just a few years.

Caterpillar royalties boosts mining revenues

Over in the mining division, sales trebled to A$2.5mln (2016: A$728,000) thanks to royalty payments received under the licencing deal signed with diggers and dump trucks giant Caterpillar Inc. (NYSE:CAT).

Seeing was paid a hefty – A$21.8mln – one-off fee as part of that tie-up last year, which meant reported revenues for the 12 months just gone were 60% lower year-on-year.

READ: Seeing extends partnership agreement with Progress Rail

As for aviation and rail, these are both on the verge of commercialisation and the company expects the “first meaningful revenues” from both in the current year.

Strong cash position

Thanks to a well-supported fundraise earlier this year, Seeing has A$22mln in the bank now compared to A$16.9mln at the end of June 2016.

However, the company plans to invest up to A$50mln into its technology over the next couple of years to take advantage of the sizeable opportunities out there for its products.

Given the planned investment, it said it “remains mindful of its balance sheet position” and so was in discussions with potential strategic partners about possible investment in the business.

‘Big strides made this year’

“The big strides we have made this year gives us increasing confidence in our business prospects for our core transport markets,” said chief executive Mike McAuliffe.

“We have the right technology in the right place and at the right time. It has been a break-through growth year for the Fleet business which achieved widespread market recognition of the effectiveness of our pioneering Guardian solution.

“We believe that the FOVIO DMS platform and processor will be a major long-term growth driver for the Company, driven by the adoption of DMS which is increasingly integral to ADAS and Autonomous driving technology.”

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