Seeing Machines Limited
("Seeing Machines" or the "Company")
Seeing Machines announces industry sector roadmap while readying for leadership position
Seeing Machines Limited (AIM: SEE), the AIM-listed technology company with a focus on operator monitoring and intervention sensing technology and services, is pleased to confirm that with the closing of the fourth quarter, it expects to deliver full year revenue through to 30 June 2014 approximately 40% ahead of the prior year. Sales to both mining and transport customers have seen the organisation ship a record number of units this year. In addition to revenues from DSS, the Company has sold engineering services to the automotive sector.
The Company has focused to date on increasing operator safety through monitoring and intervention. Combined with the recent launch of Fovio, Seeing Machines' computer vision platform, the Company helps protect operators from fatigue and distraction, and now intends to deliver entirely new capabilities to customers through a number of new transport safety and efficiency products and follow on data services.
Following on from the £16 million AIM capital raise announced on 29 November 2013, and a solidified leadership position in the mining sector thanks to the Company's global relationship with Caterpillar Global Mining, Seeing Machines today announces its roadmap for entry into an extended set of industry sectors with a business-partnering strategy. The Company intends to branch into a number of sectors where its industry-proven computer vision technology is expected to bring about accident reductions similar to those already delivered by the Company to the mining industry.
Capital Allocation
Over for the next twelve to twenty four months the Company will invest in (in order of expected magnitude of short and medium term revenue):
· Mining. Significant investment to ensure that Caterpillar mining centric dealers deliver significant revenue growth, further confirming Seeing Machines' leadership position in this market.
· Automotive. The Company is currently working with an automotive sector multi-national OEM supplier with a view to Seeing Machines' technology being brought to the automotive sector in volume, on lower-cost automotive grade hardware.
· Commercial road transport. The Company is actively working to develop a commercially accepted safety product to address this substantial untapped opportunity.
· Rail. The Company is in early stage discussions with a CAT company, Progress Rail to embed its technology into existing safety platforms to address the after and OEM markets.
· Simulators, including aviation. The Company is investigating the optimal business and partner model to address this significant market.
Seeing Machines will also continue to investment in its technology platform and wider sensing abilities in order to maintain technological advantage. The Company is investigating further industry opportunities with segment leaders outside of operator monitoring and intervention that are aligned to licensing / royalty relationships. Detailed market research has been used to support the Company's strategic and business planning process. Business partnering opportunities are already being developed in all areas identified above for investment.
Total sales for 2013/14 are broadly in line with management expectations, but the significant investment in the activities identified above to accelerate growth in future years are expected to result in reported losses before tax for both the 2013/14 and 2014/15 financial years as expected. As a result of the significant capital raise late in 2013, the Company is able to confirm that it expects to have sufficient capital to achieve the targeted levels of revenue growth and subsequently group profitability.
While the organisation will continue to work on computer vision based algorithmic performance, it will also extend its real-time monitoring competencies to include a broader range of intelligent sensing technologies and interpretation capability.
Seeing Machines' CEO, Ken Kroger commented: "Seeing Machines has made the conscious decision to enter only markets where it can achieve and maintain a leadership position. This will be achieved through selection of the right partners, working with them to develop a clear understanding of the market's requirements and expectations, and by taking new joint solutions to market the best way possible."
Enquiries:
Seeing Machines Limited |
www.seeingmachines.com |
Ken Kroeger, Managing Director and CEO |
+61 2 6103 4700 [email protected] |
James Walker, CFO |
+61 2 6103 4700 [email protected] |
finnCap Ltd |
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Ed Frisby / Ben Thompson, Corporate Finance |
+44 20 7220 0500 |
Victoria Bates / Simon Johnson, Corporate Broking |
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Newgate Threadneedle, Investment Communications for Seeing Machines |
Graham Herring |
Tel: +44 20 7653 9858 Mob: +44 7793 839 024 [email protected] |
Robyn McConnachie
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Tel: +44 20 7653 9852 Mob: +44 7540 706 191 [email protected] |
About Seeing Machines
Seeing Machines, (AIM: SEE), is an AIM-listed technology company that specialises in operator monitoring and intervention technologies and services. Its software and engineering services are used in products and applications that range from devices that improve driver safety and save lives to assessing trainees in simulators and simplifying the relationships between people and technology. Seeing Machines technology is used worldwide across the automotive, mining, transport and aviation industries; as well as many of the leading academic research groups and transportation authorities. Seeing Machines is headquartered in Australia and has offices in Tucson, Arizona and San Francisco, California. The company counts Caterpillar, BHP Billiton, Freeport McMoran, MIT, Boeing and General Motors amongst its customers.
