Seeing Machines reports strong third quarter

7th May 2024 12:10

(Sharecast News) - Shares in driver monitoring technology company Seeing Machines were rising on Tuesday, after it reported a strong set of performance indicators for its third quarter.

The AIM-traded firm said the number of cars on the road equipped with its technology surged 109% year-on-year to 1,830,207 units, while quarterly production reached 313,662 units, up 51% from the prior quarter.

It said the growth was fuelled by the launch of the world's first interior cabin monitoring solution, which started production in March

The company said it saw a robust year-on-year increase of 80% in automotive production volumes, with its technology now integrated into over 1.8 million vehicles.

In the aftermarket segment, monitored 'Guardian' connections saw a notable uptick, rising 22% over the last 12 months to reach 59,706 units by the end of March.

That increase excluded Guardian units sold to customers who had transitioned from the first to the second generation of the technology.

Notably, Australia's transition from 3G to 4G networks prompted a surge in upgrade sales, with 1,216 units sold during the third quarter of the 2024 financial year.

The board said the third quarter also saw the successful launch of an $82m interior cabin monitoring programme for a prominent German auto manufacturer.

Looking ahead, Seeing Machines said it expected sustained growth in automotive production as additional programmes started production and new safety regulations took effect in the fourth quarter of the financial year.

"As expected at the time of our last KPI announcement, we have seen strong growth return in our third quarter vs second quarter production volumes, and with over 744,000 units in automotive production year-to=date, we can confidently expect our annual run rate to exceed one million this financial year and expand beyond that as more programmes start production across our current won business," said chief executive officer Paul McGlone.

"We've made good operational progress, with a particular highlight being the largest volume programme won to date by Seeing Machines.

"This programme also represents a technically challenging and groundbreaking technological solution, introducing the world's first interior cabin monitoring solution via a single camera system, which makes us very proud and reaffirms our status as a pioneer when it comes to innovation."

McGlone said new, well documented safety regulations, led by Europe, were driving demand across the company's automotive and aftermarket businesses, adding that the firm was tracking well with demonstrated growth as it helped its tier-one supplier and automotive manufacturer customers navigate the "new territory".

"The safety and regulatory momentum that has continued to build across the globe is supporting increased long-term demand for the company's differentiated DMS technology.

"We have worked hard this past quarter to remove cost from our business as part of our disciplined approach and rigorous operational focus.

"As we see our high-margin royalty revenues increase, we reiterate we are on track to meet 2024 financial year expectations and achieve a cash break-even run rate during 2025."

At 1234 BST, shares in Seeing Machines were up 14.74% at 5.46p.

Reporting by Josh White for Sharecast.com.