The computer vision tech company's results show positive signs for future growth.
Companies: Seeing Machines Limited
Seeing Machines (AIM: SEE) have released their audited full year results to 30 June 2017, which outlines the progress the group has made the past 12 months.
Financial highlights of this morning's release include revenue up 122% to $A13.6m versus A$6.1m in FY16 on a like-for-like basis, though reported revenue was down 60% due mainly to a one-off license fee from Caterpillar Group in FY16 that has been widely communicated already.
H1 17 sales were more than 250% higher than H1 16 with the key growth driver being Fleet revenue, which reached A$9.1m for the year, almost triple the A$3.3m in FY16.
Indirect operating expenses rose, however, from A$32.5m in FY16 to A$37.1m in FY17 as the Group ramps up its operations towards commercialisation.
The Group also reported a net loss of A$28.5m, well up from the A$1.6m in FY16, due mainly to the increase in expenses in FY17.
Seeing Machines operate to create computer vision technology to aid drivers of machines across a variety of industries including automotive, aviation, mining, rail and logistics.
The results come a few days after the announcement of a global agreement with Progress Rail, one the world's largest suppliers of rail products and services, to commercialise their products to aid train drivers tackle issues like fatigue and distraction.
Management remains highly optimistic about revenue growth for the Company, with their forecasts saying:
"Whilst there remain uncertainties around the timing ramp of any new markets including some of those the company is supplying, the Company targets growing annual revenue to the sub A$100 million region by the end of FY19."
Margin forecasts from Management are equally as positive...
"The Company expects to deliver gross profit margins in the low to mid thirty percent range for FY18, with additional gross margin expansion of +5% to +10% per year for the next several years as the Company's business scales - to a long term gross margin model of 60% to 70%+ which is consistent with SaaS and high-performance processor/IP business models."
Mike McAuliffe, Chief Executive Officer had this to say regarding the results:
"The big strides we have made this year gives us increasing confidence in our business prospects for our core transport markets. 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."
Shares in the Group are marginally up in early morning trading today.
The Group is currently a loss-making company, but consensus forecasts agree with Management's expectation of the Group becoming a profitable operation in FY18, with the recent Progress Rail agreement as well as deals like last year's deal with MiX Telematics sure to help make this happen. Seeing Machines' market cap is currently £47m.