The last two years have been a transitional period as Seeing Machines (SM) has been preparing to attack the higher-volume automotive Fleet and OEM markets for monitoring driver fatigue and distraction. This has culminated in the new agreement with Caterpillar (includes the mining sector), which releases sales, support and logistics people so they can focus on the new SM Fleet product. Forecasting is difficult, not helped by an IFRS requirement to account for the full US$17.5m CAT fee in FY16. Nevertheless, if SM can execute effectively in the Fleet and OEM sectors, we believe there is significant upside potential in our numbers from FY17e.
