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Seeing Machines fails to turn a profit despite soaring revenues
Computer vision technologies firm Seeing Machines watched pre-tax losses widen in its most recent trading half, despite skyrocketing revenues and the signing of several high profile partnerships.
Seeing Machines saw total revenue from operations soar 267% to AUD14.64m over the six months to 31 December after the performance of its automotive segment improved almost seven-fold to AUD6.88m, a record half-year revenue figure as a result of milestone payments from its programme win with a " premium German automotive OEM".
Revenue from the group's fleet unit expanded an impressive 258% to AUD5.86m, as the total value of contracts signed with Guardian customers in the first half reached AUD21m, taking total contract value signed with customers across Seeing Machine's fleet unit, but not yet delivered nor recognised as revenue, from AUD 21.5m at 30 June 2017 to AUD 36.4m as of 31 December.
Revenue from Seeing Machine's off-road segment totalled AUD1.32m, an increase of 68% on the same period a year earlier.
Yet Seeing Machines posted a net loss before tax of AUD 16.68m for the period, a widening of losses from the AUD 14.13m reported during the group's second trading half twelve months prior.
Despite that, management told investors they still expected the company to trade in line with expectations for the year as a whole, saying that after the signing of agreements with the likes of automotive safety systems group Autoliv, General Motors, Chevron, Emirates Airlines and Progress Rail, that "results for the current financial year to June 2018 will be very much second half weighted."
Ken Kroeger, interim chief executive, said, "We have had a busy first half with very pleasing revenue results achieved across the business. Some of our highlights - such as the debut of the FOVIO driver monitoring platform in GM's Cadillac CT6 Super Cruise which is being touted as a "semi-autonomous industry game-changer", the program design win with a premium German OEM as well as our collaboration with Emirates and continued strength in the Fleet business - reaffirms our commitment to the Company's multi-transport sector strategy."
As of 1000 GMT, shares had gained 0.55% to 4.98p.