(Alliance News) - Seeing Machines Ltd said Wednesday it has signed a renewed supply agreement with chip supply partner Xilinx over the FOVIO Driver Monitoring chip.
Under the agreement, Xilinx will supply the FOVIO chip directly to Seeing Machines's automotive tier 1 customers, which is expected to reduce the complexity is supply chain qualification and realise cost savings for customers.
Meanwhile, for the Fleet business, Seeing Machines said it has worked with the manufacturing partner for its Guardian product, to reduce its unit hardware cost by 21%.
This is expected to deliver savings of AUD8.4 million, around GBP4.5 million, on its upcoming negotiated volume order, which will be delivered in batches to Seeing Machines and channel partners over 2020.
In addition, Seeing Machines has appointed several resellers for its products, including connected vehicle technology provider Fleet Complete for the oil & gas industry in Australia, and fleet management firm AUSIS in Turkey.
"I'm delighted with the progress being made across the business. Our partnership with Xilinx has been nurtured over several years and our renewed agreement for supply of the FOVIO Chip directly to our Tier 1 automotive customers seeks to leverage the particular strengths of each company to their benefit and that of our customers," said Seeing Machines Chief Executive Paul McGlone.
"In addition, we believe the outcome of our negotiations with our manufacturing partner, coupled with the strong momentum across the Fleet business and the strengthening relationships with distributors and other partners, will improve the division's profitability and cash flow, and will also help fund the company through to profitability," McGlone added.
Shares in Seeing Machines - which is headquartered in Canberra, Australia - closed flat at 4.62 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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