(Alliance News) - Seeing Machines Ltd on Tuesday reported a substantial rise in expected annual revenue following the commencement of automotive royalty revenue in the year.
Shares rose 6.5% to 9.16 pence each in London following the announcement. The stock is up 33% so far this year.
The driver monitoring technology company said revenue for the year that ended June 30 is expected to be AUD47.3 million, up 18% from the previous year and in line with market consensus.
Automotive royalty revenue began being generated in the year, with over 100,000 new vehicles hitting the roads with Seeing Machines' Driver Monitoring System technology embedded.
Royalty revenue is expected to "increase sharply over the next 2 to 3 years", as the production of vehicles carrying the company's DMS technology increases.
Chief Executive Paul McGlone commented: "Our progress over the past financial year has been really pleasing, and the signs are there for increased opportunity as financial year 2022 gets underway."
Canberra, Australia-based Seeing Machines' Aftermarket business has experienced "significant growth", noting record Guardian hardware sales achieved in the final quarter providing momentum going into the new financial year.
"The automotive request for quotes from Europe, North America and Japan currently represents total revenue potential of over AUD900 million, signalling a step change in the value of our automotive pipeline," McGlone added.
The increase in request for quotes was described as "extremely encouraging" by Seeing Machines, with the number likely to increase at a similar rate over financial year 2022.
"In summary I can safely say we have never been busier, nor been faced with such a raft of opportunities for significant growth," said McGlone.
By Will Paige; willpaige@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
Seeing Machines (SEE)