CNKS16 Aug 2021 11:49
Telematics data integration Seeing Machines, the advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, has announced that EROAD Ltd will integrate Seeing Machines' Guardian technology into its fleet management software to help combat driver fatigue and make roads safer. EROAD is a transportation technology company that offers fleet management software and products designed to improve driver safety, manage vehicle fleets and reduce costs associated with driving. From a leading position in New Zealand, EROAD has also entered into the Australian and US markets and has an estimated 170,000 vehicle connections. Its two core fleet telematics products are the Clarity Dashcam, with outward and inward facing RGB cameras, and Posted Speed which provides real-time driver coaching. ? Comment: Today’s deal is a first significant step towards the offering of a single telematics solution with Seeing Machines’s Guardian branded fatigue and distraction event risk prevention software embedded. Specifically, this first step announced today enables customers of both Seeing Machines and EROAD to receive a single unified and integrated feed of data and analytics from vehicles that operate both products. The next step is likely to be the development of a new single box EROAD product with a combined RGB-IR internal facing camera and additional processing (eg Xilinx FOVIO FPGA or OmniVision ASIC) that provides the full suite of Guardian functionality in an EROAD product. Whilst the economics of the singly unified data feed are already expected to be highly attractive to customers, the development of a single box solution, which would likely take around 12 months, would clearly be a highly attractive and competitive product. With EROAD already having 170,000 connections compared to Guardian’s 31,771 (as at 30 June 2021), the strong growth from telematics relationships like this one with EROAD are clear and significant. We reiterate our Buy recommendation and 16p group valuation.
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https://www.cenkos.com/research-portal?#/portal/cenkos-securities/research/39_2021081605370070959