Member Info for Seeing-2020

SM CEO on Linked

"Our business is experiencing an unprecedented rate of growth. We like most had to take a conservative stance on operating costs as the COVID issue consumed all and presented unbounded risk. Now, as the market recovers we have demand for special team members to compliment our world leading team of exceptional engineers. Do you want to work with purpose, do you want to participate in a global phenomenon. If your’e an exceptional software engineer, that wants to make a difference get in touch with SeeingMachines."

So we have a poster called NumtyiPI who is actually very clever and a joy to speak too, we have Oldfool who is no fool and now this chap, such irony in choosing a name.

Cash is King, this is very impressive

"Seeing Machines has announced a cash position at 31 December 2020 of A$52.7m (FY20: A$38.1m). This is better than the A$42.4m than we had in our model. We understand this stronger than anticipated cash performance is due to a combination of better than expected margins, lower costs and continued positive working capital movements. We believe the company continues to effectively have no debt other than accounting liabilities for operating leases."

Cost of capital extract below is interesting, Cenkos use 12% to get 14.3p, 10% would be 20.4p.

"Cost of capital has substantially decreased following the US$20m investment by Federated Hermes and the recent stock revaluation. We continue to believe a DCF valuation is the most appropriate as most near-term revenues are high value high margin recurring, and value from the automotive sector will mostly be seen beyond the explicit forecast period. Our updated DCF valuation of 14.3p is based on a 12% discount rate which leaves room for significant upside as it delivers on expectations"

With Qualcomm taking Seeing Machines into a potential of twenty Snapdragon ****pit Gen 3 OEM customers, and OmniVision and Xilinx also selling solutions for OEMs, we increase our DMS market share expectations and reduce our risk weighted discount rate raising our valuation to 14.3p (from 12.9p). Our forecasts continue to leave substantial upside not just through lower discount rates and increasing automotive OEM market share, but also in Aftermarket, Aviation and further technology license deals.

Cenkos note out, upgraded to 14.3p

So Google tie up with Ford from 2023, whats this mean for SM?

1) Google work with Qualcomm - hence Colin Barnden saying this on linkedin

"BREAKING: Less than a week after Qualcomm's "Automotive Redefined" it looks like it just bagged Ford as part of this deal with Google. Think this goes alongside General Motors and the Renault-Nissan-Mitsubishi alliance. Big news."

2) The year is important its 2023, QC told us in the interview with Junko that Gen4 snapdragon is from 2023.

https://www.eetimes.com/automotive-qualcomm-in-it-to-run-like-hell/#

The interview is best watched but the transcript gives some useful snippets

"Asked when chips go into mass production, Duggal noted, “Earliest customers that we are talking about are actually 2023, but probably more typically late 2023 or early 2024.”

“We are in a business of scale, not in a business of headlines,”

Partnership is also essential to the Snapdragon ****pit platform. “We are one of the few companies who will say we are very happy to work with Google on Google automotive services,” said Duggal. Snapdragon also works with Alexa. Citing Alexa’s popularity, he noted, “We are able to integrate that into a DSP.”

3) Seeing Machines

Gen4, ready in 2023, comes with the Seeing Machines DMS stack as 'standard' if you listen to the interview in the link above he says they (OEM) can choose not to use SM and to use someone else but frankly why would they, from the same interview I wonder who he is talking about?

“We work with partners with hardened commercialized solutions that are actually tested with miles on the road, across various parts of the world.”

4) My Conclusion, QC have won Ford for gen4 snapdragon and so we have won, who cares you might think as we already have Ford?, well yes we have F150 and March-E for their version of super cruise, but this deal with Google / QC/ SM and Ford is high volume mass market, an operating system that goes in every new Ford from 2023 so Focus, Fiesta etc.....

The writer holds shares in SM and didn't sell any on recent rises.

So today we have nunber one on the list, the future is very exciting but I want to see that mgt can deliver the day to day plan.

1) Beat last years number? - yes up over 18%

2) Grow the fleet business- yes, increase of 15%

3) Strong balance sheet - yes, A$52.7m cash

So I am really happy, mgt are delivering on their current plan and I trust them to deliver the growth thats coming.

Well done to McDelivery. This is starting to feel a bit Ronseal.

I wonder what would be a good name for a pillar to get noticed by all these EV OEM's.

Pillar 2
The e-DME includes versions which are deeply optimized and embedded for key automotive SoC platforms, leveraging the different state-of-the-art AI vision acceleration architectures in those devices.

Thanks Old and well done to Teamin

I can just about take losing Jan, but if MM shenanigans cause me to miss my year end target of 100p by 1.9p, this is how I will react

https://m.youtube.com/watch?v=wLmT5YshBww

David, on 2nd Sept 2020 SM launched its 3 pillars strategy, this opens up lots of options for SM to end up in a production vehicle, thats as simple as it gets for me we get approx $10 per car of the production line the 3 pillars increases our chance of being in the car, in some cases to 100%.

New "three pillar" strategy targets rapidly expanding camera-based interior monitoring market:

2nd Sept RNS
o First pillar: FOVIO Chip, newly advanced with the introduction of Seeing Machines' OcculaTM Neural Processing Unit

o Second pillar: A low-friction integration pathway into any vehicle integration point, including smart-mirrors, instrument clusters, infotainment ECUs or centralized ADAS processing systems

o Third pillar: OcculaTM is now available for license, in ASIC form, to world-leading semiconductor companies for integration with any automotive compute platform.

So examples of each

1) F150 with the Fovio chip, in production now and a cash cow.

2) e-DMS, this is the pillar Qualcomm sits. My guess for Gen 4 Snapdragon is Audi first.

3) License of IP to a semiconductor, this is where Omnivision sits. High volume, maybe something from Japan.

Buffet, Omni deal was 4 months from MOU to RNS.

L3Harris MOU was 21st Oct, so 4 month would be towards end Feb, I would expect it is this quarter.

https://www-cnbc-com.cdn.ampproject.org/c/s/www.cnbc.com/amp/2021/01/25/delta-plans-to-bring-back-400-pilots-signaling-optimism-about-future-air-travel.html

Delta's pilots avoided furloughs last year after the union agreed to reduced pay and no flying requirements for some 1,700 junior aviators. Delta is now going to offer some 400 of them active status, according to a company memo that was seen by CNBC. That will include required flight training to fly certain aircraft as the company aims to have them trained and ready for summer 2022.

Been saying this since Adam was a boy

https://thehill-com.cdn.ampproject.org/c/s/thehill.com/blogs/congress-blog/politics/535949-existing-technology-can-eliminate-drunk-driving?amp

Two technologies in particular would stop drunks from driving: Driver monitoring systems can detect signs of distracted, impaired or fatigued driving; and alcohol detection systems use sensors to determine that a driver is under the influence of alcohol and then prevent the vehicle from moving. These systems can save more than 9,400 lives a year, according to the Insurance Institute for Highway Safety (IIHS).

OK confirmed for Monday, thats good news, always a positive for me when a trading update is start of the week.

I expect we will be on target and thats all the market should expect, any better is a bonus.

This weeks announcement needs more explaining, does this mean 30% is now 40% or 50% or more?

"We expect this engagement to deliver significant incremental volume on top of our existing business plan."

Wouldnt want to be out of this over the weekend

Qualcomm have a high opinion of themselves, they view themselves as an equal to Seeing Machines

Just so people have some idea of what might be coming.

I am going to give the big man number 8 on the list for todays RNS, I know it didn't contain $$ but the stuff that came out last night from Qualcomm is way bigger than anyone expected.

Just another 19 to go, I except number 1 is next week.

#McDelivery

Totally agree DT, nice steady 5%, not creating too many waves and attracting the day traders

The last thing we want is a 20% day and Zak Mir picking a random number from his bingo machine.

We are approaching a £500m market cap, which brings in many of the bigger players (who have that as a threshold), the II roadshow the company announced on social media seems very well timed to me.

Cenkos is generally seen as a PI broker and I think the Morgan Stanley and Ark Invest of the world will make there own decisions.

We need new strong hands to join the next stage of the development of this company from an AIM minnow to a company that $180bn+ market cap Qualcomm talk about as an important partner.

Some of us LTH will stay for the ride I am sure

Baxter, I am still expecting an invite for our game of golf on the Old Course.