Member Info for Seeing-2020

https://www.linkedin.com/posts/colin-barnden-1081376_eetimes-dms-becomes-unnecessary-to-must-have-activity-6975051850953670657-dEY8?utm_source=share&utm_medium=member_desktop

Interesting set of 'likes' to this post by CB

"The announcement of a 5.1MP #CMOS #image #sensor from STMicroelectronics (https://lnkd.in/e4vxU78d) reveals the direction of developments for #incabin #driver #monitoring #systems #DMS. Previously only OMNIVISION had released a RGB-IR 5MP image sensor. Coupled with the announcement from HARMAN International of a strategy to become the leading in-cabin supplier by 2030, we can see the #technology direction the #automotive industry is heading in: Driver monitoring is already out, occupant monitoring #OMS is the future.

Clearly the development focus has shifted to the rear-view mirror and the installation of the optical components (IR image sensor and illuminators) for whole-cabin monitoring. I already see a trend to smart mirrors, which also integrate the OMS processor locally to the optical components. Frame rate of 60fps and 5MP resolution implies high-performance processing in the mirror, with only occupant state signals transmitted to a domain controller (both #ADAS and #****pit) over a bus. These signals are low-bandwidth and high-value, and this topology is vastly more efficient in terms of power consumption and low latency than transmitting gigabytes of raw video data.

Attention thus moves to the mirror suppliers, of which Magna International has to be seen to be in prime position for OMS mirrors. I discussed its significance in the article below.

We can now see the importance of optical path expertise and "codesign" where the optical components, image processor and imaging software are considered together. IR suppliers such as ams OSRAM and STANLEY ELECTRIC CO., LTD. will play a key role, so too the importance of #VCSELs over #LEDs.

The role of the #Occula #NPU core from Seeing Machines is also apparent, to maximize processing performance for the lowest possible power consumption. I anticipate further licensees in the near future.

But there is one element clearly missing: There must be some kind of next-generation occupant monitoring #software coming from Seeing Machines, which utilizes the resolution of a 5MP image sensor and leverages the power/performance optimization of Occula, with a feature set never seen before, all wrapped up in a Magna smart mirror.

Ironically, this solution itself would be "hardware agnostic" and compatible with domain controllers from Qualcomm, NVIDIA and Mobileye and works both in the ****pit and ADAS domains, or even as a standalone solution.

Magna would thus become the occupant monitoring "gateway" of choice and the integration path into mass-market vehicles would be clear. Little wonder Magna invested in Seeing Machines last year".

Major, I tend to agree.

Many sporting events and retail businesses are closing today, but by Monday things will be pretty much BAU. I expect the day of the funeral will be a national holiday

Personally my view is it should have gone ahead

Fantastic piece of analysis

For every 10 cold fish there is one quality researcher like Lewbo.

I agree with Maps re the 13th Sept, its a rare opportunity to meet the team and look in the whites of their eyes, a big part of an investment decision for me if whether I rate and trust the leadership team or whether I think they are flaming galah's

I have attended 3 SM events over the years, and even though I research it a lot I have learned something new on each occasion, never did I leave wishing I hadn't bothered making the effort to attend.

1) Sept 2015 - Ken K and James Walker (CFO)
- this was an analyst focused event, mainly discussing the CAT license deal that was announced the week before
- Ken and James came across well and I managed to look 'analyst like' whilst asking a few questions
Takeaways
-financial impact of the license deal,
- OEM fleet product, everything takes time that might happen soon

2a) March 2018
- evening event hosted by Finncap, from memory, Ken, other James CFO, Nick DF, Paul A, Pat, and a few of the wider team. Very generous with their time and stayed around for hours answering PI questions
Takeaway
- Nick DF was FTSE 100 calibre
- Nick DF left Xilinx as the huge opportunity in DMS and SM

2b) March 2018
- following morning an opportunity to visit the Croydon tram depot and see the tech in action and speak to some drivers and the team, we were hosted by Paul A who made us very welcome
Takeaways
- They (firstgroup) love the tech
- Drivers changed habits outside work because of the alerts

3) CMD Nov 2019
- Very professional event, wide selection of the SM team in attendance, generous with their time and opinions in the breaks and networking sessions
- Tim E spoke very well and back to my original point he said he "trusted the management team with his investment" that meant a lot as he has significantly more shares that any of us. He also said that DMS will be "like a airbag or safety belt"
- We heard from Dr Mike, very impressive, I can see why he can convince regulator's re the role of DMS
- Colin B presented his view and his prudent 65% market share prediction
Takeaway
- Leadership team very capable, ability to make this a multi billion business
- Next level of talent very impressive, eg Jon Noble super clever
- Paul Mc is a strong leader, deal with a few tricky questions with aplomb

The thing that happened at all of the events (well apart from event one, when I was acting analyst like) was meeting fellow PI, a very decent bunch and a pleasure to spend time with and discuss SM over a coffee pre event or a beer afterwards

It becomes very hard to win an auto design win if you are not the chosen DMS partner for QC

This was the VW RNS, also QC imo

16 December 2021
Largest Driver and Occupant Monitoring System award with OEM #8

Seeing Machines Limited (AIM: SEE, "Seeing Machines" or the "Company"), the advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, has been appointed by an existing customer and global Automotive Tier-1 supplier to deliver its FOVIO Driver and Occupant Monitoring System (OMS). This contract win is with a leading German Automaker and brings the total OEMs with which Seeing Machines has won business to eight.

This program covers an expansive number of vehicle models with mass production scheduled from early 2024 and an initial lifetime value of A$125 million. While representing the largest awarded DMS program to date, there also remains significant upside potential based on OEM expansion plans. Delivery is via the Company's deeply embedded Driver Monitoring Engine (FOVIO e-DME software library) configured for both driver and occupant state sensing, enabling a rich set of regulated and premium safety and convenience features.

This one is also QC imo, as we believe it to be Stellantis.

So we have had plently of success via QC, just our RNS is with the Tier One.

16 June 2022

Seeing Machines appointed by global Tier 1 customer to deliver DMS for additional OEM program

Seeing Machines Limited (AIM: SEE, "Seeing Machines" or the "Company"), the advanced computer vision technology company that designs AI-powered operator monitoring systems to improve transport safety, has been appointed by an existing global automotive Tier-1 customer to deliver its FOVIO Driver Monitoring System (DMS) for a large global automotive group (OEM).

This program, to be delivered via Seeing Machines' embedded Driver Monitoring Engine (FOVIO e-DME software library), is led out of North America and covers a broad array of vehicle models with certain minimum volume guarantees, a start of production scheduled from mid-2024, and an initial lifetime value of A$23 million.

2 months after QC and Stellantis announced this
https://www.stellantis.com/en/news/press-releases/2022/april/stellantis-and-qualcomm-collaborate-to-power-new-vehicle-platforms-with-snapdragon-digital-chassis-solutions

Maps, I think its a good point re QC, imo if they win we win but they provide an overall platform which includes SM.

However do we get an RNS stating a win via QC or an RNS stating a win via the Tier One, my view is its the latter so for example our Magna win which we believe to be VW is probably via the QC platform.

Amur, to try answer your questions

1) I don't recall them trying to sell Fleet business in the past. They did however attempt to spin-off the Auto business and it got as far as an RNS with cornerstone investor. Mike McAuliffe told us in his first CEO interview that he blocked the auto spinoff .

RNS May 2016
Automotive Business Term Sheet Signed

16 May 2016

Seeing Machines Limited, (AIM: SEE), the AIM listed vehicle operator monitoring technology company, is pleased to announce that it has signed a term sheet with a US-based investment firm with extensive experience in automotive technologies, for investment into a separately funded company solely focused on commercialising Seeing Machines' technology in the automotive market. Seeing Machines would retain a significant equity stake in the new company. The term sheet is non-binding, except for customary legal obligations and due diligence. Seeing Machines and its advisors are working with the lead investor and other investors to finalise the investment round.

Ken Kroeger, Seeing Machines CEO commented: "This continued execution of our multi-sector transport strategy builds on our successful venture with Caterpillar for rugged off-road industries. We believe that spinning out the automotive driver monitoring business will sufficiently resource the automotive business, further develop our automotive industry relationships and maximise the return for Seeing Machines' shareholders."

"Additionally, the Company continues to develop and deliver driver monitoring systems (DMS) for a global car maker, for their first and second-generation DMS platforms, launching first in early 2018 models. The automotive industry requires the highest levels of reliability and this strong continued support confirms Seeing Machines' ability to deliver the automotive industry's requirement for driver monitoring technology."

2) As for your 2nd question on most profitable, doubt they answer that directly. My personal view is Fleet but could be close between Fleet and auto

This one

February 2019

Seeing Machines Limited

 

Sixth Automotive OEM Design Win

 

Seeing Machines (AIM: SEE, "Seeing Machines" or the "Group"), the advanced computer vision technology company that designs AI powered operator monitoring systems to improve transport safety, has secured a new program design win with an additional global US-headquartered automotive OEM to deliver the Group's Driver Monitoring System (DMS) technology.

 

Seeing Machines is working alongside a major Tier 1 partner to deliver the new program via its highly scalable FOVIO Chip, with mass production scheduled from late 2020, and an estimated lifetime revenue of A$6M for the initially planned car models. While classified as a small value program (according to previously provided guidelines), this initial OEM win is considered strategic with a significant potential for volume/model expansion with increasing demand for driver monitoring systems, globally. It should be noted that volume projections can change materially and, as is typical in automotive industry contracts, there are no guarantees on the level of overall revenues beyond engineering milestone payments.

 

Firstly well done to all concerned for the license deal with upfront cash announced last week with Collins. It was worth the wait.

Obviously that will make us profitable for FY23 as the upfront cash is 100% margin, do you expect we have now reached profitably forever more?

26 mentions of 'Seeing Machines" that's almost stalking level

Redeye

All in all, sales was in line with estimates but lower than expected from Automotive. As a result we will push forward the ramp-up of automotive somewhat, but not much.
Cost level was above estimates, which is due to offensive actions to deliver on Automotive upstarts.
On the positive side, we note a very positive tone about the ongoing procurements, both for DMS and for Interior sensing.
We will likely adjust our Base Case downwards by about 5%.

5) AIS volumes?
- "customers gets 1-10 systems and do a trail" "we are ramping up" "we have had to do many redesigns" 2"its been a rough ride"

Might hit 100 units soon then......

The exiting CFO has swallowed an honesty pill

4) why are SM winning in 2022 not you?
- M, "I normally don't talk about competitors" "we have 3 main competitors, all have had some success in 2022, we don't see the market has tilted to any one competitor" "we are not going to win 100%"

3) Chances in current RFQ's?
- M, waffles,
- CFO, we will not win 100%, other competitors will win, in 2020 we won almost all, in 2022 it has changed.

CFO continuing, we can cut cost if we need too

2) What quarter will be main ramp upwards in licensing revenue?
- CFO, "we are disappointed its taken longer than expected, no ramp in coming quarters"

Martyn might regret letting the exiting CFO speak

1) first question is cash, need for a raise?
- CFO "we will continue to be cashflow negative, not overly concerned in short term, enough headroom for a while"

I am on their live pres now, looking forward to the Q&A....