Member Info for Seeing-2020

Phil, Roy is out of ICU and has been moved to a specialist hospital, the hope is he can have some treatment when strong enough

I agree With Maps

We are not just a growth company, most companies grow at the expense of margin %, we have increasing margins and revenue growth.

- Fleet, recurring revenue model with customers such as Shell, giving clear revenue visibility over 5 years+
- Auto, license fee revenue (cars in production), high margin 90-95%, ASP increasing due to additional features

2022 is a month away, so are we worth as much as Mobilieye 8 years ago, yes is my view

The article is dated 24th Nov, so 2 weeks tomorrow

The article describes him as "day trader" and he states he is putting a stop loss at 10.5p, which was hit since 24th Nov.

My point remains that this isn't a share for stop losses imo

https://www.safestocks.co.uk

A few weeks old that one and I guess he is out now as his stop loss would have been triggered, this is a share for II and LTH not day traders

"If the price is going to trade under the placing price I would not wish to be holding, so I see the downside on this trade as 1.5p with a stop around 10.5p."

We have talked about Mobileye for years
- the $5bn IPO in 2014
- the $15bn takeover by Intel in 2017
- now we have the $50bn+ IPO in 2022

So where are we in the mobileye timeline

https://www.marketwatch.com/story/intel-to-list-shares-of-its-mobileye-self-driving-car-unit-11638837213?mod=mw_latestnews

For SM, NRE is very low margin, basically it covers the cost of the engineering time. ASP/license is very high margin, Paul has said 90-95%. Also NRE is by definition lumpy and hard to forecast, license per car is pretty much recurring for at least the lifecycle of a model (average 6 years).

So auto is moving from a low margin business thats hard to forecast, to a high margin, high visibility of revenue flows.

They aren't wasting money developing features in the hope that customers might want them in the future, they are developing features to meet customer needs and its paid for via NRE and increased ASP

Interesting comment on 'features' from the 31st March Q&A

"Why did R& D spend decrease, if engineering capacity is so crucial?

R&D spend has reduced due to NRE (non-recurring engineering) which funds customer-led development to some extent. As we work with new OEM customers on features, these become part of the Seeing Machines feature offering and reduces the need to assign expenses to R&D."

Listened to the whole results interview and Q&A again this morning, its really very good . Available on the investor meet company website

A few points
1) change in revenue mix
- auto: from low margin NRE to high margin license fees
- Fleet: from lower margin hardware sales to higher margin monitoring recurring revenue

2) Features
- increased ASP
- make or buy decisions, but buy would be a "modest cost" license not "spending $100m's acquiring businesses that still require funding"

3) Distributor v Direct
- more direct sales which increases margin

Covers auto from 10 mins to around 14mins https://www.linkedin.com/posts/daniellouisnewman_making-markets-ep18-qualcomms-unique-story-activity-6872505789823672320-PmXJ

Phil, Magna investing is huge, others will see that and follow, same with Federated increasing they are very well respected

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We will be in BMW with the Idrive8 system

First car will be IX or I4 whichever comes out first, IX is more of an X5 size car than IX3 but the naming is confusing

They are below 3% so not sure we will get an RNS, but we have been told already

$10m is approx 80m shares at 11p, around 2%.

Lewbo, thats the stuff companies dream about, no big sales and marketing push, its L3 customers asking for it, immense

Same with Fleet, we are recruiting sales staff to build demand, Shell has built demand and now we need installers.

All upside on the current broker forecasts and current SP

SEEROCKET2022, are you from Federated Hermes? 10x is very prudent, keep researching

The days of a small trial with Royal Buek (I wonder is there anyone left at the company who remember Royal Buek) are gone forever

Seems Fleet is coming out of its 'Shell'

"International installation partners".....

https://www-businesstoday-in.cdn.ampproject.org/c/s/www.businesstoday.in/amp/auto/story/general-motors-raises-profit-outlook-to-14-bn-as-supply-chain-troubles-ease-314171-2021-12-02

Terry, great point and we all remember what happened after they first invested

The placing was very well supported, over half been taken up by
- Magna
- Federated Hermes
- Lombard
- Michael Brown (Ned)
- Kate Hill (chair)