Seeing Machines Regulatory News (SEE)

4 Mar 2008 07:59

Seeing Machines Limited04 March 2008 4 March 2008 Seeing Machines Limited ("Seeing Machines" or the "Company") REVIEWED INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2007 Seeing Machines Limited (AIM: SEE) announces its reviewed interim results forthe six months to 31 December 2007. Financial Highlights • Revenue for the half-year A$1.236 million (31 December 2006 A$1.393 million); • Loss before tax of A$430k (31 December 2006 A$141k); • Concluded successful capital raising in October 2007 raising A$3,199,282; and • Cash reserves at 31 December 2007 of A$3,235,364 (31 December 2006 A$1,685,583). Operational Highlights • Release of version 2 of the Driver State Sensor (DSS) product and the strong commercial interest from fleet managers and the OEM manufacturers and suppliers; • Revenue in the half-year from multiple product streams; • Marketing clearance from the United States Food and Drug Administration (FDA) for the TrueField Analyzer(R); • Release of a significant new version of faceLAB(R) 4.5 targeted at precision gaze applications. Fulton Muir, Chairman stated, "The Company has invested significantly in productdevelopment and commercialisation and has made excellent progress especiallywith the DSS product, including the long term multi million dollar deal withDycom Industries Inc that was announced today." Extracts from the interim financial statements are set out below and a full copyis available from the Company website www.seeingmachines.com and also isavailable by request to the Company's Registered Office at Innovations Building,Level 3, Corner Eggleston & Garran Roads, Acton ACT 2601. --- ENDS --- Enquiries: Seeing Machines Limited Grant Thornton Corporate Finance Parkgreen CommunicationsNick Cerneaz, CEO Fiona Owen Justine Howarth, Erica Nelson+61 (0) 2 6125 6501 +44 (0) 20 7383 5100 +44 (0) 20 7851 7480www.seeingmachines.com Directors' Report Your directors submit their report for the half-year ended 31 December 2007. DIRECTORS The names of the company's directors in office during the half-year and untilthe date of this report are as below. Directors were in office for this entireperiod unless otherwise stated. James Fulton Muir, AO Non Executive ChairmanNick Cerneaz Executive DirectorDavid Gaul Non Executive DirectorRob Sale Non Executive DirectorTrent Victor Non Executive DirectorAlex Zelinsky Non Executive DirectorWilliam Mobbs Non Executive Director REVIEW AND RESULTS OF OPERATIONS Review of 1st half of our Eighth Year of Operations The first half of the 2008 financial year has seen the release of a number ofproducts and good progress in commercialisation activities. Operational highlights for the half-year include: • Release of version 2 of the Driver State Sensor (DSS) product and thestrong commercial interest from fleet managers and the OEM manufacturers andsuppliers; • Revenue in the half-year from multiple product streams; • Marketing clearance from the United States Food and Drug Administration(FDA) for the TrueField Analyzer(R); • Release of a significant new version of faceLAB(R) 4.5 targeted atprecision gaze applications; • Reception given to the TrueField Analyzer(R) at the American Academy ofOphthalmology Annual Meeting in New Orleans in November and the interest of anumber of OEMs in taking the product to market; • The appointment of Chris McKee as Chief Financial Officer addingsignificant skills to the Company's management team. Financial Results Revenue for the half-year to 31 December 2007 was A$1.236 million, A$156,721lower than the period to 31 December 2006. This decrease in revenue was due toa decrease in contract revenue of A$285,555, the reduction somewhat offset byincrease in Product Revenue of A$128,834. In the half-year to 31 December 2006,the contract revenue related mainly to a particular one-off project. Otherincome for the half-year was up A$63,081, with Grant Income increasing A$61,869across the comparative periods. Net expenditure for the half-year was A$1,815,861 up from A$1,620,684 on theprior half-year. This was due to higher level of activity, both in salesactivity and research effort. The loss for the half-year to 31 December 2007 was A$430,155 compared to a lossof A$141,338 for the half-year to 31 December 2006. The company raised capital of A$3,199,282, at a cost of A$104,580. At 31December 2007, cash on hand was A$3,235,364 compared to A$1,685,583 at 31December 2006. Net assets increased to A$6,328,677 at 31 December 2007 comparedto A$3,908,044 at 31 December 2006. Operational Highlights faceLAB(R) faceLAB(R) 4.5 was debuted at the Driving Assessment Conference in Washingtonstate in July 2007. This version of faceLAB(R) introduced a new class ofprecision gaze algorithms initially developed for the Truefield Analyzer(R)(TFA). The algorithms bring dramatic improvements to the performance andaccuracy of faceLAB(R) when used to track gaze direction on computer and videoscreens particularly for applications such as website usability analysis andmarket research. TrueField Analyzer(R) We continued to aggressively pursue the development of the Truefield Analyzer(R)(TFA) in order to bring this key product to market. All streams of this projectwere progressed during the half-year including: • Scientific trials; • Large scale clinical study; • Regulatory approval; • IP Protection (including trademarks in several jurisdictions); • Industrial design and hardware development; • Software development; • Commercialisation activities. In August we received Marketing clearance from the United States Food and DrugAdministration (FDA) and in November the TFA was showcased at the AmericanAcademy of Ophthalmology Annual Meeting in New Orleans. Several opportunitiesto bring the product to market with large OEMs have been progressed. Driver State Sensor The release of version 2 of the Driver State Sensor (DSS) brings a new level ofmaturity to the product and a readiness for use in real world applications. The Driver State Sensor allows the fully automatic measurement of the driver/operator's fatigue and distraction levels. Trent Victor of Volvo Technology, and a director of Seeing Machines, has been working with driving monitoring systems for over 10 years at Volvo, and said ofthe DSS: "This technology has redefined the state-of-the-art. Operating fullyautomatically, the DSS2 achieves a level of performance previously unseen andthe technology now becomes a real contender for serial production systems." Seeing Machines is pursuing several commercial opportunities for the DSSincluding: • OEM opportunities through a Tier 1 automotive supplier for bothpassenger and commercial vehicles; • Opportunities to sell the DSS into large truck fleets; • Opportunities to sell the DSS into mining and other operationsconcerned with fatigue and distraction in the operator; • Opportunities to sell the DSS into Field Operational Trials (FOTs)particularly in the United States and Europe; and • Sales to research organizations. faceAPITM /SDK Seeing Machines concluded the second licensing deal for its faceAPITM late inthe 2007 financial year and the first revenue from this deal was received duringthe half. The first commercial version of the API is now generally available toapplication developers through a software developers kit. Income Statement FOR THE HALF YEAR ENDED 31 DECEMBER 2007 31 December 2007 31 December 2006 Note A$ A$Continuing operationsSale of goods 1,163,286 1,034,452Contract Income 73,525 359,080Revenue 1,236,811 1,393,532 Other income 3(a) 148,895 85,814 Cost of Sales (329,974) (293,320)Employee benefits expense 3(b) (783,352) (721,379)Depreciation and amortisation expense 3(c ) (126,453) (131,391)Other expenses 3(d) (576,082) (474,594) Loss before income tax (430,155) (141,338) Income tax expense - - Loss after tax from continuing operations attributable to (430,155) (141,338)members Loss per share (cents per share)• basic for loss for the half year attributable to ordinary (0.156) (0.070)equity holders of the company• diluted for loss for the half year attributed to ordinary equity (0.144) (0.055)holders of the company Balance Sheet As At As At As AtAS AT 31 DECEMBER 2007 31 December 2007 30 June 2007 31 December 2006 Note A$ A$ A$ ASSETSCURRENT ASSETSCash and cash equivalents 5 3,235,364 1,375,428 1,685,583Trade and other receivables 706,252 350,813 982,908Inventories 213,567 136,571 120,669Other 14,690 34,825 10,902TOTAL CURRENT ASSETS 4,169,873 1,897,637 2,800,062 NON-CURRENT ASSETSProperty, plant and equipment 231,476 244,953 276,020Intangible assets 331,586 277,962 264,802Capitalised development costs 4,749,985 3,719,471 2,580,556Other 3,586 3,586 3,494TOTAL NON-CURRENT ASSETS 5,316,633 4,245,972 3,124,872 TOTAL ASSETS 9,486,506 6,143,609 5,924,934 LIABILITIESCURRENT LIABILITIESTrade and other payables 900,699 756,736 740,966Deferred revenue 2,147,137 1,661,193 1,195,637TOTAL CURRENT LIABILITIES 3,047,836 2,417,929 1,936,603 NON-CURRENT LIABILITIESProvisions 109,993 97,251 80,287TOTAL NON-CURRENT LIABILITIES 109,993 97,251 80,287TOTAL LIABILITIES 3,157,829 2,515,180 2,016,890NET ASSETS 6,328,677 3,628,429 3,908,044 EQUITYContributed equity 9,648,634 6,553,932 6,553,932Accumulated losses (4,035,380) (3,605,225) (3,279,610)Other reserves 715,423 679,722 633,722TOTAL EQUITY 6,328,677 3,628,429 3,908,044 Statement of Changes in Equity FOR THE HALF YEAR ENDED 31 DECEMBER 2007 Issued Accumulated Employee Equity Total Equity Capital Losses Benefits Reserve Note A$ A$ A$ A$ At 1 July 2007 6,553,932 (3,605,225) 679,722 3,628,429Loss for the half year (430,155) (430,155)Issue of ordinary shares during the halfyear Issue of share capital 3,199,282 3,199,282 Transaction costs (104,580) (104,580)Share based payment 35,701 35,701 At 31 December 2007 9,648,634 (4,035,380) 715,423 6,328,677 At 1 July 2006 6,528,748 (3,138,272) 522,761 3,913,237Loss for the half year (141,338) (141,338)Issue of ordinary shares during the halfyear Exercise of options 15,000 (10,184) 4,816Share based payment 10,184 121,145 131,329 At 31 December 2006 6,553,932 (3,279,610) 633,722 3,908,044 Statement of Recognised Income and Expense FOR THE HALF YEAR ENDED 31 DECEMBER 2007 31 December 2007 31 December 2006 A$ A$ Net Income recognised directly in equity - -(Loss) for the half-year (430,155) (141,338)Total recognised income and expense for the half year (430,155) (141,338) Attributable to equity holders of the company (430,155) (141,338)Cashflow Statement FOR THE HALF YEAR ENDED 31 DECEMBER 2007 31 December 2007 31 December 2006 Note A$ A$ Cash flows from operating activitiesReceipts from customers 926,432 1,180,939Grants received 631,513 795,317Payment to suppliers and employees (1,688,542) (1,367,254)Interest received 39,204 35,198Net cash flows from operating activities (91,393) 644,200 Cash flows from investing activitiesProceeds from sale of plant and equipment 1,241 429Purchase of plant and equipment (36,566) (98,225)Payments for intangible assets (15,498) (56,006)Payments for research and development costs (1,092,550) (1,226,868)Net cash flows (used in) investing activities (1,143,373) (1,380,670) Cash flows from financing activitiesExercise of options - 15,000Issue of shares 3,199,282 -Costs of capital raising (104,580) -Net cash flows from financing activities 3,094,702 15,000 Net increase in cash and cash equivalents 1,859,936 (721,470)Cash and cash equivalents at beginning of period 1,375,428 2,407,053Cash and cash equivalents at end of period 5 3,235,364 1,685,583 This information is provided by RNS The company news service from the London Stock Exchange