Key elements of the Revised Agreement:
· Up-front license fee payment of $16.5 million related to Guardian technology
· Certain fields of use released for Seeing Machines to leverage
· Further co-development of driver safety technology to be undertaken |
But warning on EBITDA so mixed bag |
 Nice one
------------------
26 June 2024
Seeing Machines secures US$16.5 million payment as part of five year License Renewal with mining giant Caterpillar
Revised Agreement also opens up significant untapped market for Seeing Machines' Guardian Generation 3 solution
FY2024 Pre-Close Trading Outlook Update
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, announces that it has signed a new Master License and Marketing Agreement with global mining company Caterpillar Inc ("Caterpillar") covering the next five years (the "Revised Agreement"), as the existing agreement was set to expire in August 2024.
Key elements of the Revised Agreement:
· Up-front license fee payment of $16.5 million related to Guardian technology
· Certain fields of use released for Seeing Machines to leverage
· Further co-development of driver safety technology to be undertaken
As part of the Revised Agreement, Caterpillar will make an up-front license payment for technology related to Guardian operator monitoring products, delivering a one-off cash payment of US$16.5 million to Seeing Machines.
The Revised Agreement also enhances marketing cooperation between the companies to better serve their respective customer bases and improve coordination in the pursuit of under-served opportunities. The changes open up access for Seeing Machines to sell its Guardian solution for on-highway vehicles directly and through its distribution network to select customers in many market segments of the General Construction and other core industries.
The Revised Agreement also makes provision for further co-development of driver safety technology, based on Seeing Machines' Intellectual Property to deliver smarter, more sophisticated, and competitive products to the heavy equipment sector. This co-development will proceed through specific development projects to be defined and priced individually. Caterpillar will continue to purchase and distribute Guardian Generation 2 directly or through their independent worldwide dealer network.
Paul McGlone, CEO at Seeing Machines, commented: "When we signed our initial strategic agreement with Caterpillar in 2015 to work exclusively to deliver our package of monitoring technology to their customers in certain core industry sectors related to mining, it was a transformational agreement for the industry. As we enter this next phase of our strategic collaboration with Caterpillar, we are delighted to be signing this revised agreement, setting the agenda for the next 5 years. The US$16.5 million payment will bolster our cash reserves and help deliver on our business plan as we move closer to achieving a cash flow break-even run rate in FY2025.
"Our incredible team continues to work tirelessly to ensure that Seeing Machines remains at the cutting edge of aftermarket Driver Monitoring System (DMS) solutions with our Guardian technology. Following the launch of the Guardian Generation 3 product earlier this year, and the renewal and expansion of our exclusive arrangement with Caterpillar, I believe we are well placed to take advantage of the regulation driven demand for our technology across customers in these vertical industries."
Seeing Machines continues to protect commercial transport and logistics companies with its aftermarket Guardian solution globally, with over 16 billion kilometres of recorded travel across more than 59,000 vehicles. The third generation Guardian hardware, launched this year and now being delivered to bus and truck manufacturers to meet the European General Safety Regulation, also delivers a range of features that leverage the Company's proven automotive-grade algorithms and precision optics to deliver premium performance in the most demanding real-world driving conditions.
Pre-close trading outlook
As the end of the current Financial Year approaches, the Board of Seeing Machines anticipates that the Company will close the FY2024 period at or ahead of market expectations for Revenue and Cash. Subject to final revenue recognition associated with the Revised Agreement with Caterpillar and the final outcome on Automotive royalties for Q4 2024 it is expected that Cash EBITDA will be lower than market expectations. This has been largely driven by Aftermarket margin mix due to the slower than expected transition from Guardian Generation 2 to Generation 3 and the previously reported adverse Automotive royalty volumes and mix during the year. Automotive royalty volumes have improved during Q3 2024, delivering 74% growth in unit volume for the year to date.
Despite Cash EBITDA being lower in FY2024, the Board confirms that the business is funded to deliver on the Seeing Machines business plan and reiterates its expectation to achieve a cash flow break-even run rate in FY2025.
The Company will provide a detailed Trading Update in early August, as usual. |
Fantastic renewal !!
Onwards and upwards |
Share price is held back by the business... |
nvhlt - understand your frustration, but they have added real new sales of US131m since June 2022, unlike its principle competitor. Remember they were quoting sales in Aus Dollars now US dollars |
One month to go before GSR kicks in and not a single Guardian 3 sale worth an RNS?
The first half of calendar year 2024 almost drawing to a close and no sign of the second wave of oem sales Nick said would happen.
Paul needs to explain what's gone wrong with their predictions this time? The last excuse was that they were delayed because they wanted more features and OMS.
We're now living on the sales from contracts won 2 years plus ago. The last 2 years have hardly seen any new sales to add to the circa $385 million. Without new contracts growth is going to stall in a couple of years time if not sooner. Growth only looks good now because we're starting from a low base. |
Zero the hero Firstly the reason for Smart Eyes rise today is an press release (not RNS) re launch of pro 12. It not major news (thus not an RNS) - Seeing Machines has better, but as usual SE maxing out on PR. Martin K is very good at promoting his company, that's his job as CEO, but is his product better? Probably not, because if it was Magna would have gone with him - forget what he says about not doing exclusive licensing, Magna is a major player. Logic would say the Magna solution is an absolute winner from a cost point of view - one solution across an entire range of cars wow. Massive saving and can be up graded over the air, thus why VW went with them. The mirror solution must be attractive to any large car manufacturer - Toyota, Ford etc. One thing I do know OEM's like to dual source for obvious reasons, so perhaps Gentex will get some of the action.
My person take on See v SE (after meeting a lot of Martin K) and after reading SE RNS's there is a lot of duplication and overlap, which would suggest hype. Also I think SE are selling their software cheap on the hope it can sell other products at inflated prices - that doesn't work in the medium to long term, especially with OEM's. I have picked up millions of SEE shares between 4-5p, so you know where I stand. Try to forget day to day noise. At least Seeing Machines directors put their money where their mouths are!!! I see 3% down on a total value of #97,000 shares traded - peanuts |
MK has a reputation for over optimism,( in many ways) & SEYE have underperformed financially, so far , despite his positive rhetoric & obsession with SEE.They clearly have a sellable product & the assumption is that it is a low cost product,which,for now,ticks the regulatory boxes ( without necessarily being a 5* solution - yet their market cap is now 40/50% higher than ours based on minimal revenues & a promise similar to ours that they are close to cashflow break even.PM has always said we arent going for & cant win 100% of The Market & 40% by volume & 50% by value suggests that our future remains bright -apart from our Aviation division which must be close to generating decent revenues & Fleet which is already profitable ( with monitoring revenues) .
I would be happy for our share price to be 50% higher than our current level & for our market cap to at least match theirs.I hold no shares in SEYE so do not care what happens to them & continue to believe that ,despite some of PMs mishaps,that we will meet ( or exceed ) expectations in FY24 & 25 ,that we will reach cash flow break even in FY25 & continue to grow.Frustrating that large contract wins which we have been expecting are taking time to land but we do have almost $400m of contracted Auto business & as we disclose minimum expected values ( unlike SEYE who disclose maximum expected)the actual figures are likely to substantially exceed $400m,& that is without new Auto wins |
Smithless, oddly I see MK as the best source of information on future workload. I believe him when he says "DMS (cars) was done for 2026", so who was the DMS winner? With SEYE's record for keeping positive PR under wraps I'd suggest SEYE are not the winners of the remaining to be announced big contracts for 2026, so who is? SEE are very reluctant to go against NDA's so I am very hopeful this is an indication of future who will be contract winners, or CIPIA.
With OMS, surely the best option will be the Magna mirror. Am I getting wildly too optimistic here? 10 years of SEE disappointment says I am :-( |
Smart Eye certainly winning the PR game here, now valued at £270m. Maybe some of the negativity towards Seeing M, is what Martin Krantz said in his most recent Redeye update, that he thought all business for DMS (cars) was done for 2026 EU regs and it was all about OMS, which is the opposite to what Paul McGlone stated in his H1 2024 market update in March. Over to you Paul...and Magna |
Reflection on an Investment is important but do not get distracted by other sources. Seeing Machine's partnerships over the years has fundamentally changed the company in which markets it operates.
Looking back over the past we see Collins, Magna, and other partnerships being taken. With Legislation in the areas, this will benefit Seeing Machines in the coming 18 months.
The latest figures show the number of cars on the road registered increases every quarter. This will translate into revenue moving forward. Each year passes going into July 2026 within the EU driver distraction is becoming more embedded within the Motoring Industry.
Happy Investing |
I don't doubt the potential, but we've had 10 + years of potential. I want them to stop BS and start delivering.
G3 is another BS story they started pushing 2 years ago and particularly from the town hall meeting in London. Seven weeks from the GSR drop dead date and nothing from the RFQ'S that only SEE were responding to and nothing from the 100 thousands of PO'S.
Paul is ultimately to blame for the share price performance and there's no point blaming AIM, Smarteye or anyone else. The expectations came from his mouth on multiple occasions, but so far he hasn't delivered and as a result we're being punished by the market. |
I agree that we are behind our own expected curve in respect of Auto RFQs won .However we declare minimum expected revenues from won contracts whereas SEYE,apparently, declare their maximum expectation.Our declared contract wins totalling just under $400m could therefore generate revenues over contract lifetimes of $700-$800m.Magna & VW is a good eg as they produce 7,2m cars & once in all of their production,that could generate ,possibly ,$75-$80m revenue pa-but te contract is declared at $125m
I sagree that much is unkown,creating uncertainty but the potential remains substantial |
Paul in most presentation stated that SEE share of the market would be 40% of market share and 50% by revenue, however,in one video he actually said we would get 50% of market share and 60% of revenue.
We might well have achieved those numbers. I don't know because despite what a poster claimed above we have no idea of the number of total dms sales.
With just over a month to go before the first GSR regulation kicks in we don't even know who most car makers will use for DMS for new models? Why is that?
Take Toyota for example. Knowing DMS is required for new car models sold in Europe from July 7th this year what does the lack of information tell us?
1) They haven't got any new models coming for 2 years until all cars are mandated to have DMSin Europe? Because they haven't announced a DMS supplier and it takes 2 years of NRE.
2) They have an in-house product?
3) There's some kind of get out of the regulations in the small print.
The point is I'm not questioning the market share as such at this stage because there's a lot we don't know about, but I'm going to assume that we do have 40% of the market. What I am questioning and challenging is the size of the market based on the statements from the company and in my view that's why the share price is depressed.
If the first wave was going to be $1 billion then we have only achieved circa 36% by revenue.
We are according to SEE in the second wave of another $1billion and the first half of this year was going to see alot of activity. With 1 month to go we have won one additional contract with an existing oem.
So the market size now according to SEE is $2 billion of which we have won circa $380 million.
That's where we are at and why the profitability has been delayed and the share price is 5p.
No amount of personal attacks or claims about shareholdings in SEE or Smarteye will change that. Thing's are behind schedule and not going to plan - fact. |
No problem, I did think it was unusual, normally so balanced. We all have off days |
Apologies Zero. Foolish of me to be rude.
On the target. I am sure that SEE have reiterated 40% by units & more by revenue. fwiw, the revenue mismatch versus SEYE does indicate far higher pricing.
Have a great day - and excuse my ignorant rant! |
I am with team zero !NVHltd clearly has an agenda-either as a SEYE shareholder or other reasons & zeros comments are perfectly reasonably & my view of his posts is that they are pragmatic, ie relate to known facts or expectations led by Paul. |
longsight
Absolutely no need for that attitude pal. Saying I have got it wrong is one thing, calling me a liar and misinformer is another. If my information is out of date then tell me, not gob off. My reply was to NVHLTD. This is the most recent interview that McGlone mentions this (to my knowledge.
zoom ahead to 6:53 and tell me I have misheard. I would go further back to when Mcglone discussed the 40% figure on revenue market share, but I don't have the time to re-find. |
Thanks for the link. |
Zero
nonsense. Tiresome the way lies are pumped out. Your view is undermined by your need to misinform.
40% units / more by revenue. Source: Seeing Machines Q1 presentation.
On SEYE: |
Don't forget the 40% market share referenced revenue not units sold. 30% market share by volume of units sold. Tesla are always going to do their own thing and Cipia will pick up some of the lower revenue units. It won't surprise me if SEYE end up selling a better volume of units as they target the cheaper cars. |
So if SEE are only going to get 40% and Seye are a long way behind in both units and revenues who is getting the other 60% with Seye? |
not interested in the debate - but I'll point you to the actual numbers. This year DMS sales shd total 5m - of which SEE shd get 2m approx. SEYE are a long way behind in both units & revenue. So SEE are doing great |
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