Seeing Machines Share Discussion Threads

[skinny] 24/11/2021 07:47

Webinar now open!

[zero the hero] 24/11/2021 07:38

Good results in the circumstances.

Thought I had called this wrong on post 17819, but essentially called it correct that SEE are raising cash for a purchase rather than running costs. Compare “Cash at 31 December 2020 of A$52.3m” to “Cash at 30 June 2021 of A$47.4m” so only a A$4.9m burn in 6 months so easily enough to get through to projected profitability.

This paragraph signals the intent to buy out a smaller company. “The Directors continue to see accelerating momentum for the business, with current market conditions presenting a significant opportunity to capture an even greater market share as the market benefits from a number of structural tailwinds. The net proceeds of the recent fundraise will enable the Company to make the necessary investment in order to secure this opportunity and gives the Directors confidence, underpinned by its current 'active RFQ' pipeline, that Seeing Machines will have an increased market share by 2025.”

End of Grumpy Zero

[base7] 24/11/2021 07:24

Cash burn fairly low with view to the expansion & R & D investment & as Aftermarket continues to grow its profitability & our royalty income from Auto increases,we have a very solid cash position,especially following the $41mill cash raise-making our Balance Sheet very solid ,which will comfort prospective stakeholders ( & customers) substantially.

[gutterhead] 24/11/2021 07:12

Looking positive

[skinny] 24/11/2021 07:00

.






FINANCIAL HIGHLIGHTS:

- Revenue increased 18% to A$47.2m (2020: A$40.0m)
- Underlying revenue has grown 30% when using constant currency* to A$47.4 (FY2020: A$36.5)
- Commencement of OEM royalty license revenue of A$2.3m (2020: nil) as cars start production featuring the Company's driver monitoring system (DMS) software. Remainder of OEM revenue was comprised of non-recurring engineering revenue (NRE), licence and hardware revenue, giving total OEM revenue of A$12.1m (2020: A$13m)

- Aftermarket revenue increased 30% to A$35.1m (2020: A$27.0m)
- Annual Recurring Revenue including royalties increased 23% to A$17.2m reflecting growth in Guardian installed base to 31,771 units at 30 June 2021

- Gross Profit increased by 44% to A$20.8m (2020: A$14.4m)
- Cash at 30 June 2021 of A$47.4m (2020: A$38.1m)
CURRENT TRADING:

- Unaudited year to date results for Q1 FY2022 revenue are ahead of budget, largely due to strong performance in Aftermarket signalling continued momentum for this industry sector.

o Revenue of A$9.8m (Q1 FY2021: A$9.5m)

o Cash of A$40.3m (Q1 FY2021: A$35m)

- Successful fundraise completed on 23 November 2021 of US$41m to accelerate growth in the rapidly expanding DMS technology market, across all transport sectors globally. Seeing Machines intends to accelerate the development of new core software and system features, acquire additional specialised technology, expand sales channels and its product portfolio to maximise its win rate of automotive programs, scale delivery capability and speed up aftermarket revenue growth.

The Directors continue to see accelerating momentum for the business, with current market conditions presenting a significant opportunity to capture an even greater market share as the market benefits from a number of structural tailwinds. The net proceeds of the recent fundraise will enable the Company to make the necessary investment in order to secure this opportunity and gives the Directors confidence, underpinned by its current 'active RFQ' pipeline, that Seeing Machines will have an increased market share by 2025.

OPERATIONAL HIGHLIGHTS:

OEM (Automotive and Aviation)

- Seeing Machines DMS technology now on roads in more than nine individual vehicle models globally, representing more than 120,000 cars including General Motors' Cadillac CT6, CT5, CT4, Chevrolet Bolt and Escalade and the new Mercedes Benz S-Class and Mercedes Benz EQS sedans.

- The Company is engaged on nine expanding programs with seven automotive OEMs globally to deliver its DMS technology.

- Seeing Machines' leading Occula(R) Neural Processing Unit was launched to the automotive industry and was successfully licensed to Omnivision Technologies.

- A partnership with Qualcomm Technologies to deliver next-generation ADAS and infotainment technology for intelligent vehicle interiors was announced.

- Post period, in the USA, bipartisan infrastructure legislation was passed through the House of Representatives and subsequently signed by President Biden, which would require DMS technology to stop drunk and distracted driving, signalling increased momentum on regulatory driven tailwinds.

- Aviation division, together with CAE Australia, delivered its Crew Training System into Royal Australian Air Force full mission simulator.

- Post period, the Company signed an Agreement with Airservices Australia to enhance safety in Air Traffic Control.

AFTERMARKET:

- Aftermarket profitable on a standalone basis, supplying near-term revenue for the Company, now working with more than 400 customers globally.

- Guardian installations increased by more than 8,350 units to 31,771 (FY2020: 23,415) globally, despite the ongoing challenges posed by Covid-19 where access to vehicles was limited for periods of time across a range of geographies.

- Guardian sales increased and the Company has a backlog of around 5,000 units sold, awaiting installation.

- Max Verberne, telematics industry veteran, was appointed to lead the Aftermarket business and develop a multi-channel approach to sell Guardian into existing and additional markets.

- Post period, the Company signed a Global Framing Agreement with energy giant, Shell Global Solutions International B.V., for the provision of Guardian to enhance safety across its worldwide operations.

Paul McGlone, chief executive officer of Seeing Machines , commented: "The landscape for Seeing Machines and our technology has taken a dramatic turn with ongoing momentum driven by industry demand and regulatory tailwinds across all of our focused transport sectors. As a result, we are seeing success across all business divisions, and this is very pleasing.

"The Aftermarket business is thriving under the new leadership of Max and we are expecting this to continue as the direct and indirect sales channels are bolstered around the world and large multi-national companies recognise the impacts of installing Guardian technology, like Shell. In Automotive, more and more cars are being sold with our DMS technology installed across the world and we look forward to talking about more of our globally recognised OEM customers as new models start production over the coming year.

"Aviation has also advanced significantly and this is emphasised by our post period Agreement with Collins Aerospace, the world's largest Tier 1 avionics company, who has big plans to work closely with our team to deliver eye-tracking solutions across the industry to deliver training efficiencies and enhance safety. It's exciting times for the company and we are working hard to ensure we maximise the growing opportunities and deliver value to our shareholders."

* This refers to underlying growth rates at constant currency or adjusting for currency so business results can be viewed without the impact of fluctuations in foreign currency exchange rates, thereby facilitating period-to-period comparisons of Seeing Machines business performance. To present this information, current period results and comparative period results are converted into Australian dollars at the 30 June 2021 exchange rate.

[skinny] 24/11/2021 06:44

From Investor Meet :- This is a reminder that SEEING MACHINES LIMITED will be holding the meeting FY2021 Results Presentation today at 8:00am.

You'll be able to enter the meeting up to 15 minutes before the scheduled start time.

[tarrant77] 23/11/2021 13:45

Me too, to add to my meaningful (by my standards) purchase overnight in the placing-on which I was astonished not to be scaled back. Hope that the US brokers running the institutional placing managed to avoid selling too many to hedge funds, many of which are well known for buying and then taking even a small profit in very short order. Much now probably depends on the tone of the Company's announcements tomorrow, and the speed (or otherwise) with which they are able to RNS confirmation of legally contracted wins.

[lfc4ever] 23/11/2021 13:39

triple figures and I am close to retiring....

[juju44] 23/11/2021 09:17

Added some . Has to be worth more than this

[hiddendepths] 23/11/2021 09:16

This stock is about to start a fundamental rerate. And it's now funded up with $40m of cash, a host of contract wins coming and a strategic partner in Magna. There's no blue sky in the price at present but there really should be!

I would be very surprised if we don't reach 50p by this time next year and triple figures is a realistic hope.

I'm a former broking analyst and it's very rare for me to make projections of this kind....

[willoicc] 23/11/2021 09:14

I got an email alert about this fund-raise at 4:35 pm yesterday.

It is useful to set up alerts for shares you are interested in.

See 'Alerts' at the top of this screen to set alerts.

[bluntnib] 23/11/2021 07:59

Looks like the insitutional offer was oversubscribed and they closed the PrimaryBid offer early because they had exceeded their overall target by 7pm. Encouraging news in terms of institutional support but galling for PrimaryBid members scrabbling to get in before the gates clanked shut

[kirkthrust] 23/11/2021 07:58

nasdaq list in the pipe
VW contract news must be looming very large
Magna on the register as a toe in the water re possible M and A

.....up we go

[kirkthrust] 23/11/2021 07:58

nasdaq list in the pipe
VW contract news must be looming very large
Magna on the register as a toe in the water re possible M and A

.....up we go

[kirkthrust] 23/11/2021 07:58

nasdaq list in the pipe
VW contract news must be looming very large
Magna on the register as a toe in the water re possible M and A

.....up we go

[skinny] 23/11/2021 07:39

Anyway - the RNS :-



"Significantly oversubscribed Fundraise raises a total of c.US$40 million net of fees".

[tarrant77] 23/11/2021 01:05

In truth the opportunity to buy stock at today's placing price last week was not supported by the news contained within the offer which SURELY now substantially underpins the stability and enhances the outstanding opportunities that SEE afford to shareholders with a medium term appetite-and probably a chance in the next few days for investors who bought shares this evening at 11p (I subscribed and expect to be scaled back) to take a quick 15/20% profit off the table. Talk of very high share price levels remain, in my opinion, very fanciful, but slightly less so than 12 hours ago!

[pldazzle] 22/11/2021 21:58

ZTH - Hope you don't mind my pointing out that:

(1) Had you been so minded, you could have bought SEE shares in the market at 11p or less as recently as last Monday.
(2) If the price now goes up, you should be pleased.
(3) If the price now goes down, you will then have the opportunity to buy more in the market if you wish. Perhaps even at less than 11p, who can tell?
(4) You've given two conflicting reasons for being upset. Firstly, that there was a fundraising at all (you expressed the view that this was "one fundraising too many" and that shareholders are being "fleeced"), but secondly, that you were shut out of it. Which do you want: to have your cake, or to eat it?

[hazl] 22/11/2021 21:31

It's been a long haul zero I agree and you have been more dedicated than I.

[pldazzle] 22/11/2021 20:48

ZTH #17847 - Get real. It would be rare to find a bank willing to lend on the back of future profit projections, no matter how juicy, when there are no historic profits. So fundraises are the name of the game: they come with the territory.

In round terms SEE has 3876m shares in issue, and 270m new shares are being issued.
Thus the dilution is only around 7% anyway, a mere spit in the ocean. No way are investors being "fleeced". Quite the contrary, a cash injection of US$40m is EXCELLENT for existing shareholders: it not only improves the balance sheet and the group's viability, but helps procure future orders from customers/prospective customers who might otherwise have been more nervous.

Having a sizeable personal investment in SEE, as I do, I'm delighted both with the additional comfort cushion this fundraise brings and with Magna's commitment. So, I suggest, should you be: with no disrespect, I believe your reaction is altogether misplaced.

[mirabeau] 22/11/2021 20:19

It's closed as 'heavily oversubscribed' as per LSE

[sensiblescot] 22/11/2021 20:14

Seems like it has disappeared from the PrimaryBid app - have they closed the offer early?