TIDMSEE
RNS Number : 4254L
Seeing Machines Limited
03 October 2016
Seeing Machines Limited
("Seeing Machines" or "the Company")
Final Results for the year ended 30 June 2016 and Publication of
Annual Report
3 October 2016
Seeing Machines (AIM: SEE), the AIM-listed company with a focus
on operator monitoring and intervention sensing technologies and
services, is pleased to announce its audited financial results for
the year to 30 June 2016 and the publication of its 2016 Annual
Report.
The 2016 Annual Report is available for download from the
Company's website: www.seeingmachines.com/investors
Key Points:
Financial
-- Revenue increased 161% to A$33.6 million (excluding foreign
exchange gains and R&D tax grant income), a new record for the
Company (FY2015: A$12.8 million).
-- Revenue largely from license fees to Caterpillar Inc. for
licensing of the mining product, DSS. (A$21.8 million).
Consequently, revenue from DSS dropped by 29% compared to the prior
year (FY2015: A$9.3m).
-- Caterpillar royalty revenue stream of A$728,000 received from
the first 6 months of operations
-- Transition into the commercial fleet market gaining momentum
with revenue from sales of the Guardian product totaling A$3.3m -
up 29% on the prior year (FY2015: A$2.6m).
-- Operational expenses increased to A$32.6million (FY2015: A$23.3 million).
-- Net loss from continuing operations decreased to A$1.6
million (FY2015: loss of A$10.2 million), due to the one-off
Caterpillar license fee offset by the increased spend of research
& development. This net loss was better than market
expectations.
-- Completed a placing of A$12.8 million (after costs) from
strategic investor, V S Industry Berhad (VSI).
-- Cash reserves at 30 June 2016 were A$16.9 million compared to
A$14.2 million at 30 June 2015.
Operational
-- The Company continued to execute its multi-sector strategy
whilst investing heavily in the core intellectual property that
defines Seeing Machines and continues to deliver its competitive
advantage. Significant validation of core technology from major
automotive manufacturers and a number of significant fleet
telematics providers.
-- Licensing of Seeing Machines' DSS product to Caterpillar for
A$21.85 million plus ongoing royalties on sales.
-- The Company is poised to capture significant value from the
automotive and commercial fleet markets with the market for Driver
Monitoring Systems (DMS) forecast to grow from US$0.6B to US$13.3B
by 2022 (Strategy Analytics).
-- The Company and automotive partner, Takata, secured a major
follow-on order for their 2(nd) -generation DMS from the same major
automotive manufacturer for over 15, high-volume 2018/2019 vehicle
models.
-- The Company worked to capitalise the automotive business
opportunity and drive value for shareholders, signing a non-binding
term-sheet with a US-based investment firm.
-- Completion, post year-end, of a proprietary System in Package
(SiP) hardware module containing driver monitoring engine (DME)
software for automotive customers and embedding into future
products.
-- Rebranding of the commercial fleet product to Guardian(TM) by
Seeing Machines and building of a robust sales pipeline.
-- Expanded into Asian and Middle Eastern markets with the
appointment of Guardian South East Asia Pte. Ltd (Guardian SEA) and
Technologica Information Technology, LLC (Technologica) as
distributors.
-- The Seeing Machines Aviation Group secured an engagement with
a major global air-freight carrier delivering a successful
proof-of-concept.
-- Commenced engagement with a leading Air Navigation Service
Provider (ANSP) and other aviation training related entities to
understand the impact of objective measurement of situational
awareness and pilot scan patterns.
-- Collaborated with Samsung Electro-Mechanics Corporation
(SEMCo) to develop and demonstrate the world's first eye-tracking
enabled heads-up-display (HUD) on a car windshield.
-- The Company was awarded a competitive grant from the
Australian Government (A$2.25 million) for the joint research and
development of the next generation of Guardian product.
Commenting on the Results, Seeing Machines Chairman, Terry
Winters said:
"Seeing Machines has made significant progress in growing its
core IP leadership advantage which enables the Company's technology
to successfully operate across all real-world light levels vs.
competitors whose capability is constrained to controlled light
levels indoors. We successfully licensed Seeing Machines' DSS
mining product to Caterpillar - resulting in a significant one-off
revenue boost for the company year in the ended 30 June 2016.
Strong investment in our fleet-focussed product, branded
Guardian, is beginning to show signs of success with revenue growth
of 29% for the business unit in FY2016. As a result of significant
marketing and sales efforts globally, Q1 FY2017 is expected to
deliver more units sold than the full FY2016. A key feature of this
business unit is its Product as a Service (PaaS) recurring
(annuity-type) revenue and the multiplier effect this will generate
for the company in future years.
The Company has cemented itself as the market pioneer and leader
of driver monitoring system (DMS) technology by securing a
follow-on order from a major US automotive OEM, and has received
strong levels of interest for developing programs with several
major European automotive OEMs as they seek to adopt DMS for their
semi-autonomous capable vehicles.
A pivotal achievement for Seeing Machines has been the
development of its System in Package (SiP) - essentially a very
cost-effective chipset that runs Seeing Machines' core algorithms
that power all of our applications.
We delivered revenue growth on our FY2015 results of 161% to
A$37.3 million (excluding foreign exchange gains). With a
deliberate planned increase in operational costs in order to
execute our business plans across several industry sectors, the
Company made a net loss of A$1.6 million for the 2016 financial
year, compared to a net loss of A$10.2 million for the previous
year.
Your Company ended the financial year with a strong balance
sheet and a significant pipeline of opportunities that are expected
to lead to further growth in the 2017 financial year and
beyond."
Enquiries:
Seeing Machines Limited www.seeingmachines.com / +61
2 6103 4700
Ken Kroeger, Managing Director Ken.Kroeger@seeingmachines.com
and CEO
Media inquiries marketing@seeingmachines.com
finnCap Ltd, Broker for
Seeing Machines
Ed Frisby / Emily Watts, Corporate
Finance +44 20 7220 0500
Joanna Scott, Corporate Broking
Newgate, Investment Communications for Seeing Machines
Bob Huxford Tel: +44 20 7653 9848 / Mob:
+44 7469 154 806
Adam Lloyd Bob.huxford@newgatecomms.com
Tel: +44 20 7653 9842 / Mob:
+44 7966 609 084
Adam.lloyd@newgatecomms.com
About Seeing Machines
Seeing Machines, (AIM: SEE) is focused on operator monitoring
and intervention sensing technologies and services. With more than
15 years of experience, Seeing Machines uses advanced detection and
prevention safety assistance technologies to track eye and facial
movement in order to monitor fatigue, drowsiness and distraction
events, such as microsleeps, texting and cell phone use as they
occur, while providing for a real-time intervention strategy, which
improves operator, driver and environmental safety, preserves
assets, and reduces risk. Seeing Machines' technology is used
worldwide across the automotive, mining, transport and aviation
industries; as well as many of the leading academic research groups
and transportation authorities. FOVIO is Seeing Machines'
stand-alone automotive business. Seeing Machines is headquartered
in Australia and has offices in Tucson, Arizona and Mountain View,
California. The Company counts Caterpillar, Electro Motive Diesel,
Progress Rail, Boeing, Takata, SEMCo, and Eye Tracking Inc among
its partners.
Review of Operations
Financial Results
The Company's total revenue from continuing operations for the
financial year (excluding foreign exchange gains and finance
income) was A$33.6 million, an increase of A$20.8 million, or 161%,
over the 2015 revenue of A$12.8 million.
These revenue figures exclude revenue from our joint-venture
(JV) company in Chile which we sold back to our original
distribution partners, as part of the transition of the DSS
business to Caterpillar. The results of these operations are
required to be excluded from results from continued operations
under Accounting Standards. For details of the share sale and the
results of the discontinued operation refer to note 8.
These revenue figures also exclude the research and development
tax incentive received from the Australian government which is
reported in 'Other income'. This incentive - which is received as a
cash refund based on eligible R&D expenditure - totalled A$2.3
million for FY16 (FY15 A$2.2 million).
This full year revenue is the largest revenue year ever achieved
by the Company. The revenue was earned from the sale of goods and
services and license fees. Included in the license fees is an
amount of A$21.8 million from Caterpillar Inc., which was on
signing a global product development, licensing and distribution
agreement.
This was a year of transition for the Group as during September
2015 the Company signed a global product development, licensing and
distribution agreement with Caterpillar Inc. At that point,
Caterpillar took over responsibility for manufacturing, marketing
and sales of Seeing Machines' existing DSS rugged off-road product
and have distribution rights for Seeing Machines' Guardian fleet
product, exclusively within agreed industries (mining,
construction, quarry, aggregates, cement, marine, forestry).
Responsibility for servicing current DSS customers also
transitioned to Caterpillar from 1 January 2016. Consequently,
revenue from DSS product dropped compared to the prior year by 29%.
Instead, the company received ongoing royalties on sales of the DSS
ruggedized product by Caterpillar as well as the one-off license
fee of $21.8 million. This license fee is to be received in
instalments with US$9 million received during FY16 and balance to
be received in future years with the last instalment of US$1.5
million due on 1 January 2019).
Revenue from sales of the Guardian product totalled $3.3 million
for the year - up 29% on the prior year. Revenue from core
technology integration services totalled $1.1 million up 11% on the
prior year figure of $980,000.
Revenue for the year for the Company's product lines, as well as
Other Income compared to the last financial year, is shown in the
following table:
Product FY16 FY15 Variance
A$'000 A$'000
DSS 6,580 9,303 (29%)
Guardian 3,315 2,575 29%
-------- --------
9,895 11,878
Core technology integration
services 1,089 980 11%
Caterpillar license 21,850 -
fee
Caterpillar royalties 728 -
-------- --------
33,562 12,858 161%
Other income 2,546 2,218
Foreign exchange gains (182) 3,060
Finance income 1,371 251
-------- --------
3,735 5,529
-------- --------
Total Revenue 37,297 18,387
======== ========
Other income was primarily due to the receipt of the R&D tax
incentive grant from the Australian Government. Finance income has
increased as the Caterpillar receivable was initially measured at
its present value with the discount unwinding over time and being
recognised as finance income.
Cost of Goods Sold (COGS) decreased A$0.9 million (12%) to A$6.3
million (2015: A$7.1 million) due to lower product sales but was
also affected by a change in the mix of sales to include the
Guardian product which has a lower margin than the DSS product.
Indirect expenditure for the year was A$32.6million, up from
A$23.3million for the year to 30 June 2015. The increase was mainly
due to the increased investment in automotive research and
development. Also included in this expense is an amount of $5.2
million for the revaluation of the Guardian inventories to the net
realisable value; this revaluation is based on Guardian sales to
date together with the Board's assessment of the likely unit sale
price across our target markets in the short and medium term.
The Company made a net loss from continuing operations of A$1.6
million for the 2016 financial year, compared to a net loss from
continuing operations of A$12.0 million for the previous year. The
significantly improved result is due to the one-off Caterpillar
license fee of $21.8 million offset in part by the increased spend
on research and development. This net loss was better than market
expectations.
During this year we invested significantly in our capability and
resources to commercialise our technology in our global target
industries: mining; commercial fleets; road vehicles; rail;
consumer electronics; and aviation and simulators. This investment
is reflected in increased expenses for R&D, sales and marketing
and corporate activities.
During the financial year the Company raised A$12.8 million from
a placing with a new strategic investor, VS Industry Berhad (VSI)
through its wholly owned subsidiary V S International Venture Pte.
Ltd. (VSIV), a leading integrated electronics manufacturing
services provider. A total of 129,654,000 new ordinary shares in
the Company were placed with VSIV, at an issue price of 5.199 pence
per share, which was a premium of 20% to the Company's 30-day
volume-weighted average market price ended 16 March 2016. VSIV's
interest in 129,654,000 shares represents a stake of 12% in the
Company's issued share capital.
Cash reserves at 30 June 2016 were A$16.9 million compared to
A$14.2 million at 30 June 2015.
Operational Highlights
During the 2016 financial year the Company continued to execute
the multi-sector strategy with increasing focus on the
transportation sectors of mining (rugged off-road) industries,
commercial road vehicles, automotive, rail and aerospace. Investing
heavily in the core intellectual property and capabilities that
define Seeing Machines, the Company is positioned to capture
significant value from all of these sectors and has p--ioneered the
industry of driver monitoring.
Mining & Caterpillar Industries
In September 2015 the Company signed a global product
development, licensing and distribution agreement with Caterpillar.
In return for exclusive rights to Seeing Machines' DSS product in
their fields, Caterpillar pays Seeing Machines a license fee of
A$21.85 million over four years, plus ongoing royalties on sales.
This licence fee from Caterpillar - all of which has been
recognised as revenue in the 2016 financial year - is larger than
any of the Company's previous annual revenue results.
Seeing Machines' DSS rugged off-road product, under license to
Caterpillar, will be available exclusively through Cat(R) Dealers
across Caterpillar's broader industries; including mining,
construction, quarry, aggregates, cement, and forestry.
During the second half of the financial year the Company
completed the transition of its "ruggedized" product business to
Caterpillar, for Caterpillar to manage the supply chain for this
product and take over full responsibility for sales and after sales
support. During the second half of the year the Company started to
receive royalties based on Caterpillar's sale of these products and
services - with over 170 units sold and multiple assessments
underway or completed, Caterpillar is developing a healthy pipeline
for DSS, it being central to their safety service offering.
Caterpillar are investing in their own product improvement. They
are seeking to incorporate the latest algorithmic improvements into
their product as well as seeking to reduce the manufacturing cost
of the product, while maintaining the exacting specifications that
the CAT brand has become synonymous with.
OEM Automotive Market
The automotive industry is going through massive technological
change driven by powerful dynamics of disruption. The global
adoption of ride-sharing platforms is changing the economics of car
ownership and the advancements in autonomous vehicle capability is
fundamentally altering the act of driving. These various stages of
autonomy were highlighted by Seeing Machines' co-founder and CTO,
Tim Edwards, in last years' annual report. The opportunity for
Seeing Machines' core technology in semi-autonomous vehicles as
part of Advanced Driver Assistance Systems (ADAS) is staggering.
Strategy Analytics estimates that the market for Driver Monitoring
Systems (DMS) will grow from US$0.6B to US$13.3B by 2022.
In 2014 the Company signed a mutually exclusive strategic
alliance with TK Holdings Inc., the Americas subsidiary of Takata
Corporation, a Tier 1 supplier of automotive safety systems to
major global automotive manufacturers. Through Takata, in 2014 the
Company secured a contract to develop driver monitoring systems
(DMS) for a global car maker.
In March 2016 the Company and Takata secured a major follow-on
order for their 2nd-Generation DMS from the same automotive
manufacturer. This second order is expected to see the companies'
DMS technologies integrated into more than fifteen, higher-volume,
2018 and 2019 vehicle models. This second program expands the DMS
offering across a number of the manufacturer's international car
brands as DMS become part of the brands' ADAS offering.
During the financial year the Company continued to engage
closely with over 13 of the world's car manufacturers, including by
supplying a PC-based variant of its automotive technology that
allows the automotive manufacturer to easily map DMS capability to
their ADAS and autonomous vehicle technology road maps and to input
into their technology packaging strategy for new vehicles, model
range interiors and dashboards. All the major OEMs are targeting
semi-autonomous vehicles on their roadmaps with several automotive
analysts predicting that DMS technology will be mandated within
5-10 years.
The Company continues to work on strategic and commercial
options to maximise the value of this substantial market
opportunity, with the aim of capturing more automotive business
more quickly to maximise returns for the Company's
shareholders.
The Company announced the signing of a non-binding term sheet
with a US-based investment firm to focus on commercialising Seeing
Machines' technology in the automotive market. The Company and its
advisors continue to work to capitalise the automotive business
opportunity and drive value for shareholders.
Post year end the Company completed development and launched a
proprietary automotive hardware module containing the Company's
driver monitoring engine software, with the intention of selling
this hardware module to automotive customers and embedding in
future products. The Board and Management believe this will enable
the Company to capture a greater share of the revenue and margin in
the automotive and commercial fleet markets. In September 2016 the
Company announced the appointment of Mike McAuliffe as CEO of our
automotive business, now named FOVIO.
Commercial Fleets
In 2015 the Company launched a new lower-cost product for the
commercial fleet market to bring driver fatigue and distraction
detection to truck drivers. Throughout FY2016, the Company invested
in sales, marketing, operations and product development. Rebranding
the product to Guardian(TM) by Seeing Machines, introducing an
integrated forward-facing camera, and developing a healthy sales
pipeline with significant distribution agreements were the most
significant achievements of FY2016.
The Company has focussed on building a solid pipeline and
engaging with Enterprise Level accounts (Companies with over 1000
vehicles). At the close of the financial year the Company has in
place 34 assessments in 10 countries, addressing a total potential
fleet size in excess of 100,000 vehicles. Additional Sales
resources have been hired in North America bringing in specialised
fleet and telematics expertise to the team. Sales for FY2016 were
1,666 units.
In June 2016 the Company appointed Guardian South East Asia Pte.
Ltd. (Guardian SEA) as a non-exclusive distributor to market, sell
and service the Seeing Machines' Guardian solution in Singapore and
Malaysia. As part of the agreement, Guardian SEA purchased 1,000
Guardian units, the Company's single largest sale of Guardian units
to date. Guardian SEA is wholly owned by V S Industry Berhad (VSI),
a leading integrated electronics manufacturing services provider,
and a strategic investor in Seeing Machines. Guardian SEA and VSI
bring extensive regional knowledge and industry relationships to
accelerate market penetration of Seeing Machines' Guardian solution
into the South-East Asian region.
Seeing Machines is close to appointing Technologica Information
Technology, LLC (Technologica) as its exclusive distributor for
Guardian in the UAE and Gulf States. Technologica brings a wealth
of expertise in integrating technology solutions into client
environments, particularly in the UAE. Technologica is representing
Seeing Machines in two large opportunities; Dubai Taxi Company and
the Dubai Public Transport Authority. Both opportunities are
subject to the outcomes of a tender evaluation process.
In 2014 the Company entered into a collaboration with Chilean
company GTD Ingenieria de Sistemas to form Seeing Machines Latin
America, in order to provide local support for mining customers and
Caterpillar dealers. During the 2016 financial year, as part of the
transition of the DSS business to Caterpillar, the Company sold its
55% stake in Seeing Machines Latin America back to our original
distribution partners. We continue to work with our partners in
Chile under a revised distribution agreement for our Guardian fleet
product.
In March 2016 the Company launched an enhanced product rebranded
as Guardian by Seeing Machines which includes an integrated
Forward-Facing Camera. Unlike competitors' products, which purely
record events for later analysis, the Guardian solution combines
the activity in front of the vehicle with the state of the driver
at the time of a critical event. Seeing Machines is also
progressing with the next generation Guardian product which will
enable ready integration with telematics products.
During the year the Company engaged with multiple fleet
telematics providers to develop an integrated driver monitoring and
safety product, combining Seeing Machines' technology and partner
telematics features. These active discussions and commercial
negotiations continued after the end of the financial year.
Aviation
Over the last 12 months the Seeing Machines Aviation Group has
continued to increase Seeing Machines' market presence in the
global aviation industry: validation of market demand in core
sectors, and early-stage product development with major aviation
customers and partner engagements, including the following:
-- Engagement with a major freight carrier - globally recognised
as a leader in Fatigue Risk Management - successfully delivered a
proof-of-concept for a solution to objectively measure pilot
attention and alertness during critical phases of flight
-- Maturation through technical readiness levels with a major
Aircraft Manufacturer to develop an Aircrew Training Tool using eye
(gaze) tracking as a key measurement of situational awareness and
effective instrument scanning
-- Advanced technical and commercial relationship with another
major Aircraft Manufacturer to evaluate a flight-deck installation
into an operational wide-body aircraft to support the measurement
and identification of pilot incapacitation
-- Commenced a new engagement with a leading Air Navigation
Service Provider (ANSP) to develop a multi-sensory solution to
understand and monitor the operational state of air traffic
controllers
-- Undertaking an installation of eye-tracking technology into
another ANSP training facility to enhance their training and
debriefing function, and supply air traffic control instructors
with an objective insight into their trainee situational awareness
and scan patterns
-- Working closely with multiple carriers to leverage our
capability to understand and address the global requirements for
training of pilots in Upset Prevention and Recovery Training
(UPRT)
-- Finalising an initial engagement with an Air Force to support
and supplement ab-initio (initial) pilot training, and to provide
evidence based training data through eye tracking to support more
effective streaming decisions
Seeing Machines offers the aviation industry best-in-class
sensors and data to ensure their aircrew and air traffic controller
personnel are trained to the highest standards based on evidence,
and are enabled to perform and maintain vigilance and alertness in
demanding and complex operational environments.
Other Markets - Rail and Consumer Electronics
During the 2016 financial year the Company and EMD conducted
trials of the Company's technology with three major rail customers
in North America. The trial results were positive and the Company
continues to work with EMD to develop the specific product
development and marketing program for the rail sector. During the
year EMD responded to a request for tender from a major urban
transit authority, with the Seeing Machines' fatigue and
distraction capability as part of the EMD solution. The outcome of
this tender process will be confirmed during the 2017 financial
year. This work was undertaken as part of the initial three-year
exclusive agreement with Electro-Motive Diesel, Inc. (EMD), a
Caterpillar company, signed in September 2014.
Also in September 2014, the Company signed a Memorandum of
Understanding (MOU) with Samsung Electro-Mechanics Corporation
(SEMCo) to facilitate joint development of face and eye tracking
technology for the consumer electronics industry. For the Consumer
Electronics Show (CES) 2016 in Las Vegas, Seeing Machines worked
with Samsung to develop and demonstrate the world's first
eye-tracking enabled heads-up-display (HUD) on a car
windshield.
Current Trading and Outlook
Significant investment has continued in this new financial year
in the development of the FOVIO automotive business working with
global tier 1s and OEMs, together with investment in other areas of
the business including fleet, rail and aviation. Revenue in FY16
benefitted from full recognition of the CAT licensing revenu
leading to a record year. Expected revenues in FY17 will show
growth year on year in all target markets, however there will not
be another large license fee from CAT. Going forward, Seeing
Machines' CAT revenues will consist of royalties on both DSS
hardware sales and the growing compounded monthly monitoring
annuity fees as well as contracted engineering revenues in further
support of CAT customer solutions. Revenues from fleet, Guardian,
sales will continue to grow as subscriptions for connected vehicles
gains momentum. Automotive royalties on the company's first
production car in North America and China will begin to accrue.
Other income will include automotive engineering income supporting
multiple manufacturer's pre-production prototype and R&D
programs, together with certain expected aviation and rail
income.
Statement of Financial Position
Consolidated
2016 2015
AS AT 30 JUNE 2016 Note A$ A$
-------------------------------------------------- ----- ------------- -------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents 15 16,948,300 14,221,615
Trade and other receivables 16 6,786,046 7,154,077
Inventories 17 8,420,350 10,182,633
Current financial assets 21 241,159 238,462
Deferred taxation 11 85,581 -
Other current assets 18 663,615 224,910
------------- -------------
TOTAL CURRENT ASSETS 33,145,051 32,021,697
------------- -------------
NON-CURRENT ASSETS
Property, plant and equipment 19 691,961 863,214
Intangible assets 20 4,404,268 3,011,560
Non-current financial assets 21 140,191 140,191
Trade and other receivables 16 6,284,468 166,489
------------- -------------
TOTAL NON-CURRENT ASSETS 11,520,888 4,181,454
TOTAL ASSETS 44,665,939 36,203,151
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 22 1,801,771 4,075,472
Provisions 23 1,591,987 1,409,955
Deferred revenue 728,959 196,429
Income tax payable 85,581 366,620
TOTAL CURRENT LIABILITIES 4,208,298 6,048,476
------------- -------------
NON-CURRENT LIABILITIES
Provisions 24 33,324 20,389
TOTAL NON-CURRENT LIABILITIES 33,324 20,389
------------- -------------
TOTAL LIABILITIES 4,241,622 6,068,865
------------- -------------
NET ASSETS 40,424,317 30,134,286
============= =============
EQUITY
Contributed equity 26 70,592,134 57,490,870
Treasury shares 26 (1,226,938) (1,301,823)
Accumulated losses (29,737,234) (27,997,987)
Other reserves 796,355 767,710
------------- -------------
Equity attributable to the owners of the parent 40,424,317 28,958,770
Non-controlling interest - 1,175,516
------------- -------------
TOTAL EQUITY 40,424,317 30,134,286
============= =============
Statement of Comprehensive Income
Consolidated
2016 2015
FOR THE YEARED 30 JUNE 2016 Note A$ A$
---------------------------------------------------- ----- ------------- ----------------------
Continuing operations
Sale of goods and licence fees 30,949,453 9,789,929
Rendering of services 2,612,390 3,068,382
Revenue 33,561,843 12,858,311
------------- ----------------------
Cost of Sales (6,259,566) (7,135,063)
Gross Profit 27,302,277 5,723,248
------------- ----------------------
Other income 9 2,545,986 2,217,944
Net gain/(loss) on foreign exchange (181,652) 3,060,252
Finance income 1,370,973 251,359
Research and development expenses (9,767,194) (6,571,092)
Customer support and marketing expenses (10,501,039) (9,045,745)
Occupancy and facilities expenses (2,289,188) (2,104,950)
Corporate services expenses (4,835,127) (5,414,727)
Other expenses 10 (5,243,002) (146,555)
------------- ----------------------
Loss from continuing operations before
income tax (1,597,966) (12,030,266)
------------- ----------------------
Income tax expense 11 (23,810) (41,643)
------------- ----------------------
Loss from continuing operations after income
tax (1,621,776) (12,071,909)
(Loss)/profit from discontinued operations
after income tax 8 (20,485) 1,436,748
------------- ----------------------
Loss for the year after tax (1,642,261) (10,635,161)
============= ======================
Loss for the year attributable to:
Equity holders of parent (1,739,248) (11,281,698)
Non-controlling interests 96,987 646,537
------------- ----------------------
(1,642,261) (10,635,161)
============= ======================
Other comprehensive income - to be reclassified
to profit and loss in subsequent periods
Exchange differences on translation of
foreign operations (220,372) (613,466)
Other comprehensive income net of tax (220,372) (613,466)
Total comprehensive income for the year (1,862,633) (11,248,627)
============= ======================
Total comprehensive income for the year
attributable to:
Equity holders of parent (1,959,620) (11,872,774)
Non-controlling interests 96,987 624,147
------------- ----------------------
Total comprehensive income for the year (1,862,633) (11,248,627)
============= ======================
Earnings per share for profit/(loss) attributable
to the ordinary
equity holders of the parent: 13
-- Basic earnings per share (0.0018) (0.0130)
-- Diluted earnings per share (0.0018) (0.0130)
Statement of Changes in Equity
Contributed Treasury Accumulated Foreign Employee Total Non-Controlling Total Equity
Equity Shares Losses Currency Equity Interest
Translation Benefits
Reserve & Other
Reserve
FOR THE YEAR A$ A$ A$ A$ A$ A$ A$ A$ED
30 June 2016
At 1 July 2014 45,776,174 (707,110) (16,716,289) 46,638 1,007,251 29,406,664 - 29,406,664
Loss for the year - - (11,281,698) - - (11,281,698) 646,537 (10,635,161)
Other
comprehensive
income - - - (591,076) - (591,076) (22,390) (613,466)
------------ ------------ -------------- ------------ ---------- ------------- ---------------- -------------
Total
comprehensive
income - - (11,281,698) (591,076) - (11,872,774) 624,147 (11,248,627)
Transactions with
owners in their
capacity as owners
Shares Issued 12,301,678 (594,713) - - - 11,706,965 - 11,706,965
Capital Raising
Costs (586,982) - - - - (586,982) - (586,982)
Employee Share
Loan Plan - - - - 304,897 304,897 - 304,897
Acquisition of
Non-controlling
interest - - - - - - 551,369 551,369
------------ ------------ -------------- ------------ ---------- ------------- ---------------- -------------
At 30 June 2015 57,490,870 (1,301,823) (27,997,987) (544,438) 1,312,148 28,958,770 1,175,516 30,134,286
============ ============ ============== ============ ========== ============= ================ =============
-
At 1 July 2015 57,490,870 (1,301,823) (27,997,987) (544,438) 1,312,148 28,958,770 1,175,516 30,134,286
Profit/(Loss)
for the year - - (1,739,248) - - (1,739,248) 96,987 (1,642,261)
Other
comprehensive
income - - - (220,372) - (220,372) - (220,372)
------------ ------------ -------------- ------------ ---------- ------------- ---------------- -------------
Total
comprehensive
income - - (1,739,248) (220,372) - (1,959,620) 96,987 (1,862,633)
------------ ------------ -------------- ------------ ---------- ------------- ---------------- -------------
Transactions with
owners in their
capacity as owners
Shares issued 13,136,529 - - - - 13,136,529 - 13,136,529
Capital raising
costs (2,736) - - - - (2,736) - (2,736)
Treasury Shares (32,529) 74,885 - - - 42,356 - 42,356
Employee Share
Loan Plan - - - - 249,018 249,018 - 249,018
Derecognition
of
Non-controlling
interest - - - - - - (1,272,503) (1,272,503)
------------ ------------ -------------- ------------ ---------- ------------- ---------------- -------------
At 30 June 2016 70,592,134 (1,226,938) (29,737,235) (764,810) 1,561,166 40,424,317 - 40,424,317
============ ============ ============== ============ ========== ============= ================ =============
Statement of Cash Flows
Consolidated
2016 2015
FOR THE YEAR ENDED 30 JUNE 2016 Note A$ A$
------------------------------------------------- ----- ------------- -------------
Operating activities
Receipts from customers 29,420,077 11,486,346
Payments to suppliers and employees (38,845,703) (34,575,733)
Interest received 1,370,973 251,359
Interest paid - (1,659)
Income tax paid (44,186) (6,098)
Payments received for research and development
costs 2,764,224 2,202,534
Net operating cash flow from discontinued
operations 260,095 2,023,643
Net cash flows used in operating activities 28 (5,074,520) (18,619,608)
------------- -------------
Investing activities
Proceeds from sale of plant and equipment 1,052 -
Purchase of plant and equipment (527,496) (748,905)
Purchase of held-to-maturity financial
assets (2,697) (238,462)
Payments for intangible assets (1,998,870) (1,934,686)
Proceeds from sale of subsidiary 1,299,264 -
Cash derecognised on sale of subsidiary (2,445,969) -
Net cash flows used in investing activities (3,674,716) (2,922,053)
------------- -------------
Financing activities
Proceeds from issue of shares 13,136,529 11,433,559
Proceeds from sale of treasury shares 42,356 -
Costs of capital raising (2,736) (586,982)
Repayment of borrowings - (50,851)
Net cash flows from financing activities 13,176,149 10,795,726
------------- -------------
Net increase/(decrease) in cash and cash
equivalents 4,426,913 (10,745,935)
Net foreign exchange differences (1,700,228) 2,202,776
Cash and cash equivalents at beginning
of period 14,221,615 22,764,774
Cash and cash equivalents at end of period 15 16,948,300 14,221,615
============= =============
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR AKKDKCBKDBCN
(END) Dow Jones Newswires
October 03, 2016 02:00 ET (06:00 GMT)