Seeing Machines' revenues to drop amid restructuring

Seeing Machines reported on Wednesday that its interim revenues will be lower than those seen last year following a restructuring of its Fleet business division.

The computer vision technology company said revenue for the six months ended 31 December is expected to come in at A$13.5m, in line with expectations but below the A$14.6m achieved last year, while the expectation for full year revenue in 2019 to reach A$30.7m remains unchanged.

The drop in revenue comes after Seeing Machines said in September that it cut costs, re-deploy core engineering resources and transfer customers of its Fleet division to distributors in order to stabilise the business.

Ken Kroeger, chief executive at SM, said: "The transformation of our Fleet business is making good progress as we hone our direct sales focus on profitable geographic markets and industry categories. We are leveraging our channel partners to grow the Guardian footprint, focusing on accelerating installation rates to commence service delivery (24/7 monitoring), which remains independently profitable."

The AIM traded company also said it had “invested significantly” in its automotive arm to build further capacity and de-risk delivery on current programmes with original equipment manufacturers (OEMs).

The division’s Guardian backup driver monitoring system, which is designed to reduce the risk of testing autonomous vehicles, was currently in active pilots with several US-based technology developers

"The momentum towards mandatory implementation of advanced safety systems in all new models of vehicles around the world has continued to build over the last three months of 2018 and we have seen an increasing interest in our driver monitoring system (DMS) capabilities across all our transport sectors," said Kroeger.

Seeing Machines’ shares were down 2.08% at 4.23p at 1638 GMT.