The following is a summary of the Seeing Machines Limited (SEEMF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Seeing Machines reported a major win amounting to U.S.$82 million for cabin monitoring, which has begun production.
In terms of fleet business, there are approximately 57,000 Guardian connections.
The reported profits and cash metrics indicated positive growth, mostly driven by automotive royalties.
Cash at the end of Q1 2024 was over $22 million, down from over $36 million at the end of June 2023.
The cash burn rate is expected to decrease to less than $1 million a month by Q4 of FY24.
Revenue from the aftermarket increased by 38% to $14.3 million, with over 6,000 Guardian units sold during the period.
An increase in both volumes and revenue is expected as the large German OEM production commences this month.
Cost savings of around $3 million are expected in H2 of FY24 due to reductions in ongoing costs.
Business Progress:
Over 1.5 million cars on the road are now equipped with Seeing Machines' technology.
Anticipated growth in royalties is due in part to increasing interest in hands-free driving features and an increasing focus on drowsiness detection and distraction monitoring.
Notable progress has been made with the U.S. National Highway Traffic Safety Administration (NHTSA), with an emphasis on distraction, impairment, and drowsiness.
The company anticipates continued growth in the after-manufacturer segment, with sales expected to continue until 2025.
The launch of Generation 3 of their product is expected to double current automotive royalties.
Continued advancements are being made in the aviation sector, with product development and increased RFQ pipelines in collaboration with Collins.
The company has a strong business pipeline, with a market share expected to remain around 40%.
There is an expected growth rate of 30% CAGR for Guardian product connections over the next three years, with a low churn rate of less than 2%.
More details: SEEING MACHINES LTD IR
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