Preliminary Results
Highlights
· Total revenue increase of 39% to A$17,762,246 (2013: A$12,735,741);
· Gross profit increased by 34% to A$10,012,894 (2013: A$7,492,697) due primarily to:
o a change in product mix resulting from higher DSS sales;
o the sale of services, including engineering consulting services;
o decline in faceLAB® and faceAPI™ sales.
· The existing DSS mining business remained profitable.
· With significant investment in additional R&D and resourcing the business for its growth into new markets, the consolidated results for the year delivered a net loss of A$2,706,380, representing a decline of A$3,261,331 from last year's profit of A$558,951.
· Cash at 30 June 2014 increased to A$22,764,774 (30 June 2013: A$835,001) due to:
§ proceeds from capital raised in December 2013 and January 2014 (A$27,977,575);
§ increased investment in inventory to fulfil the customer orders;
§ initial investment in expanding entry into an extended set of industry sectors;
§ developing scalable infrastructure to enable increased scaling of field support capabilities within the Company's main Driver Safety Solution ("DSS") markets;
§ increased investment in R&D.
Commenting on the Preliminary Results, Seeing Machines Chairman, Terry Winters said:
Overview
Seeing Machines achieved record sales in the year ended 30 June 2014, with particularly strong performance delivered from the Company's continued roll-out of its DSS products and services to the global mining sector. This growth has been aided by our strong relationship with Caterpillar and growing relationships with the Caterpillar Global Dealer Network and the increased reach these dealers bring to our distribution capabilities.
In parallel with the successes being derived from our DSS product range, we are experiencing significant interest from other much larger markets, including the long distance road freight transport industry and rail networks.
This has reinforced the Company's research and development focus:
· The development of OEM products for the world's leading automobile and truck manufacturers that in the foreseeable future are expected to lead to DSS type capabilities being incorporated into Advanced Driver Assistance Systems (ADAS) for new vehicles;
· The development of OEM products that will deliver DSS type capabilities into today's fleets of long distance road freight transport and rail network operators;
· The development of after-market products that will deliver DSS type capabilities into today's fleets of long distance road freight transport and rail network operators.
The Company ended the financial year with a strong balance sheet following its successful capital raising in late 2013. This capital provides the credibility to work in partnership with some of the world's largest companies, and the financial resources to accelerate our investment in core technologies that take advantage of the very substantial growth opportunities ahead of us.
Underpinning Seeing Machines financial results and future growth are the following factors:
· Seeing Machines is a leading supplier of Driver/Operator Safety Monitoring technology and services;
· Strong partnerships with most of the largest global companies in the mining and mining services markets;
· Seeing Machines has strong relationships with one of the world's largest automobile safety components suppliers to automobile producers and with some of the world's largest smart phone and tablet producers;
· Seeing Machines is actively engaged in developing technology that will play a valued role in the future of Advanced Driver Assistance Systems (ADAS);
· Seeing Machines' technology is widely recognised as current best in class for operating in outside light environments vs. competitors whose technology works well in more controlled light environments;
· Seeing Machines continues to attract and retain some of the best researchers in its space;
The focus of Seeing Machines' Management team is to continue developing and evolving products and services that maintain the Company's leadership position in these chosen markets.