Seeing Machines profits narrow despite 12% revenue growth

Seeing Machines profits narrow despite 12% revenue growth

AI powered monitoring systems provider Seeing Machines Limited (LON:SEE) booked deeper losses and narrower profits, despite good progress in its revenues for the half-year ended 31 December 2019.

Operational revenues were up 12.8% year-on-year, up from $14.0 million to $15.8 million. This was led by an impressive 67% rise in monitoring service revenue, which grew from $2.4 million to $4.1 million on-year.

Despite this progress, the company’s gross profits narrowed from $8.9 million to $5.7 million, while its net loss marginally widened from $24.7 million to $24.9 million year-on-year.

However, the company boasted a strong cash position, with cash up from $26.9 million to $47.3 million on-year. It is also positive about the prospects of its DMS business, and the implementation of its products on roads and in aviation.

Seeing Machines response

Reacting to the company’s half-year results, CEO Paul McGlone commented,

“We continue to work through significant opportunities across each business unit and leverage the growing momentum for driver monitoring technology in Europe, the US and around the world. Our teams are working with some of the world’s biggest brands in Automotive and Aviation, and these deep relationships will secure our long-term competitive position across each of our transport sectors.”

“Our focus remains on meeting the expectations of our customers and delivering on current programs, while responding to a growing number of opportunities in Automotive, Fleet and Aviation.”

“It is clear that DMS is becoming increasingly more integral to improved safety on roads and there is growing recognition for its ability to improve efficiencies and safety in aviation. As this continues to be embraced globally, Seeing Machines is in an outstanding position as the world-leading provider of this technology.”

Investor notes

Following the update, Seeing Machines shares rallied 3.68% or 0.12p, to 3.24p per share 10/03/20 12:07 GMT. For the half year period, the company paid no dividend.