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Landmark agreement lifts optimism of step change in growth
Thursday 15 Feb 2018 Author: Steven Frazer

A previous telematics deal has resulted in a big breakthrough for driver monitoring systems (DMS) designer Seeing Machines (SEE:AIM), signing its first integrated agreement.

Australia-based Seeing Machines negotiated a global distribution partnership with MiX Telematics at the end of 2016, allowing MiX to embed Seeing Machines’ Guardian DMS system into MiX telematics fleet vehicle packages.

This has now led to a landmark contract with Tengizchevroil, a Kazakhstan-based operating unit of oil producer Chevron. The deal will see 400 of Tengizchevroil’s trucks fitted with Seeing Machines’ Guardian DMS, with the potential for more installations down the line.

This deal has helped Seeing Machines’ total contract value soar from A$21.5m on 30 June 2017 to A$36.4m on 31 December 2017. Total contract value is new business signed off but yet to be delivered.

This bolsters confidence in the anticipated step change in revenue this year. Forecasts are pitched at A$40.6m for the 12 months to 30 June 2018, significantly higher than last year’s A$13.6m equivalent.

Growth investment means the business is unlikely to be profitable until 2020 at the earliest. Seeing Machines’ share price has rallied by 75% in four months to 5.25p. (SF)

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