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AIM-listed Seeing Machines (LON:SEE) saw half-year revenues rise 17% thanks to new deals for its driver safety technology in North and South America.
Total revenues were up to A$6.69 million from A$5.7mln in the year ended 31 December, while sales of its driver safety system (DSS) were up by the same percentage, to A$4.3mln from A$3.7mln.
Gross profits jumped 15% to A$3.3mln from A$2.9mln thanks mainly to growth from its innovative eye-tracking technology, which monitors the fatigue levels of the driver.
The net loss widened to A$845,000 from A$318,000 due to tight cash flow ahead of a placing in December, which the company said prevented it from paying for inventory that would have otherwise been shipped in the first half.
Seeing Machines, whose technology has proved especially popular with mining groups, ended the year with A$26.4mln after the A$26.2mln placing.
As at 31 December, the company had an order backlog of over A$2.2mln, helping to secure future revenues.
Chief executive Ken Kroeger said: “Seeing Machines has continued to invest in extending its position in the mining and resource sector.
“This increased effort has helped us identify many new and exciting opportunities that are now turning into major DSS contracts.
“During the first half we have designed improved DSS technology that has successfully completed customer acceptance trials and been brought to market.”
The company, as well as signing new deals with the likes of Caterpillar and BHP Billiton, signed its first agreement with a coach fleet operator at the end of 2013.
Dutch group Royal Beuk chose to trial the system in 20 of its vehicles. Should the nine-month evaluation prove successful, the company will sign up its entire 80-strong coach fleet.
Broker finnCap said the results show the company is on track to hit the “exceptional” sales growth forecast of 45% this year.
It points out that had the order been delivered, revenue growth would have been 56% in the first half.
“We expect funds to be invested over the next 18 months in R&D [research and development] and marketing; management is in the process of finalising its strategy for investment and expansion and will report detailed plans to investors before June year-end.
“In the meantime, we estimate the investment of some of that funding during H2 is likely to produce a FY 2014 loss of c.A$1m.
The City firm is putting its 2015 forecasts under review ahead of the details on planned spending, but it is confident revenues will be at least in line with its A$24.5m prediction.
“The technology remains uniquely effective and reliable and new applications continue to present themselves on a daily basis, triggered by the growing publicity and its excellent reputation in the mining industry,” it added.
“However, the company carefully evaluates and focus its efforts on the most valuable and direct opportunities in conjunction with existing market leaders. Given the broad potential, we are possibly over cautious in our 12p TP.”
The shares dipped 3% to 7.4p on Thursday.