Seeing Machines Limited (LON:SEE) shares surged higher on Monday on news it has secured a programme design win, working with a major Tier 1 partner, a global US-headquartered automotive original equipment manufacturer.
As a result of the design win, the driver monitoring technology firm expects to deliver its FOVIO driver monitoring technology into multiple vehicle platforms for mass production from 2020.
READ: Seeing Machines confirms negotiations with third new automotive OEM to deliver its driver monitoring systems
The estimated revenue value of this programme is more than A$50mln based on initial included models and lifetime volume projections. The first material production revenue is expected to be recognised in Seeing Machines' 2021 financial year. There also remains potential for further programme growth based on additional vehicle models added during the programme.
Alongside the previously announced launch of General Motors' Cadillac Super Cruise system and contract wins associated with two premium German OEMs, this brings Seeing Machines' automotive customer base to six global Tier 1s and four original equipment manufacturers with numerous new vehicle models launching in the 2020-2022 time-frame.
This design win is also a significant milestone as it launches the Seeing Machines FOVIO chip, the company said. The deployment of the chip-based technology “puts the group in an excellent position to scale its driver monitoring business across a wide range of transport sectors, with notable benefits in the speed of implementation and reduced incremental cost”.
By 2020, Australia will introduce a national law to regulate autonomous vehicles. @seeingmachines driver monitoring technology will be invaluable in helping to keep our roads safe during this transition. https://t.co/SB6eiG4Nqm #roadsafety #seeingmachines— Seeing Machines (@seeingmachines) June 4, 2018
"Our fourth automotive OEM design win has been by far the largest and fastest, which is a clear indication of the acceleration of OEM awareness and their urgency to deploy our technology to meet rapidly growing demands associated with driver safety and automated driving,” said Nick DiFiore, the senior vice president and general manager of Seeing Machines’ automotive division.
“Delivering this programme on our FOVIO chip is also a big step forward for us, demonstrating our ability to service more of the automotive market at an increasing pace, working with our growing ecosystem of Tier 1 partners,” he added.
In late morning trading, shares in Seeing Machines were 16.7% higher at higher at 9.10p.
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