Seeing Machines Limited
04 March 2008
4 March 2008
Seeing Machines Limited
('Seeing Machines' or the 'Company')
REVIEWED INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER 2007
Seeing Machines Limited (AIM: SEE) announces its reviewed interim results for
the six months to 31 December 2007.
Financial Highlights
• Revenue for the half-year A$1.236 million (31 December 2006 A$1.393
million);
• Loss before tax of A$430k (31 December 2006 A$141k);
• Concluded successful capital raising in October 2007 raising A$3,199,282;
and
• Cash reserves at 31 December 2007 of A$3,235,364 (31 December 2006
A$1,685,583).
Operational Highlights
• Release of version 2 of the Driver State Sensor (DSS) product and the
strong commercial interest from fleet managers and the OEM manufacturers and
suppliers;
• Revenue in the half-year from multiple product streams;
• Marketing clearance from the United States Food and Drug Administration
(FDA) for the TrueField Analyzer(R);
• Release of a significant new version of faceLAB(R) 4.5 targeted at
precision gaze applications.
Fulton Muir, Chairman stated, 'The Company has invested significantly in product
development and commercialisation and has made excellent progress especially
with the DSS product, including the long term multi million dollar deal with
Dycom Industries Inc that was announced today.'
Extracts from the interim financial statements are set out below and a full copy
is available from the Company website www.seeingmachines.com and also is
available by request to the Company's Registered Office at Innovations Building,
Level 3, Corner Eggleston & Garran Roads, Acton ACT 2601.
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Enquiries:
Seeing Machines Limited Grant Thornton Corporate Finance Parkgreen Communications
Nick Cerneaz, CEO Fiona Owen Justine Howarth, Erica Nelson
+61 (0) 2 6125 6501 +44 (0) 20 7383 5100 +44 (0) 20 7851 7480
www.seeingmachines.com
Directors' Report
Your directors submit their report for the half-year ended 31 December 2007.
DIRECTORS
The names of the company's directors in office during the half-year and until
the date of this report are as below. Directors were in office for this entire
period unless otherwise stated.
James Fulton Muir, AO Non Executive Chairman
Nick Cerneaz Executive Director
David Gaul Non Executive Director
Rob Sale Non Executive Director
Trent Victor Non Executive Director
Alex Zelinsky Non Executive Director
William Mobbs Non Executive Director
REVIEW AND RESULTS OF OPERATIONS
Review of 1st half of our Eighth Year of Operations
The first half of the 2008 financial year has seen the release of a number of
products and good progress in commercialisation activities.
Operational highlights for the half-year include:
• Release of version 2 of the Driver State Sensor (DSS) product and the
strong commercial interest from fleet managers and the OEM manufacturers and
suppliers;
• Revenue in the half-year from multiple product streams;
• Marketing clearance from the United States Food and Drug Administration
(FDA) for the TrueField Analyzer(R);
• Release of a significant new version of faceLAB(R) 4.5 targeted at
precision gaze applications;
• Reception given to the TrueField Analyzer(R) at the American Academy of
Ophthalmology Annual Meeting in New Orleans in November and the interest of a
number of OEMs in taking the product to market;
• The appointment of Chris McKee as Chief Financial Officer adding
significant skills to the Company's management team.
Financial Results
Revenue for the half-year to 31 December 2007 was A$1.236 million, A$156,721
lower than the period to 31 December 2006. This decrease in revenue was due to
a decrease in contract revenue of A$285,555, the reduction somewhat offset by
increase in Product Revenue of A$128,834. In the half-year to 31 December 2006,
the contract revenue related mainly to a particular one-off project. Other
income for the half-year was up A$63,081, with Grant Income increasing A$61,869
across the comparative periods.
Net expenditure for the half-year was A$1,815,861 up from A$1,620,684 on the
prior half-year. This was due to higher level of activity, both in sales
activity and research effort.
The loss for the half-year to 31 December 2007 was A$430,155 compared to a loss
of A$141,338 for the half-year to 31 December 2006.
The company raised capital of A$3,199,282, at a cost of A$104,580. At 31
December 2007, cash on hand was A$3,235,364 compared to A$1,685,583 at 31
December 2006. Net assets increased to A$6,328,677 at 31 December 2007 compared
to A$3,908,044 at 31 December 2006.
Operational Highlights
faceLAB(R)
faceLAB(R) 4.5 was debuted at the Driving Assessment Conference in Washington
state in July 2007. This version of faceLAB(R) introduced a new class of
precision gaze algorithms initially developed for the Truefield Analyzer(R)
(TFA). The algorithms bring dramatic improvements to the performance and
accuracy of faceLAB(R) when used to track gaze direction on computer and video
screens particularly for applications such as website usability analysis and
market research.
TrueField Analyzer(R)
We continued to aggressively pursue the development of the Truefield Analyzer(R)
(TFA) in order to bring this key product to market. All streams of this project
were progressed during the half-year including:
• Scientific trials;
• Large scale clinical study;
• Regulatory approval;
• IP Protection (including trademarks in several jurisdictions);
• Industrial design and hardware development;
• Software development;
• Commercialisation activities.
In August we received Marketing clearance from the United States Food and Drug
Administration (FDA) and in November the TFA was showcased at the American
Academy of Ophthalmology Annual Meeting in New Orleans. Several opportunities
to bring the product to market with large OEMs have been progressed.
Driver State Sensor
The release of version 2 of the Driver State Sensor (DSS) brings a new level of
maturity to the product and a readiness for use in real world applications.
The Driver State Sensor allows the fully automatic measurement of the driver/
operator's fatigue and distraction levels. Trent Victor of Volvo Technology,
and a director of Seeing Machines, has been
working with driving monitoring systems for over 10 years at Volvo, and said of
the DSS: 'This technology has redefined the state-of-the-art. Operating fully
automatically, the DSS2 achieves a level of performance previously unseen and
the technology now becomes a real contender for serial production systems.'
Seeing Machines is pursuing several commercial opportunities for the DSS
including:
• OEM opportunities through a Tier 1 automotive supplier for both
passenger and commercial vehicles;
• Opportunities to sell the DSS into large truck fleets;
• Opportunities to sell the DSS into mining and other operations
concerned with fatigue and distraction in the operator;
• Opportunities to sell the DSS into Field Operational Trials (FOTs)
particularly in the United States and Europe; and
• Sales to research organizations.
faceAPITM /SDK
Seeing Machines concluded the second licensing deal for its faceAPITM late in
the 2007 financial year and the first revenue from this deal was received during
the half.
The first commercial version of the API is now generally available to
application developers through a software developers kit.
Income Statement
FOR THE HALF YEAR ENDED 31 DECEMBER 2007 31 December 2007 31 December 2006
Note A$ A$
Continuing operations
Sale of goods 1,163,286 1,034,452
Contract Income 73,525 359,080
Revenue 1,236,811 1,393,532
Other income 3(a) 148,895 85,814
Cost of Sales (329,974) (293,320)
Employee benefits expense 3(b) (783,352) (721,379)
Depreciation and amortisation expense 3(c ) (126,453) (131,391)
Other expenses 3(d) (576,082) (474,594)
Loss before income tax (430,155) (141,338)
Income tax expense - -
Loss after tax from continuing operations attributable to (430,155) (141,338)
members
Loss per share (cents per share)
• basic for loss for the half year attributable to ordinary (0.156) (0.070)
equity holders of the company
• diluted for loss for the half year attributed to ordinary equity (0.144) (0.055)
holders of the company
Balance Sheet
As At As At As At
AS AT 31 DECEMBER 2007 31 December 2007 30 June 2007 31 December 2006
Note A$ A$ A$
ASSETS
CURRENT ASSETS
Cash and cash equivalents 5 3,235,364 1,375,428 1,685,583
Trade and other receivables 706,252 350,813 982,908
Inventories 213,567 136,571 120,669
Other 14,690 34,825 10,902
TOTAL CURRENT ASSETS 4,169,873 1,897,637 2,800,062
NON-CURRENT ASSETS
Property, plant and equipment 231,476 244,953 276,020
Intangible assets 331,586 277,962 264,802
Capitalised development costs 4,749,985 3,719,471 2,580,556
Other 3,586 3,586 3,494
TOTAL NON-CURRENT ASSETS 5,316,633 4,245,972 3,124,872
TOTAL ASSETS 9,486,506 6,143,609 5,924,934
LIABILITIES
CURRENT LIABILITIES
Trade and other payables 900,699 756,736 740,966
Deferred revenue 2,147,137 1,661,193 1,195,637
TOTAL CURRENT LIABILITIES 3,047,836 2,417,929 1,936,603
NON-CURRENT LIABILITIES
Provisions 109,993 97,251 80,287
TOTAL NON-CURRENT LIABILITIES 109,993 97,251 80,287
TOTAL LIABILITIES 3,157,829 2,515,180 2,016,890
NET ASSETS 6,328,677 3,628,429 3,908,044
EQUITY
Contributed equity 9,648,634 6,553,932 6,553,932
Accumulated losses (4,035,380) (3,605,225) (3,279,610)
Other reserves 715,423 679,722 633,722
TOTAL EQUITY 6,328,677 3,628,429 3,908,044
Statement of Changes in Equity
FOR THE HALF YEAR ENDED 31 DECEMBER 2007 Issued Accumulated Employee Equity Total Equity
Capital Losses Benefits
Reserve
Note A$ A$ A$ A$
At 1 July 2007 6,553,932 (3,605,225) 679,722 3,628,429
Loss for the half year (430,155) (430,155)
Issue of ordinary shares during the half
year
Issue of share capital 3,199,282 3,199,282
Transaction costs (104,580) (104,580)
Share based payment 35,701 35,701
At 31 December 2007 9,648,634 (4,035,380) 715,423 6,328,677
At 1 July 2006 6,528,748 (3,138,272) 522,761 3,913,237
Loss for the half year (141,338) (141,338)
Issue of ordinary shares during the half
year
Exercise of options 15,000 (10,184) 4,816
Share based payment 10,184 121,145 131,329
At 31 December 2006 6,553,932 (3,279,610) 633,722 3,908,044
Statement of Recognised Income and Expense
FOR THE HALF YEAR ENDED 31 DECEMBER 2007 31 December 2007 31 December 2006
A$ A$
Net Income recognised directly in equity - -
(Loss) for the half-year (430,155) (141,338)
Total recognised income and expense for the half year (430,155) (141,338)
Attributable to equity holders of the company (430,155) (141,338)
Cashflow Statement
FOR THE HALF YEAR ENDED 31 DECEMBER 2007 31 December 2007 31 December 2006
Note A$ A$
Cash flows from operating activities
Receipts from customers 926,432 1,180,939
Grants received 631,513 795,317
Payment to suppliers and employees (1,688,542) (1,367,254)
Interest received 39,204 35,198
Net cash flows from operating activities (91,393) 644,200
Cash flows from investing activities
Proceeds from sale of plant and equipment 1,241 429
Purchase of plant and equipment (36,566) (98,225)
Payments for intangible assets (15,498) (56,006)
Payments for research and development costs (1,092,550) (1,226,868)
Net cash flows (used in) investing activities (1,143,373) (1,380,670)
Cash flows from financing activities
Exercise of options - 15,000
Issue of shares 3,199,282 -
Costs of capital raising (104,580) -
Net cash flows from financing activities 3,094,702 15,000
Net increase in cash and cash equivalents 1,859,936 (721,470)
Cash and cash equivalents at beginning of period 1,375,428 2,407,053
Cash and cash equivalents at end of period 5 3,235,364 1,685,583
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