Continued progress - New design win
April - June 2019
· Net sales totalled SEK 12,378 (11,004) thousand which corresponds to a rise of 12 %.
· Operating profit/loss totalled SEK -24,669 (-16,764) thousand, Earnings are developing according to plan and are still affected by measures taken to meet higher demand above all from customers in the Automotive Solutions business area. In addition, the efforts to meet increased demand from the Chinese market has also affected the cost level.
· Profit/loss after financial items was SEK -24,803 (-16,764) thousand
· Profit/loss after tax per share is negative.
· Cash and cash equivalents totalled SEK 226,852 TSEK at the end of June
· In May the company earned two design wins to a new automotive platform shared between one of Japan's and one of Europe's largest OEMs. The estimated revenue of the order is 150 MSEK based on product life cycle projections.
· The company has in May been able to name another two BMW models that contains Smart Eye's technology.
· A directed share issue of approximately 200 MSEK was completed in May
January - June 2019
· Net sales totalled SEK 24,048 (20,584) thousand which corresponds to a rise of 17 %.
· Operating profit/loss totalled SEK -46,896 (-30,610) thousand, Earnings are developing according to plan and are affected by measures taken to meet higher demand from Automotive customers.
· Profit/loss after financial items was SEK -47,096 (-30,830) thousand
· Profit/loss after tax per share is negative.
Comments from the CEO
Most important actions during Q2
The second quarter 2019 was primarily one where we continued to press forward in all the procurement processes with large car manufacturers that are ready for imminent nominations. From Smart Eye's standpoint the year has started very well. Out of the car manufacturers that have chosen a supplier so far this year, Smart Eye has won the ones with largest underlying volume, one in Korea in the first quarter and a Japanese/European OEM in the second. The rest of the very large car manufacturers are all ripe for nominating their DMS supplier, and we know that these types of supplier relationships are usually very long term affairs. We have great traction on the market with our hardware agnostic offering and it is with great anticipation that we are looking forward to the coming nomination season.
Nothing is given and we must continue to work diligently but we know that we have the right technology, we have the right functionally and the ability to deliver very high performance, a must for the OEMs that wants to use DMS to the most advanced safety functions. Let's not underestimate the importance of that the company has proved itself by passing through the needles eye that consists of delivering to actual production programs in the automotive industry, the only way to get the so important references. The only manufacturer with ongoing production that we can talk about at this point is BMW, but others will be announced in due time.
We can now conclude that the small adjustment of the strategy that we made last year in order to better cater to the biggest global car makers was both necessary and correct. It's with anticipation that we enter the second round.
Research Instruments used in car projects
It's worth noting that the production programs in Korea and Japan are supplied by both our business areas Automotive Solutions and Research Instruments. The latter is contributing with world class reference systems for eye tracking, being used by both OEMs and Tier-1s worldwide. An illustrative example on how the business areas strengthen each other strategically before and after nomination of mass production programs.
Regulatory-driven developments in China
Trade wars, talks of currency manipulation and 13 months of decline in car sales have topped the headlines with regards to China lately. Even if there is a cyclical downturn in the industry it's important to point out that this is not the case for active safety and driver monitoring. That part of the Chinese market is on the rise thanks to a strong global trend fueled by regulatory initiatives. The launch of Smart Eyes after market product on CES Asia in June have created a lot of interest. The new product will be ready in 2020 and primarily be targeting the dynamic China market. Currently we are working towards having a quality assured production process managed by sub suppliers and during the fall and next year we will showcase more and more mature prototypes. We are also strengthening the Chongqing team to handle more customers.
CEO Smart Eye
For more information
Martin Krantz, CEO Smart Eye AB
Phone: +46 70-329 26 98
Anders Lyrheden, CFO Smart Eye AB
Phone: +46 70-320 96 95
About Smart Eye
Since 1999 Smart Eye has been engaged in development of artificial intelligence (AI) in the form of eye tracking technology that understands, supports and predicts a person's intentions and actions. By carefully studying eye, facial and head movement, our technology can draw conclusions about a person's awareness and mental state.
Today our eye tracking technology is used in the next generation of cars and is helping the automotive industry take an important step towards safer and more environment-friendly transport solutions. In the research field, Smart Eye's solutions are providing new opportunities in complicated and real situations, and are paving the way for new insights in the aerospace, aviation and defence industries as well as in the fields of psychology, neuroscience, medicine and academic research.
Smart Eye's head offices are in Gothenburg, Sweden, and the company also has offices in Detroit, Michigan (USA), Tokyo (Japan) and Chongqing (China). In addition to these offices of its own, Smart Eye also has partners, retailers and distributors in several locations in Europe, the USA and APAC. Smart Eye's solutions are used around the world by more than 700 partners and customers, leading research teams, brands and laboratories, including the US Air Force, NASA, BMW, Lockheed Martin, Audi, Boeing, Volvo and GM, to name a few.
Smart Eye's business is organised in two business areas, Research Instruments and Automotive Solutions. In Research Instruments, Smart Eye provides advanced eye tracking systems for measuring and analysing human behaviour. In Automotive Solutions, the company provides eye tracking software for integration in vehicles.
For more information please visit: http://smarteye.ai
This information is information that Smart Eye AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 8:30 am CEST on August 23, 2019.
Smart Eye is listed on First North. Erik Penser is Certified Adviser and can be reached at +46-8-463 8000 or email@example.com.
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