Interim Report January - September 2021
Smart Eye (OTC PINK:SMTEF) reported a strong rebound in Q3 2021 with net sales of SEK 30.9 million, a 103% increase from the previous year. Organic growth accounted for 35% of sales. Despite an operating loss of SEK -46.8 million, driven by the acquisition of Affectiva, the company's cash reserves stand at SEK 326.3 million. The firm secured multiple design wins valued at SEK 125 million for new automotive models. Looking ahead, Smart Eye anticipates significant growth opportunities, particularly in the Interior Sensing market.
- Net sales for July-September 2021 reached SEK 30.9 million, a 103% increase year-over-year.
- Organic growth contributed 35% to the sales increase.
- Secured design wins valued at SEK 100 million from a North American OEM and SEK 25 million from a Japanese customer.
- Strong cash reserves of SEK 326.3 million as of September 2021.
- Projected significant growth in the Interior Sensing market through the Affectiva acquisition.
- Operating loss of SEK -46.8 million in Q3 2021, impacted by the Affectiva acquisition.
- Total operating loss for January-September 2021 reached SEK -87.3 million.
- Negative earnings after tax per share reported for both quarterly and year-to-date periods.
GÖTEBORG, SE / ACCESSWIRE / October 22, 2021 / Smart Eye (STO:SEYE) (OTC PINK:SMTEF) (FRA:SE9)
Strong rebounce post Covid - New exciting perspectives
July - September 2021
- Net sales amounted to SEK 30.9 (15.2) million, which is an increase of
103% compared to the corresponding period previous year, of which35% was organic growth. - Operating loss totaled SEK -46.8 (-12.8) million. The acquisition of Affectiva contributes to SEK -11.2 million of the operating result. Depreciation of the surplus value created in conjunction with the Affectiva acquisition amounts to SEK 18.6 million.
- Profit/loss after financial items was SEK -46.8 (-12.9) million.
- Profit/loss after tax per share is negative.
- Cash and cash equivalents totaled SEK 326.3 million at the end of September
- In July, four design wins were obtained from a global North American OEM. The order is for four new car models on an existing platform with an estimated order value of SEK 100 million, and 1st of October an additional design win with an existing Japanese customer was communicated. Estimated order value SEK 25 million.
January - September 2021
- Net sales amounted to SEK 66.0 (46.8) million, which is an increase of
41% compared to the corresponding period previous year, of which19% was organic growth - Operating loss amounted to SEK -87.3 (-57.7) million.
- Profit after financial items amounted to SEK -87.3 (-58.0) million.
- Earnings after tax per share are negative.
- In May the company entered into an agreement to acquire Affectiva, a Boston based Emotion AI company, for a consideration of USD 73.5 million. In conjunction with the acquisition a directed share issue of SEK 275 million were completed.
Comments from the CEO
We are back and have surpassed our pre-covid levels of business activity. All our business areas are performing very well and our position in the market is as good as it has ever been. We stand strong in the business pursuits in Automotive Solutions, we have a pent-up market demand for our brand new fleet product soon to be delivered, and our research products are picking up speed post pandemic.
Automotive
- Let's put some color on our existing automotive production programs. We have been hamstrung by NDAs to talk openly about all but a few OEMs, but it is possible to give more information in general terms.
- We have three OEMs in production with cars equipped with our software being produced out of Europe, US, Korea, and China.
- Since the start of series production in 2018, we have equipped more than half a million cars with Smart Eye software, and are rapidly approaching one million in total delivery, a number that we will surpass during the first half of 2022.
- We expect two more car OEMs to start production in Q4 this year, or latest early next year.
- Next year we will add production in Japan.
- The majority of the 89 car models that we won until now will be in production before the end of 2023.
Let's now put some color on the ongoing automotive procurements where we are currently participating. Generally speaking, our competitive position contionues to be very strong thanks to our long history of delivering DMS and Eye Tracking to highly qualified customers during the last 22 years.
- Three of the largest procurements of DMS to date are due for sourcing in coming quarters. Smart Eye is a force to be reckoned with in all three. There are also several smaller procurements soon to be decided in the near term.
- Close to all global OEMs will procure their first or second generation DMS during the next couple of years, fueled by regulatory tailwind in Europe, and soon in other regions of the world.
- We stand firm by our previously communicated estimate that there is an estimated lifetime value of 10 billion SEK or higher in the procurements that we expect during the coming 18 months, including the three big ones mentioned above.
- We hold a very positive view on the outlook of winning more car models on the current platforms. The recently communicated Japanese design win is an example of that.
- Interior Sensing is a budding market opportunity that soon will be in full swing in the automotive procurement circles. By joining forces with Affectiva we are perfectly positioned for this development.
- We believe that Interior Sensing is heading towards integrating multiple sensors into one multimodal sensing unit. This is logical for reasons of functionality, cost, physical size, and power consumption. We already see this trend in the sensors on the outside of the car. Smart Eye will continuously explore this exciting development and how it applies to automotive and other industries in the future.
While selling software to the world's largest car OEMs is our main task, we also have the business unit AIS, developing an offering for the aftermarket and small OEMs. The system consists of hardware and software bundled together. We are still pre-revenue in that deliveries have not yet started, except that a handful customers have tested early production samples. We are making ourselves ready to start production ramp-up and deliveries for early next year.
Research
Starting in quarter three we now have two business units offering products to research customers. The first one is Research Instruments, selling high-end eye tracking products to advanced customers for more than 20 years. The growth was
In addition we have the new business unit Media Analytics, which is now a part of Smart Eye since the acquisition of Affectiva. The main business is advertisement testing with Emotion AI. Media Analytics also had a strong quarter where business is rebounding after Covid.
Affectiva Integration
One quarter has passed since we acquired Affectiva. The integration is in full swing,.Even though we have not finalized every aspect of the ingration yet, the most important thing is that we have already started to work on Interior Sensing prucurement processes for automotive customers. This shows that the timing for the merger was right. The automotive side of Affectiva is being tightly integrated with Smart Eye´s automotive team, while Media Analytics' team operates more independently. It is pleasing to see the positive spirit and energy that has been created by the teams.
Final Words
The pandemic and the subsequent semiconductor shortage has affected everyone in the car industry negatively. For Smart Eye it has been even more important, that thanks to regulatory tailwind we have seen our market grow and now even surpass pre-covid levels. We stand stronger than ever. The palette is full of colors in the automotive production and procurement programs. With Affectiva, our operations have widened and accelerates our development of interior sensing. All combined this creates exciting perspectives for the future that makes smart eyes sparkle with anticipation.
Martin Krantz
CEO Smart Eye
For more information:
Martin Krantz, CEO Smart Eye AB
Phone: +46 70-329 26 98
Email: martin.krantz@smarteye.se
Anders Lyrheden, CFO Smart Eye AB
Phone: +46 70-320 96 95
Email: anders.lyrheden@smarteye.se
About Smart Eye
Smart Eye is leading the way towards safe and sustainable transportation. Every year, 1.2 million people lose their lives in traffic-related accidents around the world, another 50 million are injured. Our firm belief is that science and technology can help turn this around. For over 20 years Smart Eye has eveloped 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. Our eye tracking technology is used in the next generation of cars, commercial vehicles and providing new insights for research within aerospace, aviation, neuroscience and more. Smart Eye's solutions are used around the world by more than 800 partners and customers, including the US Air Force, NASA, BMW, Audi, Boeing, Volvo, GM, and Harvard University.
Visit www.smarteye.ai for more information.
Visit our investor web for more financial information: http://www.corp.smarteye.se/en/
Smart Eye is listed on Nasdaq First North Growth Market. Erik Penser is Certified Adviser and can be reached at +46-8-463 8000 or certifiedadviser@penser.se .
This information is information that Smart Eye is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2021-10-22 08:30 CEST.
Attachments
Interim Report January - September 2021
SOURCE: Smart Eye
View source version on accesswire.com:
https://www.accesswire.com/669243/Interim-Report-January--September-2021
FAQ
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