Smart Eye Interim Report January - September 2022
Smart Eye reported a strong financial performance for Q3 2022, with net sales of SEK 50.9 million, marking a 65% increase year-over-year, of which 23% was organic growth. However, EBITDA stood at SEK -55.6 million, reflecting continued investment in resources for ongoing projects. The operating loss was SEK -95.1 million due to depreciation impacts from acquisitions. Cash reserves were SEK 82.2 million. Upcoming financing alternatives are being explored. The company secured a SEK 100 million order for Driver Monitoring System software from a Korean client.
- Net sales increased by 65% year-over-year to SEK 50.9 million.
- Strong organic growth of 23% in Q3 2022.
- Secured SEK 100 million order for additional car models' DMS software.
- 100 design wins with 14 OEMs, valued at SEK 2.5 billion.
- EBITDA was negative at SEK -55.6 million due to ongoing investments.
- Operating loss increased to SEK -95.1 million.
- Continued negative earnings after tax.
GÖTEBORG, SWEDEN / ACCESSWIRE / October 20, 2022 / Smart Eye (STO:SEYE)(OTC PINK:SMTEF)(FRA:SE9) Strong Organic Growth
July - September 2022
- Net sales amounted to SEK 50.9 (30.9) million, an increase of
65% compared to the corresponding period previous year, of which23% was organic growth. Underlying sales in the quarter was SEK 10 million higher, but due to change in accounting principles of recurring revenue in iMotions this revenue will instead be recognized during the coming twelve months. - EBITDA amounted to SEK -55.6 (-21.6) million. The lower result is mainly due to a continued addition of resources. These investments are made in order to deliver on the already won projects and further development of Driver Monitoring Systems and Interior Sensing
- Operating loss amounted to SEK -95.1 (-46.8) million. Depreciation of the surplus value created in conjunction with the Affectiva and iMotions acquisitions amounts to SEK 29.3 million.
- Earnings after tax per share is negative.
- Cash and cash equivalents totaled SEK 82.2 million at the end of September.
- The Board and management are investigating financing alternatives in order to secure that the company can continue to invest in the long-term development of the future DMS generation and Interior sensing. The process is expected to be finalized during the fourth quarter.
- In October the company was selected by its existing Korean customer to deliver its world- leading Driver Monitoring System (DMS) software to six additional car models on a new platform. The estimated revenue of the order is SEK 100 million based on estimated product life cycle projections.
- In July the company received one additional Driver Monitoring System Design Win with a North American car manufacturer. It is estimated to go into production in 2024 and the revenue for the order is estimated to SEK 10 million, based on product life cycle volume projections.
January - September 2022
- Net sales amounted to SEK 164.2 (66.0) million, which corresponds to an increase of
149% . The organic growth amounted to25% . - Operating loss amounted to SEK -242.9 (-87.3) million. Depreciation of the surplus value created in conjunction with the Affectiva and iMotions acquisitions amounts to SEK 81.4 million.
- Profit/loss after financial items amounted to SEK -243.4 (-87.3) million.
- Earnings after tax are negative.
Comments from the CEO
The strong organic growth continues in the third quarter, up with
The strong organic growth is achieved in a difficult environment where global supply chains are disrupted, reverberating into many industries around the world, including ours. We are not out of the woods quite yet, but the production programs are starting to ramp up.
Automotive
A short summary of the status of our automotive business.
- We have 100 design wins with 14 OEMs, six more than a quarter ago. This is industry leading, and more is to be expected. We are well established in every geographic region of importance.
- The value of all the design wins is estimated to be SEK 2.5 billion.
- 6 OEMs have now started their series production.
- In October Polestar 3 was released, a new electric flagship SUV in the Volvo family. Smart Eye proudly announced that we are the chosen technology partner for DMS software.
- We continue to invest in delivering on existing production programs as well as in the future DMS generation and in Interior Sensing.
- We continue to be active in several large procurements globally and there are basically no new car platforms that aren't prepared for camera based DMS.
- Interior Sensing is starting to be procured with expected start of production as early as 2025.
Behavioral Research
The organic growth continues and is now
Final Words
We are growing at a steady pace that will increase as more and more car models go into production. At the same time, we see risks of delay in production programs and supply chains. We therefore constantly adapt our cost structure to the volatile market realities. We have also started a process to investigate financing alternatives that will shore up the company in the interim between now and when the volumes are ramped up. This will enable us to continue investments for the longer term in the future generation of DMS and Interior sensing. With cost adaptions and long-term investments, we stand even stronger than before, both today and tomorrow.
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 the global leader in Human Insight AI, technology that understands, supports, and predicts human behavior in complex environments. We are bridging the gap between humans and machines for a safe and sustainable future. Our multimodal software and hardware solutions provide unprecedented human insight in automotive and behavioral research-supported also by Affectiva and iMotions, companies we acquired in 2021.
In automotive, we are leading the way towards safer and human-centric mobility through Driver Monitoring Systems and Interior Sensing solutions. Our technology is embedded in next-generation vehicles and available as a standalone aftermarket solution for existing vehicles, fleet, and small-volume OEMs.
Our industry-leading eye tracking systems and iMotions biosensor software enable advanced research and training in academic and commercial sectors. Affectiva's Emotion AI provides the world's largest brands and market researchers with a deeper understanding of how consumers engage with their content, products, and services.
Smart Eye was founded in 1999 and is headquartered in Sweden with offices in the US, UK, Germany, Denmark, Egypt, Singapore, China and Japan. A publicly traded company since 2016, our customers include NASA, Nissan, Boeing, Honeywell, Volvo, GM, BMW, Geely, Harvard University, over 1,300 research organizations around the world,
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.
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 2022-10-20 08:30 CEST.
Attachments
Smart Eye Interim Report January - September 2022
SOURCE: Smart Eye
View source version on accesswire.com:
https://www.accesswire.com/721298/Smart-Eye-Interim-Report-January--September-2022
FAQ
What were Smart Eye's net sales for Q3 2022?
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