I work in the electronics industry and am seeing some common components going out to 40+ weeks lead time, due to various reasons "capacity constraints, mergers and acquisitions, obsolescence and higher-than-expected demand creating component shortages across the board"
Hopefully things will improve!
Recent price drops seem to have been as rapid as the speculative rises of last week. Not sure the initial EU news was enough to support such a surge but equally the stock is now starting to look over sold on the supply chain component problems. Those holding for the long term should see the benefits if short term fluctuations can be ignored whilst waiting on news of significant contract wins.
RNS Number : 6478O
Seeing Machines Limited
21 May 2018
Seeing Machines Limited
Business Outlook Update
21 May 2018
Seeing Machines Limited (AIM: SEE) ("Seeing Machines" or the "Company"), an industry leader in computer vision technologies which enable machines to see, understand and assist people, provides an updated business outlook for the current fiscal year.
The Company has been informed by its manufacturer partner that, owing to a global shortage in traditionally short lead-time parts (capacitors and power supply) which are used in the Company's second-generation fleet product, Guardian Gen 2, production of a number of units that were due to be shipped shortly, will now be delayed by approximately six weeks. Whilst sales of these units have been agreed, the shipping of these units is now expected to be delayed accordingly, resulting in this revenue now expected to fall outside of the current financial year. Based on performance to date, existing sales pipeline and revised manufacturing schedule, the Board of Seeing Machines now revises its FY18 forecast and projects to achieve sales in the range of A$30M to A$35M, versus a previous outlook of A$38M to A$43M, as provided in October 2017. Whilst the Board of Seeing Machines is disappointed by this delay, the revised outlook still represents a doubling of FY17 sales for the FY18 period.
Seeing Machines remains optimistic and excited by the large and fast growing market opportunities across all transport sectors. The Fleet business has very strong momentum, with an installed base of 10,000 units, around the world and a strong pipeline of sales opportunities, representing total commercial value of over A$200M through engagements with large transport and logistics companies in Asia Pacific, Europe, UK, the Middle East and USA, and a growing ecosystem of distributors globally.
The Automotive opportunity continues to grow with increasing interest from automotive OEMs and suppliers to deliver driver monitoring into more platforms and models of cars around the world as represented by recently announced design awards with two premium German OEMs.
Seeing Machines' Aviation business is developing steadily as the Company continues to work with significant industry brands to shape tailored solutions to enhance safety with eye-tracking systems for evidence based pilot training, support systems in managing pilot fatigue and air traffic controller alertness systems.
The Off-Road and Rail businesses are progressing well and are performing in line with management's expectations.
More recently, the announcement by the European Commission of "Europe on the Move: Agenda for safe, clean and connected mobility" will see driver monitoring technology mandated for EU vehicles from 2021, and affirms the relevance of Seeing Machines' technology. This will undoubtedly create increased demand across the Company's focused transport sectors globally.
The Commission announced that new models of vehicles are to be equipped with advanced safety features, and specifically identifies drowsiness and attention detection for cars, vans, trucks and buses; distraction recognition and prevention for cars, vans, trucks and buses, with Seeing Machines currently one of only a few companies in the world who are well positioned to provide this technology to leading global OEMs.
I'm very disappointed that the production scheduling has not been good enough to prevent a delivery delay. Capacitors and power supplies are supposedly short lead=time items, yet a 6 week delivery delay is foreseen. That's poor performance at the manufacturing level. JiT ordering to keep working capital down is all very good, but it demands performance of the schedulers. I started my working life in that role, and know it is fraught with assumptions and dependencies, but these can be overcome with good supply chain resilience and ordering practise.
It's not a big problem it would seem, but they need to get this problem nipped in the bud if they are to grow like we expect.
I believe that it is as a result of the EU Commission announcing today that in 3 years time all new car models sold in Europe should have driver monitoring systems and Seeing is a player in this market. I would expect the price to continue upwards tomorrow given the demand today.
SEE up 26% at close with 30 m shares traded . Buys at 9p and Sells at 8p I think , but its not clear or what I can see .
So we are all in profit for a change , but is there any news out there which would have caused this major break out ?
This stock seems to react more than most to rumour / speculation on thin volumes. As with today, the stock reacts wildly on a whisper and then has a tendency to give up the gains after the dust settles. When news is released, it is often far from clear to the investors what exactly has been signed and who with due to commercial considerations. Hard news is needed to support a sustained share price rise and to give investors confidence that revenues will increase as predicted by SEE.
I would have thought that the simple action of undoing the seat belt would have alerted the car. Some people are just so stupid though!
I think we are on the cusp of an upward movement in the price -are there any chart analysts out there who can provide a technical view rather my gut feel. Having said that my gut has served me pretty well over the years.
Recently Essex Police reported a driver of a Tesla on autopilot because he had moved into the passenger seat, presumably for extra comfort, leaving the autopilot to do the driving (without the legally required supervision).
If TESLA employed FOVIO this would not be possible without the driver being alerted to his crass stupidity my the DMS.
Some one please tell ELON MUSK about SEE!
Yes, I was at the show and fell upon seeing machines by happy accident. (Am a share holder).
I enjoyed the demonstration and realised how effective it is.
The representatives were quite bullish for the future and I see the price is already rising!
Quality 'goodies' bag as well.
I did get my shares later yesterday morning, overall i was surprised by the lack of change in the sp. volumes were ok but it seems of the radar generally. Maybe 'in line with expectations' puts the sp where it should be already. a steady rise from here would be reassuring.
I agree to a large extent as these are in line. However expect the market to Mark down a bit today. This co will go far at some point. Biggest disappointment is how long it takes to roll out fleet contracts won. This has been holding revenues back.
Stunning revenue figures. R&D costs holding back profitability but theyve got to stay in front of the game.
Nice to see rail and aero still active and progressing and a foothold in autonomousvehicles too.
Good progress for me, its a buy. Should lift off this morning if folks can keep focused and accept the increased losses are necessary to progress.
the author/blog is very SEE focused and holds shares in the company so I would still take it as speculative but non the less it is clear that SEE is heading in the right direction and many of the changes to riving systems - semi-autonomy etc, are playing into their hands. I have held these for a long time and have been adding at these levels awaiting the swing up...
seems a little flat and uninspiring as a trading update...but at least they mention increased customer demand.
"will enable further investment in the ongoing development of the FOVIO driver monitoring platform technology and continued product improvement across all industry verticals to scale the Company's global footprint and meet increased customer demand."
MM joined the group in September 2016 as CEO of Seeing Machines Automotive business (Fovio). When elevated to CEO he replaced Ken Kroeger who became chairman.
No doubt the story will emerge but looks as if a fundamental disagreement might be at the heart of it - given that progress in the automotive sector seems to have been made and the SP has recovered during McAuliffe's time in the job.
I just hope there is not a "bad news" bomb anywhere.
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