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Smart Eye Interim Report January – June 2018

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Correction of interim report published today at 08:30 CET

Smart Eye published its interim report for the period January-June 2018 this morning. On page 1 of the report, the heading for the bullet list on key figures and events for the period April-June was wrong. It read January-March. The correct heading of that list is April-June. Below and attached, find a correct version of the report.

Smart Eye Interim Report January – June 2018

Mass market volumes in sight 

April – June 2018 

  • Net sales totalled SEK 11 004 (12 114) thousand which corresponds to a decline of 9 %.
  • Operating profit/loss totalled SEK -16 764 (-9 306) thousand, in line with plan and in accordance with decided investments in product development as well as an increased pace in the geographical expansion.
  • Profit/loss after financial items was SEK -6 856 (-9 435) thousand.
  • Profit/loss after tax per share is negative.
  • Cash and cash equivalents totalled SEK 14 976 TSEK at the end of June. In addition to this the company has a non-used credit facility amounting to 15 MSEK.
  • The geographical expansion continues. During the quarter the company has opened offices in Tokyo and Chongqing, China.
  • Two more Smart Eye equipped cars was launched during the quarter.

January – June 2018 

  • Net sales totalled SEK 20 584 (19 747) thousand which corresponds to an increase of 4 %.
  • Operating profit/loss totalled SEK -30 610 (-18 469) thousand.
  • Profit/loss after financial items was SEK -30 830 (-18 717) thousand.
  • Profit/loss after tax per share is negative.

Events occurring after the end of the period 

  • In July the company was awarded yet another design win, this time with one of China’s largest OEM:s. This car model with Smart Eye’s technology will go into production in 2019. The order value is estimated to exceed 100 MSEK.

Estimated value of obtained design wins 

  • Starting this quarterly report, the estimated market value of the company’s obtained design wins will be provided and updated on a regular basis.
  • The total estimated value of the company's so far announced design wins currently amounts to at least 475 MSEK over the product life cycle.
  • If the company's system were to be used in all car models in the existing platforms of the five car manufacturers where design wins have been communicated, the estimated value is currently at least 2,000 MSEK over the product lifecycle.

Comments from CEO

The market picture becomes clearer

Smart Eye has previously communicated 18 design wins from five OEMs, the latest from July this year. The combined estimated order value of the 18 models exceeds 475 MSEK over the product life cycle. If our Driver Monitoring Systems (DMS) is migrated to other cars with the same five OEMs the potential value of estimated revenue may exceed 2 billion SEK over the life cycle of these car platforms. To put that in perspective, the mass market Request for Quotations (RFQs) that are either ongoing or upcoming and will be decided in the 2018-2019 timeframe will have a potential value of more than 10 billion SEK. Hence, it’s clear that the time for DMS has come and Smart Eye is perfectly positioned to make the most of this market opportunity. The opening of our offices in China and Japan should be seen in the light of the opportunities that opens up, not just in these markets but globally.

The tipping point for the mass-market

Smart Eye’s second quarter of 2018 consisted first and foremost of the positive change of mindset from all the major car OEMs in the world. They are now leaning heavily towards DMS and as a result many RFQs have been initiated for their upcoming mass-market car models. Up until 2017 it has exclusively been premium cars that have been equipped with DMS, but now we have procurements going out for the high-volume car models, and from all geographical markets.

Solving the global traffic accident epidemic

This is excellent news for everyone worldwide. The life-saving potential of DMS is enormous and will fully come into play when the system is present in a majority of cars on the roads. Inattention, drowsiness and other impairments are one of the biggest contributors to the fact that road fatality is among the three most common causes of death for people aged 5-44 years. More than 1,2 million road deaths occurring every year and more than 50 million injuries. United Nations have declared 2011-2020 the decade of action for road safety and urged all its member states do increase work for road safety

New DMS technology part of the solution

We are therefore proud to see that decades of work now are paying off and the spread of DMS is moving from premium cars to so called C- and D-level cars (equivalent to VW Golf, Toyota Corolla, Honda Civic, Ford Fusion etc). The wave of mass market DMS is coming slightly faster than what we earlier anticipated, and also what we earlier have communicated to the market. This, however, is good news because it means that more lives will be saved within a shorter timeframe by DMS. Everyone in the industry is working hard to make the most of this historic chance of developing a whole new safety technology that takes the actual human behaviour into account.

Revenue development

Net sales January-June amounted to 20,6 MSEK, a 4% increase compared to last year’s 19,7 MSEK. Applied Solutions sales increased by 8 percent and Research Instruments increased by 2 percent. In the second quarter AS sales decreased by 30 % due to the focus on handling all RFQ:s. RI increased sales in the second quarter by 21 % due to a clear pick up in demand.

Martin Krantz
CEO Smart Eye 

Contact

Martin Krantz, CEO
Tel no. + (46) (0)70-329 26 98
Martin.krantz@smarteye.se

Anders Lyrheden, CFO
Tel no. + (46) (0)70-320 96 95
Anders.lyrheden@smarteye.se

 

About Smart Eye 

Smart Eye develops and markets eye tracking systems that can measure and calculate a person’s gaze. Today the company has two business areas: Research Instruments and Applied Solutions. Within Research Instruments, Smart Eye provides advanced eye tracking systems to measure and analyse human behaviour. Within Applied Solutions, Smart Eye provides eye tracking software for integration in vehicles. Smart Eye was founded in 1999, since when it has become established as one of the leading players for eye tracking analysis of human behaviour. This is based on advanced technical software for eye tracking systems, as well as longstanding experience in this industry. From an early stage, Smart Eye has focused on developing eye tracking for the automotive industry and today is one of the few companies in the world with eye tracking systems for integration in vehicles that live up to the extensive requirements set by the automotive industry. Smart Eye currently has sixteen design wins concerning serial delivery for passenger vehicles from four global automotive Groups. 

Smart Eye is listed on First North. Erik Penser is Certified Adviser and can be reached at +46-8-463 8000. 

This information is information that Smart Eye AB (publ) is obliged to make public pursuant to the Securities Markets Act. The information was submitted for publication at 08:30 CET on August 20, 2018. 

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