Seeing Machines (SEE) on Wednesday told investors it had renewed its supply agreement with the company’s chip supply partner, Nasdaq listed Xilinx (XLNX).
Seeing Machines is to remain the sole provider of the FOVIO Chip solution, directly supplying the FOVIO Driver Monitoring Chips to its customers, including 3 ongoing automotive OEM programs, two in North America and one in China.
Paul McGlone, CEO of Seeing Machines, said: “Our partnership with Xilinx has been nurtured over several years and our renewed agreement for supply of the FOVIO Chip directly to our Tier 1 automotive customers seeks to leverage the particular strengths of each company to their benefit and that of our customers.”
Shares in Seeing Machines ticked up 1% to 4.675p on Wednesday morning
The company also provided an update on its fleet business; telling investors that it had reduced the cost of its Guardian unit hardware by 21%, which is expected to result in savings of A$8.4 million for the next order of deliveries in 2020.
Additionally, it said that its work with insurance companies continues, receiving endorsements for Guardian as preferred safety technology for commercial fleets when mutual customers become eligible for insurance policy benefits and incentives.
Seeing Machines also appointed Fleet Complete as a Value Added Reseller for Oil & Gas Industry opportunities within Australia, as well as AUSIS, as a distributor in Turkey.
Mr. McGlone said: "Our strategy is now set in three major transport verticals - Automotive, Fleet / Offroad and Aviation - each with a significant growth trajectory and a refined business model. Importantly, this provides diversification in cash generation and minimises risk around timing, segment and customer concentration."
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