STOCKHOLM, May 8, 2020 /PRNewswire/ --
January - March 2020
- Net sales totaled SEK 17,712 (11,670) thousand which corresponds to an increase of 52 %.
- Operating loss totaled SEK -21,986 (-22,227) thousand, operating costs are significantly higher than last year and reflect the investments made to meet project deliveries within Automotive Solutions and the continued development of the new business area AIS (Applied Artificial Intelligence Systems). However, the positive sales trend during the quarter means that earnings are still at the same level as last year.
- Profit/loss after financial items was SEK -22,105 (-22,293) thousand
- Profit/loss after tax per share is negative.
- Cash and cash equivalents totaled SEK 110,628 thousand at the end of March
- In February, a design win was obtained for another Chinese OEM. The estimated order value is approximately SEK 50 million.
- The company's largest order ever was communicated in March. A total of 24 new design wins were obtained from four OEMs. One is a new American high-volume manufacturer and one is a new European premium manufacturer. The other two are existing European premium customers. The estimated revenue is SEK 500 million, based on forecasts for the estimated product life cycle.
- As a precautionary measure with the current market volatility due to the corona virus, Smart Eye has decided to lower its operating costs in order to conserve cash. However, special emphasis is placed on meeting the many delivery commitments the company has to the global automotive industry.
Estimated value of obtained design wins
As of the report for the second quarter of 2018, the company provides information on the estimated market value of obtained design wins at the time of publication of the report. The figures in brackets show the levels at the time of the publication of the preceding report, which in this case was February 20th 2020.
The total estimated value of the company's 81 (57) design wins announced to date currently amounts to at least 2 000 MSEK (1,450) over a product life cycle.
If the company's system had been used in all car models on existing platforms by the twelve (ten) car manufacturers with whom design wins have been communicated, the estimated value would amount to at least 5,300 MSEK (2,800) over a product life cycle.
Comments from the CEO
From the hour of destiny to Grand Slam. If the fourth quarter was the hour of destiny for mid-level DMS, that moment has now passed and will not come back. After the first quarter, there is no doubt that Smart Eye will be the clear market leader in DMS for many years to come.
Nominations in the mid-level segment
In the first quarter, the decisive moment for the mid-level segment finally came, the largest and most important by volume. It was nothing short of a success for Smart Eye. In total, we landed five car manufacturers during the first quarter. One of the United States' largest, one of China's most important and three European premium manufacturers, all of them leaders in security and trendsetters for other brands. Together with some of the most significant global OEMs in South Korea, Japan and Europe who have previously chosen Smart Eye, a large part of the automotive industry has chosen the path. Admittedly, there are some manufacturers that have yet to nominate supplier, but the start of 2020 clearly shows where the market is heading. Many within Smart Eye has been working hard for many years to enable the success with market leadership in both the premium and the global mid-level segment. I am proud and grateful for the employees' performance and endurance. The trend is looking good for the continued development of the Automotive Solutions business area.
Effects of the Coronavirus
In the short term it is very difficult to predict how the development will be, it is very dependent on Covid-19. The planning have to take place from one day to another and the outcome will to a great extent depend on how the pandemic develops. Car sales are declining in country after country as the virus spreads. At the same time, it can be seen that personal mobility is preferable to public transport in times when the spread the of infection is to be minimized.But in the slightly longer term, sales of cars will rebound, just as after the financial crisis of 2008. Demand for advanced safety equipment is primarily driven by EuroNCAP and legislation that sets the long-term agenda. We continue to be positive about the long-term future of the automotive industry.Cost control and cautiousnessAt Smart Eye, we have used the Swedish government's temporary layoff support and introduced strict cost control to be as prepared as possible for all events. We have also previously communicated that with these measures, the current cash will last at least 18 months. We believe that this is an appropriate precautionary measure in the current circumstances but that there is preparedness to press both the accelerator or the brake, whatever the circumstances require.
Strong development of the business In light of the ongoing health situation, it is extra gratifying to be able to deliver such a strong result. All Smart Eyes different business areas deliver as expected or better and sales increase by 52% compared to last year. It's natural that we invest in the current situation to be ready for the broad introduction of DMS by the automotive industry. Car sales will soon rebound and then Smart Eye is well positioned to reap the benefits of what we have achieved so far.
CEO Smart Eye
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SOURCE Smart Eye