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(Sharecast News) - Driver-monitoring technology specialist Seeing Machines reported a slight quarter-on-quarter slowdown in automotive production on Monday, even as it surpassed the milestone of 10m vehicles on the road and continued to grow recurring revenues.
Seeing Machines said production totalled 1.96m units in the three months ended 30 September, down 7% from the record 2.11m units delivered in the previous quarter, which it said was broadly in line with softer European vehicle production trends.
However, volumes were still up 285% year-on-year as carmakers continued to ramp up production of vehicles compliant with Europe's General Safety Regulation mandate.
The AIM-listed firm said the number of vehicles equipped with its Driver and Occupant Monitoring System technology had increased to 10.18m, up 140% from a year earlier.
Guardian fleet-monitoring sales also remained strong, with unit sales rising 188% year-on-year to 1,058, while annual recurring revenues increased to $15.3m, up 13% on the prior year and 2% higher than the preceding quarter.
Seeing Machines also announced a sales agency agreement with Mitsubishi Electric Automotive America covering Guardian Gen 3 across the US and Canada.
Chief executive Paul McGlone said: "With the European General Safety Regulation mandate for camera-based DMS technology now in force for all new vehicles, automotive production volumes have moved to a structurally higher run rate. Production of almost two million units in Q1 FY2027 is consistent with the record levels of the previous quarter and nearly four times the level of a year ago. We expect this run rate to continue as OEMs build GSR-compliant vehicles at scale, underpinning the ongoing royalty revenue from our Automotive business.
"In aftermarket, Guardian unit sales were almost three times those of the same quarter last year and we expect sales to build through the remainder of the financial year. Guardian annual recurring revenue continued to grow, up 13% year on year to $15.3m, reflecting the value fleets place on our ongoing monitoring services."
As of 0855 GMT, Seeing Machines shares had slumped 15.58% to 3.17p.
Reporting by Iain Gilbert at Sharecast.com
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