Seeing Machines (LON: SEE) share price has bounced back after the company made an important announcement about its business. The stock bounced back to a high of 5.90p on Tuesday, a 20% increase from the lowest point this year. It remains much lower than the year-to-date high of 7.90p.
Company is still growingSeeing Machines is a technology company that builds products meant to improve safety in the automotive and aviation industries. The company’s products help to monitor drivers and provide alerts. In the past 12 months, its products have intervened in over 388k incidences.
In a statement this week, Seeing Machines said that it had added its newest OEM company as a client. The customer, which is a large European company, will start using its products starting in 2026. The order will be valued at over $15 million. Its order backlog stands at over $336 million. In a statement, the company said:
“As a leading supplier of mission-critical transport safety systems, being trusted is of paramount importance and while this individual award is reasonably modest in size, it further validates our proven technology and I am confident we will see more business from this OEM customer.”
Seeing Machines published its annual results recently. The statement showed that its total revenue in the year ending in June jumped to over $57 million, up from $39 million in the previous year. This growth was driven by royalty, licenses, and service revenue.
Seeing Machine’s gross profit jumped to $29 million while its total loss narrowed to over $15 million. The company’s balance sheet also improved slightly, with total current assets rising from $65.9 million to $82.3 million.
Did you know #Guardian captured over 653,000 risky driving events in Australian and New Zealand fleets last year? ⚠️ Learn more in the 2022-23 Guardian Insights Report. Download now: https://t.co/ycQjF5oQwu #fleet #safety #seeingmachines pic.twitter.com/B8Sr9fMAkD
— Seeing Machines (@seeingmachines) November 6, 2023Seeing Machines could also benefit in the United States, where the government has mandated all new vehicles to have an advanced drunk and impaired driving prevention technology.
Seeing Machines share price outlook
The daily chart shows that the SEE stock price has bounced back in the past few weeks. This rebound happened after the shares dropped to the important support level at 4.99p, the lowest point in November and July this year and August 2022.
The stock has jumped above the 100-day and 50-day Exponential Moving Averages (EMA). It has also retested the falling trendline, which connects the highest swings since March 14th.
Therefore, the outlook for the stock is quite bullish, with the next important level to watch being at $6.40. This target is about 11.50% from the current level.
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