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The effects of the pandemic decrease – new opportunities are created
Comments from the CEO
Another quarter is now over. Unfortunately, the pandemic has not abated at the pace we had all hoped for, but it has not affected Smart Eyes' everyday work to any greater extent. We have had a high level of activity in all of our business areas and we are starting to get used to the “new normal”, with fewer face-to-face meetings and less travel. In the current situation, the local offices we had managed to open up in Japan, China and Detroit before the pandemic broke out have proved to be of great value.
Our local offices have been important for our ongoing delivery projects and also for the procurements that are yet to be decided. Due to the fact that our offices outside Sweden have been so successful, we have now begun the process of establishing a new office, this time in Germany. Regardless of the future of the pandemic, we will be even closer to the important German automotive market from the beginning of Q3.
Automotive Solutions
At the beginning of the quarter, we were able to announce a design win with yet another new OEM, the thirteenth so far. The OEM is one of China's largest car manufacturers, to which we will supply DMS together with a large and reputable global T1 supplier. It is with great pleasure that we can state that Smart Eye’s offer is strong on all important markets. Our technological leadership is undisputed and the main reason for our success.
At the same time as we work relentlessly with DMS and the important procurements that are underway, we are also seeing an increasing interest in what is referred to as Interior Sensing; even more advanced solutions where the entire car interior is analyzed. We are seeing a demand for both focused monitoring of the driver’s state and more zoomed out monitoring of the entire cockpit of the car.
We estimate that the total market potential will be greater than what we have previously communicated for only DMS.
It is still too early to be talking about proper procurements, but we believe procurement processes are due to be initiated in the not-too-distant future. The situation is reminiscent of what we saw on the DMS market back in 2014, at which point we were already quite confident that DMS would be installed in premium cars in the near future. We are preparing for a situation where our customers will soon be requesting both DMS and Interior Sensing from us, which will lead to an increased added value per car.
Aftermarket AIS
On March 11, we launched the aftermarket product AIS. It has been under development for two years but suffered some delays caused by the Covid-19 pandemic. Since the launch, we have had an increasing number of inquiries and we are optimistic about the market for the aftermarket product, which will be sold on a global market.
Research Instruments
Demand has continued to recover but is not yet completely back to pre-corona levels. Our customers have not fully returned to the universities and research laboratories where our equipment is used.
Final words
The pandemic is affecting most of what is happening right now. But there are not only problems, we also see opportunities. We are seeing a further development of the technology, with more and more AI and technologies extending to the entire car interior. In combination with the Covid-19 pandemic, this creates a dynamic market situation where the right strategic actions can have major consequences. We are looking at several different strategic alternatives in order to best take advantage of the opportunities we are seeing. DMS and, by extension, Interior Sensing are here to stay in the automotive industry, where we are currently the leading supplier. And it is our definite ambitions and goal to remain so in the future.
Martin Krantz
CEO Smart Eye
For more information:
Martin Krantz, CEO Smart Eye AB
Phone: +46 70-329 26 98
Email: martin.krantz@smarteye.se
Anders Lyrheden, CFO Smart Eye AB
Phone: +46 70-320 96 95
Email: anders.lyrheden@smarteye.se
About Smart Eye
Smart Eye is leading the way towards safe and sustainable transportation. Every year, 1.2 million people lose their lives in traffic-related accidents around the world, another 50 million are injured. Our firm belief is that science and technology can help turn this around.
For over 20 years Smart Eye has developed artificial intelligence (AI) in the form of eye tracking technology that understands, supports and predicts a person’s intentions and actions. By carefully studying eye, facial and head movement, our technology can draw conclusions about a person’s awareness and mental state. Our eye tracking technology is used in the next generation of cars, commercial vehicles and providing new insights for research within aerospace, aviation, neuroscience and more.
Smart Eye’s solutions are used around the world by more than 700 partners and customers, including the US Air Force, NASA, BMW, Lockheed Martin, Audi, Boeing, Volvo, GM, and Harvard University.
Visit www.smarteye.ai for more information.
Visit our investor web for more financial information: http://www.corp.smarteye.se/en/
Smart Eye is listed on Nasdaq First North Growth Market. Erik Penser is Certified Adviser and can be reached at +46-8-463 8000 or certifiedadviser@penser.se.
This information is information that Smart Eye is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2021-05-05 08:30 CEST.
Attachments
Q1 2021 Engelsk FINAL