Smart Eye Interim Report 1 January–31 March 2017

Summary Q1 2017

• Net revenue was TSEK 7,633 (5,591), equivalent to an increase of 36.5% compared to Q1 2016.
• The operating result was TSEK –9,163 (–3,821), relating to higher personnel costs.
• The result after financial items was TSEK –9,282 (–4,224).
• Profit per share was negative.
• Cash and cash equivalents amounted to TSEK 61,881 at the end of March.
• Smart Eye's cooperation with Autoliv on the LIV car was presented at the CES electronics fair in Las Vegas in January 2017.
• During the period, the company established cooperation with NVIDIA to deliver logger camera systems for Volvo Cars' Drive Me project.
• Smart Eye moved to new and larger premises in order to allow for further expansion.
• During the quarter, the establishment of a sales office in the USA commenced and Smart Eye International Inc was established as a wholly-owned subsidiary.

Comments from the CEO

In summary, in Q1 2017 we are following our plan. First of all, revenue increased by 36% from the same quarter of the previous year. Secondly, the investment rate was increased in order to meet the strong demand from the automotive industry. A large number of procurement procedures are being held in 2017 under which global car manufacturers are creating strategic supplier relationships for many years into the future. Smart Eye is well-positioned to be selected, which in turn will secure stable income flows far into the future.

Our establishment in the USA has commenced, and we have staff in place in Detroit as from May. We have gained ten more staff members since year-end, mostly software engineers. Our expert staff continue to target the market with innovative solutions and strong technology. One of the cornerstones is artificial intelligence, AI. Several technical breakthroughs in recent years can be used in our ongoing development work.

In this respect, the collaboration with NVIDIA is of great value, and we were both pleased and proud to announce a joint project whereby we are delivering cameras, software and hardware for Volvo's Drive Me project, whereby 100 autonomous vehicles will operate in the Gothenburg region, starting up this year. This is a major focus for Volvo, which is at the forefront of developing active safety. Smart Eye is the system integrator, creating the software; NVIDIA provides the hardware; and the American semi-conductor company Omnivision supplies cameras based on "wafer level optics", a technique whereby the lens and lens housing are built onto the chip using processes from the semi-conductor industry. The makes it possible to achieve very small and cost-effective cameras. Lighting is provided by the German lighting giant, Osram, which for this purpose has developed light diodes with improved performance, to reduce power consumption and allow for compact packing. With advanced pre-development projects of this type, Smart Eye is ensuring that we are always an attractive partner for the automotive industry, with access to and knowledge of the latest high-tech developments, both now and in the future.

For more information, please contact or visit
http://corp.smarteye.se:
Martin Krantz, CEO
Phone: +46 70-329 26 98
Email: martin.krantz@smarteye.se