The apparent introduction by Seeing Machines (SEE:AIM) of a 1st generation FOVIO embedded hardware chip might have investors scratching theirs heads in bewilderment. But it must be important, right, because the share price has soared 21% to 4.38p.
But why? Effectively this is the human monitoring technology kit firm's first baby steps beyond core transport tech and into the bright lights, big opportunity of the Internet of Things (IoT) and artificial intelligence (AI).
'The latter is new, and hints at an even broader market than previously supposed,' FinnCap analyst Lorne Daniel tells us.
Seeing Machines is currently contracted with original equipment manufacturers (OEM) across the aviation, motor, heavy trucks, trains and other transport niches. Deals with car makers include vehicle deliveries to launch in 2017, featuring its software. This assumes the CT6 Cadillac with SuperCruise from GM. But FOVIO chips are likely to be used in the second generation rollout to the entire GM range as agreed in the follow-on OEM contract.
'Embedding the software in a chip reduces the cost and time to market for OEMs and their tier-1 suppliers, facilitating mass market rollout since driver distraction is becoming a critical issue for the industry,' Daniel explains.
'This product will become the key offering of FOVIO, our new stand-alone automotive business that is currently being structured and staffed,' says Seeing Machnes CEO Ken Kroeger.
FinnCap's Lorne Daniel continues to expect this technology will become ubiquitous across a range of industries, driven by the increasingly urgent need to deal with fatigue issues and the mobile distraction epidemic.
An active Shares Play of the Week from two months ago at 3.62p, expect full year results to 30 June from the company on 3 October, when further detail, and perhaps more exciting news, may emerge.