Seeing Machines has announced its much anticipated Aviation license deal with Collins Aerospace, the world’s largest Tier 1 avionics company – as predicted here back in February. 

The “exclusive” and “perpetual” license deal provides a license payment of US$10m ($3m immediately and the $7m balance over the following 2 years). Collins will also pay Seeing Machines non-recurring engineering (NRE) payments to develop the solutions, evolving into potential future royalty payments as products are released to customers.

Although details as to what exactly is covered under the license were missing in the RNS, I’m hoping to eventually get some answers to those questions from the company. Or, maybe, we’ll be treated to a video of Pat Nolan taking a bow in conversation with Paul McGlone. (Certainly, both deserve a round of applause for this deal!). 

Muted response

What has really surprised me is the muted response from brokers covering the stock. None issued an upgrade, although they were all positive on the stock. Unbelievably, at the end of a huge week, the price has barely risen in response.

I have a sneaking suspicion that the 333-plane deal mentioned in the infamous ‘Italian Job’ video will materialise fairly soon. My guess is that some analysts are keeping their powder dry for that announcement. In the meantime, I can imagine paper-thin ‘Chinese walls’ mean some salespeople are telling their very special institutional clients to: “Buy, buy, buy”.

The writer holds stock in Seeing Machines.