Seeing Machines announces US$10m license deal with Collins Aerospace

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.

Collins Aerospace license deal is imminent

It’s great to have confirmation that the long-awaited aviation license deal with Collins Aerospace is set to be announced imminently. Yes, really.

In a presentation to Italian investors back in November 2022, Paul McGlone, CEO of Seeing Machines, revealed that it was expected to be signed before the end of 2022. I assume the deal with Collins Aerospace was then slightly delayed while the fine details were negotiated and will be announced on or before the forthcoming US investor/analyst event on the 8th March in New York.

I’d heard strong rumours a few months back of such a deal and so posted this blog back in August, since when further research has led me to conclude I was correct. However, the interview now confirms it and provides a lot more detail. For example, Paul McGlone reveals that around A$15m will be paid upfront with higher ASP and recurring maintenance fees being part of the deal. 

Collins has previously refused to comment but I assume this will now change. 

In addition, Seeing Machines is also bidding for a huge RFQ for an international airline to place its pilot monitoring technology in approximately 333 ‘7’ series Boeing jets and 18 simulators. I’m assuming it may be Emirates but it could also be a US airline.

It’s fantastic news for Seeing Machines and will finally prove the worth of the aviation business. Indeed, when officially confirmed the deal should produce numerous broker upgrades and have fund managers scrambling to buy into the stock.

The writer holds stock in Seeing Machines.

Chat GPT finds news of Collins Aerospace and Seeing Machines collaboration

This Chat GPT is bloody good stuff in my humble opinion, as it has found information about Collins Aerospace and its use of Seeing Machines eye-tracking technology that I didn’t realise even existed.

Just read this Q&A session with the AI-powered search engine:

Q. Does Collins Aerospace have a pilot support system that uses eye-tracking?

A. Collins Aerospace, a subsidiary of Raytheon Technologies Corporation, offers a range of avionics systems, including pilot support systems. One of their products, the “Pro Line Fusion” avionics system, includes a feature called “Head-up Display (HUD) with Eye-Sensing Technology.”

This technology uses eye-tracking to provide pilots with a more intuitive and efficient way of interacting with the aircraft’s avionics. By tracking the pilot’s eye movements, the system can automatically adjust the information displayed on the HUD to match the pilot’s focus, making it easier for the pilot to keep their attention on the task at hand.

The system also includes a feature called “SmartView Synthetic Vision System,” which uses 3D graphics to provide pilots with a more comprehensive view of their surroundings, helping them to make more informed decisions.

So, in summary, yes, Collins Aerospace offers a pilot support system that uses eye-tracking technology as part of its Pro Line Fusion avionics system.

Q. Which company supplies this eye-tracking to Collins Aerospace?

A. The eye-tracking technology used in the Collins Aerospace Pro Line Fusion avionics system is supplied by Seeing Machines, an Australian-based company that specializes in developing advanced computer vision technologies.

Seeing Machines’ eye-tracking technology is based on machine learning algorithms that analyze eye movements and can accurately track eye gaze points in real-time. This technology is used in a variety of industries, including aviation, mining, automotive, and transportation, to improve safety and performance.

Collins Aerospace has a partnership with Seeing Machines to integrate their eye-tracking technology into the Pro Line Fusion avionics system. Seeing Machines’ technology is a key feature of the Pro Line Fusion system, helping pilots to maintain situational awareness and improve their overall performance.

Share price impact

This is potentially huge news for Seeing Machines if confirmed by either company, as it could materially impact its share price.

The writer holds stock in Seeing Machines.