- Seeing Machines expects to report pre- and post-tax trading for the FY in line with market expectations, with revenue for the year of AU$33.6m.

This revenue figure is 77 percent higher than the previous financial year's total revenue of AU$18.9m.

These revenue figures exclude the research and development tax incentive received from the Australian government which is reported in 'Other income'.

This incentive, which is received as a cash refund based on eligible R&D expenditure, totalled AU$2.4m for FY16, from AU$2.2m.

The revenue was earned from the sale of goods and services and license fees. As previously reported, included in the license fees, was an amount of AUD 21.8 million from Caterpillar Inc. due on signing a global product development, licensing and distribution agreement.

Caterpillar takes over all costs and commercial responsibilities for the manufacturing, marketing, sales, field support and remote monitoring of the DSS rugged off-road product suite.

Caterpillar continues to commercially engage Seeing Machines in supporting the engineering of their next generation DSS technology.

The Caterpillar agreement also provides Seeing Machines with a royalty stream for both hardware sales and all DSS supporting services. Royalties for the quarter ending 30 June were USD150,000 lower than the previous quarter due to longer than expected sales cycles with certain customers.

However, Caterpillar's forecasting confirms that the number of technology trials and the overall volume of sales opportunities continues to increase.

Discussions continue well with the lead and other investors following the signing of the automotive business term sheet, as previously announced.

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