Comments from the CEO
From the hour of destiny to Grand Slam. If the fourth quarter was the hour of destiny for mid-level DMS, that moment has now passed and will not come back. After the first quarter, there is no doubt that Smart Eye will be the clear market leader in DMS for many years to come.
Nominations in the mid-level segment
In the first quarter, the decisive moment for the mid-level segment finally came, the largest and most important by volume. It was nothing short of a success for Smart Eye. In total, we landed five car manufacturers during the first quarter. One of the United States' largest, one of China's most important and three European premium manufacturers, all of them leaders in security and trendsetters for other brands. Together with some of the most significant global OEMs in South Korea, Japan and Europe who have previously chosen Smart Eye, a large part of the automotive industry has chosen the path. Admittedly, there are some manufacturers that have yet to nominate supplier, but the start of 2020 clearly shows where the market is heading. Many within Smart Eye has been working hard for many years to enable the success with market leadership in both the premium and the global mid-level segment. I am proud and grateful for the employees' performance and endurance. The trend is looking good for the continued development of the Automotive Solutions business area.
Effects of the Coronavirus
In the short term it is very difficult to predict how the development will be, it is very dependent on Covid-19. The planning have to take place from one day to another and the outcome will to a great extent depend on how the pandemic develops. Car sales are declining in country after country as the virus spreads. At the same time, it can be seen that personal mobility is preferable to public transport in times when the spread the of infection is to be minimized.But in the slightly longer term, sales of cars will rebound, just as after the financial crisis of 2008. Demand for advanced safety equipment is primarily driven by EuroNCAP and legislation that sets the long-term agenda. We continue to be positive about the long-term future of the automotive industry.Cost control and cautiousnessAt Smart Eye, we have used the Swedish government’s temporary layoff support and introduced strict cost control to be as prepared as possible for all events. We have also previously communicated that with these measures, the current cash will last at least 18 months. We believe that this is an appropriate precautionary measure in the current circumstances but that there is preparedness to press both the accelerator or the brake, whatever the circumstances require.
Strong development of the business In light of the ongoing health situation, it is extra gratifying to be able to deliver such a strong result. All Smart Eyes different business areas deliver as expected or better and sales increase by 52% compared to last year. It’s natural that we invest in the current situation to be ready for the broad introduction of DMS by the automotive industry. Car sales will soon rebound and then Smart Eye is well positioned to reap the benefits of what we have achieved so far.
CEO Smart Eye