SenSen Networks Limited (ASX: SNS) is an ASX listed information technology company. It develops, commercialises and supply data-driven solutions to businesses for process enhancement. It helps businesses to improve their operations with efficiency and productivity. The company has a vast customer base across the globe including Australia, Canada, Singapore etc.
On 29th April 2019, the company has released its quarterly report for the quarter ended March 2019. Earlier in March, the company announced the launch of Gemineye, world’s first AI-powered smartphone app. It is aimed to offer governments, councils and cities with cloud-based smart cities platform which is affordable and highly accurate. The app is able to help in civic compliance, traffic data collection and analysis etc. by utilising its proprietary AI-powered process automation software.
In April, the company announced the trials of Gemineye in Thailand. This trial was a part of a distribution agreement between SenSen Networks and Thailand smart city and environmental services company EVF (Thailand) Co., Ltd. (EVF). Under the agreement, EVF can implement SenSen’s software in its clients’ operations throughout Thailand.
It is also targeting Bangkok which is reportedly the worst city for traffic congestion in South East Asia. In the first trial (commenced in February 2019), which is already running with Bangkok Metropolitan Administration, Gemineye is helping to address the unsafe motorcycles-on-footpath issues in Bangkok. The second Gemineye trial (commenced in April 2019), with the Royal Thailand Police, involves CCTV monitoring of merging lanes at a prominent hot spot in Bangkok. This second trial will be up for a month, and the commercial rollout is expected in Q1 FY2020.
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In February 2019, the company had announced the execution of a Value-Added Reseller Agreement with eConnect Inc. The agreement is targeted to market SenSen’s SenGAME software solution to eConnect’s customer base. SenGAME includes eConnect’s Casino Connect Suite software and now has become an integrated solution for offering gaming analytic on a global scale.
On 15th April 2019, the company announced the commencement of SenGAME on 30 Baccarat tables at the Solaire Resort and Casino in the Philippines.
The company will get revenue through the instalment of software, hardware and services set-up for the 30- table deployment at Solaire. A service fee will also be charged for the monthly Software on each table.
The company is facing longer than expected timelines for the awarding of the new government and Council contracts. The trial runs have resulted in a number of anticipated positive financial outcomes in the later part of 2019.
In order to manage operational efficiency, the company is reducing monthly cost structure which will help to save over 100,000 in total savings per month from 1st March 2019. This includes agreed salary reduction by 20% till end FY2019 in the form of deferred remuneration.
The company used a total of A$732,000 for the operating activities, the highest expense being incurred on staff cost, which led to the cash outflow of A$1.09 million. Other expenses were incurred on administration and corporate costs, payments for exploration & evaluation etc.
The company used net cash of A$117,000 for the investing activities, with no exposure to financing activities. At the end of the quarter, the company had net cash of A$3.17 million in the balance sheet which is down from the cash of A$4.02 million at the starting of the quarter.
The company also estimated the future cash outflow for the next quarter which stood at A$1.57 million. It estimates the staff costs to decrease to A$953,000 from the current staff costs of A$1.09 million.
On 24th April 2019, the company released a statement on ASX, stating it has entered into a multi-year contract with Cairns Regional Council.
The market capitalisation of the company is A$52.32 million. The 52 week high of the stock is A$0.185. The last traded price of the stock is A$0.125 for the date 26th April 2019. The last six-month return of the stock is negative 7.4%, and YTD return stands at 38.8%.