Video capture specialist Elsight (ASX: ELS) has updated shareholders regarding its financial performance metrics from its operations in Australia and overseas including its ongoing contracts with the Israeli police and military.
Its most notable achievement is the continuation of its increasing revenue base following on from strong results in Q4 2017.
Elsight said its cash receipts from Q2 2018 currently stand at US$305,000 (A$395,000) which represents a 94% increase from Q1, a record quarter for the emergent technology company.
The key factors behind its improving performance have been the company’s growing sales and marketing resources as part of “aggressive plans to increase revenues in 2018,” the company said. These efforts are now delivering strong results including in verticals that have a longer sales cycle.
Elsight said that these longer sale cycles are typically associated with larger orders and repeat orders.
Furthermore, during the rest of this year, Elsight said it plans to continue investing in its newly configured sales and support resources and expects to see further strong revenue growth on the back of increased sales into new verticals and customers with recurring orders marked by increased revenues per order – all translating into a reduction in cost of sale and increase in revenues.
Elsight currently offers a range of products aimed at special forces deployed in combat operations and surveillance purposes, but also, offers products aimed towards the consumer retail market.
Elsight has started to build a strong sales pipeline in the transportation and fleet management market with its new Omnisight product and new RiderT series of trucks that are more amenable to narrow city streets.
Earlier this year, Elsight unveiled a ground-breaking 360-degree surround vision video transmission product able to simulate different camera angles when installed in cars or other vehicles. Elsight claimed that the algorithm integrated into the product could create a composite real-time video feed for the driver to utilise.
The product was said to harness its proprietary Omnisight platform and able to integrate multiple high-resolution night-sensitive cameras into vehicles for the consumer market.
Elsewhere from its product line-up, Elsight said the Fleet Management Systems (FMS) market is a new vertical that allows its Commander360 product to be integrated into FMS platforms developed and provided by large Integrators such as Traffilog and E-Drive Technology (EDT).
“The integration is a lengthy process taking several months but it is a mandatory process that once completed, will allow flexibility to fleet management companies and recurring sales to Elsight,” the company said.
Additionally, Elsight said it has just concluded the integration with one major player in the Advanced Driver Assistance Systems (ADAS) sector and is finalising the integration with a “second leading ADAS player”, but warning that this process can take up to several months to be completed.
Middle East commercial opportunity
One potentially lucrative development for Elsight is the uncertainty surrounding the ongoing security situation in the Middle-East, namely Gaza and Syria.
Elsight says that the current tension in the region may have a meaningful impact on its bottom line “depending on how the issue will progress”.
Elsewhere in the Middle East, Elsight currently has a strong relationship with Israel’s police force and military, serving as the exclusive provider of 4K resolution equipment and tech solutions to both agencies.
The company is one of the only companies to distribute 4K resolution video over cellular networks ‘on the move’ with 0.5-second latency.
This technical feat has attracted many large-scale customer discussions and applications which positions Elsight well to benefit from the growth in M2M (machine-to-machine) video communications in the Defence, Security and Transport industries.
Today’s market update helped Elsight shares to an 8% gain, which were trading at A$0.52 this afternoon.