SenSen - A Weekend Analysis

Overall I am quite pleased with this company, FY18 will see us close with just $4M in sales (assuming no new contracts get announced in the next 2 months) - Factoring in the initial upfront costs from the Calgary expansion, Changi Upgrade, Brisbane Expansion and Edmonton contract. I threw in another $200k from existing customers as that seems to be the average.

Opex at around $4.5M so by my calculations FY18 has been a very positive year for SNS.

1	FY	Revenue	Growth vs PY	Opex	Opex vs PY	Revenue to Opex %
2	2015	$ 418,588	0%	-$ 3,905,905		11%
3	2016	$ 1,085,890	159%	-$ 2,355,497	-40%	46%
4	2017	$ 2,065,570	90%	-$ 2,910,963	24%	71%
5	2018	$ 3,877,011	88%	-$ 4,628,000	59%	84%

I did some digging through to get more details about existing contracts and developed the below, my only concern here is SNS Opex is very high and their annual maintenance costs only break in around $1M pa - I don't have the data to figure out what they make from the variable costs and from what I can gather, the SENGAME solution is yet to be commercialized.

Assuming we see continued growth in new clients which typically attract upfront sales of $300-500k with $50-100k in annual maintenance costs, it wont take too long for SNS to start generating a net profit.
I would love to know the variable costs they get from volume of enforcement they ticket, my guesstimate it $20-50k pa.

I sold my holdings earlier but will be looking to get back in at <16c. (I feel 16c is fair value given recent CR at 14.5)
At 17c our Market Cap is trading at x6 our revenue which is nice IMO (Anything over x10 scares me).
From half yearly liabilities at $3.2M however nice cash reserve $6M.

Contracts & Channel Partners:

1	Client		Value	Term	Details
2	Back to Back NSW Government Agreement	Bespoke Solution	A$312k recognized in FY17A$32k pa FY18-21	5 YearsAugust 2016 - August 2021	SenSen Vehicle Access Security System (being customised vehicle access security products developed specifically for the customer) to the NSW Government Office of Environment and Heritage and to provide software licence support and hardware system support
3	NSW RMS Agreement	SenSPEED	$40k pa FY18-20	3 YearsJuly 2017 - July 2020	RMS is required to pay the Contract Price, which is calculated based on the rates set out in the unit pricing schedule, which ranges from $35,910 to $85,493, depending upon the items and services supplied under the relevant project order, subject to the maximum project order cap.
4	City of Singapore	Unknown	Unknown	Unknown	350 cameras equipped with SENSEN software monitoring for illegal and unsafe traffic behaviour in Singapore CBD
5	Changi Airport, Singapore	SenFORCE	A$200k recognized in FY18 with $30k pa FY19-22	5 Years	Monitor parking and traffic at Changi Airport
6	Changi Airport, Singapore (Updated)	SenFORCE	A$123k recognized in FY18	Unknown	Video surveillance and tracking analytics around traffic movement and crowd control
7	City of Calgary, Canada	SenFORCE	A$1.8m recognized in FY18 with $384k pa FY19-22	5 Years	Mobile Parking Enforcement
8	Town of Victoria Park	SenFORCE	A$9k pa (Support)A$5k pa (GPS Subscription)	12 Months May 2017 to May 2018*Expired?	Annual maintenance fees for help-desk software licence and hardware support of SenFORCE equipment, subject to annual review; Annual GPS RTK subscription fee, chargeable from 1 May 2017.
9	Brisbane City Council	SenFORCE Mobile, SenFORCE fixed, SenBOS	A$312k recognized in FY17 A$104k pa FY18-22 + Variable Fees	5 YearsFeb 2017 - Feb 2022	Annual maintenance fee for the support services to be provided by SenSen in relation to the SenFORCE product. There will also be variable fees payable to SenSen under the contract based on the number of infringements processed by the Council and service fees to be charged at hourly rates where additional services are requested to be performed by SenSen.
10	Logan City Council	SenFORCE Mobile, SenBOS	A$144k recognized in FY17A$72k pa FY18-21 + Variable Fees	5 YearsSeptember 2016 - Sep 2021	Back-office license fee for infringement processing and ticket generation; Clouding hosting fees for the cloud hosting services to be provided by SenSen in relation to the SenFORCE product; and An annual maintenance fee for the support services to be provided by SenSen in relation to the SenFORCE product.
11	City Council in Queensland	SenFORCE Mobile, SenBOS	A$312k recognized in FY17A$100k pa FY18-22	5 YearsJuly 2017 - July 2022	Back-office license fee for infringement processing and ticket generation; Clouding hosting fees for the cloud hosting services to be provided by SenSen in relation to the SenFORCE product; and An annual maintenance fee for the support services to be provided by SenSen in relation to the SenFORCE product.
12	A city council in the Canadian province of Alberta	SenFORCE – Mobile, SenFORCE – Fixed and SenBOS	Unknown	12 MonthsDec 2016 - Dec 2017*Expired?	Licence fee and annual maintenance fee.
13	CROWN Casino	SENGame		6 Years Start May 2016 - May 2022	The date from which SenSen shall be required to commence provision of the services relating to the Product (‘the Service Start Date’) is yet to be determined and agreed between the parties.SenSen shall be entitled to licensing and service fees
14	Tyco Fire, Security and Services Pte Ltd	SenFORCE - Fixed	Unknown	Unknown	Annual maintenance fee, payable to SenSen in relation to the 77 cameras installed for the customer of Tyco Fire, Security and Services Pte Ltd.
15	PanStreet International (Channel Partner)	SenSen’s SenFORCE product line, SenCount product line and SenPod product line		Unknown	Fee for installation or commissioning of the SenSen products as requested in each purchase order; and Support and maintenance fees as requested in each order.
16	Duncan Solutions(Channel Partner)	SenPARK/SenBOS		Unknown	Project implementation fees payable to SenSen in accordance with the achievement of pre-determined milestones, which will include licence fees for the SenSen Technology for the first year; and Maintenance fees for the support services to be provided by SenSen, payable in quarterly instalments, after the first year.
17	ATT Systems(Channel Partner)	SenFORCE –Fixed/SenBOS		5 Years	Quarterly SenFORCE Software Maintenance fee for a period of 5 years commencing on 1 July 2017.
18	Cubic Transportation Systems(Channel Partner)	SenFORCE, SenTAS, SenPARK, SenPOD, SenCOUNT		Unknown	A percentage of any licence or maintenance fees generated from the SenSen Video Analytics Solutions.

Also below a consolidated list on SNS platforms explanations.

SenFORCE
SenFORCE is a fully automated, end to end mobile parking enforcement solution.
The way in which it operates is that a parking officer drives a vehicle outfitted with the SenFORCE technology with all zones and parking rules (time and permit based) preloaded with automatic synchronisation with SenSen's cloud-hosted back office software, SenBOS. The application of SenBOS is provided in more detail below.

The SenFORCE solution includes a weather proof Thule luggage box mounted on roof racks (POD) capable being switched from one vehicle to other in less than 10 minutes.
The POD is equipped with a rugged, high end centimetre-accurate GPS system with Real time Kinetic (RTK) capability which tracks the location of both enforcement and violating vehicles.
Parking zones are loaded into SenBOS as Keyhole markup language (KML) files generated using mapping/GIS software such as Google Earth.
There is a router and switch for network connectivity of all on board components and the system is connected to a central system over a 3G/4G network.

Data fusion is performed on reads from different cameras and the system is capable of generating multiple OCR rankings helping customers to achieve very high raw accuracy and business application outputs.

SenTAS
SenTAS is SenSen's automated traffic monitoring system. In essence, this system uses high-resolution cameras, thermal vision and video analytics, to accurately recognises trucks, cars, motorbikes, cyclists and pedestrians.

With SenTAS, customers receive real-time intelligence about the traffic flows on their roads. The solution provides real time performance of urban arterial roads and motorways early detection of congestion and traffic performance at intersections and routes with in a road network.
Vehicle counting and classification is available in various operating scenarios including:
highway free flow traffic, toll ways, slow-moving vehicle flows, traffic surveys for insights into existing vehicle counts and future infrastructure planning.

SenCOUNT
SenCOUNT is a complete solution to help customers gather intelligence about people traffic flow from virtually any surveillance camera that has already been installed at their premises for safety and security purposes. Whether it’s an outdoor or an indoor location, customers can be assured that 24/7 statistics on people movement in and out of their premises is collected, analysed and reported.

SenCOUNT is a powerful management tool that provides:

• Instant feedback about space utilisation trends and flows.
• Instant access to a broad range of reports detailing patterns in customer traffic flows and trends over the internet.
• Multiple user groups management with different access levels.
• Real-time, IP-based data collection with data import via internet.
• Built in database and data display tools.

SenCOUNT generates revenues for SenSen via its Channel Partner to count pedestrians.

SenPOD
SenPOD is SenSen's Parking Occupancy Detection solution. It uses video cameras to determine if a vehicle is parked or not in a parking bay and determine occupancy of a parking lot or parts of the parking lot and send this information to display boards to display
available spaces in the parking lots. A single camera can cover multiple parking bays enabling us to deliver highly cost effective solution to the parking operators.


SenBOS
SenBOS is the back office platform used in conjunction with other SenSen’s products with smart-edge systems such as automated on-street and off-street parking enforcement vehicles fitted with automatic number plate recognition (ANPR) cameras, time servers, GPS, fixed CCTV cameras and mobile phone devices.

Using SenBOS, parking enforcement business rules can be applied on incoming data from edge systems and council officers can perform compliance check on on-road vehicles using the incoming metadata and imagery from edge systems.

SenBOS is built to generate alerts on hot-listed number plates and integrates with third party systems via the REST API. Users can manage all edge devices through one application instead of configuring each edge system separately. Health checks and monitoring are built in. On one handy web page users can see status of each component running on the edge system. Real time alerts and warnings about system health appear on the SenBOS web -interface for fast action.

The cloud-hosted and web based SenBOS is used for configuring business rules including zone updates and assignment time and permit based parking rules and defining entrance and exit cameras for parking lots. Across the entire suite of SenSen product and services, SenBOS is used for many enforcement and business intelligence applications including Average Speed Enforcement (SenSPEED P2P), gaming business insights and other Video-IoT analytics applications.

SenSIGN
SenSIGN is a sign and line marking audit solution technology.

SenSIGN is a fully automated solution to perform sign audits in a cost effective manner helping city councils create, update and maintain a database of traffic signs, parking signs and line markings.

SenSIGN records the GPS coordinates of all signs including street names, tourist hotspots, directional signs, pointers to major public facilities (eg: hospital signs), carpark directional signs and all other non-standard traffic signs.

SenSIGN detects and locates all standard and non-standard traffic signs including Stop and Give Way, along with statcon lines marking and lead lines. The user receives detailed reports about assets under their management including sign class, type, location, condition, GPS position with map hyperlink and street view link, actual image captured, mounting type, facing direction and number of signs co-located on poles. The information in an export-friendly Excel spreadsheet containing sign photos and GIS mapping data.
All data is available on the cloud-hosted GIS layer with all captured information including links to photographs.

SenPARK
SenPARK is a park management solution that provides accurate and simple to implement ticketless and gate less parking management solutions suitable for numerous parking related applications. It enhances ease of parking management and removes all the inconvenience of waiting for a ticket at entry.

SenPARK uses a camera at the entry and exit of car parks to detect vehicles and read their license plates and compare with the authorised list of users to provide access to parking facilities without the need for boom barriers and Radio-Frequency Identification (RFID) tags. This reduces costs for operators and providers better customer experiences.


SenSPEED
SenSPEED is a point-to-point average speed enforcement technology which has been officially gazetted and approved by Roads and Maritime Services, New South Wales, Australia.

SenSPEED is currently deployed in six locations across New South Wales, Australia and has been delivering results and revenue since 2012.
Point-to-Point enforcement works by measuring the amount of time it takes a vehicle to drive between two points and then calculates the average speed of the vehicle. If the vehicle’s average speed is higher than the speed limit for the length of road, a matching entry and exit incident file will be created for post adjudication.

The SenSPEED system consists of a number of critical hardware and software components carefully chosen and packaged to deliver a complete customer solution that works P2P speed enforcement solution that works 24/7 in all weather conditions.
Apart from high-functioning cameras to detect and read number plates of vehicles entering P2P zones, the system requires high-accuracy clocks that can keep time without drifting even when communications to time-sync servers are lost for an extended period.

SENGAME 3.0
Near 100% accuracy on bet detection, bet value estimation, occupancy on tables and related metrics using camera imbedded in low cost android phones. Developed in collaboration with CROWN casino. Patent pending.
SenGAME 3.0 is the only solution on market that delivers near 100% accuracy without changes to layouts, chips or tables and does not require re-training dealers.
SenGAME 3.0 launched in October 2017 and is now being progressively rolled out in all card games in Crown, Melbourne.

Hope others find this useful, sharing is caring

Cheers
Eqz.