Zecotek Photonics Inc. (TSX Venture:ZMS) specializes in developing photonics based solutions for various industrial verticals. The company is now looking to enter the automobile industry as well.
Zecotek Photonics announced a major development with regards to its 3D display program. The company said that it has been approached by a major European automaker for possible collaboration.
The joint effort will be directed towards integrating a 3D display system into a Heads-up display (HUD) and entertainment console. The project will use the company’s patented 3D auto stereoscopic display technology.
The company’s 3D display system has many unique features. The system does not depend on eye tracking for its operations, which significantly cuts down the complexity of the set up and consequently is helpful in keeping costs down. Due to this feature, the system is also more reliable than its competitors.
Such HUDs are fast becoming integral part of modern automobiles as these units can show a wide range of data including navigational metrics and alerts. The company’s 3D scientific team is collaborating with the European automaker on customizing the system.
Zecotek Photonics seems to have good prospects ahead as the current findings show that the system is well-designed for automobiles. A successful fruition of this deal may open an untapped market for the company. With increased efforts towards developing autonomous vehicles, such technologies may yield impressive results for the company.
Zecotek Photonics is also looking to expand its market geographically. The company is currently looking to commercialize its products in Russia. It is also carrying out development efforts in Singapore.
Zecotek Photonics intends to enter the Chinese market as well.
Zecotek Photonics is in talks with Shanghai Creation Investment Management Company (SCI) for a potential investment of $5 million in lieu of an equity stake in Zecotek Imaging Systems. Pursuant to the successful completion of the deal, the company seeks to use the funds for developing operational footprints in China.
The company had strong operational performance in the fourth quarter of the year, ending July 31, it announced quarterly revenue at $363,000, up 74% on a year over year basis from $208,000 it had reported for the fourth quarter of the previous year.
Its full-year revenue at $1.5 million showed an impressive 229% growth rate.
While the stock is down 19% on a year-to-date basis, these new developments offer a great opportunity to consider this stock at a discounted price.
