IkeGPS says sales ahead of target
Updating the market ahead of its half-year result due on November 20.
IkeGPS Group [NZX: IKE], a maker of measurement tools for the construction industry, says its sales are ahead of budget for the six months to September.
Updating the market ahead of its half-year result due on November 20, NZX-listed IkeGPS said revenue and other income would be about $4.5 million for the period, up from $1.7m a year earlier. The company said its net loss would be "in line with the budget and plan".
The company affirmed its forecast for annual revenue of about $14.3m. Product and revenue mix will differ from its prospectus projection, it said, with smartphone products such as Spike receiving a stronger uptake than expected, with "the potential to grow associated revenues more quickly than planned."
That made up for a downside risk to projected sales of its MapSight product, which faced lumpy sales "in associated large enterprise" processes.
"We are very encouraged by the response to our products by a diverse and widening mix of customers and business types," chief executive Glenn Milnes said. "Like any technology company early in its sales cycle, ikeGPS faces challenges to maintain such rapid growth rates, but we believe that the company's team and product platform will continue to strengthen."
IkeGPS is foregoing short-term profits to chase long-term international sales growth to create long-term value. The company missed its 2015 annual revenue target due to a delay in the release of its Spike smartphone application, but has since made inroads with the product in the US.
The shares last traded at 65 cents, valuing the company's equity at $32.6m.. IkeGPS raised $25m from an initial public offer in July last year at $1.10 a share.
(BusinessDesk)
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Paul McBeth
Thu, 15 Oct 2015
Thu, 15 Oct 2015
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IkeGPS says sales ahead of target
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