IkeGPS widens first half loss to $3m but sales shoot up

IkeGPS [NZX: IKE], a laser measurement tool developer, widened its first-half loss, while affirming its expectation to triple annual revenue as its smartphone products outperform while sales for its Mapsight product remain inconsistent.

The Wellington-based company, which has 67 staff across three offices in Colorado, Seattle and Wellington, posted a loss of $3 million for the six months to September 30, compared to a loss of $1.9 million in the year earlier period. IkeGPS said that was in line with budget while the company "continues to execute its stated high-growth and customer acquisition plan." Operating revenue climbed 152% to $4.3 million, and it affirmed guidance for annual sales of $14.3 million.

"We maintain our outlook for high growth to continue and for revenue and other income for the full year to treble against the 2015 financial year," the company said.

Like other software-based firms such as Xero, Wynyard Group and Orion Health, IkeGPS is focused on building sales momentum in international markets ahead of profitability.

IkeGPS said it expects its smartphone products Spike and OEM to outperform the $4.4 million of revenue forecast for the year, while its GE Mapsight product will potentially miss the $9.2 million of sales expected.

Mapsight's underperformance is due to "continued lumpiness in associated large enterprise sales processes," though there had been success in selling into fibre infrastructure providers and California-based utilities. Still, the sales opportunity pipeline for the product has continued to grow, "including more visibility of materially larger potential sales opportunities," it said.

"We continue to hold the view that the electric utility sales opportunity for GE Mapsight is at a tipping point and that our solution is optimally positioned in front of this large market for the long term."

However, predicting a date for the close of those sales "continues to be difficult", and the company expects Mapsight's revenue lumpiness to continue.

Its shares were unchanged at 77c, and have fallen 9.4% so far this year.

(BusinessDesk)

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