Ike June-qtr revenue up 26%; earnings flat

Thursday 11th July 2019

Utilities measurement specialist IkeGPS reported strong first-quarter revenue but earnings dipped.

The company reported revenue of $2.4 million in the three months to June 30, up 26 percent from a year earlier. Its gross margin was approximately $1.8 million, up 55 percent.

Earnings before interest, tax, depreciation and amortisation, however, showed a loss of $400,000, although it noted the months of May and June were positive.

Cash and receivables were $4.9 million, unchanged from the level on March 31.

The first quarter “was our strongest quarter yet with record revenue and gross margin from our communications and utility segment. In-market momentum has continued such that the months of May and June saw EBITDA-positive performance,” chief executive Glenn Milnes said.

Ike shares last traded at 54 cents and are down about 22 percent so far this year.

Wellington-based Ike uses GPS technology in its software and field equipment to measure and record pole and line data and make it easier for power and telecommunications firms to build and manage their networks.

Progress over the quarter included the largest shared communications infrastructure company operating across the North American market using IKE Analyse for 5G mobile network development, the company said.

The current value of that contract lifted from $150,000 to approximately $450,000 to accrue from the second quarter of the current financial year.

The prime contractor for a fibre roll-out for one of the largest US cable companies has also taken on Ike Analyse. The current value of that contract is around $400,000, also to accrue from the second quarter, Ike said.

Milnes said eight of the 15 largest communications and cable customers in the US market are now IKE customers or in pilots.

“We are focusing on revenue expansion opportunities within these existing accounts as well as developing new pipeline sales opportunities.”

Milnes said that forward contracts and the ongoing transactional revenue model from IKE Analyse gives the firm confidence as it enters the second-quarter.

(BusinessDesk)

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