IkeGPS drops GE brand, improving profit margin

Tuesday 5th January 2016

IkeGPS, the laser measurement tool developer, will stop paying to use the General Electric brand as its own product gains more recognition, improving its profit margin.

The Wellington-based company will now label its electric utility solution as "by ikeGPS", rather than "GE MapSight by the team at ikeGPS", it said in a statement. Its reseller relationship won't be materially affected with GE Digital Energy, the operating GE business unit that serves the utility and infrastructure market, it said.

"The ikeGPS brand is now established and respected across the US electric utilities market," said chief executive Glenn Milnes. "For FY17, we expect that this change will have no material impact on our revenue growth however that it will increase profitability due to no royalties being payable to GE Trademark Licensing on relevant future sales."

IkeGPS is foregoing short-term profits to chase long-term international sales growth to create long-term value. The company, which listed on the New Zealand stock exchange in July 2014, last traded at 70 cents, valuing the company at $35.1 million.

BusinessDesk.co.nz

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