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Eroad says June-qtr sales up 6%, North America strong

Thursday 11th July 2019

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Logistics and fleet management technology company Eroad said sales grew 6 percent in the June quarter, with growth in North America particularly strong.

The company said it had 102,202 units contracted at June 30, up from 96,390 units at the end of March, and 26 percent more than a year earlier. 

In North America, total contracted units reached 27,848, up 12 percent since March, "demonstrating the solid pipeline" there, the company said.

Contracts across New Zealand and Australia lifted 4 percent in the quarter to 74,354 and were 20 percent higher than a year earlier.

Growth in New Zealand met the company's expectations for the quarter, with consistent pricing, attracting both enterprise and small to medium businesses. 

"The small to medium businesses run rate in Australia has yet to reach Eroad’s expectations," the company said. "However, an encouraging enterprise pipeline has been established and, as we saw in North America, larger enterprise accounts generally involve a longer sales lead time."

Eroad reported a loss of $4.9 million in the 12 months ended March 31 from a loss of $3.5 million a year earlier, largely reflecting research and development costs, but is now strongly cash-flow positive. 

The stock last traded at $2.90 and is up 15 percent so far this year. 

(BusinessDesk)

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