Sharechat Logo

IkeGPS misses positive cash flow target in March quarter on delayed order

Wednesday 5th April 2017

Text too small?

IkeGPS missed a goal of positive cash flow in the March quarter after Stanley Black & Decker pushed out a large order of the laser measurement toolmaker's Stanley Smart Measure Pro products. 

Wellington-based ikeGPS shipped 30,500 units of the Stanley Smart Measure Pro units to Europe's building market in the year ended March 31, missing the latest projection of 39,500 when Stanley Black & Decker delayed an order for 9,000 units until the first-half of 2018, it said in a statement. That reduced the firm's cash inflow by more than $1 million and meant ikeGPS didn't reach positive cash flow in the quarter as projected. 

"An unfortunate item to end what was an otherwise positive period for the business was Stanley Black & Decker's decision to defer their acceptance of 9,000 units that were ordered for March delivery," chief executive Glenn Milnes said. "We do not believe this impacts the longer-term potential for sales of the Stanley Smart Measure Pro product, which have grown strongly this year, but clearly this was a disappointment for us from a period end and reporting perspective." 

The Stanley Smart Measure Pro product had already faced disruptions with a supply chain glitch delaying $2.8 million of sales from the first half of the 2017 financial year until the second half. 

In February, ikeGPS affirmed its forecast to break even on a cash basis in the March quarter, while scaling back projected revenue growth after a period of "very soft" sales of its Ike4 field data collection product in the first half. 

Today, Milnes said the fourth quarter sales of Ike4 went well and that the company ended the year with cash of $2.8 million. It had cash and equivalents of $7.5 million as at Sept. 30, raising $8.2 million through a placement and share purchase plan in the period, and narrowed its operating cash outflow to $5 million in the six months ended Sept. 30 from $5.6 million a year earlier. 

The shares were unchanged at 39 cents and are flat since the start of the year. 

 

 

 

 

(BusinessDesk)

 

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

ANALYSIS: Should penalties for continuous disclosure breaches be relaxed?
Fletcher seeks urgent talks on Ihumatao stalemate
NZ economy grows 0.5% in June quarter, beating expectations
Restaurant Brands lifts 2Q sales; appetite for KFC offsets ditched Starbucks
Auckland jet fuel arrangements a potential barrier to new entrants
NZ dollar weaker after Fed split on outlook for further US cuts
Leading judge says court administration model 'outdated'
MARKET CLOSE: NZ shares fall; Goodman placement sees property stocks sold
NZ dollar eases as market eyes pending GDP data
Evolve shareholders demand answers

IRG See IRG research reports