Sharechat Logo

Ike signals 5% FY revenue growth, missed ebitda target

Monday 25th March 2019

Text too small?

Utilities measurement specialist IkeGPS says its March-year revenue will be only about 5 percent higher than a year earlier, after the company failed to close a large contract for its Ike Analyze service. 

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.

The firm, which in November had forecast a 30 percent increase in annual revenue, warned in January that that figure – and an expected break-even position in the March quarter – were in doubt.

Today Ike said its gross margin for the year will be about 35 percent higher than the $4 million reported last year. In percentage terms, it is expected to be higher than 65 percent, from 51 percent last year.

Earnings before interest, tax, depreciation and amortisation will be “significantly” improved but breakeven on that measure “will not be achieved” for the fourth quarter.

“Ike’s focus on scale delivery into large infrastructure businesses inherently brings timing uncertainty around deal closures and consequently some lumpiness to growth, particularly in any near-term forecast,” chief executive Glenn Milnes said. “We continue to pursue various outsize IKE Analyze contracts with existing customers, noting that one large follow-on opportunity that had been forecasted for FY19 did not close in the period.” 

Ike shares last traded at 53 cents. They peaked at 76 cents in early January and are down 24 percent so far this year.

Milnes said revenue from the firm’s core North American utility and communications segment will be more than 25 percent higher than the $5.8 million reported a year earlier.

He said the pace of the roll-out of fibre and related networks across North America continues to increase and Ike’s position with several major firms operating nationally gives it “heightened visibility” into region-by-region growth opportunities for the coming year.

“Importantly, the latter part of Q4 FY19 has seen a positive uptick in new run rate contracts which provides positive momentum as we enter FY20.”

He said increasing uptake of the firm’s Ike Analyze service will see about 80 percent of the firm’s 2020 financial year revenue coming from recurring software subscriptions or from the ongoing use of the Ike platform.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

MARKET CLOSE: NZX50 tops 10,000, growing 284% in past decade
NZ dollar little changed ahead of Australian CPI data
NZX50 cracks 10,000 level as weak kiwi boosts A2, F&P Healthcare
Zespri signals upside for grower payments in 2020
Bathurst maintains guidance despite reduced Stockton output
ComCom conditionally approves Knauf-USG merger
23rd April 2019 Morning Report
NZD below 67 US cents after US data lifts greenback
MARKET CLOSE: NZX50 gains 1.8% this week, buoyed by rate outlook
NZ dollar falls against Aussie after strong Oz jobs data

IRG See IRG research reports