ikeGPS Group Limited (NZX: IKE) Q3 FY21 Performance Update

Friday 12th February 2021

ikeGPS is pleased to release an update for the quarter to 31 December 2020 (all figures NZD).

The IKE platform allows electric utilities, communications companies, and their engineering service providers to increase speed, quality, and safety for the construction and maintenance of distribution assets. The revenue engine for IKE is driven be the number of assets being processed through the IKE platform. In the Q3 FY21 period, less engineering activity occurred on certain network projects while COVID-19 response measures were put in place in specific U.S. regions. Deferred contracts in Q3 are generally transitioning to delivery and recognized revenue from Q4 FY21, which IKE expects to grow against prior calendar period (pcp).

Highlights for the December 2020 quarter:

＋ The process to acquire certain assets of Visual Globe LLC, a US-based Artificial Intelligence (AI) and low code software company that specializes in the automated analysis of power poles from very large data sets.

＋ Revenue in the quarter of approximately $2.1m and approximately $6.5m YTD (pcp of $7.3m) reflects a solid outcome in the context of Q1 and then Q3 periods disrupted by COVID-19 impacts on customer projects.

＋ New contracts closed in Q3 FY21 were for approximately $2.5m.

＋ Gross margin of approximately $4.3m (pcp of $5.2M), with a gross margin percentage of approximately 67% (pcp of 72%).

＋ Total cash and receivables 31 December 2020 of approximately $18m, with no debt.

Q4 FY21 outlook

＋ The final quarter of FY21 has commenced strongly.

＋ IKE’s focus for Q4 FY21 is on three core items: The delivery of contract backlogs, the extension of revenue opportunities from existing customers, and integration of the recently acquired AI-software business.

Please see the link below for details:

ikeGPS Q3 FY21 performance update

Source: ikeGPS Group Limited

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