Friday 6th September 2019
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Utilities measurement specialist IkeGPS is forecasting record second-quarter revenue of $5 million and says it may break-even in the three months ending September.
The company, which had previously been aiming for profitability before interest, tax, depreciation and amortisation in the March quarter, said it was ebitda-positive in May and June and that that positive trend had continued in recent months.
It expects to deliver record gross margin of about $3.6 million in the September quarter, equivalent to more than 70 percent of sales.
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.
It says its IKE Analyse product, launched last year, is driving both revenue and gross margin growth.
“We are pleased that greater than 70 percent of FY20 revenue is now expected to be generated from IKE Analyse transactions,” chief executive Glenn Milnes said. “This is a positive development in terms of revenue quality and has resulted from the extension of our market offering with IKE Analyse.”
The company says Ike Analyse transactions include the analysis and processing of an asset within the IKE cloud pole platform, or a recurring software subscription.
Ike, which is holding its annual shareholder meeting later today, says its cash and receivables should be $4.5-4.8 million at Sept. 30, “approximately equal” to that at March 31. The firm previously reported cash and receivables steady at $4.9 million at March 31 and June 30.
The shares last traded at 51 cents, and have declined 27 percent so far this year.
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