IkeGPS first-half loss widens as Stanley rollout delayed

Wednesday 16th November 2016

IkeGPS, the laser measurement toolmaker, posted a wider first-half loss and said a supply-chain glitch for the Stanley Smart Measure Pro meant some sales wouldn't be recognised until the second half.

The loss was $6.8 million in the six months ended Sept. 30, from a loss of $4.39 million a year earlier, the Wellington-based company said in a statement. Operating revenue fell to $1.97 million from $4.3 million.

In July, IkeGPS said the timing of the launch of the Stanley Smart Measure Pro across Europe had been affected by a delay in sourcing a component because of an earthquake that disrupted the supplier's factory in Taiwan. Today it said about $2.8 million of sales of the product expected for the first half had been pushed out to the second half. At the same time it affirmed its guidance to break even on a cash basis in the fourth quarter of 2017.

Cash on hand rose to about $7.5 million as at Sept. 30, from $5.3 million at March 31, after the company raised $3 million in a share purchase plan and $5.25 million in a placement.

“The first half of the year was a positive one for orders and momentum relating to our mobile products, Spike and the Stanley Smart Measure Pro, but was a challenging one in terms of the associated short-term supply chain issue and softer sales of IKE4 into the electric utility and communications market," said chief executive Glenn Milnes.

The IKE4 is the company's fourth-generation field data collection product for use by utility, engineering and telecommunications companies to inspect utility poles. The Stanley Smart Measure Pro is the result of a licensing agreement for a Stanley-branded mobile software app agreed in late 2014.

IkeGPS said it is on track to complete its dual listing on the ASX this month.

The company's shares last traded at 52 cents and have declined 26 percent this year. The shares were sold at $1.10 apiece in its 2014 initial public offering.

BusinessDesk.co.nz

Comments from our readers

No comments yet