IKE
30/04/2015 08:31
GENERAL
PRICE SENSITIVE
REL: 0831 HRS ikeGPS Group Limited (NS)
GENERAL: IKE: Major FY16 sales announcement, FY15 update and FY16 outlook
April 30, 2015
Major FY16 sales announcement, FY15 update and FY16 outlook
Highlights
- Business on track to deliver growth opportunities
- Sales momentum pushes into FY16 with ground breaking orders from OEM
channel
- FY15 revenue below PFI with timing of orders falling into the FY16 period
- US interest in making strategic investment
FY15 update and FY16 outlook
ikeGPS, the remote measurement firm, said that it expected its FY15 revenue
would be up more than two times on its previous year. The company's Before
Tax result would exceed forecast (PFI FY15 forecast Loss before Tax of
$5.33m) although its revenue would come in below forecast (PFI FY15 forecast
revenue of $6.46m) primarily due to anticipated sales from its start-up
smartphone solution falling just outside the 31 March 2015 financial year
end.
ikeGPS is pleased to advise that it has now received those expected orders
from its Original Equipment Manufacturer (OEM) channel for its smartphone
solution. As a result of these orders, OEM revenue for FY16 would
significantly increase from the previously expected $1.47m to at least $2.5m.
ikeGPS CEO, Glenn Milnes, said: "This extremely strong start to our OEM
business is further validation of our product strategy and multi-channel
approach. These ground breaking orders represent only initial launch
quantities for one end customer in the US market. We expect to ship tens of
thousands of units in FY16 and will update investors throughout FY16 with
respect to the overall size of this global, multi-year OEM revenue
opportunity." Milnes noted that there had been a slightly later ramp-up of
investment into resources post-IPO. This had shifted the company's revenue
and cost timeline back by about a quarter, impacting FY15 but not FY16.
ikeGPS also advises that its outlook for FY16 is for revenues to be $14.3m,
in line with its PFI FY16 forecast. Milnes said: "In the eight months since
our IPO we have significantly advanced the business, scaling the team from 21
to 63 full-time employees across new offices in Denver, Seattle and
Wellington, and hiring sales staff in Singapore and Munich to address
specific opportunities in Asia and Europe. The result has been high revenue
growth and a fast growing opportunity pipeline. FY2016 will also benefit
from increased traction with key GE MapSight clients in the US market and
from outperformance of the OEM channel for our smartphone-related solution."
Operations
Specifically within the FY15 revenue mix, ikeGPS advises the following:
- GE MapSight sales totaled approximately 215 solutions (PFI FY15 forecast of
289 solutions and $4.1m revenue). Various FY15 sales opportunities rolled
into the first quarter of FY16 and several of these have been won in April,
including material contract wins into Google Fiber and telecommunications
fiber projects in the US market.
- Contract Revenue in FY15 will be materially ahead of forecast, with the
final number subject to audit (PFI FY15 Contract Revenue of $nil). Contract
services had been delivered to two major industry partners relating to its
smartphone solution.
- FY15 sales of Spike, the company's new smartphone solution, were
approximately 1,250 units (PFI FY15 forecast of 2,533 units and $1.99m
revenue). Milnes said: 'At the time of our IPO Spike was a pre-commercial
market product. The hard launch of Spike, and associated marketing,
ultimately occurred later in 2014. Our sales run rate is now ahead of plan.
Due to strong online growth and enterprise sales opportunities, Spike unit
sales are forecast to exceed the PFI for FY16 (2,712 units and revenue of
$2.91m)".
Within the FY16 revenue mix:
- The company's revenue model will be extended with new cloud and
subscription offerings to complement its smartphone and GE MapSight product
sales. These offerings will be introduced in the first half of the financial
year.
US market development: investor engagement
ikeGPS also said that it is engaged in discussions with strategic US
investors looking to take a shareholding in the company. Whilst ikeGPS had no
requirement for cash, it was attracted to the prospect of having US-based
strategic investors on its share register given the significant business
opportunity in that market. ikeGPS has appointed specialist growth company
investor relations advisory firm, MKR Group, to assist in this process and to
further develop its long-term investor relations programme in the US market.
Milnes added "Overall we are very pleased with momentum across all of our
business segments as we begin this next financial year. FY16 is projected to
be another period of triple digit growth, with that momentum to be carried
into FY17."
About ikeGPS
ikeGPS' mission is to revolutionize every measurer's day. Its field data
collection and asset management solutions have been adopted around the world
and are used in in a variety of industries including Utility, Telecom,
Government/Defense, and Engineering. The Company has a Trademark Agreement
with General Electric and markets its Electric Utility solution as GE
MapSight. For additional information on the GE MapSight pole data collection
solution, visit www.gemapsight.com.
The company recently introduced Spike, the world's first laser accurate
Smartphone measurement solution.
ikeGPS' global sales and marketing headquarters is based in Colorado USA.
IkeGPS Group is listed on the main board of the New Zealand Stock Exchange
under the stock symbol IKE. For more information on the Spike product or the
Company, visit www.ikegps.com.
GE is a trademark of General Electric Company and is under license by ikeGPS
Ltd, 42 Adelaide Road, Wellington 6021, New Zealand.
Contact:
ikeGPS Limited
Glenn Milnes, Chief Executive Officer & Managing Director
Phone: +64 4 382 8064
Email: [email protected]
End CA:00263678 For:IKE Type:GENERAL Time:2015-04-30 08:31:13
