- Release Date: 29/01/16 10:00
- Summary: GENERAL: IKE: Q3 update and FY16 full year revenue outlook
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IKE 29/01/2016 10:00 GENERAL PRICE SENSITIVE REL: 1000 HRS ikeGPS Group Limited (NS) GENERAL: IKE: Q3 update and FY16 full year revenue outlook For Immediate Release January 29, 2015 IKE update: FY16 full year revenue outlook, Q3 update, Stanley Smart Measure Pro sell-through Highlights: Initial sell-through of Stanley Smart Measure Pro strong. More markets and channels confirmed in the US and Europe, underpinning FY17 growth FY16 full year revenue outlook however impacted by timing of projected orders relating to Stanley Smart Measure Pro market expansion Q3 FY16 performance: o Q3 closed strongly with unaudited sales & other income growing to $7.4m in the nine months to 31 December 2015 (2.7x prior calendar period). o As previously announced revenue in the quarter was underpinned by a material uplift in sales of the company's electric utility solution, including winning the first $1m account in the US market. o The quarter was also highlighted by the launch and strong sell-through of the Stanley Smart Measure Pro product, as detailed further below. o Spike sales grew strongly through Q3 over Q2 with 672 units sold in the three months, primarily into the signage market. o New Spike capabilities were launched, with point-to-point measurement and app-to-app integration features introduced. Marketing-led Spike sales to Small-Medium Business type customers, particularly in the signage industry, is expected to continue to grow strongly. Larger sales-led Enterprise deals are taking more time to develop, although pilot programmes in new vertical markets are in place for Q4 with some of the largest Insurance and Residential Construction companies in the US. Stanley Smart Measure Pro sell-through: o As previously announced, in the December quarter ikeGPS and Stanley Black & Decker, Inc. jointly launched the Stanley Smart Measure Pro product at Lowe's stores across the US market. o As an update to that launch, sell-through in the stores has exceeded plans with current run rate sales trending upwards and currently approaching 1,000 units per week. o Wider US market roll-out is now in process including the development of new channels via specialty tools stores and online channels, such as www.Amazon.com o European market roll-out is also in process, with firm interest from several major European markets. ikeGPS is pleased to have received launch orders for one European territory in Q4, and the company is already manufacturing an EU version of the product. o Timing of orders and shipments into these wider roll-out initiatives had been expected in the second half of ikeGPS' FY16, however these are now expected to occur through the first half of FY17. o More broadly, as a result of current sell-through rates ikeGPS believes it is now well positioned for high growth from this product through FY17. Full year FY16 revenue outlook: o Prior guidance for FY16 revenue & other income was between $12m and $14.3m. o The outlook for full year FY16 revenue & other income is now between $9.2m to $11.5m. o This is primarily because of timing, with the expected additional Stanley Smart Measure Pro orders now projected to fall into 1H FY17, rather than 2H FY16. o This revised outlook represents between 2.4x & 2.8x growth against FY15 and between 4.9x & 6.1x growth against 2014, but is below that projected in the company's IPO offering document. The forecasts at the time of ikeGPS' IPO in July 2014 reflected expectations for triple digit growth as the company developed, which is intact. During these early stages of the company's sales cycle and rapid growth, and because of the newness of product offerings, quarter-over-quarter lumpiness of sales continues. It is expected that this condition will become less impactful as the business continues to gain scale and as recurring revenue streams increase. Based on feedback from customers and partners, ikeGPS is more excited today than ever about the opportunities in front of the business. Market penetration to date is less than 1% of target markets. Because the company's product offerings typically replace manual or semi-automated processes, ikeGPS solutions represent a new approach to tasks that are performed every day across many industries in multiple continents. Following a successful first foray into the signage vertical with the Spike platform, ikeGPS is currently trialing products with leading companies in other much larger verticals such as Insurance and Residential Construction. Investors can expect to see continued expansion into these new verticals and geographies in the coming year. The company will also unveil a new Electric Utility solution in February 2016 that will further enhance potential across that segment. FY17 is expected to be another transformative year for ikeGPS as the business continues to enhance product offerings and accelerates the transition to a recurring revenue model. Because the company has so many business categories gaining momentum at the same time, the expectation is that organic growth rates in FY17 will continue at these very high levels. ikeGPS will provide more detail on the launch its new electric utility solution in early February, and will provide FY17 forecast information after its financial year end in March. ENDS Contact Glenn Milnes, CEO: +1 720-418-1936 [email protected] End CA:00276976 For:IKE Type:GENERAL Time:2016-01-29 10:00:09
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Ann: GENERAL: IKE: Q3 update and FY16 full year revenue outlook
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