IkeGPS to breakeven in 2017, investigates NASDAQ listing

Wednesday 04 May 2016 09:33 AM

IkeGPS to breakeven in 2017, investigates NASDAQ listing

By Sophie Boot

May 4 (BusinessDesk) - IkeGPS says it will reach cash breakeven in 2017 as it forecasts improved sales from its new cloud-based product.

The laser measurement tool developer said it expects continuing sales growth across its portfolio of measurement products, increased margins on new products, operating and cost efficiencies, and product-to-market infrastructure.

"Cash at the end of the FY2016 was approximately $5.3m," it said. "The board continues to monitor the company’s cash position and, under this FY2017 business plan, is comfortable with the capital structure at this time."

The company said its growth outlook for 2017 remains high, and it will build upon the momentum of multi-year revenue growth rates exceeding 100 percent each year. That's based on predicted sales growth of its cloud-based IKE 4 product, which it said is "well positioned to grow existing customers and capture larger market share, estimated to be an addressable opportunity of $700 million." IkeGPS expects to announce major new customers tied to Google Fiber deployment projects across the US, it said.

The company is also investigating a potential NASDAQ listing, subject to the board’s review and approval of the terms and benefits.

Last month, IkeGPS said its annual sales for 2016 were at the bottom end of its lowered guidance, with $2.2 million of orders received in the final month of its current financial year to be booked in the 2017 financial year.

IkeGPS will announce its annual result on May 20.

The shares last traded at 66 cents and have dropped 5.7 percent this year. The shares were floated at $1.10 in a 2014 IPO when the company raised $25 million of new capital as it shifted away from production development to sales and marketing.

(BusinessDesk)

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