Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

IkeGPS may miss full-year guidance

IkeGPS may miss full-year guidance

By Gavin Evans

Jan. 24 (BusinessDesk) - Utilities measurement specialist IkeGPS says it may not break-even at the operating level in the March quarter due to a delay closing a large contract for its Ike Analyze service.

The company, which in November had also forecast a 30 percent increase in March-year revenue, said its current projections show it could still meet both elements of its earlier guidance.

But it says delivering positive earnings before interest, tax, depreciation and amortisation in the fourth quarter involves “material reliance” on the closure of the large Ike Analyze contract, and more particularly when in the quarter that would happen.

“Ike is therefore conservatively guiding for its full-year 2019 revenue to exceed full-year 2018, but to be below 30 percent growth, and that EBITDA in fourth quarter 2019 may not be break-even.”

Ike shares fell 5.4 percent to 70 cents, trimming their gain for the past year to 90 percent. The stock reached an all-time high of 76 cents earlier this month.

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.

In November, it reported a 27 percent increase in first-half revenue, with the firm’s net loss for the period halving to $2.3 million on improved margins and lower operating costs. It had about $5.4 million of cash at Sept. 30.

Ike, which listed in mid-2014, raised almost $6 million in September from the sale of new shares to provide working capital and help fund on-going product development.

Today the company said it had about $4 million of cash at Dec. 31 and expects to maintain a similar balance at the end of March.

(BusinessDesk)

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Business Headlines | Sci-Tech Headlines

 
GenPro: General Practices Begin Issuing Clause 14 Notices

GenPro has been copied into a rising number of Clause 14 notices issued since the NZNO lodged its Primary Practice Pay Equity Claim against General Practice employers in December 2023.More

SPADA: Screen Industry Unites For Streaming Platform Regulation & Intellectual Property Protections

In an unprecedented international collaboration, representatives of screen producing organisations from around the world have released a joint statement.More

 
 
 
 
 
 
 
 
 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.