IkeGPS's CEO Milnes and CTO Toorenburg move to US to chase growth
By Suze Metherell
May 15 (BusinessDesk) - IkeGPS, the remote measurement software and hardware developer, is relocating its chief executive Glenn Milnes and chief technology officer Leon Toorenburg to the US, its major market.
Milnes and Toorenburg will shift from the company's Wellington headquarters to its Colorado sales office, ikeGPS said in a statement. Most customers for its core OEM product are in the US, as well as its partners including US defence technology investor In-Q-Tel, General Electric, Stanley Black & Decker and ESRI, the company said.
"The US represents the largest near-term market opportunity for sales, partners, and investors for ikeGPS," the company said. "Having both Milnes and Toorenburg based in the US bolsters global expansion plans and enables the company to better capitalise on North American-based opportunities."
IkeGPS is forgoing profit as it chases growth in the US market, and sees opportunity in the intelligence and security sector. In October, ikeGPS expanded a deal with In-Q-Tel to further develop its smartphone measuring tool, Spike, for US intelligence and security forces, and at the time said it would beat contract sales forecast in its June prospectus.
Last month the company said it would miss its 2015 revenue prospectus guidance because sales of Spike were running three months behind schedule. IkeGPS would make a smaller loss than its prospectus forecast of $5.33 million, although revenue would come in below the forecast of $6.46 million, "primarily due to anticipated sales from its start-up smartphone solution falling just outside the March 31 2015 financial year end."
The company has also appointed a specialist investor relations advisory firm, MKR Group, to help find US-based strategic investors. The firm's shareholders include New York-based Sterling Grace which holds 5.4 percent, according to NZX data.
IkeGPS shares listed at $1.10 apiece last July in an initial public offering that raised $25 million, and last traded at 79 cents, having never traded up to its original issue price.