IkeGPS first-half sales more than doubled, expects to meet annual revenue forecast
By Paul McBeth
Oct. 15 (BusinessDesk) - IkeGPS Group, the laser measurement tool developer, says first-half sales more than doubled, and it affirmed expectations to meet its annual revenue forecast as an outperformance in sales of its smartphone products make up for lumpy demand for its MapSight data collection tool.
Revenue and other income rose to about $4.5 million in the six months ended Sept. 30 from $1.7 million a year earlier and was ahead of budget for the period, Wellington-based ikeGPS said in a statement. Gross margins grew at about the same pace, and the company said the net loss will be in line with expectations when the results are reported on Nov. 20.
The company affirmed its forecast for annual revenue of about $14.3 million, though said the product and revenue mix will differ from its prospectus projection, with smartphone products such as Spike and Original Equipment Manufacturer receiving a stronger uptake than expected, with "the potential to grow associated revenues more quickly than planned." That made up for a downside risk to projected sales of its MapSight product, which faced lumpy sales "in associated large enterprise" processes.
"We are very encouraged by the response to our products by a diverse and widening mix of customers and business types," chief executive Glenn Milnes said. "Like any technology company early in its sales cycle, ikeGPS faces challenges to maintain such rapid growth rates, but we believe that the company's team and product platform will continue to strengthen."
IkeGPS is foregoing short-term profits to chase long-term international sales growth to create long-term value. The company missed its 2015 annual revenue target due to a delay in the release of its Spike smartphone application, but has since made inroads with the product in the US.
The shares last traded at 65 cents, and have dropped 24 percent this year. The company sold the shares at shares at $1.10 in an initial public offering in July last year that raised $25 million