Half-Year Results - Strong Performance and sales outlook
revenue for the six months to 30 September 2017 was
$1,402,871 showing an increase of 38% compared to the
corresponding six-month period in 2016.
• Losses were reduced by 95% to $32,208 from $602,737 for the same corresponding six-month period in 2016.
• Improved sales results with the deployment of the New York city ferry service system, plus several new orders from customers for system upgrades. Strong sales pipeline.
• Opened the new US office in Los Angeles on July 1st 2017.
Christchurch, New Zealand – Connexionz Limited (CNX: Unlisted) today announced its interim results for the six months ended 30 September 2017. Revenue for the period rose by 38% to $1.4 million in the same corresponding six-month period in 2016. Consequently, losses were reduced by 95% to $32,208 from $602,737 for the same corresponding six-month period in 2016.
Expansion into the US market is proceeding well with new staff hires, opening of the US office, and increasing transit systems sales implemented and managed by Connexionz. Improved sales results were principally due to:
1. Winning the contract to supply Connexionz ITS system and transit hardware to the NYC Ferries, which service Staten Island, Queens, Manhattan as well as other destinations along the Hudson River; and
2. Increasing sales to existing customers for expansions and upgrades.
Connexionz CEO Rhod Pickavance says, “The NYC Ferry system is one of the most exciting systems to be deployed by the company over recent years. Twenty of the city’s ferries has been installed with Connexionz hardware which supports vessel tracking, real time passenger information (audio video announcements onboard), passenger counting using laser matrix systems, engine diagnostics and fuel flow monitoring.
“HornBlower, the company contracted to New York city and with whom Connexionz has a supply agreement, intends to double the size of its fleet over the next 18 months. If so, it will result in additional hardware sales and development opportunities for new applications and services to be supplied by Connexionz.”
Existing customers’ expansions and upgrades have also contributed to Connexionz improved sales result. This is predicted to continue with a further $1m revenue anticipated for FY 2018 as clients seek to upgrade their transit system to Connexionz latest iteration of in-vehicle hardware.
In January 2018, Connexionz officially took possession of its leased premises in the United States, located at Suite 103, 27943 Smyth Drive, Valencia, Los Angeles, California. The Company anticipates hiring sales and support staff to be based out of the office during FY 2018.
Additional engineering resource has been brought in to assist with the ongoing development of products and services, as well as assist with the deployment of new systems and existing customer system upgrades.
“Our sales pipeline is improving with strong prospects,” says Pickavance. “We anticipate securing a regional contract on the western seaboard of the United States soon. We also expect to build on our entry into the water-borne public transport market, and continue our focus on potential customers that do not require public tender procurement. Connexionz ITS systems are an integral part of our customers’ fleet operations, assisting both fleet managers and the passengers that use them to make on-the-spot decisions. Consequently, we expect that new technologies, such as Artificial Intelligence, Machine Learning and the Internet of Things will continue to drive innovation in our industry.”
Finally, the company wishes to acknowledge and thank Bruce Sheppard who stepped down as Chair and Director of the Board in April. His inciteful comments and warm humour will be missed.
“Bruce remains a supportive shareholder and we wish him well as he pursues his other interests. The much-improved results are due to the dedication and diligence of our staff, many of whom went the extra mile to ensure that our customers’ expectations were met and often exceeded. To Bruce and our staff, we extend our sincere gratitude,” says Pickavance.