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IkeGPS sales near bottom of guidance

NZ NewswireNZ Newswire 3/04/2016 Paul McBeth

IkeGPS says annual sales 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.

The Wellington-based company said revenue in the year ended March 31 was "around the lower end" of the January forecast for sales of between $9.2m-$11.5m when it trimmed its forecast, citing a delay in orders for its new products.

That's up from $4m of revenue in the 2015 financial year when ikeGPS missed the $6.5m projected in its initial public offering prospectus.

The laser measurement tool developer expects to book almost $1m of revenue from the March orders, which weren't able to be manufactured and shipped before the end of the month and will fall in the first quarter of the 2017 financial year.

"The company's expectation for FY17 is for year-on-year growth rates to continue at high levels," ikeGPS said.

"IkeGPS believes that investors will see very tangible results in the period as a result of the investments made into capability, technology and infrastructure."

The company said the launch of its new IKE 4 cloud-based product and its subscription revenue model is expected to "almost double total revenue and margin per user over a three-year period" while forgoing some upfront revenue in the process.

The company also said it had put in place a series of measures to cut costs in the second half of the financial year just ended.

IkeGPS will announce its annual result on May 20.

The shares last traded at 63 cents and have dropped 10 per cent so far this year. The shares were floated at $1.10 in a 2014 IPO when the company raised $25m of new capital as it shifted away from production development to sales and marketing.

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