IKE - ikeGPS Group

[Dona Ferentes]

ikeGPS Group Limited (ASX / NZX: IKE) or IKE, states it is the company setting the standard for collecting, managing and analysing pole and overhead asset information for electric utilities, communications companies and their engineering service providers.

IKE operates in designing, marketing and sale of integrated GPS data capture devices, related software and consulting solutions. The Group's selling activities were organized into two segments namely Utility & Communications and New Business through which they sell two products namely IKE 4 and Spike. The company is originally NZ listed and has been on the ASX for a few years. It appears to be generating most of its business in the USA, where it is winning and renewing contracts

• to assess and design power distribution infrastructure, utilising the IKE platform to assess approximately of 350,000 power pole assets.
• with a provider of communications infrastructure for cell towers, small cells, and fiber in the U.S., to standardise on the IKE Platform for pole-related 5G and fiber deployment processes

Market cap is around $115million, revenue is increasing each year but positive earnings seem a way off.

 

[frugal.rock]

With Tassie (twin) head and shoulders, this one may be of interest.
Anywhere near profitability yet @Dona Ferentes ?

From some stories read here and there, ageing infrastructure in the US is becoming a concern and is being stamped on by lawmakers due to fires, spills etc (a general observation.)
Have done some similar work myself to what this company does, and poles are always rotting, getting blown over etc etc
Might be worth a look into...?
Wouldn't be expecting any quick moves particularly though.

Monthly chart above.
Below, a daily shows it "tentatively" starting to turn up, caution required if it dips below $0.64 support area

 

[divs4ever]

Revenue of $6.8m (+162% vs pcp)
New signed contracts of ~$8m
Continued demonstration of operating leverage
Strong balance sheet

IKE performance update for Q1 FY23
ikeGPS Group Limited (IKE) (NZX: IKE / ASX: IKE) is pleased to release an update for Q1 of FY23
to 30 June 2022 (all figures in NZD). IKE will host a webinar Friday 22 July 2022 at 9am AEST /
11am NZT to discuss this performance. Please click here to register.
Highlights for the quarter:
+ Revenue in Q1 FY23 of ~$6.8m (+162% vs pcp). Within this, recurring Subscription and
reoccurring Transaction revenue was ~$5.7.m (+167% vs pcp).
+ Gross margin in Q1 FY23 of ~$3.9m (+116% vs pcp) representing a Q1 FY23 gross
margin percentage of ~57%.
+ Signed contracts in Q1 FY23 of ~$8m (+31% vs pcp). The signed contract backlog has
continued to grow and it is estimated that $13-15m of this backlog will be delivered and
recognized as revenue in the FY23 period.
+ Cash and receivables as at 30 June 2022 was ~$27.7m, comprised of $23.3m cash and
$4.4m receivables, with no debt. This position is just ~$1.2m lower than six months prior
(at 31 December 2021) evidencing the operating leverage in the business.
Commentary and outlook
IKE CEO Glenn Milnes commented, "The past quarter was another outstanding period of growth
at IKE. It included the material expansion of various existing customers and saw several new and
important tier-1 enterprise groups onboarded, including one the five largest engineering
companies serving the electric utility market across the U.S. The first phase of this contract
includes supporting a 10-year network hardening program for a electric utility in the South-West.
Market development acivity also featured training 325 engineers on IKE products and workflows
at a major investor-owned utility in the southern U.S.
Operating leverage is in place via the scalability of our software and our disciplined approach to
operating expenses. Management and the Board remain cognisant of the importance to
maintain a fortress balance sheet position, and driving this operational leverage to get to positive
cash flow is front of mind.
The outlook remains robust. Following 71% revenue growth in FY22, we expect FY23 to be
another significant period of growth. This is driven by the estimate that $13-15m of our signed
contract backlog will be delivered and recognised as revenue in the next three quarters of FY23
(noting that the ultimate timing of these contracts is subject to the execution speed of our
customers). In addition, our sales opportunity funnel is strong and we anticipate a healthy run
rate of new contracts will also close and be recognised in the FY23 period.”

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DYOR

i do not hold this share ( but it has caught my eye a couple of times )

first i might have rushed reading this , but i didn't see the word 'profit ' ( after or before tax )

now i know this is a NZ company and they almost speak a different language ( and at least two dialects ) but the occurrence of ' leverage ' but NOT 'profit ' makes me a little cautious

PS my father was a Kiwi , so know them fairly well

i was almost tempted to tip this in the August Comp. but suspect it will spike too early ( just like my tip for this month did )

 

[Dona Ferentes]

one of those coulda, shoulda tech stories. local battler.

was down around 40c earlier in the month, went to TH at 50c, with a run to 68c today

Supporting multi-year fiber and grid resiliency program across southwest U.S. utility network
IKE has secured a contract that is expected to generate ~NZ$19m revenue over the coming ~36 months.

Highlights
- Expectation for ~NZ$19m platform transaction revenue.
- Revenues are expected to be delivered and recognised over the next ~36 months.
- Supporting the delivery of a multi-year fiber and grid resiliency program across the network of a prominent utility in the southwestern United States.
- The contract begins immediately, from the end of July 2024.
- Another important step towards targeted EBITDA breakeven and continued high revenue growth.