- BuildingIQ is down more than 48 per cent today after releasing its September quarter report
- While it reported mixed financial metrics, operations deemed promising
- The company's 5i Intelligent Energy Platform reduces energy consumption in buildings without compromising the occupant's comfort
- The platform secured new contracts and an agreement to roll out its services to 16 sites across Australia
- BuildingIQ held a tight reign on its operation expenses which led to a 12 per cent increase in savings
- The company relied on funds from tranche payments to keep its cash flow in the positive
- BuildingIQ's shares have dropped 48.7 per cent, with shares trading for 2 cents each
BuildingIQ is down more than 48 per cent today after releasing its September quarter report.
BuildingIQ is a software company that helps building owners and operators lower energy use, increase building operations efficiency, and enhance tenant comfort.
While it reported mixed financial metrics, the company's operational summary was promising.
BuildingIQ's 5i Intelligent Energy Platform now covers an additional 10 buildings for a total of 1337 buildings and approximately 142 million square feet.
The 5i platform develops cloud-based data for energy intelligence in buildings.
The company has an established presence in North America which was solidified when it was named a certified energy efficiency provider for British Columbia Hydro's commercial building customer.
Without compromising an occupant's comfort, BuildingIQ is committed to reducing energy spend and consumption and it has continued to demonstrate that to customers.
The September quarter saw cumulative savings of $5.15 million which is a 12 per cent increase.
BuildingIQ's President and CEO Michael Nark is pleased with the company's overall performance during the quarter.
"We achieved some notable traction this quarter in two sectors, Education and Health, with our subsidiary Buildingsense, being approved as a panellist for the NSW Government's Schools Infrastructure 'Cooler Classrooms Program,'" Michael said.
While the program is essential to allow for air conditioning installation, the company sees the benefit in adopting building services to help schools manage energy efficiency.
In the health sector, Buildingsense won its first contract from NSW Health for the Mudgee Hospital precinct development.
BuildingIQ stayed conscious of its expenses by spending $1.70 million less (25 per cent) down from the September quarter of 2018. This resulted in a $1.20 million (36 per cent) reduction in net cash used in operations.
During the quarter, the company received $990,000 from tranche 2 of placement, and a further $310,000 was received from its share purchase plan.
"Positively, cash receipts from customers were up 10%. In addition to the proceeds from the SPP, we are expecting proceeds of at least $750,000 from the financing of our 2019 R&D tax credit in the fourth quarter," Michael added.
As a testament to its services for established smart buildings, the company executed an agreement with an existing healthcare client. The agreement will see it rollout 5i services to 16 new sites Australia-wide, for a three-year term.
BuildingIQ's shares have dropped 48.7 per cent, with shares trading for 2 cents each at 4:10 pm AEDT.