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- Technology company ikeGPS Group (IKE) has posted just under $2 million in revenue for the final quarter of 2020
- This takes revenue for its 2021 financial year so far to NZ$6.5 million (roughly A$6.06 million), which is slightly soft on the same time period the year before
- For reference, ikeGPS made NZ$7.3 million (roughly A$6.8 million) in the same amount of time in 2019
- Nevertheless, IKE signed NZ$2.5 million (roughly A$2.33 million) of new contracts in the December quarter
- Further, the company has already closed NZ$3 million (roughly A$2.8 million) of new contracts in the first five weeks of the March 2021 quarter
- IKE says it expects more than 75 per cent of all revenue for FY21 to come from transaction and subscription services rather than one-off deals
- IKE shares have not traded since Thursday afternoon but last closed at 96 cents per share
ikeGPS Group (IKE) has posted just under $2 million of revenue for the final quarter of 2020 despite ongoing struggles due to COVID-19.
The industry measurement specialist said less engineering activity occurred in certain U.S. network projects in light of COVID-19 response measures, meaning revenue was slightly soft compared to the same time the year before.
ikeGPS made NZ$2.1 million (roughly A$1.96 million) in revenue over the quarter, bringing year-to-date revenue up to NZ$6.5 million (roughly A$6.06 million). For reference, ikeGPS made NZ$7.3 million (roughly A$6.8 million) in the same amount of time in 2019.
Still, company management said the December quarterly revenue reflects a solid outcome for the year so far in the context of the impact COVID-19 has had on economies across the globe.
Further, ikeGPS signed NZ$2.5 million (roughly A$2.33 million) in new contracts during the December quarter and had total cash and receivables on hand of $18 million. ikeGPS is also debt-free.
Long-term revenue shift
So far, revenue in the 2021 financial year has been mainly generated from transaction and subscription services, as opposed to one-off revenue – a trend that has carried over from the 2020 financial year.
In fact, for the whole 2021 financial year, IKE is expecting more than 75 per cent of revenue to come from transaction and subscription services — increasing the quality and predictability of the money coming into the business and underpinning growth.
With that in mind, the company has already closed NZ$3 million (roughly A$2.8 million) of new contracts in the first five weeks of the quarter, some of which have been for top-tier customers like AT&T, Corning Optical Communications and ALLO Communications.
Moreover, several projects that were deferred over the December quarter are coming back online in light of easing COVID-19 restrictions.
Today’s update comes not long after IKE finalised an agreement to buy assets in U.S.-based artifical intelligence business Visual Globe for at least US$3.3 million (roughly A$4.3 million).
IKE shares have not traded since Thursday afternoon but last closed at 96 cents per share. The company has a $127 million market cap.
