GeoOp reports 15-month loss of $5.8m, says cash burn slowing as revenue grows
GeoOp [NZX: GEO], the workforce management app developer, posted a 15-month loss of $5.8 million and said its monthly cash burn is falling as revenue grows and it keeps a check on costs.
The company changed its balance date to June 30 from March 31, which is why it gave 15-month results. In the 12 months ended March 31, 2014, the loss was $4.6 million, and the company said the result on a like-for-like basis was little changed from the previous period. Total sales in the 15 months were $1.7 million from $488,000 in the previous 12 months, the Auckland-based company said.
Monthly operational cash burn at July this year was about $325,000, which GeoOp said was a reduction from March 2014, although it didn't give the earlier figure. At that rate, and based on the $1.48 million cash it held at June 30 and the $2.4 million raised in a share placement last month, the company would have about $2.9 million of cash as at the end of September. It also has a share purchase plan that closes on Sept. 25.
"Our focus will continue to be on product, sales and lean operations as we drive towards profitability," the company said. GeoOP "believes it is part of the mobility trend globally and with 65 million mobile workers in the western world, there is a large target market opportunity to tap into."
The company expects to report a smaller net loss for 2016. Employee numbers slipped to 40 at the end of June from 45 at the end of March last year.
Licenced users rose to 19,009 as at June 30, from 9509 in March last year, made up of 9588 in Australia, 5466 in New Zealand, 1335 in North America, 1235 in the UK and 1385 in the rest of the world.
In the latest 15-month period, GeoOp began integration work with accounting software providers Intuit and MYOB. It completed integration with Intuit's Quickbooks accounting software, which will allow its users to invoice directly through that system, and was on track to complete integration with MYOB's AccountRight, allowing users to create jobs, manage inventory and invoice via MYOB while in the field. Both developments were due to be released to the market this month.
GeoOp's shares last traded at 44c and have declined 23% in the past 12 months.
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