IkeGPS signs $1m deal for MapSight software with US customer

Measurement tool developer ikeGPS Group [NZX: IKE] has signed a $1 million deal to sell its MapSight software to an unnamed customer in the US.

The company announced today that it has closed contracts with a communications and infrastructure group. The sale will provide MapSight software, mobile hardware and training for the collection and analysis of distribution assets.

The deal is for a project in one state but chief executive Glenn Milnes said the company's goal is for MapSight to "become the standard in these processes and we believe this is another significant step in that direction."

"This deal also includes a long-term pathway for further new MapSight software and hardware, specific to power and communications infrastructure, to be introduced alongside this customers' work practices," Mr Milnes said.

IkeGPS anticipates the customer will grow "into a significantly larger account" as it has thousands of field staff, and "line of sight to other fibre initiatives across the US market."

In November, ikeGPS posted a loss of $3 million for the six months to September 30, compared to a loss of $1.9 million in the year-earlier period.

At the time, the company said Mapsight would potentially miss the $9.2 million of sales expected for the year, as there was continued sales lumpiness. However it said it believed sales opportunity for Mapsight was "at a tipping point and optimally positioned in front of this large market for the long term."

In July, it told shareholders at its annual meeting in Wellington that it was actively seeking US investors and didn't rule out a possible secondary listing there.

IkeGPS shares last traded at 69c and have dropped 19% this year. The shares listed at $1.10 last July in an initial public offering that raised $25 million, and have never traded up to the original issue price.

(BusinessDesk)

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Sophie Boot
Mon, 14 Dec 2015

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