IkeGPS, the laser measurement tool maker, more than doubled annual sales to meet earnings targets that it downgraded last month. It now says it expects to break even on a cashflow basis this financial year.
Operating revenue and government grants climbed to $9.2 million in the 12 months ended March 31 from $4 million a year earlier, the Wellington-based company said in a statement. That was in line with the downgraded guidance provided in April, missing the $14.3 million forecast in its 2014 prospectus due to a slow sales pipeline. The measurement tool maker received $640,000 from Callaghan Innovation, up from $364,000 a year earlier when it received subsidies from Callaghan and New Zealand Trade & Enterprise, while a third of its $8.6 million of operating revenue was derived from one customer, compared to 14 percent a year earlier.
IkeGPS posted a net cash outflow of $11.9 million, leaving it with $5.3 million in cash and equivalents as at March 31. Of that, the operating cash outflow was $9.9 million, up from $5.9 million.
The company's net loss widened to $8.8 million, or 18 cents per share, from $5.1 million, or 14 cents, a year earlier, more than the $5.8 million loss originally forecast.
The accounts were tagged by auditor PwC, who said if it can't generate enough cash it may struggle to meet its debts as they fall due, and indicated "the existence of a material uncertainty that may cast doubt on the group's ability to continue as a going concern."
IkeGPS now expects to start breaking even on a cashflow basis in the fourth quarter of the 2017 financial year, faster than previously thought.
"This is the result of forecasted continuing sales growth across its portfolio of measurement products, increased margins on all new products, operating and cost efficiencies that have been put in place since 2H FY2016, and expandable product-to-market infrastructure that is now in place and is underpinning the company's multiple new products," the company said.
IkeGPS overhauled its management team relocating the chief financial officer position to the US where it's considering a secondary listing, and disestablishing a cross-market sales role, handing responsibility for revenue growth to individual business unit leaders.
The shares were unchanged at 78 cents and have gained 11 per cent so far this year.