IkeGPS missed a goal of positive cash flow in the March quarter after Stanley Black & Decker pushed out a large order of the laser measurement toolmaker's Stanley Smart Measure Pro products.
Wellington-based ikeGPS shipped 30,500 units of the Stanley Smart Measure Pro units to Europe's building market in the year ended March 31, missing the latest projection of 39,500 when Stanley Black & Decker delayed an order for 9,000 units until the first-half of 2018, it said in a statement. That reduced the firm's cash inflow by more than $1 million and meant ikeGPS didn't reach positive cash flow in the quarter as projected.
"An unfortunate item to end what was an otherwise positive period for the business was Stanley Black & Decker's decision to defer their acceptance of 9,000 units that were ordered for March delivery," chief executive Glenn Milnes said. "We do not believe this impacts the longer-term potential for sales of the Stanley Smart Measure Pro product, which have grown strongly this year, but clearly this was a disappointment for us from a period end and reporting perspective."
The Stanley Smart Measure Pro product had already faced disruptions with a supply chain glitch delaying $2.8m of sales from the first half of the 2017 financial year until the second half.
In February, ikeGPS affirmed its forecast to break even on a cash basis in the March quarter, while scaling back projected revenue growth after a period of "very soft" sales of its Ike4 field data collection product in the first half.
Today, Milnes said the fourth quarter sales of Ike4 went well and that the company ended the year with cash of $2.8m. It had cash and equivalents of $7.5m as at September 30, raising $8.2m through a placement and share purchase plan in the period, and narrowed its operating cash outflow to $5m in the six months ended September 30 from $5.6m a year earlier.
The shares were unchanged at 39 cents and are flat since the start of the year.