- IkeGPS (IKE) closes slightly higher after announcing to investors it has locked in a US contract extension worth $1.6 million
- IKE says the 12-month contract is for a customer deploying fibre networks in the US’ mid-west, though IKE did not name the customer
- The contract extension follows a similar $1 million deal signed with a separate customer last week
- IKE expects to book 70 per cent of the $1.6 million in its 2022 financial year, which ends in March next year, with the rest to be recorded as FY23 revenue
- Shares in ikeGPS close 1.54 per cent higher at 99 cents each.
Software developer ikeGPS (IKE) closed slightly higher on the ASX after announcing to investors it had locked in a US contract extension worth $1.6 million.
The company said the 12-month contract was signed with a communications customer supporting fibre infrastructure deployment in the United States’ Midwest. IKE did not name the customer.
IKE said of the $1.6 million in transaction revenue from the deal, around 70 per cent was expected to hit the company’s books during its 2022 financial year, which ends on March 31, 2022.
The remaining 30 per cent of the contract will be recorded as FY23 revenue.
What’s more, it’s likely this is not a one-time extension; IKE said it expected the contract level to recur in subsequent years, with further expansion contracts to follow.
IKE CEO Glenn Milnes said the expansion demonstrates the value the IKE platform provides for communications groups.
“This specific entity has been a customer for several years, growing from an initial annual account size of tens of thousands of dollars to a multi-million dollar per annum account today,” Mr Milnes said.
“The long-term revenue opportunity with this group is substantial.”
Today’s news follows a similar announcement from last week, in which IKE announced a $1 million contract extension from a customer also deploying fibre networks in the States.
Mr Milnes confirmed this morning the two customers are completely separate.
“These deals and our broader momentum give us a high degree of confidence for strong revenue growth this financial year,” he said.
IkeGPS’ technology is focused on pole management and overhead asset information. Through the ikeGPS platform, builders and developers can collect pole data in the field and then measure and manage this data in cloud-based data analytics software.
The IKE Analyze technology, for example, is a mobile tool made to accurately capture all necessary measurements of a pole in a single photograph.
The goal of the IKE tech platform is to speed up construction and allow for the development of safe networks.
Shares in ikeGPS closed 1.54 per cent higher at 99 cents each. The company has a $157 million market cap.