IkeGPS locks in distribution contract Stanley Black & Decker, underpinning revenue

Tuesday 18th November 2014

IkeGPS, the remote measuring tool developer, has signed a deal with Stanley Black & Decker to manufacture and distribute its smart phone measuring tool, adding sales that will help the company meet its prospectus forecast.

The deal contributes $1.47 million of original equipment sales for the 2016 financial year as set out in its June prospectus, the Wellington based company said in a statement. The global tool and equipment business will sell the app, which uses ikeGPS technology, under the SBD brand.

"This arrangement further supports our objective to build out a subscription based software offering for targeted sectors, in this case within the architecture, engineering and construction market," chief executive Glenn Milnes said. The deal will provide "access to SBD's worldwide network of retailers and distribution partners in the construction and DIY industries."

It is the third such deal the company has made this year, after securing a manufacturing and distribution agreement with General Electric for the GE MapSight tool in January and a development agreement with US based defence innovation firm In-Q-Tel in October.

IkeGPS is forgoing profit as it chases growth in the US market, and sees particular opportunity in the intelligence and security sector. The company is forecasting its net loss will widen to $5.33 million this year, and extend further to a loss of $5.8 million in 2016.

Earlier this month the company announced the appointments of former Apple Inc executive Richard Mander and Trimble Navigation's Peter Shaw as it accelerates its push into the US market.

Shares of ikeGPS last traded at 90 cents. The company raised $25 million in new capital to fund its US expansion and product development when it listed on the NZX in July, through the sale of 22.7 million shares at $1.10 apiece.

BusinessDesk.co.nz

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