The ikegps Group Limited (ASX: IKE) share price has climbed today, up 2.3% to 89 cents in morning trade. This comes after the company released results of its annual general meeting.
Why is the ikeGPS share price on the move?
The company advised that momentum had picked up, after COVID-19 affected revenues in the first quarter of the 2021 financial year. Orders for Q2 are expected to be approximately $3 million. This is above FY20 run rate levels. Ike achieved this through being granted 'essential business' status in the United States, which supports critical infrastructure development and maintenance.
The company concluded an oversubscribed capital raising of $19.7 million, with which it plans to grow sales and delivery capability. Ike will also assess additional acquisition opportunities that may arise.
What does ike do?
Ike operates in the designing, marketing and sale of integrated GPS data capture services, related software and consulting solutions. The group's key products include ikeGPS and Spike.
ikeGPS is a field data collection product that uses the latest mobile hardware and software to measure and locate utility poles. This in-turn allows accuracy and efficiency for aerial fibre deployments and repairs by users.
Spike is the world's first laser accurate smartphone measurement tool that captures real time measurements. The software product uses the phone camera, laser-based system and mobile app to determine location, heights, width and distance.
Ike's software and hardware has been widely used by electric utilities, communications and engineering services in North America. Most notably, ikeGPS is adopted by one of the world's largest communication companies, AT&T.
What did management say?
Chair Rick Christie was pleased with the company's performance over the past year. He said:
FY20 was a busy and productive year for our business with continued growth and improvement across key metrics. Our core target market has also continued to develop positively, being tier-1 US communications companies, electric utilities and their engineering service providers. Success within this market is the key long-term value driver for our business.
Mr Christie touched on Ike's determination to be an industry leader.
In keeping with our ambition to be the pole standard in the North American market and to increase our suite of products to pole owners and users, we also acquired certain assets of PowerLine Technology Inc. (PLT) in the period, one of the leading structural analysis software companies in North America.
Post-acquisition activities have been positive with all major PLT customers renewing their annual software licenses post-acquisition, and IKE Analyze cross-sell opportunities with PLT customers have also emerged. In the future IKE will continue to investigate and pursue growth by further acquisitions of relevant market products and technologies.
Where to from here?
I think the tech company has been making small tailwinds since COVID-19 affected its business in Q1. Ike has been busy optimising its internal processes and positing itself for future growth.
I do like what Ike has to offer and will be adding the ikeGPS share price to my watchlist for now.
