IkeGPS nails down Europe with Spike
IkeGPS is targeting Europe’s sign market in a distribution deal spanning 12 countries which the laser measurement toolmaker expects will accelerate sales of its Spike product.
The Wellington-based company has entered into a deal with Swiss sign and graphics supplier Spandex to sell ikeGPS’ Spike product, it said.
Spike has three core products — cloud-based software, a mobile app, and laser module that attaches to smartphones — and retails at US$499 ($693) with annual subscriptions costing between US$50 and US$249.
A Spike photo can capture the measurements of a sign or graphic location making it easier for sign makers.
The company previously projected more than 3000 new Spike signage customers in the year ending March 31, with a 60 per cent uptake of the cloud-based subscription service.
“Spandex has an unmatched presence in Europe and we’re proud to partner with such a significant and respected industry player,” said chief executive Glenn Milnes.
“Spandex has already placed orders to support launch activities, and our expectation is that through calendar 2017 we will see 300 to 400 Spikes sold into each of the larger markets such as Germany and 100 to 200 Spikes sold into each of the smaller regions such as Benelux.”
That implies ikeGPS anticipates between 2000 and 3200 Spike sales in calendar 2017, which would reap between US$1 million and US$1.6m.
“We think this is significant a) given Spike’s impact and adoption across the US sign market in 2016 and b) given’s Spandex’s dominance in terms of product distribution and growth in Europe in the sign market,” Milnes said in an email.
In November, ikeGPS reported a first-half loss of $6.8m on operating revenue of $2m, blaming a supply chain problem for delays in the recognition of some sales until the second half. The company still expected to break even on a cash basis in the fourth quarter of the 2017 financial year.
The company’s shares closed unchanged at yesterday at 34c.