Shares in IkeGPS notched up an almost 25% spike yesterday, following news the portable measurement device manufacturer was making inroads into the United States intelligence community.
IkeGPS says its latest agreement represents more than double current forecast ''contract revenue'' for the next two years, but did not specify the amounts involved.
Following its initial public offering at $1.10 per share, which raised $25 million, IkeGPS shares plunged on its debut listing in late July, down almost 20% to 90c, before retracing some losses.
Its shares were yesterday initially up 24.7%, or 21c, to $1.06 after the news; and closed at $1.
Craigs Investment Partners broker Chris Timms said the contract news drove the share spike, to a post-float high, but noted it was only on small trading volumes.
''The new contract is good news for Ike and was received positively by the market,'' he said, noting IkeGPS needed to provide ''some clarity'' on the contract revenue claim, which was separate to the prospectus forecast of the combined two years' revenues during 2014-15 and 2015-16, respectively $6.46 million and $14.32 million.
IkeGPS chief executive Glenn Milnes said the Wellington-based developer of geolocation and measurement devices announced a ''development agreement and strategic partnership'' with In-Q-Tel, a non-profit, strategic investment firm which seeks new technologies for the missions of the US intelligence community.
''This partnership is another validation of our new solutions' ability to provide game-changing remote measurement capability, and is a major step to addressing another of Ike's key target markets, defence and intelligence,'' Mr Milnes said.
It's primary devices are GE MapSight and Spike, the former a handheld locating device and the latter, for smartphone and tablet applications, to measure dimensions and distances; targeting the architecture, engineering and construction sectors.
IkeGPS combines measurement software and cameras, lasers, computing, GPS, and 3-D-compass components into one device, which lets users capture real-time measurements, geolocate remote objects and then make measurements and models from the photographs.
In-Q-Tel is an IkeGPS shareholder, as is co-product developer and distributor General Electric.
IkeGPS has been in product-development partnership with the US Army Corps of Engineers since 2006 and has also targeted the electric utilities sector.
Mr Milnes said the In-Q-Tel agreement would generate revenue of more than the total of contract revenue forecast for both the 2014-15 and 2015-16 financial years.
''As importantly, the agreement is also expected to underpin additional direct sales opportunities for Ike's smartphone software and hardware into the defence and intelligence market,'' Mr Milnes said.
He said revenue for the first half of the 2014-15 financial year was ''in line with that forecast'', and contracts such as that with In-Q-Tel would underpin future sales.
In the IkeGPS statement, senior vice-president at IQT, Robert Ames, said the partnership with IkeGPS would provide its government customers with an opportunity ''to utilise this innovative product set and build upon its capabilities''.
''The agreement will further enable the design and development of ike's smartphone measurement platform, Spike, utilising the company's intellectual property,'' Mr Milnes said.
IkeGPS' interim financial report is due in November.
