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IkeGPS Group Limited (ASX:IKE) or IKE, has announced it has entered into a five year agreement with the second largest electric utility in the U.S., upgrading them from IKE’s legacy product to its new PoleForeman structural analysis platform.
The initial purchase order is for the first year of the agreement, for ~NZ$0.4m.
This customer serves approximately eight million customers in the southern U.S. region.
Over the coming period, this commitment means over 650 engineers at this electric utility will use IKE Poleforeman’s advanced capabilities for structural analysis and the design of distribution assets, to meet grid resiliency and network capacity targets over the coming decades.
According to IKE this upsell signifies a more then ten-fold increase in annual recurring revenue from this customer.
An expected consequence of this Standards decision at the utility is that additional engineering companies and communications groups, working across this utility’s network, will also adopt IKE PoleForeman. This contract follows recent announcements including that:
Since launching the IKE PoleForeman product late in 2023, more than 30 enterprise customers in the U.S. have signed onto the platform representing total contract value expected to exceed ~NZ$7.5m from this new product, that will be recognised over the coming periods as subscription revenue.
New customer wins have included flipping one of the ten largest utilities in North America from a competitor. IKE anticipates winning further significant contracts with tier-1 customers in the short and medium term. |