K2fly Limited (ASX: K2F) updated the market about the execution of the Reseller Agreement with Esri Australia Pty Ltd (Esri Australia). As per the agreement, Esri Australia will be responsible for the distribution of its Infoscope application (a land management system), which provides support to organisations to maintain a license to operate on land. Esri Australia has the exclusive rights as a national distributor of the worldâs leading spatial analytics platform, ArcGIS software.
K2fly Ltd is a technology company, targeting asset-intensive industries and caters to energy and resources market (Under its key Business arm). K2F owns Infoscope, an application related to Land Management and Stakeholder Relations solution. Thus, the above engagement augurs well with K2F's overall vision as Esri Australia is a global leading (Geographic Information System) GIS technology solutions provider and location-based analytics expert.
K2fly as on 29th August 2018, informed about becoming a member of a highly regarded Esri Partner Program with its Infoscope application. Additionally, the company noted that working in tandem with the Esri Partner Enablement team will help to position the Infoscope within the Esri ecosystem. Apart from being a partner, the Reseller Agreement will engage Esri Australia to act as a reseller of the Infoscope solution.
The management of K2F believes in Esriâs pedigree in the resources and utilities space, which leads most of the organisations in these sectors to opt for GIS platform. Infoscope has proved itself as an excellent companion to ArcGIS and âas a oneâ that offers more efficient ways to resources and utilities companies to manage land assets, which further improves their environmental, social and governance obligations. The management of Esri Australia stated that it is the companyâs commitment to prioritise the success of its clients and considers this as the core of the commercial partnerships. The reseller agreement will commence immediately. Esri offers its services to ~400,000 clients in ~150 different countries and has a pervasive global presence. The partnership of K2F with Esri will lead to increased sales opportunities.
K2F recently released the 3Q FY19 numbers, mentioning that it raised invoices of the value of ~ $838k. This number was ~38% higher than the same quarter in FY18 number of ~$607k. Invoices raised till date in FY19 came in ~ $2,692k, exceeding the total invoices raised in FY18.
Cash at hand stood at ~ $705k. Additionally, there was $821k in aged receivables from the Tier-1 clients and $100k in work-in-progress with the existing clients to be invoiced on delivery. The management is closely watching its cash position and expenditure areas. The management expects revenue to grow further with a positive outlook for FY19. The financial position of K2F validates that its current operations are slowly and gradually progressing to achieve its strategic goal of growing sales and moving towards net positive cashflows. The company acquired new clients in the March quarter. K2F signed new Infoscope software license contracts with Mineral Resources Limited and Panoramic Resources Limited, and implementations have already begun. K2F signed a consulting services contract with ABB and is expected to generate consulting revenue of ~$1.5 million in FY19. K2F also signed a service contract with Totalmobile for ~$100k.
The shares of K2F are trading at A$0.135 on ASX (as at AEST: 3:24 PM, 10 May 2019), up by massive 8% as compared to its previous closing price.
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