Eroad 'on track' as transport tech opportunities open up in US
Transport technology firm Eroad says it is on track to become an international leader in its field after increasing its sales 76 per cent to $17.6m.
The Auckland firm, which employs 155 staff, provides hardware and software to monitor commercial vehicle fleets, automating tasks such as the collection of road user charges.
Chief executive Steven Newman said a "significant market opportunity" was unfolding in Oregon in the United States, its major market outside New Zealand and Australia.
All commercial drivers in the US will be required to electronically record their driving hours by 2017 if they drive between states. Newman said he was happy with the progress Eroad had made developing a product to meet that requirement.
A separate system which automates the collection of fuel tax had been well received by customers and regulators in North America, Newman said.
Together the products would help Eroad address a market of more than 5 million vehicles in North America, he said.
The company reported a net loss of $1.2m for the year, its first as an NZX-listed company, down from a $2.9m profit the previous year.
Eroad had forecast a $1m loss, with the $2m cost of its August initial public offering (IPO) tipping it into the red. Eroad said in a statement that its result was "largely in line with forecast".
However, despite Eroad's strong revenue growth for the year they fell 7 per cent shy of its prospectus forecast of $19m.
Eroad shares were trading down 1.5 per cent in late morning trading on Thursday, after the result, valuing the company at $237m.