Bike camera maker Cycliq steers its way to handy record sales
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Bike camera maker Cycliq has seen a lot of close calls, but its latest results show it’s breaking away from the pack.
Cycliq (ASX:CYQ) reported record sales of $746,000 for the September quarter — its best results since launching via crowdfunding five years ago.
The revenue will come in handy, however.
Cycliq burned $932,000 in the period, leaving $2 million in the bank — and expected to spend $2.9 million in the next three months.
Chairman Chris Singleton told Stockhead he was confident the company was on a solid trajectory to positive cash flow.
“We are a start up so we do have a solid cash burn but the rate of it is going down rapidly. Most of our money is tied up in inventory but we are working to turn that around,” he said.
Its shares were steady at 1.8c on Wednesday morning, valuing the company at $13 million.
Cycliq makes bicycle lights with in-built wide-angle cameras to capture accidents or other incidents. They are like a dash cam for bikes and boast battery life long enough to record an entire Tour de France stage in HD.
This Cycliq video reel shows its greatest hits — objects thrown out car windows, cars swerving and even mad animals.
The camera lights were becoming more popular in overseas markets, with new distributors in Norway and the Philippines adding to French and Canadian deals, Mr Singleton said.
More than 80 per cent of revenue was generated outside Australia.
“Cycliq is getting traction from our expanded global network of sales channels,” Mr Singleton said. “Due to the popularity of our product, we are seeing a close correlation between the expansion of our sales network and sales volumes.
“Strong demand for our products, a focus on cost management and initiatives aimed at reducing the double and triple handling of our products contributed to our positive performance in this quarter.”
He said the company was actively developing new products to add to their range of just two.
“With the market research, we have identified what we need to make to increase our SKUs and expand our range – we can make a better front camera, and a better back camera and our customers are constantly giving us feedback through social media channels.”
Earlier this year Cycliq brought on young Aussie cyclist Caleb Ewan as a brand ambassador.