Utilities management provider Intermoco (ASX:INT) has revealed it expects to operate on a cash flow positive basis in the current quarter.
In a market update the company, which provides utilities hardware and software applications including smart grid products, said it had ended February with more cash than in December, even after accounting for $233,000 accrued from recent capital raisings.
The company said it had started to receive revenue from four embedded network contracts with various properties and housing complexes, and expects to raise $1.5 million from them this financial year.
Intermoco CEO Ian Kiddle said the company now has no long-term debt after repaying a convertible note.
He said the company is “now in a strong position with a dominant and growing market position.”
Kiddle added that Intermoco is currently in negotiations with a number of property developers, as well as with a major utility company over a long-term supply agreement for meters and communications devices.
“Our sales pipeline remains extremely strong and whilst we have experienced delays in projects, they are only timing delays due to circumstances largely outside of our control,” he said.
INT shares stayed flat on Friday at $0.003.
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