Echelon Corporation (NASDAQ:ELON) today announced financial results for the third quarter ended September 30, 2011.
- Revenues: $43.8 million (an increase of 62% from same quarter last year)
- GAAP Net Income: $655,000; GAAP Net Income per Share: $0.02 (including $0.03 per share due to a one-time forfeiture of equity compensation awards)
- Non-GAAP Net Income: $1.8 million; non-GAAP Net Income per Share: $0.04
“We had another solid quarter of financial performance. By focusing our activities on high growth geographies with our differentiated energy control networking systems, subsystems and components, Echelon is further establishing its presence as a global force in the smart grid industry,” said Ron Sege, chairman and CEO of Echelon. “We achieved significant milestones this quarter including the approval of our smart meters in Brazil through our partner ELO and an important streetlighting win in Oslo, Norway. As we look to the variety of opportunities in existing and emerging territories such as Latin America and China, we remain committed to the high-end of our guidance of 40% growth in 2011 and achieving non-GAAP profitability in 2012.”
Total revenues for the third quarter were $43.8 million, up from $27.1 million in the same period last year, a 62% growth rate. Revenues from Echelon’s Utility products were $29.2 million for the third quarter, up from $13.0 million in the same period last year. Revenues from Echelon’s Commercial products were up slightly from $12.5 million in the third quarter of 2010 to $12.7 million this quarter. Enel revenues were $2.0 million, compared to $1.5 million in the same period last year.
Gross margin in the third quarter of 2011 was 40.9% compared with 46.0% in the third quarter of 2010. Lower margins this quarter were driven by a combination of product mix, as more sales came from our lower-margin utility products, and by the previously-reported manufacturing cost increases. Total operating expenses for the quarter were $17.2 million compared to $19.2 million in the third quarter of 2010.