GAAP net income for the third quarter was $655,000, or $0.02 cents per share, compared to a net loss of $7.8 million, or $0.19 cents per share, in the same period last year. Non-GAAP net income for the third quarter was $1.8 million, or $0.04 cents per share, compared to a non-GAAP net loss of $4.7 million, or $0.11 cents per share for the third quarter of 2010. Stock-based compensation expense was lower than expected this quarter due primarily to the reversal of approximately $976,000 of expense due to the forfeiture of awards to our former Executive Chairman, Ken Oshman, who regrettably passed away in August. Excluding expense reversal, we would have had a GAAP loss of $0.01 per share for the quarter.
Echelon offers the following guidance for the fourth quarter of 2011:
- Total revenues are expected to be $39 million to $41 million, with our Utility revenues accounting for about 62%, our Commercial revenues 33%, and the remainder from Enel.
- Non-GAAP gross margin is expected to be in the range of 40%.
- Stock-based compensation expense is expected to be approximately $3.2 million.
- Non-GAAP loss per share amounts are expected to range from $0.04 to $0.07, based on a fully diluted weighted average shares outstanding of 42.5 million.
- GAAP loss per share is expected to be between $0.12 and $0.14 for the quarter.
Subsequent DevelopmentsSubsequent to the end of the third quarter, Duke Energy cancelled its $14.5 million order with Echelon for Edge Control Nodes, previously announced in September 2010. Duke’s successful deployment of Echelon smart meters in Ohio will continue as planned. Based on Duke’s current smart grid regulatory timeline across their other state jurisdictions, Echelon will prioritize the development of its ECN and Control Operating System (COS) software to meet the nearer-term needs of its customers in Europe and Latin America.