Echelon Reports Third Quarter 2016 Results

Echelon Corporation (NASDAQ:ELON) today announced financial results for the third quarter ended September 30, 2016.

"Revenue from our connected lighting business increased for the third consecutive quarter while we maintained our operating expenses at historical lows," said Ron Sege, Chairman and CEO of Echelon. "This quarter we introduced exciting new products that offer a wider range of sustainability, security and livability applications for making cities and enterprises smart. According to an independent study released in October by the Northeast Group, LLC, Echelon now sits among the top three market leaders in terms of deployed smart streetlight systems worldwide."

Financial Highlights
  • Revenues: $8.2 million
  • Operating expenses $5.7 million
  • GAAP Net Loss: $1.3 million; GAAP Net Loss per Share: $0.29
  • Non-GAAP Net Loss: $1.1 million; Non-GAAP Net Loss per Share: $0.25
  • Cash & investments of $23.7 million

Revenues were $8.2 million in the third quarter, down from $10.0 million in the same period of 2015 and up from $8.1 million in the second quarter of 2016. The increase in revenues from the second quarter of 2016 is attributable to our ongoing focus on growing our lighting business. As expected, our embedded systems business is continuing its long-term decline, exacerbated year-on-year by the reduction in shipments to Enel.

GAAP gross margin in the third quarter was 54.7% compared with 56.2% in the third quarter of 2015 and 58.4% in the second quarter of 2016. The fluctuations in gross margin were predominantly due to product mix as well as overall revenue levels and certain one-time costs incurred in the third quarter of 2016.

Total operating expenses for the quarter were $5.7 million, down from $6.8 million in the third quarter last year and flat when compared to the prior quarter. The annual decrease was primarily due to our ongoing efforts to manage costs while investing in our strategy to grow our lighting business.

If you liked this article you might like

3 Stocks Pushing The Computer Hardware Industry Lower

3 Stocks Pushing The Computer Hardware Industry Lower

3 Stocks Pushing The Computer Hardware Industry Lower

3 Computer Hardware Stocks Pushing The Industry Higher

3 Stocks Pushing The Computer Hardware Industry Lower