Comverge (COMV) Announces 5-Year Deal With Progress Energy

Posted by Tate Dwinnell | # |
09:37:17 am on January 27, 2009

Comverge just announced a 5 year contract to provide demand response hardware and software to Progress Energy. Progress Energy will use Comverge’s products in its EnergyWise energy efficiency program. This is projected to save 170 MW of energy for Progress Energy during its peak energy use periods. Comverge will install in-home energy displays, smart thermostats and digital controls to homes in the program to help reduce energy consumption.

However, Greentech Media also notes that Comverge faces some challenges in the months ahead:

But Friday also saw Comverge report that installation delays and deferred settlements in some of its its “pay-for-performance” contracts would lead it to lower its fourth-quarter 2008 earnings estimates to $75 million to $79 million, down from previous estimates of $80 million to $90 million, according to a research note from Thomas Weisel Partners.

The note’s authors did revise downward their forecasts for the company’s 2009 earnings, from $110.4 million to $98.2 million, on concerns about the ongoing recession and a slowing of smart meter deployments. Similar concerns caused analysts to downgrade smart meter maker Itron Inc. (NSDQ: ITRI) in late October, even after it posted third-quarter revenues that beat expectations.

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