Some good news and bad news out of Echelon (ELON) tonight. The company reported a narrower loss than what Wall St expected, but the CEO announced he was stepping down to battle lung cancer but will remain on the Board as an adviser. Well wishes to you Mr. Oshman.
The company reported a non GAAP EPS loss of .11/share which was much better than the .24/share loss Wall St expected. Revenues came in a bit higher than expectations at $23.7 million. The losses should continue at least for another year until the company begins reaping the benefits of the big contract it landed with Duke Energy and Fortum. The future is certainly bright.
CEO Ken Oshman commented:
“We are very excited by our recent smart grid project announcements at Duke Energy in North America and Fortum in Finland this quarter, demonstrating our growing worldwide presence and leading position in the advanced metering market. Echelon performed well this quarter especially in light of the ongoing difficult economic conditions. Our focus on energy-saving applications continues to gain momentum and expand the Echelon brand, reflecting our commitment and investment in long-term growth opportunities for both NES and LonWorks.”
“Last week the Department of Energy announced the allocation of its $3.4 billion in Smart Grid funding to about 100 projects nationwide. With projects expected to be complete within three years, and Duke Energy one of the larger recipients, Echelon should benefit directly from the U.S. stimulus package to the extent Duke accelerates its project. This announcement is a further reflection of the industry’s move toward truly advanced metering capability and energy efficiency.”
Looking ahead to next quarter, the company sees revenues in the range of $33 – 35 million and a non GAAP loss of .06 – .10/share which would be close to what they did in the year ago 4th quarter. Wall St expected a loss of .18/share on revenues of $30 million, so good guidance as well. The stock is being pressured a bit in after hours trading most likely due to the CEO news.