WILMINGTON, Del., May 15, 2015 /PRNewswire/ -- Acorn Energy,
Inc. (NASDAQ: ACFN), today announced the results for the first
quarter period ended March 31,
2015.
For the first quarter of 2015, revenues were $4.6 million compared to $4.5 million in the first quarter of 2014. The
net loss for the first quarter was $2.8
million, or $0.11 per share
($0.07 per share from continuing
operations) compared to $4.3 million
or $0.19 per share ($0.11 per share from continuing operations) in
the 2014 first quarter. Losses for the 2015 and 2014 first
quarters included losses from its discontinued
USSI operations of $1.2 million
and $2.0 million, respectively.
John Moore, CEO of Acorn Energy
commented, "Acorn Energy is now more sharply focused on developing
and selling systems for improving the resiliency of energy
infrastructure. Whether the challenge is from aging
infrastructure, a natural disaster or man-made from terrorism or
war, Acorn provides our customers with the resiliency they
need. Our focus is on reducing costs, improving margins and
increasing sales."
DSIT Solutions
DSIT Solutions, headquartered in
Israel, is a leading developer of
underwater sensor detection systems to protect harbors, ships and
waterside installations, as well as offshore multi-million dollar
oil and gas rigs. In late 2014 and the first quarter of 2015, DSIT
received over $19 million of new
orders, increasing DSIT's backlog as of March 31, 2015 to $26.5
million, or more than twice the year ended December 31, 2014 backlog of $12.0 million.
DSIT revenue for the first quarter 2015 was $3.0 million as compared to 2014 first quarter
revenue of $2.9 million. Operating
losses in the first quarter 2015 were $174,000 compared to a first quarter 2014 loss of
$207,000. Gross margin is expected to
improve over the balance of 2015 as DSIT expects a shift to
higher-margin projects.
Early warning systems such as DSIT's Diver Detection Sonar (DDS)
reduce the risk of a successful attack on water-based facilities.
At a NATO conference in 2014 for harbor security, each member
committed to invest in underwater surveillance of infrastructure by
the end of 2016. Only DSIT was invited to present because of its
experience, installed base and case histories. In September 2014, Frost and Sullivan released a
report on DDS systems which stated that DSIT was the world leader
in protecting underwater energy infrastructure.
DSIT is expected to generate revenue growth and increased cash
flow in 2015 following its receipt of new orders in late 2014 and
early 2015. As a result, DSIT has agreed to lend Acorn Energy up to
$5 million in 2015 and additional
funds in 2016 to the extent these funds are available. This
liquidity is expected to provide capital to build GridSense and
OmniMetrix to the point that neither will require capital in
2016.
GridSense®
GridSense develops and markets
remote monitoring systems for utility companies. The focus is on
fault detection on power lines and transformers and the prevention
of power outages. Its unique solutions are applicable to overhead
lines and hundreds of thousands of underground and vault
transformers, most of which are approaching or past the end of
their expected lives.
GridSense revenues for the first quarter of 2015 were
$908,000, compared to $963,000 in the first quarter of 2014. Gross
profit increased by $92,000 or
50%.
GridSense has strengthened its management team with the recent
hiring of a new V.P. of sales. GridSense is focusing on support for
near-term projects with existing products and customers and has
reduced its engineering expenditures.
OmniMetrix®
OmniMetrix has developed
one of the most advanced systems for wirelessly and remotely
monitoring back-up generators and devices for monitoring corrosion
in gas pipelines. OmniMetrix generates recurring revenue from its
in-field equipment.
OmniMetrix revenue for the first quarter increased from
$641,000 in 2014 to $673,000 in 2015. The increase in revenue is
driven by an increase in the number of units being monitored, as
well as an increase in the revenue generated from monitors
sold.
OmniMetrix's corrosion protection products are now receiving
increased marketing attention. We hired a head of business
development for this segment with over 30 years of pipeline
industry experience. There are over 300,000 miles of gas
transmission pipelines and over two million miles of gas
distribution pipelines servicing over 67 million commercial and
residential consumers in North
America. Corrosion, commonly known as rust, is a major
problem for pipeline infrastructure. In some cases it may be
necessary for operators to decrease pressure, which reduces
throughput and results in lost revenue. Rectifiers are used
to provide a means of protection against corrosion, and, currently,
a majority of the rectifiers are manually inspected. OmniMetrix's
products remotely monitor and control the rectifiers, which reduces
field visits and improves regulatory reporting.
About Acorn Energy, Inc.
Acorn Energy, Inc. is a
holding company whose three portfolio companies help their
customers achieve greater productivity, reliability, security, and
efficiency—factors which can lead to greater profitability. DSIT
provides security solutions from underwater threats to naval and
marine-based energy assets. GridSense® provides
monitoring for all critical points along the electricity delivery
system. OmniMetrix® remotely monitors and controls
critical equipment, primarily in the form of emergency back-up
power generation systems and gas pipeline corrosion protection
systems to increase their reliability and enable regulatory
compliance. For more information visit:
http://www.acornenergy.com.
Conference Call Information
Acorn Energy will host an
investor call on Monday, May 18, 2015
at 11am EDT to discuss its first
quarter 2015 results and developments. Participants can
pre-register for the conference call and webcast by accessing the
link below. Pre-registering gives one immediate entry into the
call, zero wait time and will automatically populate your outlook
calendar with an invitation. http://dpregister.com/10065550
Participants that would like to join the conference call, but
have not registered, can do so by dialing US Toll Free: (866)
652-5200, International Dial in (412) 317-6060 and asking for the
"Acorn Energy Conference Call". If you are unable to participate in
the live call, a digital replay of the call will be available 1
hour after the end of the live call through 9:00am EDT on Thursday
June 18, 2015 by dialing US Toll Free 1-877-344-7529 or
International Toll 1-412-317-0088 and entering access code -
10065550.
Safe Harbor Statement
This press release includes
forward-looking statements, which are subject to risks and
uncertainties. There is no assurance that Acorn Energy, Inc. or its
operating companies will continue to grow their respective
businesses, or that any of them will meet the expectations or
execute the initiatives described or referred to above. A complete
discussion of the risks and uncertainties which may affect Acorn
Energy's business generally and the businesses of its subsidiaries
is included in "Risk Factors" in the Company's Form 10-K filed with
the Securities and Exchange Commission.
Investor & Press Contact:
Rodney O'Connor
Cameron Associates
(212) 554-5470
Rod@cameronassoc.com
- Financial Tables to Follow -
|
ACORN ENERGY, INC.
AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
(IN THOUSANDS,
EXCEPT PER SHARE DATA)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
March 31,
|
|
2015
|
|
2014
|
|
Revenues:
|
|
|
|
|
Projects
|
$ 2,966
|
|
$ 2,792
|
|
Products
|
1,133
|
|
1,203
|
|
Services
|
519
|
|
459
|
|
Total
revenues
|
4,618
|
|
4,454
|
|
Cost of
sales:
|
|
|
|
|
Projects
|
2,179
|
|
1,960
|
|
Products
|
800
|
|
951
|
|
Services
|
120
|
|
113
|
|
Total cost of
sales
|
3,099
|
|
3,024
|
|
Gross
profit
|
1,519
|
|
1,430
|
|
Operating
expenses:
|
|
|
|
|
Research and
development expenses, net of credits
|
565
|
|
727
|
|
Selling, general and
administrative expenses
|
2,781
|
|
3,318
|
|
Total operating
expenses
|
3,346
|
|
4,045
|
|
Operating
loss
|
(1,827)
|
|
(2,615)
|
|
Finance income
(expense), net
|
12
|
|
(59)
|
|
Loss before income
taxes
|
(1,815)
|
|
(2,674)
|
|
Income tax
benefit
|
33
|
|
55
|
|
Net loss from
continuing operations
|
(1,782)
|
|
(2,619)
|
|
Loss from
discontinued operations, net of income taxes
|
(1,152)
|
|
(1,956)
|
|
Net loss
|
(2,934)
|
|
(4,575)
|
|
Non-controlling
interest share of net loss - continuing operations
|
20
|
|
25
|
|
Non-controlling
interest share of net loss - discontinued operations
|
145
|
|
246
|
|
Net loss attributable
to Acorn Energy, Inc. shareholders
|
$ (2,769)
|
|
$ (4,304)
|
|
|
|
|
|
Basic and diluted net
loss per share attributable to Acorn Energy, Inc.
shareholders
|
|
|
|
|
Continuing operations
|
$ (0.07)
|
|
$ (0.11)
|
|
Discontinued operations
|
(0.04)
|
|
(0.08)
|
|
Total attributable to
Acorn Energy, Inc. shareholders
|
$ (0.11)
|
|
$ (0.19)
|
|
|
|
|
|
Weighted average
number of shares outstanding attributable to Acorn
Energy,
Inc. shareholders – basic and diluted
|
26,476
|
|
22,171
|
|
|
|
|
|
ACORN ENERGY, INC.
AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
(IN THOUSANDS,
EXCEPT SHARE AND PER SHARE DATA)
|
|
|
|
|
|
|
|
As of March 31,
2015
|
|
As of December 31,
2014
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
2,099
|
|
$
4,821
|
|
Restricted
deposits
|
|
457
|
|
467
|
|
Accounts receivable,
net of provisions for doubtful accounts of
$143 at March 31, 2015 and December 31, 2014
|
5,335
|
|
4,902
|
|
Unbilled
revenue
|
|
7,685
|
|
7,890
|
|
Inventory
|
|
1,330
|
|
1,374
|
|
Other current
assets
|
|
1,877
|
|
1,813
|
|
Current assets -
discontinued operations
|
|
141
|
|
143
|
|
Total current
assets
|
|
18,924
|
|
21,410
|
|
Property and
equipment, net
|
|
1,101
|
|
1,080
|
|
Severance
assets
|
|
3,261
|
|
3,256
|
|
Restricted
deposits
|
|
656
|
|
650
|
|
Intangible assets,
net
|
|
1,127
|
|
1,211
|
|
Goodwill
|
|
1,019
|
|
1,031
|
|
Other
assets
|
|
811
|
|
905
|
|
Total
assets
|
|
$
26,899
|
|
$
29,543
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Short-term bank
credit and current maturities of long-term debt
|
$
4,528
|
|
$
4,419
|
|
Accounts
payable
|
|
2,511
|
|
2,187
|
|
Accrued payroll,
payroll taxes and social benefits
|
1,642
|
|
1,584
|
|
Deferred
revenue
|
|
1,177
|
|
1,634
|
|
Other current
liabilities
|
|
3,518
|
|
3,028
|
|
Current liabilities -
discontinued operations
|
|
4,372
|
|
4,693
|
|
Total current
liabilities
|
|
17,748
|
|
17,545
|
|
Long-term
liabilities:
|
|
|
|
|
|
Accrued
severance
|
|
4,590
|
|
4,594
|
|
Other long-term
liabilities
|
|
956
|
|
1,011
|
|
Total long-term
liabilities
|
|
5,546
|
|
5,605
|
|
Commitments and
contingencies
|
|
|
|
|
|
Equity:
|
|
|
|
|
Acorn Energy, Inc.
shareholders
|
|
|
|
|
|
Common stock - $0.01
par value per share:
|
|
|
|
|
Authorized –
30,000,000 shares; Issued –27,277,511 shares at
March 31, 2015 and December 31, 2014
|
272
|
|
272
|
|
Additional paid-in
capital
|
|
97,815
|
|
97,607
|
|
Warrants
|
|
1,641
|
|
1,641
|
|
Accumulated
deficit
|
|
(89,361)
|
|
(86,592)
|
|
Treasury stock, at
cost – 801,920 shares at March 31, 2015 and
December 31, 2014
|
(3,036)
|
|
(3,036)
|
|
Accumulated other
comprehensive loss
|
(282)
|
|
(212)
|
|
Total Acorn Energy,
Inc. shareholders' equity
|
7,049
|
|
9,680
|
|
Non-controlling
interests
|
(3,444)
|
|
(3,287)
|
|
Total
equity
|
|
3,605
|
|
6,393
|
|
Total liabilities and
equity
|
$
26,899
|
|
$
29,543
|
|
|
|
|
|
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SOURCE Acorn Energy, Inc.