Echelon Reports 4Q and Full Year 2012 Results
Feb 18, 2013 (Close-Up Media via COMTEX) --
Echelon Corp. announced financial results for the fourth quarter and full year 2012 ended Dec. 31, 2012.
In a release dated Feb. 12, the Company said:
-Q4 Revenues: $23.8 million
-Q4 GAAP Net Loss: $4.1 million ; GAAP Net Loss per Share: $0.10
-Q4 Non- GAAP Net Loss: $2.7 million; Non-GAAP Net Loss per Share: $0.06
-2012 Revenues: $134.0 million
-2012 GAAP Net Loss: $12.8 million; GAAP Net Loss per Share: $0.30
-2012 Non- GAAP Net Loss: $4.7 million; Non-GAAP Net Loss per Share: $0.11
"While 2012 was a challenging year in the smart grid market, we made some significant strides in Echelon's strategic transformation. We entered new territories with our subsystems strategy, developed new advanced metering products via our Echelon-Holley joint venture and successfully implemented cost saving and gross margin enhancing initiatives," said Ron Sege, chairman and CEO of Echelon.
"We ended the fourth quarter with a number of promising system and sub-system pilots and deployments, indicating that our strategy of targeting geographies with strong fundamentals for investment in grid modernization is sound. As we expect 2013 to be another year of modest demand in the smart grid market, we will continue the difficult task of restructuring our operations while investing in our strategic initiatives."
Total revenues for the fourth quarter were $23.8 million, down from $40.5 million in the same period last year. Revenues from Echelon's systems sales, reflecting sales to our utility customers, were $10.7 million for the fourth quarter, down from $26.4 million in the same period last year. Revenues from Echelon's sub-systems, largely from commercial customers, were $13.1 million in the fourth quarter, down from $14.2 million a year ago. Included in sub-systems revenues were $2.9 million of sales to Enel in the fourth quarter compared to $2.1 million in the same period last year.
For the full year of 2012, revenues were $134.0 million compared to $156.5 million in 2011. System and sub-system revenues both decreased 14 percent to $85.2 million and $48.8 million, respectively. Within sub-system sales, Enel project sales decreased 9 percent to $6.5 million.
Gross margin in the fourth quarter of 2012 was 47.0 percent compared to 39.2 percent in the fourth quarter of 2011. Total operating expenses for the quarter were $14.9 million compared to $19.8 million in the fourth quarter of 2011.
GAAP net loss for the fourth quarter was $4.1 million, or $0.10 cents per share, compared to a net loss of $4.2 million, or $0.10 cents per share, in the same period last year. Non-GAAP net loss for the fourth quarter was $2.7 million, or $0.06 cents per share, compared to a non-GAAP net loss of $1.3 million, or $0.03 cents per share for the fourth quarter of 2011.
GAAP net loss for the full year of 2012 was $12.8 million, or $0.30 cents per share, compared to GAAP net loss of $13.0 million, or $0.31 cents per share, for the same period in 2011. Non-GAAP net loss for the year was $4.7 million, or $0.11 cents per share, compared to non-GAAP net loss of $3.4 million, or $0.08 cents per share in 2011.
Restructuring Charge The company expects to incur a $2.5 to $3.0 million restructuring charge in the first quarter related to a workforce reduction that will affect approximately 15 percent of its employees. These actions are expected to be implemented over the next 12 months.
Business Outlook Echelon offers the following guidance for the first quarter of 2013:
-Total revenues are expected to be between $24.0 million and $26.0 million, with systems and sub-systems revenues accounting for about 50 percent each.
-Non-GAAP gross margin is expected to be approximately 45-46 percent.
-Stock-based compensation expense is expected to be approximately $1.0 million.
-Non-GAAP loss per share amounts are expected to range from $0.06 to $0.11, based on a fully diluted weighted average shares outstanding of 43.0 million.
-GAAP loss per share is expected to be between $0.16 and $0.21.
Echelon Corp. is an energy control networking company.
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