Echelon Corporation Announces First Quarter 2000 Revenues Increase 30% from Prior Year
April 20, 2000 04:01 PM Eastern Time
PALO ALTO, Calif.--(BUSINESS WIRE)--April 20, 2000--Echelon Corporation ELON today announced financial results in line with expectations for the quarter ended March 31, 2000.
Revenues for the quarter ended March 31, 2000 were $11.4 million, an increase of 30% over revenues of $8.8 million for the same period in 1999. Net loss for the quarter ended March 31, 2000 was $651,000, or -$0.02 per share, based on a weighted average of 33,651,000 common shares outstanding, compared to a net loss of $1.6 million, or -$0.05 per share, based on a weighted average of 32,639,000 common shares outstanding in the first quarter of 1999.
Gross margin for the quarter ended March 31, 2000 was 58.4%, compared with 57.9% for the same period in 1999. Total operating expenses for the quarter ended March 31, 2000 were $7.6 million, compared to $7.0 million for the same period in 1999.
"We are very pleased with the results of our first quarter," said M. Kenneth Oshman, the Company's chairman, chief executive officer, and president. "In March, we began shipments of our new i.LON(TM) 1000 Internet Server, a breakthrough product that enables millions of everyday devices networked with Echelon's LonWorks(R) technology in homes, buildings, factories, and transportation systems to become part of the Web. The i.LON 1000 paves the way for a wide range of new Internet-based markets and applications for industry and consumers alike. Initial demand for this important new product was very good. The quarter was notable for many very exciting and important announcements, highlighting the accelerating momentum of LonWorks networks around the globe."
Echelon's free topology networking technology was adopted as an open American National Standards Institute (ANSI) standard under ANSI/EIA 709.3-1999. Designed to send information between everyday devices like appliances, lighting systems, heating and air conditioning controls, security systems, motors, and pumps, Echelon's free topology twisted pair technology employs advanced digital signal processing that automatically adapts to a wide range of wire types and compensates for different installation methods.
At the 2000 International Consumer Electronics Show (CES), Echelon and LonWorks networks were featured in the home networking exhibits of Cisco Systems, Microsoft Corporation, and Sun Microsystems. Using products and technology from Echelon, these industry leaders showed the role that smart devices play in new services which enable service providers to attract new subscribers, reduce customer churn, and create new revenue streams.
NTT DATA Corporation, the leading provider of information systems and computer networking in Japan, joined Echelon's Authorized Network Integrator Program. As an Echelon Authorized Network Integrator, NTT DATA plans to offer design, construction, operations, and maintenance services of LonWorks based control systems to real estate and construction companies starting this April.
Echelon and Toshiba Corporation announced a renewal of their license agreement, under which Toshiba will continue to produce, market, and sell Neuron(R) Chips and Neuron Chip derivatives for an additional ten years. Neuron Chips are cost-effective, optimized LonWorks enabled microcontrollers that enable intelligence to be built into everyday electronic devices and enable these devices to communicate with each other and through the Internet. Millions of Neuron Chips are already in use worldwide in buildings, factories, trains, homes, planes, and hundreds of other applications.
Echelon and the Home and Building Control business of Honeywell signed a three-year International Purchase Agreement. Under this agreement, Honeywell intends to establish LonWorks networks and Echelon's LNS(TM) network operating system as a worldwide standard for the control infrastructure in Honeywell's building control systems. In addition, the agreement establishes Echelon as their primary supplier of LonWorks infrastructure products such as installation tools, routers, and network interfaces.
Another important milestone was that the i.LON 1000 Internet Server successfully completed worldwide field trials and has achieved certification by Cisco Systems under the Cisco NetWorks(TM) Program.
The German LonUsers(R) Organization (LNO) recommended that Echelon's LNS network operating system and plug-in architecture be used as the basis for a common network infrastructure by its members throughout Germany and, ultimately, Europe. With more than 140 member companies, LNO is the largest independent LonWorks user group and includes a cross section of some of Germany's most respected and influential automation companies, including ABB, Honeywell AG, JCI, and the Landis & Staefa division of Siemens.
Echelon and LG Electronics (LGE) of Korea joined forces to promote open, interoperable networked devices in the home. LGE, one of the world's largest manufacturers of home appliances, will provide interoperable, Internet-connected home appliances such as refrigerators, microwaves, and other appliances using Echelon's LonWorks control networks. As part of its commitment to LonWorks, LGE has joined the LonMark(R) Interoperability Association as a sponsor member.
Telia AB, a leading Swedish telecom company, has chosen Echelon's LonWorks system as a standard for networking everyday devices in Telia's Connected Home initiative. Telia's Connected Home initiative involves collaborating on the development of network-delivered services via networked devices in the home. The initiative will involve typical products and services for the home including networked kitchen appliances, interactive entertainment centers, home control and security systems, and home offices. Telia is currently working to roll out the concept to a small collection of homes in Europe and will conduct initial field trials in select areas of Scandinavia during the year 2000.
Echelon signed an International LonWorks Open Systems Reseller Agreement with TAC AB, a leading supplier of IT solutions for integrated building control systems. Under the agreement, TAC and its channel of independent network integrators will become authorized resellers of Echelon's LNS network operating system and LonMaker(TM) for Windows(R) Integration Tool products. Echelon and TAC will also carry out joint marketing programs to increase the use of LonWorks networks in the building controls market. Working together, Echelon and TAC will expand the leading position of LonWorks networks as the premier solution for networking of everyday devices in the buildings market.
For those interested in further discussion regarding this release, Echelon's management will participate in a conference call at 2:00 P.M. PST today, April 20, 2000. To access the conference call, dial 888/293-1205 (toll-free) any time after 1:50 P.M. PDST. The call will be available live today, and for playback on the Investor Relations section of Echelon's web site ( echelon.com ) through April 24, 2000.
About Echelon Corporation
Echelon Corporation is the developer of LonWorks networks, recognized internationally as a standard for open, interoperable control networks. With thousands of application developers and millions of devices installed worldwide, LonWorks is the leading cross-industry standard for networking everyday devices in building, home, industrial, transportation, and public utility applications. Echelon offers a full range of off-the-shelf hardware and software products to support the development, installation and management of intelligent, open and interoperable control networks.
Products that have been verified to conform to Echelon's LonMark interoperability guidelines are eligible to carry the LonMark logo, an indicator that a product has been designed to interoperate over a LonWorks network.
Echelon is based in Palo Alto, Calif., with international offices in China, France, Germany, Japan, Korea, The Netherlands, and the United Kingdom. Further information can be found at echelon.com. Additional information about the LonMark Interoperability Association can be found at lonmark.org.
This press release may contain statements relating to future plans, events or performance. Such statements may involve risks and uncertainties, including risks associated with uncertainties pertaining to the timing and level of customer orders, demand for products and services, development of markets for Echelon's products and services, and other risks identified in Echelon's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Echelon undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
The financial statements that follow should be read in conjunction with the notes set forth in Echelon's Form 10-Q when filed with the Securities and Exchange Commission.
Note to Editors: Echelon, the Echelon logo, LONMARK, the LONMARK logo, Neuron, LonUsers, and LonWorks are trademarks of Echelon Corporation registered in the United States and other countries. i.LON, LNS, LonMaker, and Bringing the Internet to Life are trademarks of Echelon Corporation. Other marks belong to their respective holders.
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Only offered as a more readable, NON-fixed font reprint of Ray Fortier's graciously posted Press Release two posts prior. The numbers and fixed format lend itself to the portion of the Press Release containing financials, and viewers of this post should flip back to Ray's original post for the nitty gritty.
THANKS, RAY.
Have a good weekend, threaders. |
