LOL. Why don't they report "Revenue down 14% from previous quarter"
Thursday April 11, 4:00 pm Eastern Time
Press Release
SOURCE: Echelon
Echelon Reports Second Consecutive Quarterly Operating Profit, 119% Revenue Growth
$0.07 EPS Beats Street Estimates
SAN JOSE, Calif.--(BUSINESS WIRE)--April 11, 2002--Echelon Corporation (Nasdaq:ELON - news) today announced financial results for the quarter ended March 30, 2002, exceeding analysts' expectations by about $0.01 per share.
``We are very pleased with our results this quarter,'' said M. Kenneth Oshman, Echelon's chairman and chief executive officer. ``While the sluggish world economy continues to put pressure on our core business, we completed our seventh consecutive profitable quarter and earned our second consecutive quarterly operating profit. Our business with Enel S.p.A. continues to go well with over 700,000 LonWorks® enabled electric meters installed to date. Although we don't foresee any near-term change in the economic climate, we continue to believe that this will be an exciting, profitable, growth year.''
Revenues for the quarter ended March 31, 2002 were $27.6 million, an increase of 119% over revenues of $12.6 million for the same period in 2001. Net profit for the quarter ended March 31, 2002 was $2,687,000, or $0.07 cents per share, based on a fully diluted weighted average of 41,085,000 common shares outstanding, compared to a net profit of $22,000, or $0.00 cents per share, based on a fully diluted weighted average of 40,916,000 common shares outstanding for the same period in 2001. Gross margin for the quarter ended March 31, 2002 was 51.0%, compared with 61.9% for the same period in 2001. Total operating expenses for the quarter ended March 31, 2002 were $12.2 million, compared to $10.0 million for the same period in 2001. Operating expenses for the quarter ended March 31, 2002 included a one-time in-process R&D charge of $400,000 related to our acquisition of BeAtHome.com, Inc.
In addition to strong financial performance, the quarter included a number of important events as highlighted below:
Echelon announced and completed the acquisition of BeAtHome.com, Inc., adding a great group of people to our team and bringing an important new services platform to Echelon. We believe that, in time, this new services platform will help speed the adoption and deployment of LonWorks based monitoring and control solutions by utilities, businesses, and factories worldwide and, at the same time, create new on-going revenue opportunities for Echelon.
Echelon announced an expanded relationship with Fuji Electric that we expect will strengthen our position in the industrial automation market.
Echelon announced an agreement with the National Joint Apprenticeship and Training Committee (NJATC), the training program of the National Electrical Contractors Association (NECA) and the International Brotherhood of Electrical Workers (IBEW), to jointly market, advertise, promote, and deliver LonWorks training classes to IBEW and NECA members. We believe that a pool of talented, well trained, LonWorks savvy electricians and contractors will help expand and accelerate our growth in the North American buildings market.
At a recent investor conference in Italy, Enel S.p.A. indicated that it is on track to reach an installation-rate of 1 million meters per month later this year, at which point Enel's monthly installations will be larger than the entire customer base of many US utilities.
For those interested in further discussion regarding this release, Echelon's management will participate in a conference call today at 2:00 pm PST. To access the conference call, dial 1-800-388-8975 (callers outside the US please use +1-973-694-2225); however, due to a limited number of available phone lines, the company asks that only those persons without Web access call this number. The call will be available live today, and for playback on the Investor Relations section of Echelon's web site (www.echelon.com) through April 19th, 2002. |
