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Acorn Energy Second Quarter Revenue up 116% to $7.8 Million; Quarterly and Six Month Gross Profit Grow 238% and 183% Respectively |
Acorn Energy Second Quarter Revenue up 116% to $7.8 Million; Quarterly and Six Month Gross Profit Grow 238% and 183% Respectively
MONTCHANIN, Del., Aug. 13, 2009 -Acorn Energy Inc. (Nasdaq: ACFN - News) an energy technology holding company, today announced results for the second quarter ended June 30, 2009. Below are the highlights from the three month and six month periods:
Q2 2009 Highlights
* Revenues increased by 116% to $7.8 million
* Gross profit increased by 238% to $3.5 million
* CoaLogix revenues increased by 236% to $4.5 million
* CoaLogix gross profit increased by $1.3 million or 370%
* DSIT was profitable
Six Month Highlights
* Revenue increased 106% to $16.3 million
* Gross Profit increased by 183% to $6.9 million
* CoaLogix revenues increased 176% to $9.9 million
* CoaLogix gross profit increased 215% or $2.4 million
* Both CoaLogix and DSIT were profitable
"Results for the quarter reflect our consistent business strategy of investing in innovative companies with strong management that address major problems in the energy industry. We continue to see opportunities for significant growth as each of our companies expand their product offerings, broaden their markets and build solid reputations for quality solutions and services throughout the industry," said John Moore, CEO of Acorn Energy.
Q2 Financial Review
* Revenues in the second quarter of 2009 increased by $4.2 million or 116% to $7.8 million. The increase in revenues was primarily due to the increased revenues at CoaLogix, which increased by $3.2 million to $4.5 million compared to second quarter 2008 revenues. An additional increase of $1.1 million is attributable to the acquisition of Coreworx in August 2008. DSIT revenues decreased slightly from $2.2 million to $2.1 million. The increase in CoaLogix revenues was due to increased penetration in the regeneration market combined with the ability to process more SCR modules facilitated by the completion of a plant expansion in the fourth quarter 2008.
* Gross profit in the second quarter of 2009 increased by $2.5 million or 238% as compared to the second quarter of 2008. The increase in gross profit was attributable to the inclusion of Coreworx gross profit in the second quarter of 2009 of $0.9 million and increased gross profit at CoaLogix of $1.3 million, an increase of 370 %, and $0.3 million at DSIT, an increase of 37 %. Gross margins for CoaLogix increased to 36% in the second quarter of 2009 from 25% in the second quarter of 2008. Gross margin in DSIT increased from 31% in the second quarter of 2008 to 44% in the second quarter of 2009 due to higher margin projects worked on in 2009 in DSIT's Naval and RT Solutions segment.
* Selling, general and administrative expenses ("SG&A") in the second quarter of 2009 increased by $2.2 million as compared to the second quarter of 2008. A portion of the increase was attributable to the inclusion in 2009 of Coreworx's SG&A costs of $1.7 million. CoaLogix's SG&A costs in the second quarter of 2009 increased by $0.7 million as compared to the second quarter of 2008, reflecting increased overhead costs resulting from the company's growth and legal fees associated with the EES and Evonik lawsuits. DSIT's SG&A costs were relatively unchanged. Corporate general and administrative costs decreased by $0.2 million reflecting the effects of the Company's efforts to reduce overhead costs.
* Subsequent to the end of the quarter, Acorn repaid corporate debt of $3.4 million in principal and $68,000 of outstanding interest related to the acquisition of Coreworx in August of 2008. Following the repayment of the debt, the company has unrestricted cash of $7.5 million and restricted cash of $2.7 million.
Investor Conference Call - Thursday, August 13 at 2:00 pm Eastern Time
The company will host an investor call today, August 13(th) at 2:00 pm ET to discuss its second quarter 2009 results and developments at the Company. To participate in the conference call, please dial (800) 860-2442 or (412) 858-4600 (Intl) (no pass code required). The call will also be broadcast live on the Internet at www.acornenergy.com.
If you are unable to participate in the live call, a digital replay of the call will be available from Thursday, August 13, 2009 at 4:00 PM through 9:00 AM on August 21, 2009 by dialing (877) 344-7529 and entering account # 432878. An archive of the webcast will be available approximately two hours after the conclusion of the call through August 21, 2009.
About Acorn Energy, Inc.
Acorn Energy, Inc. is a publicly traded holding company with equity interests in CoaLogix, Coreworx, DSIT and Gridsense. These companies leverage advanced technologies to transform and upgrade the energy infrastructure around the world. Acorn companies are focused on three problems in the energy sector: improving the efficiency of the energy grid, reducing the risk for owners of large energy assets, and reducing the environmental impact of the energy sector. Acorn's strategy is to take primarily controlling positions in companies led by great entrepreneurs. For more information visit http://www.acornenergy.com.
Safe Harbor Statement
This press release includes forward-looking statements, which are subject to risks and uncertainties. There is no assurance that CoaLogix, DSIT or Coreworx will continue to grow their respective businesses. A complete discussion of the risks and uncertainties which may affect Acorn Energy's business generally is included in "Risk Factors" in the Company's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.
ACORN ENERGY, INC. AND SUBSIDIARIES
Consolidated Statements of Operations (unaudited)
(in thousands, except per share data)
Six months ended Three months ended
June 30, June 30,
---------------- -----------------
2008 2009 2008 2009
---- ---- ---- ----
Sales
Catalytic regeneration
services $3,601 $9,937 $1,352 $4,547
Projects 4,041 4,002 2,133 2,036
Software license and
services -- 2,102 -- 1,075
Other 260 217 122 122
--- --- --- ---
7,902 16,258 3,607 7,780
----- ------ ----- -----
Cost of sales
Catalytic regeneration
services 2,498 6,466 1,007 2,931
Projects 2,777 2,351 1,470 1,132
Software license and
services -- 416 -- 145
Other 197 156 98 82
--- --- --- ---
5,472 9,389 2,575 4,290
----- ----- ----- -----
Gross profit 2,430 6,869 1,032 3,490
Operating expenses:
Research and development
expenses, net of SRED
credits of $1,016 in 2009 108 (348) 57 (624)
Impairments 516 80 268 10
Selling, general and
administrative expenses 4,723 8,727 2,418 4,619
----- ----- ----- -----
Total operating expenses 5,347 8,459 2,743 4,005
----- ----- ----- -----
Operating loss (2,917) (1,590) (1,711) (515)
Gain on early
redemption of
convertible debentures 1,259 -- -- --
Finance income (expense),
net (2,900) (84) 88 85
Gain on sale
of Comverge shares 5,782 1,227 5,782 810
----- ----- ----- ---
Income (loss) before taxes
on income 1,224 (447) 4,159 380
Tax benefit
(expense) on income 2 -- (640) --
--- --- ---- ---
Income (loss) from
operations of the
Company and its
consolidated
subsidiaries 1,226 (447) 3,519 380
Share in losses of
GridSense (134) (129) (134) --
Share in losses of
Paketeria (661) -- (374) --
---- --- ---- ---
Net income (loss) 431 (576) 3,011 380
Net (income) loss attributable
to non-controlling interests 80 (144) 89 (37)
--- ---- --- ---
Net income (loss)
attributable to Acorn
Energy Inc. $511 ($720) $3,100 $343
==== ===== ====== ====
Basic and diluted
earnings per share
attributable to Acorn
Energy Inc.:
Net income (loss) per
share attributable
to Acorn Energy Inc.
- basic $0.05 ($0.06) $0.28 $0.03
===== ====== ===== =====
Net income (loss) per
share attributable
to Acorn Energy Inc.
- diluted $0.04 ($0.06) $0.26 $0.03
===== ====== ===== =====
Weighted average
number of shares
outstanding attributable
to Acorn Energy Inc.
- basic 11,138 11,456 11,243 11,377
====== ====== ====== ======
Weighted average
number of shares
outstanding attributable
to Acorn Energy Inc.
- diluted 11,995 11,456 12,138 11,553
====== ====== ====== ======
ACORN ENERGY, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except share and per share data)
ASSETS As of As of
December 31, June 30,
2008 2009
----------- --------
(unaudited)
----------
Current assets:
Cash and cash equivalents $15,142 $14,612
Restricted deposit 2,157 2,592
Accounts receivable, net 4,524 3,679
Unbilled work-in-process 581 1,880
Inventory 1,148 1,544
Available for sale - Investment in
Comverge -- 392
Other current assets 2,080 1,944
----- -----
Total current assets 25,632 26,643
------ ------
Property and equipment, net 2,447 2,497
Available for sale - Investment in
Comverge 2,462 --
Investment in GridSense 129 --
Investment in EnerTech 1,117 1,537
Funds in respect of employee
termination benefits 1,677 1,739
Restricted deposit 579 561
Other intangible assets, net 10,357 10,067
Goodwill 6,342 6,425
Other assets 313 344
--- ---
Total assets $51,055 $49,813
======= =======
LIABILITIES AND EQUITY
Current liabilities:
Short-term bank credit and current
maturities of long-term debt $445 $200
Notes payable 3,400 3,400
Trade accounts payable 2,285 1,449
Accrued payroll, payroll taxes and
social benefits 1,314 1,126
Other current liabilities 4,350 3,561
----- -----
Total current liabilities 11,794 9,736
------ -----
Long-term liabilities:
Liability for employee termination
benefits 2,651 2,689
Other liabilities 487 561
--- ---
Total long-term liabilities 3,138 3,250
----- -----
Equity:
Acorn Energy Inc. Common stock -
$0.01 par value per share:
Authorized - 20,000,000 shares;
Issued -12,454,528 at December
31, 2008 and June 30, 2009 124 124
Additional paid-in capital 54,735 55,746
Warrants 1,020 1,020
Accumulated deficit (17,587) (18,307)
Treasury stock, at cost - 841,286
and 1,258,681 shares for December
31, 2008 and June 30, 2009,
respectively (3,719) (4,781)
Accumulated other comprehensive
income (loss) (425) 57
---- ---
Total Acorn Energy Inc.
shareholders' equity 34,148 33,859
Non-controlling interests 1,975 2,968
----- -----
Total equity 36,123 36,827
------ ------
Total liabilities and equity $51,055 $49,813
======= =======
Investor Contact:
Paul Henning
Cameron Associates
(212) 554-5462
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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