Acorn Energy, Inc., a provider of Internet of Things (IoT) remote monitoring and control systems and services, announced results for its third quarter ended September 30, 2017. Acorn will review its results and outlook in a conference call today at 4:30 p.m. ET, and an audio replay will be available thereafter (details below).
Jan Loeb, President and CEO of Acorn, commented, “Our OmniMetrix remote monitoring and control business continued its growth and margin expansion in the third quarter. OmniMetrix grew revenue 15% and its gross margin rose to 58%. New orders, most of which are recorded into deferred revenue and then amortized and recognized as revenue have grown over 25% for the first nine-month period of 2017 versus the comparable 2016 period, which is in line with our growth expectations. We continue to see solid organic growth potential for OmniMetrix. We will also keep looking for synergistic opportunities in this or the related IoT space to help accelerate our growth and improve our bottom line performance.
“During the third quarter, we deconsolidated the GridSense activities from our balance sheet following the dissolution of our GridSense Inc. subsidiary in the U.S. and the deregistration of GridSense Pty Ltd. in Australia. As a result of removing GridSense net liabilities from our books, we recorded a non-cash gain on the deconsolidation of $660,000 which contributed to a profitable quarter.
“We continue to work toward the sale of our remaining interest in DSIT to further enhance our financial position and to focus our company on the growth potential of our OmniMetrix business. We have several parties engaged in various stages of discussion regarding DSIT and hope to have more to say about this effort over the next several months.”
Acorn’s Financial Results
Acorn’s financial results reflect the deconsolidation of DSIT’s operating results following the sale of a portion of Acorn’s ownership in April 2016. DSIT’s operating results were fully consolidated for the period January 1 through April 21, 2016. Thereafter, Acorn records its share of DSIT’s net income under the equity method as “Share of income in DSIT.”
As a result of the growth in its OmniMetrix subsidiary, Acorn’s third quarter 2017 revenue increased 15% to $1,085,000 from $942,000 in the third quarter 2016. Principally reflecting the impact of the DSIT deconsolidation in April 2016, Acorn’s revenue for the first nine months of 2017 decreased to $3,226,000 from $7,618,000 in the comparable 2016 period. First nine months’ revenue included $5,074,000 of DSIT revenue in 2016.
Acorn reported third quarter 2017 net income attributable to shareholders of $236,000, or $0.01 per share, compared to net income of $652,000, or $0.02 per share, in the third quarter of 2016. The third quarter of 2017 included income from discontinued operations of $633,000, primarily related to a $660,000 gain on the deconsolidation of GridSense. The third quarter of 2016 included income from discontinued operations of $1,187,000, primarily related to a gain on the sale of GridSense assets in the period. Acorn’s share of income in DSIT increased to $189,000 in the third quarter of 2017 from $38,000 in the third quarter of 2016.
For the first nine months of 2017, Acorn reported a net loss attributable to shareholders of $475,000, or $0.02 per share, versus net income of $113,000, or $0.00 per share, in the first nine months of 2016. The first nine-month period of 2016 included a $3.5 million ($0.13 per share) gain on the sale of a portion of Acorn’s interest in DSIT.
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