SAN JOSE, Calif.–(BUSINESS WIRE)–Echelon Corporation (ELON) today announced financial results for the first quarter ended March 31, 2015.
- Q1 Revenues: $9.9 million
- Q1 GAAP Net Loss: $1.4 million; GAAP Net Loss per Share: $0.03
- Q1 Non-GAAP Net Loss: $1.3 million; Non-GAAP Net Loss per Share: $0.03
Revenues, which consist of IIoT revenues only, were $9.9 million in the first quarter, up from $9.6 million in the previous quarter, and down from $10.9 million a year ago, including $788,000 of sales to Enel in the quarter compared with $1.5 million in the same period last year.
GAAP gross margin in the first quarter was 57.0% compared with 58.5% in the first quarter of 2014. Lower gross margins were driven by product mix. Total operating expenses for the quarter decreased to $7.6 million from $8.7 million in the same period last year and from $7.8 million in the previous quarter.
GAAP net loss for the first quarter was $1.4 million, or $0.03 per share, compared with a net loss of $4.0 million, or $0.09 per share, including discontinued operations in the same period last year, and down from a net loss of $2.6 million, or $0.06 in the previous quarter. Non-GAAP net loss for the first quarter was $1.3 million, or $0.03 per share, compared with a non-GAAP net loss of $1.9 million, or $0.04 per share for the first quarter of 2014, and $2.2 million, or $0.05 in the previous quarter.
“We entered 2015 with a refreshed portfolio of embedded building automation products and an expanded array of lighting control solutions,” said Ron Sege, Chairman and CEO of Echelon. “We are especially encouraged by the interest in our Lumewave lighting controls driven by new product introductions, market growth and increasing sales coverage. While we are still in transition, we have also made significant strides in the last year to improve our financial model while positioning Echelon to capture emerging IIoT opportunities.”
Business Outlook
Echelon’s guidance for the second quarter of 2015 are as follows:
- Total revenues are expected to be $8.5 million to $9.5 million.
- Non-GAAP gross margin is expected to be in a range of 54% to 56% of revenue.
- Operating expenses are expected to be in a range of $7.0 to $7.5 million.
- Non-GAAP loss per share is expected to be between $0.05 to $0.08, based on 44.1 million fully diluted weighted average shares outstanding.
- GAAP loss per share is expected to be between $0.07 to $0.10.
For those interested in further discussion regarding this release, Echelon’s management will participate in a conference call today at 4:30 p.m. Eastern Time. To access the call, dial (888) 771-4371 or (847) 585-4405 outside the U.S and provide the confirmation number 39490653. An archived replay of the webcast will be available approximately two hours following the end of the call.