Acorn’s Q3 Revenue Rose 46% to $3.05M and EPS Rose to $0.29 vs. $0.01, Inclusive of the Initial Benefit of 2-Year Contract for Remote Monitoring of Backup Generators for Cell Towers
Rhea-AI Summary
Acorn Energy (OTCQB: ACFN) reported strong Q3 2024 financial results with total revenue increasing 46.1% to $3.05M, driven by a 90.4% surge in hardware revenue to $1.91M and a 5.1% rise in monitoring revenue to $1.14M. The company's net income rose significantly to $725,000 ($0.29 per share) compared to $24,000 ($0.01 per share) in Q3 2023. The growth was partly attributed to a $724,000 hardware revenue from initial orders of a $5M contract with a major cell phone provider for monitoring cell tower backup generators. The company maintained a strong financial position with $2.2M in cash and no debt as of quarter-end.
Positive
- Revenue increased 46.1% to $3.05M in Q3 2024
- Net income rose to $725,000 ($0.29 per share) from $24,000
- Secured $5M contract with major cell phone provider
- Hardware revenue grew 90.4% to $1.91M
- Strong cash position of $2.2M with no debt
- Gross profit grew 41.1% to $2.19M
Negative
- Gross margin declined to 71.7% from 74.3% in Q3 2023
- Operating expenses higher due to engineering salary increases
News Market Reaction – ACFN
On the day this news was published, ACFN gained 12.05%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Investor Call Today at 11am ET; Dial-in: 1-844-834-0644
WILMINGTON, Del., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (OTCQB: ACFN), a provider of remote monitoring and control solutions for backup power generators, gas pipelines, air compressors and other mission critical assets, announced results for its third quarter ended September 30, 2024 (Q3’24) and will hold an investor call today at 11am ET (see call details below).
Summary Financial Results
| ($ in thousands) | Q3’24 | Q3’23 | Change | 9M’24 | 9M’23 | Change | |||||||||||
| Monitoring revenue | $ | 1,138 | $ | 1,083 | +5.1 | % | $ | 3,350 | $ | 3,172 | +5.6 | % | |||||
| Hardware revenue | $ | 1,912 | $ | 1,004 | +90.4 | % | $ | 4,107 | $ | 2,637 | +55.7 | % | |||||
| Total revenue (1) | $ | 3,050 | $ | 2,087 | +46.1 | % | $ | 7,457 | $ | 5,809 | +28.4 | % | |||||
| Gross margin | |||||||||||||||||
| Net income to stockholders | $ | 725 | $ | 24 | nm (2) | $ | 1,061 | $ | 35 | nm (2) | |||||||
| Net income per diluted share | $ | 0.29 | $ | 0.01 | nm (2) | $ | 0.42 | $ | 0.01 | nm (2) | |||||||
(1) All of Acorn’s revenue is derived from its
(2) The percentage change is not meaningful because net income in the prior-year periods was near zero.
CEO Commentary
Jan Loeb, Acorn’s CEO, commented, “Acorn’s Q3’24 results benefited, in part, from
“This contract, OmniMetrix’s largest, was secured through a competitive process which recognized the value and capabilities of our industry-leading technology and solutions and our high level of customer service. We are committed to the successful rollout of this program which should provide a compelling case study for other large commercial and industrial customers.
“We anticipate increasing demand for backup power generation and our 24/7 monitoring and control solutions as a result of the growing incidence of major power outages due to extreme weather events, wildfires, rapidly growing electricity demand and the challenges they place on the aging electric grid in the U.S. As result of extreme events this year, millions of households and businesses across the country have been without power for weeks or more. The growing frequency and prolonged recovery time following these events is making a very clear case for the importance of backup power, particularly given the exponential electricity demand anticipated through the next decade to support artificial intelligence, cloud computing and electric vehicle infrastructure.
“Importantly, our solutions provide both environmental benefits and compelling returns on investment for both commercial and residential customers in their role of ensuring backup power is ready when needed. Remote monitoring eliminates much of the cost and environmental impact of sending technicians for periodic inspections of backup generators.
“Finally, we continue to invest in research and development to extend our industry leadership in technology and system capabilities. For example, our recently launched new and improved OmniView 2 user interface provides enhanced navigation and a range of new features including Air Quality Index (AQI) data to support customer compliance with EPA air quality regulations, so that they can avoid fines for operating generators on bad air quality days.
“We have a very strong team and an efficient structure that can deliver meaningful operating leverage on incremental revenue. As a result, we have achieved Q3’24 EPS of
Financial Review
Q3’24 revenue rose
Compared to the prior-year period, revenue rose
Gross profit grew
Total operating expenses declined to
Operating expenses for the nine months ended September 30, 2024 were flat reflecting the same factors as Q3’23, partially offset by higher research and development expenses related to engineering salary increases and continued investment in product innovation.
Q3’24 net income attributable to Acorn stockholders improved to
Liquidity and Cash Flow
Excluding deferred revenue of
Acorn generated net cash of
Investor Call Details
| Date/Time: | Thursday, November 7th at 11:00 AM ET |
| Dial-in Number: | 1-844-834-0644 or 1-412-317-5190 (Int’l) |
| Online Replay/Transcript: | Audio file and call transcript will be posted to the |
| Investor section of Acorn's website when available. | |
| Submit Questions via Email: | acfn@catalyst-ir.com – before or after the call. |
About Acorn (www.acornenergy.com) and OmniMetrix™ (www.omnimetrix.net)
Acorn Energy, Inc. owns a
OmniMetrix’s proven, cost-effective solutions make critical systems more reliable and also enable automated “demand response” electric grid support via enrolled backup generators.
Safe Harbor Statement
This press release includes forward-looking statements, which are subject to risks and uncertainties. There are no assurances that Acorn will be successful in growing its business, increasing its revenue, increasing profitability, or maximizing the value of its operating company and other assets. A complete discussion of the risks and uncertainties that may affect Acorn Energy’s business, including the business of its subsidiary, 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.
| Follow us | |
| X (formerly Twitter): | @Acorn_IR and @OmniMetrix |
| StockTwits: | @Acorn_Energy |
Investor Relations Contacts
Catalyst IR
William Jones, 267-987-2082
David Collins, 212-924-9800
acfn@catalyst-ir.com
| ACORN ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (IN THOUSANDS, EXCEPT PER SHARE DATA) | ||||||||||||||||
| Nine months ended September 30, | Three months ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 7,457 | $ | 5,809 | $ | 3,050 | $ | 2,087 | ||||||||
| COGS | 2,014 | 1,453 | 863 | 537 | ||||||||||||
| Gross profit | 5,443 | 4,356 | 2,187 | 1,550 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development expense (R&D) | 698 | 614 | 234 | 212 | ||||||||||||
| Selling, general and administrative (SG&A) expense | 3,653 | 3,746 | 1,197 | 1,330 | ||||||||||||
| Total operating expenses | 4,351 | 4,360 | 1,431 | 1,542 | ||||||||||||
| Operating income (loss) | 1,092 | (4 | ) | 756 | 8 | |||||||||||
| Interest income, net | 53 | 46 | 20 | 19 | ||||||||||||
| Income before income taxes | 1,145 | 42 | 776 | 27 | ||||||||||||
| Income tax expense | 67 | — | 42 | — | ||||||||||||
| Net income | 1,078 | 42 | 734 | 27 | ||||||||||||
| Non-controlling interest share of income | (17 | ) | (7 | ) | (9 | ) | (3 | ) | ||||||||
| Net income attributable to Acorn Energy, Inc. stockholders | $ | 1,061 | $ | 35 | $ | 725 | $ | 24 | ||||||||
| Basic and diluted net income per share attributable to Acorn Energy, Inc stockholders – basic and diluted | ||||||||||||||||
| Basic | $ | 0.43 | $ | 0.01 | $ | 0.29 | $ | 0.01 | ||||||||
| Diluted | $ | 0.42 | $ | 0.01 | $ | 0.29 | $ | 0.01 | ||||||||
| Weighted average number of shares outstanding attributable to Acorn Energy, Inc. stockholders – basic and diluted | ||||||||||||||||
| Basic | 2,487 | 2,484 | 2,487 | 2,485 | ||||||||||||
| Diluted | 2,504 | 2,506 | 2,511 | 2,532 | ||||||||||||
| ACORN ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA) | ||||||||
| As of September 30, 2024 | As of December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 2,153 | $ | 1,449 | ||||
| Accounts receivable, net | 894 | 536 | ||||||
| Inventory, net | 659 | 962 | ||||||
| Deferred cost of goods sold (COGS) | 507 | 809 | ||||||
| Other current assets | 318 | 280 | ||||||
| Total current assets | 4,531 | 4,036 | ||||||
| Property and equipment, net | 527 | 570 | ||||||
| Right-of-use assets, net | 112 | 193 | ||||||
| Deferred COGS | 134 | 476 | ||||||
| Other assets | 99 | 174 | ||||||
| Total assets | $ | 5,403 | $ | 5,449 | ||||
| LIABILITIES AND EQUITY ( DEFICIT) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 313 | $ | 288 | ||||
| Accrued expenses | 202 | 132 | ||||||
| Deferred revenue | 3,572 | 4,034 | ||||||
| Current operating lease liabilities | 129 | 123 | ||||||
| Other current liabilities | 38 | 30 | ||||||
| Total current liabilities | 4,254 | 4,607 | ||||||
| Long-term liabilities: | ||||||||
| Deferred revenue | 812 | 1,550 | ||||||
| Noncurrent operating lease liabilities | — | 98 | ||||||
| Other long-term liabilities | 23 | 20 | ||||||
| Total liabilities | 5,089 | 6,275 | ||||||
| Commitments and contingencies | ||||||||
| Equity (deficit): | ||||||||
| Acorn Energy, Inc. stockholders | ||||||||
| Common stock - | 25 | 25 | ||||||
| Additional paid-in capital | 103,386 | 103,321 | ||||||
| Accumulated stockholders’ deficit | (100,087 | ) | (101,148 | ) | ||||
| Treasury stock, at cost – 50,178 shares at September 30, 2024 and December 31, 2023 | (3,036 | ) | (3,036 | ) | ||||
| Total Acorn Energy, Inc. stockholders’ equity (deficit) | 288 | (838 | ) | |||||
| Non-controlling interest | 26 | 12 | ||||||
| Total equity (deficit) | 314 | (826 | ) | |||||
| Total liabilities and equity (deficit) | $ | 5,403 | $ | 5,449 | ||||
| ACORN ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (IN THOUSANDS) | ||||||||
| Nine months ended September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows provided by operating activities: | ||||||||
| Net income | $ | 1,078 | $ | 42 | ||||
| Depreciation and amortization | 91 | 115 | ||||||
| (Decrease) increase in the provision for credit loss | (7 | ) | 3 | |||||
| Impairment of inventory | 21 | 9 | ||||||
| Non-cash lease expense | 97 | 96 | ||||||
| Stock-based compensation | 52 | 46 | ||||||
| Change in operating assets and liabilities: | ||||||||
| (Increase) decrease in accounts receivable | (351 | ) | 11 | |||||
| Decrease (increase) in inventory | 282 | (129 | ) | |||||
| Decrease in deferred COGS | 644 | 162 | ||||||
| Decrease (increase) in other current assets and other assets | 37 | (49 | ) | |||||
| (Decrease) increase in deferred revenue | (1,200 | ) | 40 | |||||
| Decrease in operating lease liability | (108 | ) | (104 | ) | ||||
| Increase in accounts payable, accrued expenses, other current liabilities and non-current liabilities | 103 | 124 | ||||||
| Net cash provided by operating activities | 739 | 366 | ||||||
| Cash flows used in investing activities: | ||||||||
| Investments in technology | (44 | ) | (70 | ) | ||||
| Equipment purchases | (4 | ) | (2 | ) | ||||
| Net cash used in investing activities | (48 | ) | (72 | ) | ||||
| Cash flows provided by financing activities: | ||||||||
| Stock option exercise proceeds | 13 | — | ||||||
| Warrant exercise proceeds | — | 5 | ||||||
| Net cash provided by financing activities | 13 | 5 | ||||||
| Net increase in cash | 704 | 299 | ||||||
| Cash at the beginning of the period | 1,449 | 1,450 | ||||||
| Cash at the end of the period | $ | 2,153 | $ | 1,749 | ||||
| Supplemental cash flow information: | ||||||||
| Cash paid during the period for: | ||||||||
| Interest | $ | 1 | $ | 2 | ||||
| Income Taxes | $ | 2 | $ | — | ||||
| Non-cash investing and financing activities: | ||||||||
| Accrued preferred dividends to former CEO of OmniMetrix | $ | 3 | $ | 3 | ||||
FAQ
What was Acorn Energy's (ACFN) revenue growth in Q3 2024?
How much was ACFN's earnings per share in Q3 2024?
What was the value of the cell tower monitoring contract ACFN secured?
What is ACFN's cash position as of Q3 2024?
