Acorn Secures $5M Contract with Leading Wireless Provider for Remote Monitoring and Control of Cell Tower Backup Generators

Rhea-AI Summary

Acorn Energy (OTCQB: ACFN) has secured a $5 million contract with a major U.S. wireless telecommunications provider through its OmniMetrix subsidiary. The contract involves providing remote monitoring and control for 5-10 thousand cell tower backup generators over two years, starting in Q3 2024. This is OmniMetrix's largest contract to date and is expected to significantly boost Acorn's revenue, contributing to its goal of 20% annual revenue growth for 2024 and 2025. The deal highlights the company's technological strength and customer service, positioning Acorn for future large-scale deployments.

Positive

• Secured a $5 million contract with a major U.S. wireless telecommunications provider.
• The contract is the largest in OmniMetrix's history.
• Expected to generate revenue of approximately $5 million over two years.
• Deployment starting in Q3 2024, contributing to 2024 and 2025 revenue.
• Positions Acorn to achieve its 20% annual revenue growth target.
• Potential for future large-scale deployments with current and new customers.
• Adds to annual recurring monitoring revenues.

Negative

• Revenue realization is stretched over two years, rather than immediate.
• Potential reliance on a single large contract for significant revenue boost.
• Any delays in deployment could affect revenue projections and growth targets.

WILMINGTON, Del., June 05, 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, through its OmniMetrix operating subsidiary, today announced a significant new contract with one of the nation’s largest wireless telecommunications providers. Under the contract, OmniMetrix will provide monitoring devices and related remote monitoring and control services for between 5-10 thousand cell tower backup generators in the U.S. The monitoring units and monitoring services, which will be deployed over a two-year period, are expected to generate total revenue of approximately $5 million beginning in the third quarter of 2024.

Jan Loeb, Acorn’s CEO, commented, “This is the largest contract in OmniMetrix’s history and a major milestone for our Company as it confirms the strength and value of our monitoring technology, monitoring services and our customer service commitment. OmniMetrix was selected through a rigorous competitive process. Importantly, this relationship has the potential to position us for other large-scale deployments for this customer and others.

“The engagement also puts us well on our way to achieving our 20% annual revenue growth target in both 2024 and 2025, building on 2023 revenue of $8.1M. Additionally, monitoring endpoints added through this contract should make a material contribution to annually recurring monitoring revenues in 2024 and 2025, and likely in future periods given the potential for annual monitoring service renewals.”

The customer’s Regional Operations Manager commented, “With the growing incidence of extreme weather events and surging power demand, backup power generation plays an increasingly critical role in our ability to deliver best-in-class, reliable, 24/7 mobile communications. We selected OmniMetrix for backup power monitoring and control because of the strength of their technology, service features and national support for all generator brands, in additional to their strong customer service commitment.”

About Acorn (www.acornenergy.com) and OmniMetrix^TM (www.omnimetrix.net)
Acorn Energy, Inc. owns a 99% equity stake in OmniMetrix, a pioneer and leader in Internet of Things (IoT) wireless remote monitoring and control solutions for stand-by power generators, gas pipelines, air compressors and other industrial equipment. OmniMetrix serves tens of thousands of commercial and residential customers, including over 25 Fortune/Global 500 companies, supporting cell towers, manufacturing plants, medical facilities, data centers, retail stores, public transportation systems, energy distribution and federal, state and municipal government facilities and residential backup generators.

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.

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Investor Relations Contacts
Catalyst IR
William Jones, 267-987-2082
David Collins, 212-924-9800
acfn@catalyst-ir.com

FAQ

What is the value of the contract Acorn Energy secured in June 2024?

The contract is valued at $5 million.

Which company did Acorn Energy secure a $5 million contract with in June 2024?

Acorn Energy secured the contract with a major U.S. wireless telecommunications provider.

What services will OmniMetrix provide under the new contract?

OmniMetrix will provide remote monitoring and control services for cell tower backup generators.

How many cell tower backup generators will be monitored under Acorn Energy's new contract?

Between 5-10 thousand cell tower backup generators.

When will the deployment of monitoring units for the new contract begin?

The deployment will begin in the third quarter of 2024.

How will the new contract affect Acorn Energy's revenue growth?

The contract is expected to contribute to Acorn's 20% annual revenue growth target for 2024 and 2025.

What was Acorn Energy's revenue in 2023?

Acorn Energy's revenue was $8.1 million in 2023.

Why was OmniMetrix selected by the telecommunications provider?

OmniMetrix was selected due to the strength of their technology, service features, national support, and strong customer service commitment.