WILMINGTON, DE — Acorn Energy, Inc. (OTCQB: ACFN) announced its financial results for the second quarter ended June 30, 2024, showing notable progress and securing a substantial new contract.
CEO Jan Loeb remarked, “Our Q2 and first half results reflect increases in hardware revenue, which supports future growth in recurring, high-margin monitoring revenue.” He highlighted a significant contract valued at approximately $5 million with a leading wireless telecom provider for remote monitoring and control services of cell tower backup generators.
Key Highlights
- New Contract: Acorn secured a $5 million contract to provide remote monitoring for 5-10 thousand cell tower backup generators in the U.S. The company expects to deploy these services over two years, starting hardware shipments in August and recognizing revenue late in Q3 2024.
- Revenue Growth: Q2 2024 revenue increased by 15.3% to $2,275,000 from Q2 2023. Hardware revenue rose by 28.3%, while monitoring revenue grew by 4.2%. For the first half of 2024, revenue climbed by 18.4% compared to the same period in 2023.
- Gross Profit: Q2 2024 gross profit grew by 11.7% to $1,665,000, with a gross margin of 73.2%. This is lower than the 75.5% margin in Q2 2023 due to a higher proportion of hardware sales, which carry lower margins than monitoring services.
- Operating Expenses: Total operating expenses remained flat at $1,407,000 in Q2 2024 compared to Q2 2023. Lower SG&A costs offset increased R&D expenses. For the first half of 2024, total operating expenses increased by 3.6%.
- Net Income: Net income attributable to Acorn stockholders improved to $271,000, or $0.11 per diluted share, in Q2 2024, up from $96,000, or $0.04 per diluted share, in Q2 2023. For the first half of 2024, net income rose to $336,000, or $0.13 per diluted share, compared to $11,000, or $0.00 per diluted share, in the previous year.
Liquidity and Cash Flow: Cash and cash equivalents were $1,463,000 as of June 30, 2024, with no outstanding debt. Net working capital was $2,559,000.
Buy, Sell, or Hold?
Acorn Energy’s new contract and revenue growth are positive signs. However, the company’s reliance on hardware sales, which carry lower margins, and flat operating expenses suggest a Hold rating. Investors should watch for successful deployment of the new contract and further revenue from monitoring services.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.