Business
Acorn Achieves Net Income and Positive Cash Flow as Q2 Revenue Rises 22% from Remote Monitoring and Control Solutions for Backup Generators and Gas Pipelines
Investor Call Today at 11am ET - Dial-in # 1-844-834-0644 WILMINGTON, Del., Aug. 10, 2023 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (OTCQB: ACFN), a provider of
About this update from Acorn Energy, Inc.
[{"type":"text","content":"Investor Call Today at 11am ET - Dial-in # 1-844-834-0644\nWILMINGTON, Del., Aug. 10, 2023 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (OTCQB: ACFN), a provider of remote monitoring and control solutions for stand-by power generators, gas pipelines, air compressors and other critical industrial equipment, announced results for its second quarter ended June 30, 2023 (Q2’23). Acorn generated positive net income and cash flow on Q2’23 revenue growth of 22% and cash basis revenue growth of 33%. Acorn is hosting a conference call today at 11:00 a.m. ET (details below). Summary Financial Results ($ in thousands)Q2’23Q2'22Change 6M’236M'22ChangeMonitoring revenue$ 1,065$966+10.2% $2,089$1,956+6.8%Hardware revenue$908$655+38.6% $1,633$1,416+15.3%Total revenue *$1,973$1,621+21.7% $3,722$3,372+10.4%Gross profit$1,490$1,246+19.6% $2,806$2,504+12.1%Gross margin 75.5% 76.9% 75.4% 74.3% * All of Acorn’s revenue is derived from its 99%-owned operating subsidiary, OmniMetrix. Non-GAAP MeasureReconciliation of GAAP Revenue to Cash-Basis Revenue** ($ in thousands)Q2’23Q2'226M’236M'22Total GAAP revenue$1,973$1,621$3,722$3,372Less: Amortization of deferred revenue (1,673) (1,479) (3,282) (2,983)Plus: Sales recorded to deferred revenue 1,824 1,422 3,478 3,225Other adjustments and write-offs 1 31 55 31Total cash-basis revenue **$2,125$1,595$3,973$3,645Year-over-year growth +33.2% +9.0% **See definition of Non-GAAP measure below. CEO CommentaryJan Loeb, Acorn’s CEO, commented, “Our Q2’23 performance benefitted from strong demand from large national telecom customers for our TrueGuardTM PRO commercial and industrial monitors and True Guard 2 residential monitors for emergency stand-by generators. “We achieved our second consecutive quarter of monitoring revenue growth, following the end of the revenue impact from the sunsetting of wireless carrier support for 3G monitoring technology. Building upon 3% growth in Q1, monitoring revenues grew 10% in Q2 and we expect positive momentum to continue over the balance of 2023 and beyond. “Cash-basis revenue grew 33% in Q2’23, also indicative of strength across the business, and we closed Q2’23 with a record backlog of $6.4M. Our backlog is essentially deferred revenue, more than 60% of which will be recognized as revenue within one year under GAAP accounting. “Our Q2’23 gross margin remained stable at 76%, though do...