Business
Acorn Reports Higher Q1 Gross Profit on 1% Revenue Increase; Cash Position of $1.9M Provides Strong Foundation to Build Remote Monitoring & Control Business; Investor Call Tomorrow at 11am ET
WILMINGTON, Del., May 13, 2020 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (OTCQB: ACFN), a provider of remote monitoring and control systems and IoT services for
About this update from Acorn Energy, Inc.
[{"type":"text","content":"WILMINGTON, Del., May 13, 2020 (GLOBE NEWSWIRE) -- Acorn Energy, Inc. (OTCQB: ACFN), a provider of remote monitoring and control systems and IoT services for generators, pipelines, compressors and other industrial equipment through its OmniMetrix subsidiary, today announced results for its first quarter (Q1’20) ended March 31, 2020. Acorn will host an investor call tomorrow, May 14th at 11:00 a.m. ET to discuss its results and outlook (details below).\n Jan Loeb, Acorn’s CEO, commented, \"Our Q1’20 topline and bottomline performance were relatively stable versus Q1’19, despite business development headwinds. Monitoring revenue rose 17% in Q1’20 but was offset by a 21% decrease in hardware sales, reflecting energy industry challenges and some business disruption from the Coronavirus pandemic. Q1’20 gross margin improved to 69%, compared to 62% in Q1’19, principally reflecting an increase in higher-margin monitoring revenue. “While the Coronavirus is certain to negatively impact our business in the coming months as capex budgets and consumer spending are constrained, we believe the value proposition of remote monitoring and control services becomes even more compelling in an environment where personnel and field activities are curtailed by illness, budgets, travel or other restrictions. “Our balance sheet strength, with $1.9M in cash and equivalents, our margin profile, and the recurring nature of our remote monitoring business, place us in a strong position to manage our business through current industry and economic challenges. We will also continue to invest in new product development to bring enhanced solutions to our customers and extend our market leadership. Last year’s launch of our AirGuard air compressor monitor and the recent debut of our new Smart Annunciator solution underscore this commitment. “Given these factors, despite current business and economic challenges, we remain confident in the long-term growth potential of our remote monitoring businesses. We entered FY 2020 with an experienced and expanded sales team, and in early January we were able to bring on board a seasoned, proven IoT sales executive to serve as Sales Director. We are excited about the long-term growth potential we see in our markets and believe we have the right strategy and team to return us to our long-term annual growth goal of 20% or more”....