Business
Telkonet Announces Fiscal Year 2020 Financial Results
Telkonet Announces Fiscal Year 2020 Financial Results.
About this update from Telkonet, Inc.
[{"type":"text","content":"Teleconference and Webcast to be Held Today at 4:30 P.M. ESTWAUKESHA, WI / ACCESSWIRE / March 31, 2021 / Telkonet, Inc. (OTCQB:TKOI), (the "Company", "Telkonet"), a leader of intelligent automation solutions designed to optimize comfort, operational analytics, and energy efficiency for commercial markets, announces financial results for the fiscal year ended December 31, 2020. Management will host a teleconference at 4:30pm ET today to discuss these results with the financial community."While Telkonet entered 2020 having delivered record revenues in 2019, the adverse impact the COVID-19 pandemic has had on our target markets has been substantial," stated Jason Tienor, Telkonet's President and Chief Executive Officer. "Because of this, we took advantage of the Paycheck Protection Program to minimize the operating impact and utilized the opportunity to address operating efficiencies, reduce expenses and foster innovation. We believe these activities have positioned the Company to benefit from the pending economic recovery."Operating and Financial Highlights Comparison for the Years Ended December 31, 2020 and 2019:Total revenues decreased $5.5 million, or 46%, year over year.Product revenues decreased by 49%, or $5.5 million, when compared to the prior year. Decreases were primarily attributable to lower volume generated from value added resellers and distribution partners.Material costs as a percentage of product revenues were 39%, an improvement of 2%, year over year.For the year ended December 31, 2020, the gross profit percentage increased 2% to 44%, compared to the prior year period.Import tariffs for the year ended December 31, 2020 resulted in an adverse impact of approximately 7% on gross profits, an increase of 1% compared to the prior year period.Operating expenses decreased 14% to $6.0 million compared to the prior year period.On February 16, 2021, the outstanding principal and accrued interest on the Paycheck Protection Program Loan, entered into on April 21, 2020, was fully forgiven.Rhapsody, a new technology platform, including the innovative TouchCombo thermostat, was released in late 2020 to address an evolving automation landscape.Financial Results ReviewFiscal Year 2020 Revenue: Total revenue decreased $5.5 million to $6.5 million for the fiscal year ended December 31, ...