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Acorn Energy Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 10, 2011 09:30PM
Acorn Energy Inc. (ACFN) filed Quarterly Report for the period ended 2011-03-31. Acorn Energy Inc. has a market cap of $68.1 million; its shares were traded at around $3.929 with and P/S ratio of 1.9. Acorn Energy Inc. had an annual average earning growth of 8.8% over the past 5 years.
Highlight of Business Operations:
DSIT reported slightly decreased revenues in the first quarter of 2011 as compared to the first quarter of 2010 as well as decreased gross profit, gross margin and net income. DSIT's revenues of $2.4 million for the quarter represent a decrease of approximately $0.2 million or 7% as compared to the first quarter of 2010. First quarter 2011 revenues also reflected a decrease ($0.4 million or 15%) compared to fourth quarter 2010 revenues of $2.8 million. The decrease in revenues from the first quarter of 2010 was due to decreased revenues in our Energy & Sonar Security Solutions segment which reported first quarter 2011 revenues of $2.0 million compared to $2.3 million in the first quarter of 2010. The decrease in revenues was due to the completion of an AquaShieldTM DDS project in the end of 2010 project without another project to replace those lost revenues. Furthermore, work on another AquaShieldTM DDS project slowed down in the first quarter of 2011 due to the delay in an expected follow-up order of a large expansion to the project changing the configuration of the already ordered DDS systems.
Revenues. Revenues in the first quarter of 2011 decreased by $0.2 million or 3% from $7.1 million in the first quarter of 2010 to $6.8 million in the first quarter of 2011. The decrease in revenues is due to a decrease in revenues for both CoaLogix and DSIT. CoaLogix revenues decreased by $0.7 million (16%) to $3.7 million compared to first quarter 2010 revenues of $4.5 million. DSIT revenues decreased by $0.2 million (7%) to $2.4 million compared to first quarter 2010 revenues of $2.6 million. These decreases in revenues were partially offset by GridSense first quarter 2011 revenues of $0.6 million.
Selling, general and administrative expenses (“SG&A”). SG&A costs in the first quarter of 2011 increased by $0.4 million as compared to the first quarter of 2010. The increase is due to the inclusion of GridSense SG&A costs of $0.9 million in the first quarter of 2011. CoaLogix SG&A costs in the first quarter of 2011 decreased by $0.1 million as compared to the first quarter of 2010 as 2010 costs included a provision recorded for the settlement of the suit with EES. DSIT s SG&A was unchanged ($0.7 million in both the first quarter of 2011 and 2010). Corporate general and administrative costs decreased by $0.5 million from $1.4 in the first quarter of 2010 to $0.9 million in the first quarter of 2011 primarily due to $0.3 million of bonuses recorded in 2010 and decreased administrative and salary costs in 2011.
Net loss. We had a net loss of $2.2 million in the first quarter of 2011 compared with net loss of $3.1 million in the first quarter of 2010. Our loss in 2011 was primarily due to CoaLogix, GridSense and USSI losses of $0.8 million, $0.8 million and $0.5 million, respectively. DSIT was breakeven for the quarter, while corporate expenses of $0.9 million were partially offset by the $0.5 million gain on the sale of HangXing and the non-controlling interest share of our subsidiary losses of $0.4 million.
As of March 31, 2011, we had working capital of $12.9 million, including $6.5 million of non-restricted cash and cash equivalents. Our working capital includes restricted deposits of approximately $1.6 million. Net cash decreased during the three months ended March 31, 2011 by $0.9 million, of which approximately $1.3 million was used in operating activities. The primary use of cash in operating activities during the first three months of 2011 was the cash used in operations by our subsidiaries ($0.8 million, $0.4 million and $0.3 million used by CoaLogix, USSI and GridSense, respectively) in their operations combined with the $0.9 million of cash used in our corporate operating activities. This was partially offset by the $1.2 million of cash provided by DSIT s operating activities during the quarter.
On April 30, 2011, DSIT had approximately $1.9 million of cash of which $1.6 million was restricted ($1.5 million current and $0.1 million non-current) and was utilizing approximately $0.3 million of its lines-of-credit. We believe that DSIT will have sufficient liquidity to finance its activities from cash flows from its own operations over the next 12 months. This is based on continued utilization of its line-of-credit and its operating results.
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