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Echelon Corp. (ELON) filed Quarterly Report for the period ended 2011-09-30.
Echelon Corp. has a market cap of $302.6 million; its shares were traded at around $7.13 with and P/S ratio of 2.8. Echelon Corp. had an annual average earning growth of 2.8% over the past 5 years.
This is the annual revenues and earnings per share of ELON over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ELON.
Highlight of Business Operations:
Net revenues: Our total revenues increased by $16.7 million, or 61.6%, during the third quarter of 2011 as compared to the same period in 2010. This increase was driven primarily by a $16.1 million, or 123.7%, increase in sales of our Utility products, and to a lesser extent by increases in our Enel Project and Commercial revenues of $465,000 and $108,000, respectively. For the nine months ended September 30, 2011, our total net revenues increased by $43.7 million, or 60.5%, as compared to the same period in 2010. Again, the improvement was due primarily to an increase in Utility revenues, which rose by $41.1 million, or 128.4%, between the two periods. Also contributing to the increase between the two nine month periods were increases of $1.5 million and $1.2 million in our Enel Project and Commercial revenues, respectively.The $16.7 million increase in total revenues for the three months ended September 30, 2011 as compared to the same period in 2010 was the result of a $16.1 million increase in Utility revenues, a $465,000 increase in Enel Project revenues, and a $108,000 increase in Commercial revenues. The $43.7 million increase in total revenues for the nine months ended September 30, 2011 as compared to the same period in 2010 was the result of a $41.1 million increase in Utility revenues, a $1.5 million increase in Enel Project revenues, and a $1.2 million increase in Commercial revenues.
Our sales and marketing expenses remained relatively flat during the third quarter of 2011 as compared to the same period in 2010. The $720,000 increase in sales and marketing expenses for the nine months ended September 30, 2011 as compared to the same period in 2010 was comprised of the following: a $699,000 increase in fees paid to recruiters, consultants and other third party service providers; a $260,000 increase in dues paid for memberships in certain trade organizations; and a $153,000 increase in travel and related expenses; all of which was partially offset by a $329,000 reduction in compensation expense; and $63,000 of decreases in other miscellaneous spending categories. The $329,000 reduction in compensation expense was principally comprised of a $717,000 reduction in non-cash equity compensation charges and a $226,000 reduction in salaries, commissions, and other general compensation related expenses, partially offset by a $600,000 increase in bonus expenses primarily associated with our 2011 management bonus plan. The management bonus plan provides for payments only in the event certain targets for revenue generation and expense control are achieved.
Cash flows from operating activities. Cash flows from operating activities have historically been driven by net income (loss) levels; adjustments for non-cash charges such as stock-based compensation, depreciation, and amortization; changes in accrued investment income; and fluctuations in operating asset and liability balances. Net cash provided by operating activities was $562,000 for the nine months ended September 30, 2011, an increase in cash inflows of approximately $2.2 million as compared to the same period in 2010. During the nine months ended September 30, 2011, net cash provided by operating activities was primarily the result of stock-based compensation expenses of $6.7 million and depreciation and amortization expense of $4.5 million, partially offset by our net loss of $8.8 million and changes in our operating assets and liabilities of $2.0 million. The primary components of the $2.0 million net change in our operating assets and liabilities were a $2.0 million decrease in deferred revenues; a $1.9 million increase in accounts receivable; a $1.6 million increase in inventories; and a $1.1 million increase in other current assets; the impact of which was partially offset by a $3.0 million increase in accounts payable; an $892,000 increase in accrued liabilities; and a $762,000 decrease in deferred cost of goods sold. Deferred revenues decreased due primarily to the timing of products shipped. Accounts receivable increased primarily as a result of increased revenues during the third quarter of 2011 as compared to the fourth quarter of 2010. During the quarter ended September 30, 2011, total revenues were $43.8 million compared to $38.8 million during the quarter ended December 31, 2010. Inventories increased primarily to an increase in finished goods levels required for anticipated increased product shipments in the fourth quarter of 2011 as compared to the first quarter of 2011, and to a lesser extent due to the timing of customer shipments during the latter part of the third quarter that had not yet reached their destination. During the third quarter of 2011, the amount of product shipped in the latter part of the quarter for which customer acceptance had not yet been received was higher than what was observed in the fourth quarter of 2010. Other current assets increased primarily due to an increase in unbilled receivables. Accounts payable increased due to an overall increase in the level of purchasing activity due to higher revenues in the third quarter of 2011 as compared to the fourth quarter of 2010, as well as the timing of expenditures during the third quarter of 2011. Accrued liabilities increased primarily due to amounts accrued for our 2011 management bonus program, amounts accrued for commissions, and increased provisions for warranty expenses, partially offset by the payment of termination benefits that were accrued as part of our restructuring program in the fourth quarter of 2010. Deferred cost of goods sold decreased in conjunction with a decrease in deferred revenues.
During the nine months ended September 30, 2010, net cash used in operating activities was primarily the result of our net loss of $25.3 million, partially offset by stock-based compensation expenses of $9.3 million, changes in our operating assets and liabilities of $9.3 million, and depreciation and amortization expense of $5.0 million. The primary components of the $9.3 million change in our operating assets and liabilities were a $8.9 million decrease in accounts receivable, a $1.3 million increase in accrued liabilities, a $972,000 decrease in other current assets, and an $806,000 reduction in deferred cost of goods sold; the benefits of which were partially offset by a $1.3 million decrease in deferred revenues, a $1.2 million increase in inventories, and a $119,000 decrease in accounts payable. Accounts receivable decreased primarily as a result of reduced revenues during the third quarter of 2010 as compared to the fourth quarter of 2009. During the quarter ended September 30, 2010, total revenues were $27.1 million compared to $38.8 million during the quarter ended December 31, 2009. Accrued liabilities increased primarily as a result of a $1.2 million increase in customer deposits, of which $300,000 related to funding received for design and development of a new product prior to completion of certain development efforts. Other current assets decreased primarily due to a reduction in unbilled receivables. Deferred cost of goods sold decreased in conjunction with a decrease in deferred revenues. Inventories increased in preparation for increased revenue levels in the fourth quarter of 2010 as compared to the first quarter of 2010.
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