MILWAUKEE, WI — (Marketwired) — 05/05/16 — Telkonet, Inc. (OTCQB: TKOI), (the “Company”, “Telkonet”), creator of the EcoSmart platform of intelligent automation solutions designed to optimize comfort, energy efficiency and operational analytics in support of the emerging Internet of Things (IoT), today announced financial results for the first quarter ended March 31, 2016. Telkonet management will hold a teleconference and webcast to discuss these results with the financial community today at 4:30 p.m. ET/3:30 p.m. CT.
“Our first quarter results demonstrate the success of our strategic growth initiatives and continued investment in sales and marketing activities,” states Jason Tienor, Telkonet Chief Executive Officer. “Our continued innovation and technological leadership have allowed us to develop a platform that is unique in our target verticals. We look forward to expanding on these results with the release of several new innovations throughout 2016.”
“While the first quarter is typically slow due to seasonality, we–ve shown that a strategy of expanded vertical focus and focus on channel driven sales has enabled us to reduce seasonality in our business and dramatically impact topline EcoSmart revenues,” continues Jason Tienor. “Rapid growth across MDU, Education and Hospitality continues to propel our performance moving forward and our continued focus on development of the EcoSmart platform for these markets has secured Telkonet–s position as an IoT leader in the space.”
2016 First Quarter
Revenue: Total revenue grew $2.0 million or 80%, to $4.6 million for the quarter ended March 31, 2016 compared to $2.6 million for the comparable quarter in 2015.
Product RevenueProduct revenue which principally arises from the sales and installation of our EcoSmart energy management platform and High Speed Internet Access (“HSIA”) equipment grew 125% to $3.5 million for the quarter ended March 31, 2016 compared to $1.6 million for the comparable quarter in 2015. The largest growth came from the hospitality market, which increased $1.3 million followed by the MDU market which grew $0.4 million and the education market which grew $0.3 million. Product revenue from channel partners continued to grow increasing by $0.8 million for the quarter ended March 31, 2016 compared to the prior year period.
Gross Margin: Gross margin increased as a result of a $2.0 million increase in product sales of the Company–s EcoSmart energy management platform, which have higher gross margins than the Company–s HSIA products.
Net Income: The Company reported net income of $0.1 million for the quarter ended March 31, 2016 compared to a $0.7 million loss for the quarter ended March 31, 2015.
Date: May 5, 2016
Time: 4:30 p.m. EDT (3:30 p.m. CDT, 1:30 p.m. PDT)
Investor Dial-In (Toll Free): 877-830-2627
Investor Dial-In (International): 785-424-1230
Live Web Cast:
A replay of the teleconference will be available until May 19, 2016, which can be accessed by dialing 877-481-4010 if calling within the United States or 919-882-2331, if calling internationally. Please enter conference ID “10024” to access the replay.
Telkonet will post to the Company–s investor relations web site () any reconciliation of differences between non-GAAP financial information that may be required in connection with issuing the Company–s financial results.
The Company, as is common in its industry, uses adjusted EBITDA, a non-GAAP measurement gauge to demonstrate earnings exclusive of interest and non-cash events. The Company manages its business based on its cash flows. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. The Company, in managing its current and future affairs, cannot affect the amortization of the intangible assets to any material degree, and therefore uses adjusted EBITDA as its primary management guide. Adjusted EBITDA is not, and should not be considered, an alternative to net income (loss), income (loss) from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principles generally accepted in the United States (GAAP). In assessing the overall health of its business for the three months ended March 31, 2016 and 2015, the Company excluded items in the following general category described below:
Adjusted EBITDA and other non-GAAP financial measures should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of the non-GAAP financial measure as an analytical tool. In particular, the non-GAAP financial measure is not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measure reflect the exclusion of items that are recurring and will be reflected in the Company–s financial results for the foreseeable future. The Company compensates for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measure.
Telkonet is a leading provider of intelligent automation solutions throughout commercial markets worldwide. The (IoT), offers considerable energy cost reductions, staff productivity enhancements and carbon footprint reductions through intelligent networked communications, improved asset utilization and data analytics. IoT platforms like Telkonet–s EcoSmart enable users to achieve savings, value and service through networked connectivity providing monitoring, control, analytics, convenience and the ability to participate with the emerging Smart Grid through automated demand response initiatives. Telkonet serves vertical markets that have established the Company as a leading networking, efficiency and energy management technology provider. Those markets consist of Hospitality, Education, Military, Government, Healthcare and Public Housing. Telkonet–s business divisions include EcoSmart, a networked automation platform featuring Recovery time technology offering cost savings, energy reductions, optimized asset utilization and improved comfort, and EthoStream®, one of the largest hospitality High-Speed Internet Access networks in the world providing public Internet access to more than 8 million monthly users.
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Statements included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as competitive factors, technological development, market demand and the Company–s ability to obtain new contracts and accurately estimate net revenue due to variability in size, scope and duration of projects, and internal issues in the sponsoring client. Further information on potential factors that could affect the Company–s financial results, can be found in the Company–s Annual Report on Form 10-K for the year ended December 31, 2015 and in its Reports on Forms 8-K filed with the Securities and Exchange Commission (“SEC”).
Telkonet Investor Relations
414.721.7988
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