Acorn Energy First Quarter Results: 2013 Revenue Up 37%

           Acorn Energy First Quarter Results: 2013 Revenue Up 37%

PR Newswire

WILMINGTON, Del., May 9, 2013

WILMINGTON, Del., May 9, 2013 /PRNewswire/ -- Acorn Energy, Inc. (NASDAQ:
ACFN), today announcedresults for the first quarter ended March 31, 2013.
Revenue increased 37% to $5.7 million in the first quarter of 2013 from $4.2
million in the first quarter of 2012. The net loss for the 2013 first quarter
was $5.0 million, or $0.28 per share, compared to $4.2 million, or $0.24 per
share in the first quarter of 2012. The first quarter 2012 results include
those of OmniMetrix, LLC from February 15, 2012, the date of its acquisition
by Acorn.

(Logo: )

John Moore, CEO of Acorn Energy, commented, "I am pleased to report that all
four of our portfolio companies achievedimprovement in revenue, gross margin
and gross profit in the first quarter of 2013 compared to the same quarter
last year. The results are primarily related to the expansion in marketing as
well as the contribution of new products to sales by each company during the
last twelve months. Our companies are establishing leadership positions for
their technologies - each one addressing global energy infrastructure
challenges. We solve the industry problems or cause a step change in the way
things are done. Acorn brings its capital, strategic relationships and
experiences to bear in helping the portfolio companies penetrate their vast
market opportunities." Financial highlights for Acorn and its portfolio
companies are discussed below, but investors are urged to read the Company's
10-Q report filed with the Securities and Exchange Commission for more
detailed information.

On May 8, 2013, the Board of Directors agreed to halt the Company's dividend
in favor of investing in Acorn's portfolio companies. The Board believes
that these investments will provide future returns to shareholders either
through the sale of a portfolio company or through increased net income. Upon
our next successful exit the Board will once again evaluate all dividend
options. To date Acorn has paid out $4.6 million in dividends ($4.3 million in
cash and $0.3 million in shares from its Dividend Reinvestment Plan), or
approximately 7.5% of the $62 million in proceeds before income taxes
generated from the sale of CoaLogix in 2011.

"We ended the quarter with $30 million of working capital on a consolidated
basis, of which over $20 million was cash. We have approximately $7.6 million
in budgeted commitments to fund growth and new product development at our four
businesses," concluded Moore.

Management Update

Mr. Moore is pleased to announce that Joe Musanti has been named President and
CEO of GridSense™. "In the life of every technology growth company there is a
natural progression from the visionary leader to a more traditional business
operations experience. Joe Musanti is an experienced operating executive with
a track record of success committed to turning GridSense, with its new
products and pipeline of pilots, into the profitable and fast-growing company
it can be."

Mr. Musanti was named COO/CFO of GridSense in January 2013, following his
resignation from the Acorn Energy Board of Directors, where he served from
September 2007 until December 2012. He previously served in various positions
including President, General Manager and CFO of Main Tape, a profitable
leading manufacturer of specialty film and paper products. Prior to that, Mr.
Musanti was Vice President Finance of Rheometric Scientific, Inc., a
manufacturer of thermal analytical instrumentation products, where he also
held significant domestic and foreign operational, managerial, financial and
accounting positions.

New Director

"We are delighted to announce thatoil industry veteran Robert E. McKee, III
will join the Acorn Board," stated Moore. Mr. McKee had a 37 year career at
ConocoPhillips and Conoco, Inc., including 10 years as Executive Vice
President, Exploration and Production (1992-2002).He was a senior oil advisor
to the Coalition Provisional Authority and the Iraqi Oil Ministry in Iraq to
assist with the rebuilding of its oil industry from September 2003 to March
2004. He is also a Director of QEP Resources, an unconventional oil driller
with a $5 billion market capitalization, Post Oak Bank and a board member on
the Colorado School of Mines Foundation. "We believe Rob's advice and
connections will be critical as we undertake the extensive effort required to
get US Seismic's technology adopted as the standard for unconventional oil


DSIT Solutions, Ltd., based in Israel, offers a full range of sonar and
acoustic-related solutions for strategic energy installations, mostly those
vulnerable to water access sabotage.  "DSIT continues to steadily increase
revenue and net income from new contracts for its underwater diver-detection
systems," said Mr. Moore. "Originally developed for the Israeli Navy,
AquaShield™ applications can range from protecting off-shore oil and gas rigs
to nuclear power plants. Utilizing an expanding staff of expert engineers,
the commercial development of multiple applications is building DSIT's global

First quarter revenue in 2013 increased approximately 9% to $3.3 million,
compared to $3.0 million in the 2012 first quarter. Additionally, gross
profit, gross margin and net income all increased in the first quarter.
Backlog remains strong at $8.2 million.


GridSense develops and markets remote monitoring systems for electric
utilities and industrial facilities worldwide. Its systems provide outage
management and power quality monitoring to better and more efficiently manage
grid operations. "GridSense increased its revenue dramatically in the first
quarter. Our products are gaining recognition," noted Mr. Moore.
"Specifically, a new hosted integrated grid monitoring system called Grid
InSite™. ^ This system was introduced recently and is being piloted by eleven
utilities. Prior to Grid InSite™, our sensor data was transmitted through the
utility's SCADA system. Access to this system often caused delays in
deployment and conversion of our pilots into larger orders. With advances like
Grid InSite™, it is easy to see the day when utility employees routinely use
smartphone and tablet devices to remotely access information in a secure
fashion—just like workers in other industries.

"We landed another pilot at a top five US utility company this quarter. The
utility has a history of monitoring their larger transformers and has
identified 50,000 transformers which could potentially benefit from
GridSense's monitoring solution in the next several years," observed Moore.

In the first quarter of 2013, GridSense revenue increased 68% from
approximately $0.9 million in the first quarter of 2012 to $1.5 million. The
increase primarily reflects the completion of an order for 800 Transformer
IQ^® units from a California utility. Our gross margins increased to 43%
versus 37% in the first quarter of 2012.

In commenting on the management change Moore added, "Lindon Shiao joined
GridSense in 2006 when Prime Energy Partners made their initial investment.
Over the past seven years, Lindon has transformed the company from a small
Australian supplier of power quality test devices to a pioneer in the emerging
worldwide market of electric grid distribution optimization. Lindon has
positioned the company with the right products in the fastest growing part of
the electric grid. Now, he has handed over responsibility for the completion
of R&D and transition to a scalable manufacturing infrastructure to new CEO
Joe Musanti. Joe has extensive leadership experience in manufacturing and
sales management. He has an ideal background to build on the foundation set
by Lindon and the outstanding team he has assembled at GridSense."

Lindon Shiao will be leaving his operating role at the company to return to
private equity work at Prime Energy Partners. He has been asked and has agreed
to remain on the GridSense Board of Directors.


OmniMetrix, LLC, is a leading developer and provider of remote monitoring
systems for emergency power generators and underground pipelines. Many of
these generators serve critical requirements such as hospitals, nursing homes
and cell phone towers. "OmniMetrix is building recurring revenue by
installing monitors for emergency generators and charging monthly service
fees," said John Moore. "Currently, there are 4,275 OmniMetrix generator
monitor installations of which 854 were completed in the first quarter. The
core market is the 4,000 generator dealers and to date the OmniMetrix sales
team has made contact with over 500 of them." For critical installations such
as cell towers, preventing generator failure is a priority.

OmniMetrix introduced another industry first: 24/7 monitoring and customer
support and its network operating center (NOC) at its new facility near

"The international potential is also very sizeable and immediate because
developing countries have a shortage of reliable electricity and are also
installing cell towers for wireless communications instead of expensive cable.
All of these are potential customers for back-up generator monitoring."

In the first quarter of 2013 OmniMetrix recorded revenue of $533,000 as
compared to $103,000 recorded in the first quarter of 2012, following its
acquisition on February 15, 2012 by Acorn Energy. Overall gross margin was
62% as compared to 39% in Q1 2012.

US Seismic Systems (USSI)

USSI has developed a seismic fiber-optic geophone to better map existing oil
and gas reservoirs for greater extraction as well as to continuously monitor
wells for safety.  "Two big things happened at USSI in the first quarter.
First, we received an order from a supermajor oil company, and we delivered
and recognized the revenue in that same period. The system is designed to be a
permanent installation to enable sub-surface imaging of oil and gas
reservoirs. This installation will be tested competitively in a full-scale
field evaluation starting May 28th as a potential primary sensing system for
monitoring the client's vast unconventional oil field holdings. This trial is
important because it shows that our investment in US Seismic is being
validated by customer demand. Second, one of our customers ran a trial of our
geophones versus the best in class legacy system and found our system was
approximately 15 times more sensitive than the more expensive legacy system
and that our system provided 99 times more microseismic data than the legacy
system," noted Moore.

Work continues on the optical interrogator licensed from Northrup Grumman.
The hardware was complete as of the end of 2012 and software integration
should be complete by July and should result in positive gross profit margins
and a platform for continued performance enhancements.

"In the second and third quarters we are looking to ship the world's first
100-level optical array to SR2020 and to more product adoption by new and
existing customers," finished Moore.

Revenue for the quarter was $325,000, an increase of $204,000 compared to the
2012 first quarter revenue of $121,000. Backlog at the end of March was $1.1

Conference Call Information

Acorn Energy will host an investor call on Friday, May 10 at 11:00am EDT to
discuss its first quarter 2013 results and developments. Participants can
pre-register for the conference call and webcast by accessing the link below.
Pre-registering gives one immediate entry into the call, zero wait time and
will automatically populate your Outlook calendar with an invitation. To
register for Acorn Energy's Q1 2013 earnings call, click here.

Participants that would like to join the conference call, but have not
registered, can do so by dialing US Toll Free: (866) 652-5200, International
Dial in (412) 317-6060 and asking for the "Acorn Energy Conference Call". If
you are unable to participate in the live call, a digital replay of the call
will be available 2 hours after the end of the live call through 9:00am EDT on
June 10, 2013 by dialing US Toll Free 1-877-344-7529 or International Toll
1-412-317-0088 and entering access code - 10028473.

About Acorn Energy, Inc.

Acorn Energy, Inc. is a holding company whose four portfolio companies help
their customers achieve greater productivity, reliability, security, and
efficiency—factors which can lead to greater profitability.
GridSense—provides monitoring for all critical points along the electricity
delivery system. OMNIMETRIX—remotely monitors emergency back-up power
generation systems to increase their reliability. US Seismic—supplies
fiber-optic sensing solutions to increase oil/gas production and lower costs.
DSIT—provides security solutions from underwater threats to naval and marine
based energy assets. For more information visit:

Safe Harbor Statement

This press release includes forward-looking statements, which are subject to
risks and uncertainties. There is no assurance that Acorn Energy, Inc. or its
operating companies will continue to grow their respective businesses, or that
any of them will meet the expectations or execute the initiatives described or
referred to above. A complete discussion of the risks and uncertainties which
may affect Acorn Energy's business generally and the businesses of its
subsidiaries is included in "Risk Factors" in the Company's most recent Annual
Report on Form 10-K as filed by the Company with the Securities and Exchange

Investor Contact:
Paul G. Henning
Cameron Associates
(212) 554-5462

Financial Tables to Follow –

                                            As of             As of

                                            March31,         December31,

                                            2013              2012
Current assets:
Cash and cash equivalents                   $    20,163    $    26,147
Restricted deposit                          618               699
Accounts receivable                         2,593             5,481
Unbilled revenue                            6,218             5,213
Inventory                                   5,363             5,106
Other current assets                        3,618             3,547
Total current assets                        38,573            46,193
Property and equipment, net                 1,599             927
Severance assets                            3,241             3,165
Restricted deposit                          118               115
Intangible assets, net                      9,305             9,561
Goodwill                                    6,646             6,630
Other assets                                863               745
Total assets                                $    60,345    $    67,336
Current liabilities:
Short-term bank credit and current          $      276  $      153
maturities of long-term debt
Accounts payable                            1,641             2,631
Accrued payroll, payroll taxes and social   2,185             2,420
Deferred revenue                            2,309             3,323
Other current liabilities                   2,095             1,708
Total current liabilities                   8,506             10,235
Long-term liabilities:
Accrued severance                           4,602             4,491
Other long-term liabilities                 763               665
Total long-term liabilities                 5,365             5,156
Commitments and contingencies
Acorn Energy, Inc. shareholders
Common stock - $0.01 par value per share:
Authorized – 30,000,000 shares; Issued
–18,870,526 and 18,892,456 shares at        188               188
December 31, 2012 and March 31, 2013,
Additional paid-in capital                  83,210            83,469
Warrants                                    44                55
Accumulated deficit                         (34,708)          (29,733)
Treasury stock, at cost – 801,920 shares at (3,036)           (3,036)
December 31, 2012 and March 31, 2013
Accumulated other comprehensive income      678               716
Total Acorn Energy, Inc. shareholders'      46,376            51,659
Non-controlling interests                   98                286
Total equity                                46,474            51,945
Total liabilities and equity                $    60,345    $    67,336

                                                Three months ended March 31,
                                                2013            2012
Projects                                        $   3,582    $   3,036
Products                                        1,707           928
Services                                        427             219
Total revenues                                  5,716           4,183
Cost of sales:
Projects                                        2,449           2,246
Products                                        1,039           613
Services                                        103             124
Total cost of sales                             3,591           2,983
Gross profit                                    2,125           1,200
Operating expenses:
Research and development expenses, net of       2,001           1,318
Selling, general and administrative expenses    5,256           4,229
Total operating expenses                        7,257           5,547
Operating loss                                  (5,132)         (4,347)
Finance income (expense), net                   14              (23)
Loss before income taxes                        (5,118)         (4,370)
Income tax expense, net                        (69)            (75)
Net loss                                        (5,187)         (4,445)
Net loss attributable to non-controlling        212             256
Net loss attributable to Acorn Energy, Inc.     $   (4,975)   $   (4,189)
Basic and diluted net loss per share            $    (0.28)  $    (0.24)
attributable to Acorn Energy, Inc. shareholders
Weighted average number of shares outstanding
attributable to Acorn Energy, Inc. shareholders 18,077          17,680
– basic and diluted
Dividends declared per common share             $   0.035    $   0.035

SOURCE Acorn Energy, Inc.

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