Waukesha-based Telkonet Inc. today announced it has hired Canaccord Genuity to evaluate its potential strategic and capital raising opportunities.
The company makes intelligent automation solutions, such as home energy management tools.
The financial advisor will help Telkonet’s leadership and board evaluate options that would drive shareholder value and advise the company in any potential transactions. Earlier this month, activist investor Peter Kross filed a notice with the SEC that he plans to nominate his own directors to Telkonet’s board, saying he was concerned about its stock performance.
“We are excited about this new relationship with Canaccord,” said Jason Tienor, chief executive officer of Telkonet. “Canaccord knows our industry, which makes them a great choice to help the Company evaluate strategic opportunities.”
There is no timeline for the review process, and the company said there is no firm plan about what may result from the review.
Telkonet in November named a new CFO, F. John Stark III.
The company also this morning reported a net loss of $189,104, or 0 cents per share, in 2015, compared with net income of $42,830, or 0 cents per share, in 2014.
Operating income was $77,409 in 2015, down from $284,956 in the previous year. The company’s operating expenses and selling, general and administrative costs both increased in 2015.
Net revenue was $15.1 million in 2015, up from $14.8 million in 2014.
“Our gross profit increased 15 percent on moderate revenue growth for the year to date period after recovering from a slow first quarter,” Tienor said. “A deliberate focus to increase product sales of our EcoSmart energy management platform, which has higher gross margins than our HSIA products, has contributed to continued improvement in these profit metrics.”
“While we’re pleased with our steadily improving profit metrics, our goal is to grow top line revenue faster and there have been a number of key indicators in the quarter and during the year that demonstrate our commitment and progress towards sales acceleration, which will result in further multiplying our earnings results,” he continued.