Telkonet records lower profit on higher sales and R&D costs

Telkonet energy technology
Telkonet makes intelligent automation products, such as home energy management tools.

Waukesha-based Telkonet Inc. today reported third quarter net income of $269,420, or 0 cents per share, down from $346,584, or 0 cents per share, in the third quarter of 2014.

Telkonet energy technology
Telkonet makes intelligent automation products, such as home energy management tools.

The intelligent automation solutions provider reported operating income of $337,015 in the quarter, down from $457,528 in the same period a year ago.

Revenue totaled $4.1 million, flat from the third quarter of 2014.

During the quarter, the company increased its research and development investment to launch new products, and also upped its selling, general and administrative expenses with the hiring of several new sales professionals.

“Our gross profit increased 21 percent, adjusted EBITDA has nearly doubled, growing 99 percent, and we are profitable on a GAAP net income basis on moderate revenue growth for the year-to-date period after recovering from a slow first quarter. 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.”

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Molly Dill, former BizTimes Milwaukee managing editor.

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