Milwaukee-based Telkonet Inc. today reported a 2013 net loss of $3.9 million, or a 4 cent loss per share, down from net income of $390,000, or no earnings per share, in 2012.
The energy management technology provider reported yearly net revenues of $13.8 million, up from $12.7 million in 2012.
New product installations contributed 73 percent of total revenues for the year, up 19 percent from 2012. However, operating expenses were up 61 percent from last year, mainly because of a non-cash goodwill impairment charge of $2.7 million for Smart Systems International, which it acquired in 2007.
“Our commitment, business plan and successful execution in 2013 resulted in the topline growth we expected,” said Jason Tienor, Telkonet’s chief executive officer. “Our growth strategy, which included hiring more sales people and a comprehensive marketing campaign, is showing positive results, as evident in our backlog and new projects, especially in the educational, hospitality and military sectors. We continue to see acceptance of our complete EcoSmart product line among new customers, as well as current client upgrades and expansion into new facilities. Our EthoStream line is one of the largest public High-Speed Internet Access providers in the world, providing services to more than 8 million users monthly across a network of approximately 2,300 locations.
“Although we did see a decrease in recurring revenue, we made a decision last year not to pursue renewing customer accounts with lower profit margins. Our focus throughout 2013 was new product installations and partnering with established Energy Service Companies. We believe that our EcoSmart products can serve the educational industry in a positive financial and energy saving-manner.”
