WILMINGTON, DE — Acorn Energy, Inc. (OTCQB: ACFN) announced robust financial results for the third quarter of 2024, emphasizing the impact of a significant contract with a leading cell phone provider. The company reported a 46.1% increase in revenue, totaling $3.05 million compared to $2.09 million in the same period last year. This growth was driven by a 90.4% surge in hardware sales, bolstered by the commencement of deliveries related to a $5 million contract for monitoring equipment for cell tower backup generators.
CEO Jan Loeb highlighted the strategic importance of this contract, secured through a competitive process, as a demonstration of Acorn’s technological prowess and customer service commitment. Loeb expects continued demand growth for Acorn’s backup power solutions, especially given the increasing frequency of power outages due to extreme weather and rising electricity needs.
Gross profit improved 41.1% to $2.19 million, with a slight dip in gross margin to 71.7% due to the increased hardware sales proportion. Operating expenses decreased to $1.43 million from $1.54 million, largely due to reduced selling, general, and administrative costs.
The company reported a significant rise in net income, reaching $725,000, or $0.29 per share, up from $24,000, or $0.01 per share, in the prior-year quarter. Acorn’s liquidity position also strengthened, with cash reserves increasing to $2.15 million as of September 30, 2024, and no outstanding debt.
Looking forward, Loeb expressed optimism about Acorn’s growth trajectory, supported by its efficient operational structure and ongoing investments in R&D to enhance its product offerings. The CEO noted that the company is well-positioned to capitalize on new opportunities and continue building momentum into the fourth quarter and beyond.
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