I sure hope not! Lots of money to be made for the exec's with current option pricing when they start seeing traction in the new business plan. Don't get me wrong, I'm beyond frustrated with the stock price but the IOT and IIOT industry is huge so will need to stay patient for the time being. Also, don't think they would have bought out of their lease obligation if they were going private.
Kimco is no slouch!!
Echelon Corporation (ELON), a leading independent control networking company for the Industrial Internet of Things (IIoT), announced today that its customer, Kimco Realty Corporation, North America’s largest publicly traded owner and operator of neighborhood and community shopping centers, has received three awards from the Lighting Energy Efficiency in Parking (LEEP) Campaign.
Kimco won the “Best Use of Lighting Controls at a Single Facility” for its parking area lighting system upgrade at the 280 Metro Center shopping center in Colma, CA, that featured the Lumewave wireless lighting control system by Echelon. Kimco also won awards for “Greatest Absolute Number of Facility Upgrades” and “Largest Absolute Area of Facility Upgrades.”
The shopping center’s upgraded lighting system utilizes the Lumewave wireless lighting control system enabling a highly efficient and flexible solution for monitoring parking lot lighting. The lighting system comprised 79 high-performance 217 Watt LED area fixtures equipped with PIR motion sensors along with 0-10V dimmable drivers with a Lumewave wireless lighting control node fitted to each fixture which provides two-way communications via a central gateway device and cellular modem.
The wireless control from Lumewave provides an additional savings of approximately 30 percent, compared to dusk-to-dawn operation through late-night scheduled dimming and motion-activated control. Beyond additional energy savings, the fixture-level control system enhances safety and security at the center due to the motion sensing which can actively deter unwanted activity. The fault detection notifications from the system can help reduce maintenance inspection costs and can aid the resolution of any lighting outages more quickly.
“We are very proud to be recognized by the LEEP Campaign for the lighting improvements made at Kimco’s 280 Metro Center,” said Nate Mitten, Senior Manager of Property Standards & Improvements for Kimco Re
Working with controller network leader Echelon Corp. Marvell is making a bid to bring WiFi networking to the Industrial Internet of Things.
To achieve this goal, Marvell will include elements of Echelon's new IzoT platform in its Easy Connect Software SDK for Marvell's 88MC200 Wi-Fi Microcontroller platform, and Echelon will add a range of Marvell-based Wi-Fi control modules to its catalog for the development of industrial-grade wireless devices.
Types of devices it hopes to enable for wireless IIoT connectivity include sensors (devices that measure physical conditions), actuators (devices that take action such as closing a valve, reducing current flow, etc.) or controllers (devices with the intelligence to receive sensor data and tell various actuators what to do).
According to Weili Dai, President and Co-Founder of Marvell. in typical industrial environments, these devices have had to be wired due to safety, performance, security and reliability concerns. These devices will also have to meet unique requirements, such as the ability to withstand harsh (noisy, dusty, wet, high- or low-temperature) physical conditions, sustain loss of connectivity to the Internet, operate with little or no human interaction, and perform mission-critical tasks with extremely high availability.
Echelon's recently announced IzoT device software will be available as part of the Marvell Easy Connect software developer kit (SDK). Developers using Marvell's 88MC200 Wi-Fi Microcontroller platform and Easy Connect Software will be able to download the Echelon IzoT device software and build their device applications on top of it, he said, thereby taking advantage of connectivity, control and interoperability services that are required by industrial-grade communities of devices within the IIoT.
In 2014, Echelon plans to introduce its own IzoT-optimized Wi-Fi modules based on the Marvell 88MC200 Wi-Fi microcontroller platform and the industrial-grade Marvell 8801 Wi
McKinsey Global Institute just released a new report entitled, "The Internet of Things: Mapping the Value Beyond the Hype" which says if anything we're underestimating the potential economic impact of IOT. The report cites six reasons we might be under hyping the IOT including:
1. we're using little of the data
2. we're not getting the big picture by focusing only on industries
3. we're forgetting about the B2B opportunity
4. we're ignoring that " interoperability" could be the new "synergy"
5. underestimating the impact on developing economies
6. forgetting about the new business models that will be created
Four of the nine different industries top out at over 1 trillion of projected economic value all of which Echelon has a footprint: factories, cities, health and fitness and retail. If you're looking for a reprint of the article it appeared on the Washington Post and was written by Dominic Basulto. Also, another article just written in the San Jose Mercury News states that the biggest issue facing smart home is having interoperability of devices that can talk to each other. NEST needs other NEST enabled devices to work together and companies are working on trying to tie together devices of other manufacturers but it is still a work in progress. Can Echelon be the answer?
The bar is so low now on the strike price these guys can make a ton of a money if they can execute the business plan and grow the top line.
Nearly tripling last years worldwide revenue numbers. You have Intel trying to buy Altera and Avago getting together with Broadcom all to strengthen their product lines in this area. Echelon frees up their lease obligations while continuing to build their brand awareness in the IIOT marketplace. After biotech cools off, the IOT market will sizzle.
After dismal volume the past couple of days today opens strong. Probably due to the 8K being released and getting the lease obligations off the balance sheet as a long-term liability. The company is officially debt free, just like the old days!
Stock action the past couple of weeks is consistent with one ready to breakout. I think Sege is the guy to get this jump started and it can happen soon.
Great move!! Continue to reduce operating expenses and long term lease obligatoins while at the same time making them more attractive to be acquired or grow their business while reducing the breakeven number. Sege needs to hit the marketing efforts hard the next several months and it starts next week. Good Luck!
Under the terms of the agreement, the existing leases, which run through 2020, have been terminated and replaced with a short-term lease for a smaller portion of the facility that will run through the remainder of 2015. In return for this early termination, the company has agreed to a one-time up front cash payment of $10.0 million and lease payments for the balance of 2015 totaling $900,000. This will eliminate the remaining lease obligation payments of $21.4 million.
“This is an important example of our commitment to reducing our operating expenses in alignment with one of our three strategic initiatives,” said Ron Sege, Chairman and CEO of Echelon. “While the accounting rules are complex, we expect this transaction to significantly lower the company’s breakeven and to translate into considerable long-term economic value for the company.”
As a result of this transaction, net cash (total cash and investments less lease obligations) on the balance sheet will increase by approximately $5.5 million. On a non-GAAP basis, the company estimates facilities related savings will be between $400,000 and $600,000 per quarter for the balance of 2015. On a GAAP basis, the company anticipates that the transaction will result in additional depreciation expense of approximately $1.5 million per quarter through the end of 2015 as the remaining building assets are amortized off its balance sheet.
For Q2 2015, the lease termination agreement results in a revised estimated non-GAAP loss of ($0.04) to ($0.07) per share versus the previous guidance of ($0.05) to ($0.08). On a GAAP basis for the second quarter of 2015, the lease termination results in a revised estimated
This isn't a new development but Amtrak is planning on spending 10 billion over the next ten years to upgrade their infrastructure and they will be using LonWorks.
You raise valid points and get no disagreement from me on any of what you said. The next six to nine months are critical for this restructuring to start gaining traction.
It's worth a shot, the company has a long history of being inventors and innovators and if they can come up with a product (e.g. Nest thermostat) that can be widely distributed than it can still become the successful investment we thought it could be. You never know what could happen tomorrow whether its a new contract, product, joint venture, etc and as long as they can continue funding operations and innovating we have a shot. Sege has had a difficult job but he seems to be managing the changes and restructuring well and making the tough decisions that keeps CEO's up at night. I admire his persistence and stamina.
They had a 4M burn this past quarter primarily due to restructuring and getting rid of the grid business and had nearly 40M in cash at the end of the quarter. Their gap and non-gap losses for the quarter were in the neighborhood of 1.3 to 1.4 million so lets say they have losses of 5 to 6 million for the year, and they continue to have these type of quarters going forward. During the call they eluded to continuing to pare down operational expenses while at the same time hoping to increase revenues through new and existing initiatives. After the first quarter, they don't have a huge cash burn and based on this info they have five to six years of cash probably more.
Your math is off, based on current run rates they have 6+ years. That's a lot of time to get this company profitable with a much higher market cap.
Sentiment: Strong Buy
I didn't think the conference call was too bad. Gaining traction in the commercial lighting market is a huge market and that could buy them time before other products or the IZOT platform and IIOT market takes off.
Seriously??? It only siphoned revenues away from them and had a profound effect on their income and balance sheet. They essentially had a multi-year contract with a Chinese company get cancelled after they stole AMSC's IP and tried to flood the maket with lower priced products that created an oversupply in the industry and ruining new orders for several years. If everything had worked out like it should have AMSC wouldn't be needing additional cash and adding more shares. Keep in mind before the infringement of their patent the CEO of AMSC was buying shares in the upper 30's and that is well before the reverse stock split..