I think some of the problems with Duke was they had some trouble in downtown Cincinnati with the nodes that were provided by AMBT. Echelon's meters worked great and the other issues were U.S. utilities are so concerned with cyber threats they didn't want to fully network everything until they have a better handle on security. This is what a Duke field guy told me.
Interesting, even with the change of strategy and the uncertainty, Royce keeps adding shares.
And, Echelon is looking for strategic partnerships with companies in the valley and commerical industr and no longer trying to beat down the doors of utility monopolies and foreign governemtns.. I'm sure its a breath of fresh air to be moving in this direction, again.
Cash burn going forward after 4th quarter drops to 2 million a quarter on a balance of 40+ million and that is without any new/large contributor to revenues. No doubt, they have had a tough year with restructuring the company away from the grid business but I like the streamlined operations, the focus on their bread and butter technology and the prospects for the future being again a cutting edge silicon valley tech company. I think they have the right team and vision in place to make it happen.
Don't think a buyout with Apple is happening, this company is positioning itself to be taken out by a company operating in the industrial sector, high tech industrials.
Interesting, Echelon will still be supporting grid industry standards groups. There is a lot to this transaction that has yet to be disclosed.
Looks like nothing has changed except getting the expenses of the grid business off Echelon's financial statements. Employees are still housed at the same facility and they still have the office in Fargo. Can't wait for the next conference call.
They can carryback any current NOL this year and offset that against income for the two previous years and then they can carryforward the losses for twenty years.
Welcome to the smart grid sector where promises and dreams are only that but contracts and revenues are always off in the distance.
Hopefully, if/when Echelon releases a PR on this development it will state what products they are providing.
Probably something overseas. Maybe the sale of the grid business is closing or maybe, maybe, the Poland deal is coming to together. Or China, or N Africa, or Brazil....could be a lot of things but something positive is happening. We'll find out tomorrow.
If you look at the report coming out of the UK this week shedding doubt on whether or not smart meters are valuable on a cost benefit analysis, Echelon management probably made the right move by shedding the smart grid business.
There is a report that came out of the UK this week putting in doubt a 52 million rollout of smart meters which is a huge but continuous blow to this industry. SSNI is a leader in the space but the only thing that is certain is this sector continues to be uncertain and difficult to model revenues with any consistency. The report coming out of the UK sheds doubt into whether or not there is a cost benefit analysis to installing smart meters in homes.
Duke has installed some Itron's meters in Cincinnati but they have yet to go live.