Demand response company Comverge (COMV) got a pop in early trading yesterday after the company posted mixed results, but also posted a surprise non-GAAP quarterly profit -- the first in company history. However, most of the gains had evaporated by the end of the day.
The company reported a non-GAAP EPS of .04/share on revenues of $37 million, while analysts expected an EPS loss of .02 on revenues of $39 million. Does that mean the company is now on the path to consistent profitability? Not exactly. Big losses are expected to return, but the company is expected to come close to breaking even in 2012.
"2010 was a very significant year for both Comverge and our industry as a whole," said R. Blake Young, president and CEO, Comverge. "As all customer classes faced increasingly complex supply and demand challenges, we saw record adoption of our portfolio of Intelligent Energy Management hardware, software and services amongst both residential and commercial and industrial customers. As we continue to invest in delivering on the expanded capability of Intelligent Energy Management, I am confident we will be able to capitalize on the growing demand for energy management applications in 2011 and beyond."
Technically, shares of COMV may be close to a long term bottom, but it’s too soon to tell because there is significant resistance around the $6 level which it had trouble with today.