Echelon sinks on light guidance; smart grid ops to be scaled back

|About: Echelon Corporation (ELON)|By:, SA News Editor

Echelon (NASDAQ:ELON) expects Q3 revenue of $13.5M-$15M, below a $17.6M consensus.

The industrial automation technology provider says it has decided to scale back its smart grid product business to "support existing commitments only," unless a buyer is soon found. A $4.1M charge related to be business was taken in Q2.

Grid division revenue fell 54% Y/Y to $6.1M. Industrial division revenue fell 21% to $9M.

GAAP R&D spend fell 14% Y/Y to $4.4M, and sales/marketing spend 4% to $3.9M. G&A spend rose 11% to $3.6M.

Shares -8.5% AH. Q2 results, PR