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Echelon Corporation (ELON)

- NASDAQ
  • Fri, Aug. 7, 1:00 PM
    • Along with its Q2 results, Echelon (NASDAQ:ELON) has announced it plans to seek shareholder approval for a reverse split (expected to be 1:10) to regain Nasdaq minimum bid compliance. No word yet on the split date.
    • The industrial automation hardware/software provider also says it plans to "consider a wide range of available options, including, among other things, partnerships, strategic business model alternatives, recapitalization, disposition of one or more corporate assets, or a possible business combination or sale of the Company, in addition to continued pursuit of the Company as a stand-alone entity." Goldman has been hired to advise.
    • Q3 guidance is for revenue of $9.5M-$10.3M and EPS of -$0.02 to -$0.04, favorable to a consensus of $9.5M and -$0.06. Echelon notes it saw strong demand for its networked lighting control offerings in Q2, and had a "meaningful design win" for its building automation business.
    • Echelon ended Q2 with $26.5M in cash/short-term investments, and no debt.
    • Q2 results, PR
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  • Thu, Mar. 12, 11:32 AM
    • A day after making a fresh 52-week low of $1.06, Echelon (ELON +3.8%) is rebounding a bit. The industrial automation tech provider filed its 2014 10-K this morning.
    • Shares remain down 18% from where they traded before Echelon provided subdued Q1 guidance on Feb. 10 to go with a Q4 beat. Its market cap ($48.2M) is just a little above a Q4-ending cash balance of $42.2M.
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  • Wed, Feb. 11, 11:23 AM
    • Though Echelon (NASDAQ:ELON) beat Q4 estimates, it's guiding for Q1 revenue of $8.6M-$9.6M and EPS of -$0.04 to -$0.07, in-line with a consensus of $9.4M and -$0.06 and slightly below at the midpoints.
    • When asked about the outlook on the CC (transcript), CFO Bill Slakey mentioned Echelon expects its outdoor lighting control systems business to grow Q/Q, but its building automation business to be "slightly flat to down."
    • Also: After accounting for the sale of its smart grid products unit, gross margin fell to 55.7% from 60.8% a year ago. Echelon attributes the drop to lower sales to Italian utility Enel.
    • Slakey estimated Echelon needs annual sales of $55M-$65M to breakeven. The 2015 revenue consensus is currently at $42.2M, and the EPS consensus at -$0.25.
    • Shares have fallen to new 52-week lows. Echelon ended 2014 with $42.2M in cash/short-term investments, and $15.4M in long-term liabilities. Its market cap is currently $54.1M.
    • Q4 results, PR
    | 1 Comment
  • Wed, Jan. 14, 1:20 PM
    • A slew of tech companies have posted steep losses on a day the Nasdaq is down 1%.
    • Major decliners include Pandora (P -5%), LED giant Cree (CREE -5.9%), cloud HR software leader Workday (WDAY -4.1%), chipmakers Ambarella (AMBA -5.3%), Pixelworks (PXLW -3.7%), Audience (ADNC -3.6%), Spansion (CODE -4.4%), and Cypress (CY -3.9%) (the last two are merger partners), OLED materials/IP provider Universal Display (OLED -4.2%), industrial automation tech provider Echelon (ELON -4.8%), and P2P lending giant/recent IPO LendingClub (LC -4.8%).
    • Possibly affecting OLED: LG Display (NYSE:LPL) has been ordered to halt operations at an OLED TV panel production line following a gas leak that killed two workers.
    • Cree and Pandora aren't far removed from their 52-week lows; the former reports on Jan. 20, and the latter on Feb. 5. LendingClub, whose selloff follows a volatile Tuesday, could be affected by a neutral coverage launch from Susquehanna.
    | 4 Comments
  • Aug. 7, 2014, 12:47 PM
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  • Aug. 6, 2014, 5:54 PM
    • 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
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  • May 27, 2014, 10:26 AM
    • Echelon (ELON) is soaring, and Control4 (CTRL) is posting a more moderate gain, after the FT reported on Monday Apple is prepping a home automation software platform for its iOS hardware, and is in talks with OEMs to certify their hardware for use with it.
    • Echelon also flew higher in response to the Google/Nest deal, but soon gave back a large portion of its gains.
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  • Feb. 10, 2014, 12:45 PM
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  • Feb. 7, 2014, 6:22 PM
    • Echelon's (ELON -16.5%) light Q1 revenue guidance (revenue of $16M-$18M vs, a $19M consensus) easily overshadowed a Q4 beat and in-line Q1 EPS guidance (-$0.08 to -$0.13 vs. a -$0.10 consensus). With shares having soared in the weeks following the Google/Nest deal, investors were in a profit-taking mood.
    • Needham, one of three sell-side firms covering Echelon, has downgraded  the industrial automation system vendor to Hold. Though still optimistic about Echelon's long-term ability to profit from the "Industrial Internet of Things," it doesn't expect the trend to drive "more tangible revenues that can truly drive profitable growth" before 2015 at the earliest.
    • CC transcript
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  • Feb. 7, 2014, 12:46 PM
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  • Feb. 7, 2014, 9:10 AM
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  • Feb. 6, 2014, 5:44 PM
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  • Jan. 15, 2014, 12:43 PM
    • Control4 (CTRL +16.9%) is now up 62% since Google announced its $3.2B acquisition of Nest on Monday afternoon, as hopes grow another tech giant will decide to acquire the home automation hardware/software vendor in response to Google's move.
    • Today's gains are coming with the help of a bullish coverage launch from Dougherty: The firm argues Control4's broad product line and affordable pricing are "designed to move home automation from a niche market of high-end homes into the mainstream."
    • Control4's market cap ($674M) remains barely 1/5 of the valuation assigned by Google to Nest, and its price/sales multiples are doubtlessly much lower (shares currently go for 4.5x 2014E sales). But its growth rate is also likely much lower than Nest's (sales are expected to rise 17% in 2014).
    • While Control4 continues surging, age-old home/industrial automation play Echelon (ELON -8.8%) is giving back a chunk of yesterday's big gains.
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  • Jan. 15, 2014, 9:11 AM
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  • Jan. 14, 2014, 12:47 PM
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  • Jan. 14, 2014, 10:08 AM
    • Home automation hardware/software vendors Echelon (ELON +38.3%) and Control4 (CTRL +18.8%) are blasting off in response to Google's $3.2B acquisition of intelligent thermostat/smoke alarm maker Nest.
    • A smart wager or irrational exuberance? Investors appear to be betting Google's move will spark broader M&A activity in the home automation space, as tech giants strive to build end-to-end platforms for connected homes. A year ago, Microsoft bought home automation/media-sharing software firm R2 Studios.
    • Cowen observes Control4 has formed a partnership with Nest that allows the former's apps and remotes to control the latter's hardware.
    • Robotics plays received a similar boost last month after Google bought defense robot maker Boston Dynamics.
    | 2 Comments
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Company Description
Echelon Corpdevelops open-standard control networking platforms, delivering all the elements necessary to design, install, monitor, and control industrial-strength communities of devices.