Investors who may be interested in tracking innovative companies this morning could do well to keep an eye on the Acorn Energy Inc. (OTC: ACFN) stock. Yesterday, the company was in sharp focus after it announced its financial results for the fourth fiscal quarter and the full fiscal year of 2024. Let’s take a closer look at this feature.
The Performance
Thanks to a 101% year-on-year rise in hardware revenues and a 10% rise in monitoring revenues, the company’s revenues for the fourth fiscal quarter went up 57% year-on-year to $3,529,000. On the other hand, the revenues for the full financial year 2024 were $10986000, and that reflected growth of as much as 36% from the previous fiscal year.
Net Income Boost
The net income for the fiscal year stood at $6294000, which worked out to $2.51 a diluted share, as opposed to a net income of only $119000 in the 2023 fiscal year and an income per diluted share of $0.05. The company went on to note in the announcement that it had managed to build a highly successful and high-margin business model. It may be a good time to add Acorn Energy to your watch lists.
Key Quote
“We have built a very compelling business model with a high margin, annually recurring monitoring revenue, monitoring hardware sales, and a blended gross margin of over 70%. We have also been able to manage our cost structure so that over 50% of 2024 incremental revenue contributed directly to our pre-tax profit in 2024. From a balance sheet and cash flow perspective, we grew our cash position over 60% to $2.3M in 2024 from $1.5M in 2023, and working capital improved to $1.1M in 2024 from ($0.6M) in 2023, with no debt outstanding. Importantly, Acorn’s stockholders’ equity now exceeds $5M, meeting a critical metric that will let us pursue an uplisting to the Nasdaq Capital Market in the first half of this year.
