Acorn Energy (ACFN) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.03 million in the quarter, against a net loss of $1.92 million in the last year period. Revenue during the quarter plunged 75.96 percent to $1.04 million from $4.33 million in the previous year period. Gross margin for the quarter expanded 2340 basis points over the previous year period to 56.48 percent. Operating margin for the quarter stood at negative 34.01 percent as compared to a negative 33.18 percent for the previous year period.
Operating loss for the quarter was $0.35 million, compared with an operating loss of $1.44 million in the previous year period.
Jan Loeb, president and chief executive officer of Acorn, commented "Over the past year we took aggressive and necessary steps to de-risk Acorn’s balance sheet, provide funding for our company, and to focus on our core businesses where we see value and competitive advantage with solid growth potential. While these actions resulted in lower reported revenues, including the deconsolidation of DSIT following the sale of a portion of our interest, they also enabled us to deliver far stronger cash flow and bottom-line performance versus last year - but our transformation is not yet complete.
Working capital turns positiveWorking capital of Acorn Energy has turned positive to $3.53 million on Dec. 31, 2016 from negative $0.97 million on Dec. 31, 2015. Current ratio was at 1.68 as on Dec. 31, 2016, up from 0.94 on Dec. 31, 2015.
Debt comes down significantly
Acorn Energy has recorded a decline in total debt over the last one year. It stood at $0.38 million as on Dec. 31, 2016, down 80.38 percent or $1.54 million from $1.92 million on Dec. 31, 2015. Acorn Energy has recorded a decline in short-term debt over the last one year. Total debt was 4.07 percent of total assets as on Dec. 31, 2016, compared with 7.88 percent on Dec. 31, 2015. Debt to equity ratio was at 0.20 as on Dec. 31, 2016, down from 1.16 as on Dec. 31, 2015.
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