ECHELON CORP

CIK:0000031347|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2018

Jun. 30, 2017

Jun. 30, 2018

Jun. 30, 2017

Income Statement [Abstract]

Revenues

^[1]

$ 7,917

$ 8,337

$ 15,754

$ 16,040

Cost of revenues

^[2]

3,472

3,618

6,932

6,910

Gross profit

4,445

4,719

8,822

9,130

Operating expenses:

Product development

^[3]

2,449

2,255

5,454

4,482

Sales and marketing

^[3]

1,184

1,463

2,494

2,925

General and administrative

^[3]

2,380

1,929

4,085

3,853

Total operating expenses

6,013

5,647

12,033

11,260

Loss from operations

(1,568)

(928)

(3,211)

(2,130)

Interest and other income (expense), net

376

(220)

634

(285)

Loss before provision for income taxes

(1,192)

(1,148)

(2,577)

(2,415)

Income tax benefit

Net loss

$ (1,222)

$ (1,177)

$ (2,601)

$ (2,438)

Basic and diluted net loss per share (usd per share)

$ (0.27)

$ (0.26)

$ (0.57)

$ (0.55)

Shares used in computing net loss per share:

Basic (in shares)

4,542

4,445

4,534

4,440

Diluted (in shares)

4,542

4,445

4,534

4,440

[1]	Represents the portfolio of available for sale securities that is included in restricted investments and short-term investments in the Company’s condensed consolidated balance sheets
[2]	Included in cash and cash equivalents in the Company’s condensed consolidated balance sheets
[3]	See Note 4 for summary of amounts included representing stock-based compensation expense.

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net loss	$ (2,601)	$ (2,438)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	230	220
Reduction in allowance for doubtful accounts	0	(7)
Increase in accrued investment income	(101)	(40)
Stock-based compensation	953	909
Gain on liquidation of joint venture	(424)	0
Change in operating assets and liabilities:
Accounts receivable	(861)	(724)
Inventories	300	(66)
Deferred cost of revenues	(264)	(21)
Other current assets	251	(398)
Accounts payable	733	544
Accrued liabilities	(242)	(111)
Deferred revenues	236	61
Deferred rent	(31)	(32)
Net cash used in operating activities	(1,821)	(2,103)
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases of available‑for‑sale short‑term investments	(11,869)	(11,950)
Proceeds from maturities and sales of available‑for‑sale short‑term investments	12,000	12,000
Change in other long‑term assets	(21)	24
Capital expenditures	(139)	(31)
Net cash provided by (used in) investing activities	(29)	43
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Repurchase of common stock from employees for payment of taxes on vesting of restricted stock units and upon exercise of stock options	(68)	(64)
Distribution of remaining cash balance to joint venture partner	(432)	0
Net cash used in financing activities	(500)	(64)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	9	48
NET CHANGE IN CASH AND CASH EQUIVALENTS	(2,341)	(2,076)
CASH AND CASH EQUIVALENTS:
Beginning of period	7,261	9,803
End of period	4,920	7,727
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes	$ 68	$ 68

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 4,920	$ 7,261
Short-term investments	11,940	11,967
Restricted investments	1,250	1,250
Accounts receivable, net	3,147	2,296
Inventories	2,951	3,251
Deferred cost of revenues	840	1,039
Other current assets	1,576	1,152
Total current assets	26,624	28,216
Property and equipment, net	438	458
Intangible assets, net	611	725
Other long-term assets	337	987
Total assets	28,010	30,386
CURRENT LIABILITIES:
Accounts payable	2,995	2,317
Accrued liabilities	1,768	1,878
Deferred revenues	1,088	1,812
Total current liabilities	5,851	6,007
LONG-TERM LIABILITIES:
Other long-term liabilities	586	652
Total long-term liabilities	586	652
STOCKHOLDERS’ EQUITY:
Common stock	49	48
Additional paid-in capital	360,223	359,339
Treasury stock	(28,130)	(28,130)
Accumulated other comprehensive loss	(2,005)	(1,821)
Accumulated deficit	(308,564)	(305,963)
Total Echelon Corporation stockholders’ equity	21,573	23,473
Noncontrolling interest in subsidiary	0	254
Total stockholders’ equity	21,573	23,727
Total liabilities and stockholders’ equity	$ 28,010	$ 30,386