Telkonet’s revenue increases 9 percent in 2013

Special to The Freeman

March 31, 2014

MILWAUKEE – Telkonet, Inc. announced Monday that its fiscal 2013 revenues were $13.89 million, an increase of 9 percent from fiscal 2012 and fiscal 2013 product revenue increased by 19 percent compared to the year prior.

“Our commitment, business plan and successful execution in 2013 resulted in the topline growth we expected,” said Jason Tienor, Telkonet's CEO, in a statement. “Our growth strategy, which included hiring more sales people and a comprehensive marketing campaign, is showing positive results, as evident in our backlog and new projects, especially in the educational, hospitality and military sectors. We continue to see acceptance of our complete EcoSmart product line among new customers, as well as current client upgrades and expansion into new facilities. Our EthoStream line is one of the largest public High-Speed Internet Access providers in the world, providing services to more than 8.0 million users monthly across a network of approximately 2,300 locations.”

Telkonet, Inc. complementary business divisions include EcoSmart, an energy management technology platform featuring Recovery Time technology and EthoStream, one of the largest hospitality high-speed Internet access providers in the world.

New product installations accounted for 73 percent of total revenues in fiscal 2013 and increased 19 percent compared to 2012, according to Telkonet. Fiscal 2013 operating expenses increased by 61% percent when compared to fiscal 2012.

“Although we did see a decrease in recurring revenue, we made a decision last year not to pursue renewing customer accounts with lower profit margins. Our focus throughout 2013 was new product installations and partnering with established Energy Service Companies also referred to as ESCOs. We believe that our EcoSmart products can serve the educational industry in a positive financial and energy saving-manner,” Tienor said in the statement. “We have successfully established relationships within the educational sector who are seeking to expand their energy efficiency initiatives as well as the ESCO's who target the educational marketplace. I am pleased to announce one school district has installed EcoSmart in each classroom throughout the district.”