Telkonet (TKOI): An Innovator in In-Room Energy Management
Telkonet Inc. (OTCBB: TKOI, the “Company”) is a leading provider of energy management technology to commercial customers throughout the world. Unlike competitors, the Company has developed an end-to-end platform focused on monitoring and managing all manners of energy consumption for hotels, healthcare, military barracks, educational institutions and other facilities. From HVAC to plug loads, Telkonet allows customers to take control and change the pattern of energy consumption.
Proprietary Technology Provides a Better Solution
Telkonet has developed a patented algorithm called Recovery Time™ that dramatically improves the current standard in occupancy-based energy management. The optimal energy management strategy requires deployment of a system that will control the temperature within the room as well as the amount of time it takes the HVAC unit to recover an occupant’s setpoint temperature upon reentry. Telkonet has already developed and integrated this technology into their proprietary EcoSmart and SmartEnergy solutions. Unlike traditional systems with static setpoints, Recovery Time™ constantly manages a room’s temperature to decrease HVAC runtime, increase efficiency, and improve guest comfort.
Through Telkonet’s EthoStream brand, the Company provides optimized communication services, connecting 4.2 million users to the EthoStream Hospitality Network each month. During the second quarter, Telkonet added more than 130 properties and 20,000 rooms to its EthoStream Network. As the largest hospitality High-Speed Internet Access (HSIA) provider in the US, Telkonet’s EthoStream Network continues to recognize strong growth and demand for services.
The Company designed its unique technologies to significantly reduce utility costs, a form of cost savings that goes straight to the bottom line, while also reducing carbon footprints and eliminating the need for construction of new power plants. In October, the firm’s SmartEnergy platform was installed in the 403-room Embassy Suites in Denver, CO. The hotel reduced energy usage and HVAC runtime, leading to both decreased utility bills and a LEED Silver certification.
Strong Growth and Near-Term Profitability
Telkonet reported revenues of $2,927,936 last quarter, up approximately 18% sequentially. The company is on track to report its first profitable year overall, a definite sign of strength given the current economic situation. These results help Telkonet cover its working capital deficit without raising additional capital, a step that will ultimately unlock significant shareholder value.
The Company’s current revenues benefit from a transition to cloud-based services. These revenues represent a growing portion of the overall recurring revenues and could help boost profit margins over the coming years. These financial catalysts combine with a solid product offering to create a compelling investment opportunity.
In a recent press release, President and CEO Jason Tienor said, “We continue to deliver significant ongoing cost savings and generate strong cash flow. We continue to see strong business demand across all of our products … and our second quarter platform and inventory investments have positioned us securely for long-term growth.”
A Great Investment Opportunity
Telkonet represents a great investment opportunity. With growing revenues and profitability on the horizon, investors can capitalize on significant long-term potential with the Company’s high value lineup of products. Those looking for more information can check out the following resources:
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