Acorn Energy, Inc. (Nasdaq: ACFN)

Company Business Summary

Acorn Energy, Inc. provides energy infrastructure management solutions worldwide. It offers selective catalytic reduction (SCR) catalyst and management services, including SCR catalyst management, cleaning, and regeneration, as well as consulting services for coal-fired power plants that use SCR systems to reduce nitrogen oxides emissions. The company also provides sonar and acoustic related solutions, including AquaShield Diver Detection Sonar (DDS) that provides critical coastal and offshore protection of sites; PointShield Portable Diver Detection Sonar, a portable diver detection sonar for protecting vessels at anchorage and cover restricted areas; PortView Harbor Surveillance System, which incorporates DDS sensors with above-water surveillance sensors to create an above and below water security system; Mobile Acoustic Range, which measures a submarine?s or surface vessel?s radiated noise, and enables navies and shipyards to monitor and control radiated noise; Generic Sonar Simulator for training anti-submarine warfare, submarine, and mine detection sonar operators; and Underwater Acoustic Signal Analysis System, which processes and analyzes acoustic signals radiated by various sources and received by naval sonar systems.

In addition, it develops and produces weapon/command and control operating consoles for air and naval applications; hardware and embedded software for computerized vision systems; hardware and embedded signal processing software for airborne and missile systems; signal processing systems and sonar power amplifiers; and information technology and consulting services. Further, the company provides remote monitoring and control systems to electric utilities and industrial facilities; and fiber optic sensing systems for the energy, commercial security, and defense markets. It has a strategic alliance and license agreement with Solucorp Industries, Ltd. The company was founded in 1986 and is based in Montchanin, Delaware.

Management

Acorn believes that the right management team with the right incentive plan is the best driver of shareholder returns. Acorn CEOs are passionate entrepreneurs who are enthused about delivering products and services that make the world a better place. Acorn companies’ management teams typically own 10% or more of their business.

Acorn has found ways to attack energy stresses by creatively applying intelligence and smarter systems to “get more out of what we have already got”. Making our existing energy infrastructure smarter is the lowest cost, lowest risk, highest return approach that we, as investors and society, can take.

Acorn’s strategy is contrarian. Today it is popular to invest in big science projects. But Acorn prefers to fish where the fish are, not where the boats are. There are substantial business opportunities in repairing and updating the existing infrastructure. Acorn believe in the future of digital connected energy systems that we call the Enercosm. This is an evolution from the telecom revolution that George Gilder described as the Telecosm. Acorn operating companies share this strategic vision. They also share sales leads, marketing programs, and expert intelligence about the energy industry.

Financial Profile

Acorn Energy has 125.94 million market with the P/E of 5.58. Its Revenue growth is 25.70%, return on equity is 5.34% and dividend yield is 1.90%. Acorn Energy Inc announced  a 2011 year-end declaration of a special dividend of $0.05 per share. It will be paid in January 2012 to stockholders of record on December 30, 2011.

For the third quarter ended September 30, 2011, revenues were $5.1 million compared to $4.0 million in the third quarter of last year.  Net income for the quarter was $40.8 million vs. a loss of $4.6 million in the prior year, or $2.33 vs. ($0.29) per share.For the nine month period, revenues were $12.3 million compared to $10.0 million in the prior year period.  Net income was $36.5 million vs. a net loss of $10.8 million or $2.09 vs. ($0.75) per share. The next earning date is 12-Mar-12.

Market performance

ACFN closed at $7.19 , gained 4.20% on last trading day, with the 86,195 volume. It has 52-week low of $3.33 and high of $7.11. Previous Closing Price is above its 20 day moving average $6.69  and its 250 day moving average $5.63. It has an ongoing P/E of 8.15, which is far below the industry leader of 30.62 (EFII). It is rated strong buy by stoxline.com and has a price target of $8.47 in six months.