Microgrids are quickly becoming the answer to energy disruption. In fact, as the latest virus pandemic wreaks havoc, and strains the power systems of hospitals and food distribution systems, we’re being reminded of just how essential electricity and backup power generation truly are. “There are a million warnings out there on a million serious things. We add one: Everything works—and will continue to work—as long as we have electricity. It’s what keeps the lights on, the oxygen flowing, the information going. Everything is the grid, the grid, the grid,” notes The Wall Street Journal.
However, it’s not just the pandemic that will remind millions. Natural disasters, such as storms, earthquakes, and fires will require the resiliency and reliability microgrids can offer. Better still, according to a report from Global Industry Analytics, the global microgrid market will grow to $2.1 billion by 2025, as highlighted by Business Chief. Such growth is creating a good deal of opportunity for companies such as CleanSpark, Inc. (NASDAQ:CLSK), Ballard Power Systems Inc. (NASDAQ:BLDP )(TSX:BLDP), Honeywell International (NYSE:HON), General Electric Company (NYSE:GE), and Eaton Corporation PLC (NYSE:ETN).
CleanSpark, Inc. (NASDAQ:CLSK) BREAKING NEWS: CleanSpark, Inc., a diversified software and services company, just updated its shareholders and commented on the Company’s financial results presented in its most recent Form 10-Q. The Company recommends that readers also review the Company’s 10-Q in its entirety, a free copy of which is available to all interested parties on the Company’s website or on www.sec.gov.
The past months have been challenging for the entire world and our hearts go out to all those that have been affected by the COVID-19 pandemic. We count ourselves as very fortunate as we delivered our seventh consecutive record-setting quarter with a significant increase in year-over-year revenues during this trying period. Through our strategic acquisition of p2klabs, Inc. and expansion of our existing product offerings, we are optimistic that we will continue to see increased adoption of our solutions and associated revenues. Our sales in fiscal 2020 are led by sales of our custom switch gear equipment with $4.0 Million in products delivered during the six months ending March 31, 2020. We continue to see a sizable percentage of repeat customers in this segment and we expect this trend to continue throughout 2020. As of March 31, 2020, CleanSpark had a total of approximately $3.5 million in hardware purchase orders under contract, which we expect to deliver over the next two quarters. We continue to target $7.0 million in delivered equipment sales prior to the end of our fiscal year.
We plan to continue increasing our marketing focus on our mPulse software and controls platform and mVSO, (microgrid Value Stream Optimizer) our Software as a Service (SaaS) energy design and modeling platform. We expect these efforts will result in increased revenues and an improved margin profile. To further aid the company in these actions we were pleased to announce the addition of Marty Weishaar as our new Vice-President of Marketing, in March 2020. Marty formerly served as the New Products Director at Lending Tree. During the six months ending March 31, 2020, we delivered over $345,000 in software, energy storage and associated hardware. As of the date of this release we have over $1.15 Million in additional software, energy storage and associated hardware orders under contract and we continue to target $1.0 million in delivered revenue related to this category prior to the end of our fiscal year.
On January 31, 2020 we closed on the acquisition of p2klabs. This acquisition has enabled CleanSpark to accelerate the development and deployment of new features to our software platforms while also expanding our overall sales and marketing capabilities. p2klabs increased the depth of talent to our team, including the additional of Amer Tadayon, the President of p2klabs who now serves CleanSpark as the company’s Chief Revenue officer. In addition to his experience at p2klabs, Amer has worked with world-class companies including IBM, Cognizant and frog Design. In additional to the internal resources provided, p2klabs produces high-margin service revenues and contributed a total of $231,000 in revenues between February 1, 2020 and March 31, 2020. Since the acquisition closed we have invested in marketing and additional staff for the p2klabs business and expect the quarterly revenue contribution to increase significantly over the coming quarters. We continue to target $2.0 million in p2klabs revenue prior to the one-year anniversary of the acquisition, January 31, 2021.
As of March 31, 2020, in total as an organization, the Company had over $5.6 million in revenue under contract from all three major lines of business that is expected to be delivered over the next three quarters. We greatly appreciate the continued support from all our shareholders as we continue to put our efforts towards increasing shareholder value, achieving profitability and improving our margin profile through increased software and service revenues.
Three months ended March 31, 2020 US GAAP Financial and Operating Highlights:
All amounts below are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) unless otherwise indicated.
Three-months ended March 31, 2020 Revenue of $3,658,283, up 405% from $723,899 in 2019. Three-months ended March 31, 2020 Gross profit increased 434% to $704,037, up from $131,881 in 2019. Three-months ended March 31, 2020 Net loss per share improved by $0.75 per share to $(1.13) from $(1.88) in 2019.
Six months ended March 31, 2020 US GAAP Financial and Operating Highlights:
All amounts below are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”) unless otherwise indicated.
Six-months ended March 31, 2020 Revenue of $4,635,107, up 370% from $986,806 in 2019. Six-months ended March 31, 2020 Gross profit increased 365% to $798,140, up from $171,462 in 2019. Six-months ended March 31, 2020 Net loss per share improved by $1.03 per share to $(1.56) from $(2.59) in 2019.
Other related developments from around the markets include:
Ballard Power Systems Inc. (NASDAQ:BLDP)(TSX:BLDP) announced consolidated financial results for the first quarter ended March 31, 2020. All amounts are in U.S. dollars unless otherwise noted and have been prepared in accordance with International Financial Reporting Standards (IFRS). “Our top priority, always, is the health and safety of our people, customers and partners,” said Randy MacEwen, President and CEO. “We have taken important precautions to mitigate the impact of the COVID-19 pandemic on our people and our business. Notwithstanding this extraordinary backdrop, we delivered record Q1 revenue of $24.0 million, gross margin of 22% and ending cash reserves of $181.6 million. We further fortified our balance sheet, with the execution of an At-The-Market Equity Program.”
Honeywell International (NYSE:HON) announced Honeywell Forge Workforce Productivity is being adopted by Wood, a global leader in consulting, projects and operations solutions in energy and the built environment. The connected worker solution enabled by Honeywell Forge helps improve decision-making, boost productivity and enhance safety for industrial workers. Using hands-free devices and leveraging technology such as augmented reality, Honeywell Connected Worker's intelligent wearables combine a heads-up display and voice control with sophisticated workflow software and deep integration of plant and process data. Honeywell is working with Wood to equip its frontline workforce in the energy industry with instant access to the crucial knowledge and information needed to streamline operations, ensure uptime and enable business continuity. "Honeywell Forge Workforce Productivity is one of the key components of our connected operations and worker programmes. Wood is harnessing the collective ingenuity of our people using disruptive technologies to solve our clients' biggest challenges," said Darren Martin, Wood's chief technology officer. "The technology is central to ensuring Wood and our clients are future ready, now."
General Electric Company (NYSE:GE) has successfully energized the Dynamic Reactive Compensator (DRC) project for National Grid in the UK. This project represents the largest utility-grade Static Synchronous Compensator (STATCOM) scheme in Europe, delivering 975 Mvar power range. It is deployed and coordinated over three separate substations along the transmission network in southeast UK. “Working with GE, National Grid has now implemented the largest voltage compensation scheme in Europe, an accomplishment that we are immensely proud of. This project represents another technology implementation in a long line of successes that we have had with GE,” said National Grid’s Electricity Transmission, Head of Customer Solutions Hedd Roberts.
Eaton Corporation PLC (NYSE:ETN) announced that earnings per share were $1.07 for the first quarter of 2020. Excluding charges of $0.02 per share related to acquisitions and divestitures, adjusted earnings per share were $1.09. Adjusted earnings per share were reduced by $0.14 due to the impact of the COVID-19 pandemic. Sales in the first quarter of 2020 were $4.8 billion, down 10 percent from the first quarter of 2019. Organic sales were down 7 percent, including a reduction of 4 percent from the impact of the COVID-19 pandemic. Acquisitions added 2 percent to sales, which was offset by 3½ percent from divestitures. Negative currency translation reduced sales by 1½ percent. Craig Arnold, Eaton chairman and chief executive officer, said, “At our annual investor day on March 2, we indicated that our first quarter would be impacted by the COVID-19 pandemic. At that time, the pandemic was largely limited to China with little direct impact on other parts of the world. As we all know, things have changed dramatically since that time and the pandemic is now affecting all countries. At the start of the year, we expected organic sales in the first quarter to be down 3 percent. The COVID-19 pandemic reduced our sales by an additional 4 percent, resulting in a 7 percent reduction in organic sales for the quarter.”
Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. CleanSpark, Inc. has paid three thousand five hundred dollars for advertising and marketing services to be distributed by Winning Media. Winning Media is only compensated for its services in the form of cash-based compensation. Winning Media owns ZERO shares of CleanSpark, Inc. Please click here for full disclaimer.
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