WAUKESHA, WI --(Marketwired - March 30, 2017) - Telkonet, Inc. (
"Our announcement today is the result of a thorough and deliberate process to maximize the value of Telkonet's activities in the growing Intelligent Automation and Internet of Things industry," stated Jason Tienor, President and Chief Executive Officer. "Now, appropriately capitalized, we can fully focus resources on our core strengths of innovation and automation and capitalize on our unique combination of market relationships and channel expansion. The sale provides Telkonet with a stronger balance sheet as we move the Company on its path toward rapid revenue growth, strong cash flows and improved profitability."
Telkonet will use substantially all of the net proceeds from the sale to support the expansion of its EcoSmart Platform development and increased sales and marketing activities of EcoSmart solutions and partners.
Mr. Tienor continued, "While the hospitality high-speed Internet access (HSIA) industry has become competitive in recent years and thus impacting EthoStream's revenues, we've continued to experience rapid growth of our innovative EcoSmart Platform and believe that there are significant opportunities to increase our operating results in this growing market. After a comprehensive review of the strategic options for Telkonet, we concluded that this market is distinct enough from our core business that its value might be best maximized outside the Company. While EthoStream has historically been a solid contributor to our results, we believe that it will benefit from being part of DCI. Further, we believe that by focusing on the growth and development of our EcoSmart business where our experienced team has consistently increased revenues and expanded the portfolio in a far larger emerging industry, we're best able to enhance shareholder value."
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Telkonet, Inc. (
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Media Contacts: Telkonet Investor Relations 414.721.7988 ir@telkonet.com
