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One of the bigger players in the smart grid networking space, Silver Spring Networks, will hit profitability in the third quarter of this year, the company’s CEO Scott Lang tells Bloomberg. The end of the third quarter is about a month and a half away, and […]

One of the bigger players in the smart grid networking space, Silver Spring Networks, will hit profitability in the third quarter of this year, the company’s CEO Scott Lang tells Bloomberg. The end of the third quarter is about a month and a half away, and about seven years after the company was founded. From a web world perspective, that’s not exactly speedy, but for a company building networking infrastructure, the time to profitability isn’t that unusual.

Keep in mind, Silver Spring also had a bit of a rocky start during its first few years. As the Bloomberg piece explains, in mid-2006, San Diego Gas & Electric, its flagship customer and basis of its venture capital investment, canceled a major order after the technology failed some tests. Fortunately the company’s backers at Foundation Capital had faith and stepped in to invest another $44.5 million, fixed the technology and turned the firm into the leading player it is today.

Lang also tells Bloomberg that Silver Spring hopes to hit $200 million in revenues by 2010, and the writer suggests that the company could hold an IPO “in the next year or two.” The writer isn’t the only one thinking along those lines. As we recently reported, investor Steve Westly, former California state controller and founder of the Westly Group, speculated that Silver Spring would be one of three companies that would go public in early 2010.

An IPO would deliver to Silver Spring a few things that it needs in the coming year: capital and growth. The company now has to compete with some of the larger IT networking companies like Cisco for utility deals, so will need capital and size to stay competitive — utility firms mostly prefer to work with large companies. And of course, just from a liquidity perspective, an IPO would make its founders and investors mighty happy.

  1. [...] Silver Spring Networks Says It Will Soon Be Profitable Posted August 15, 2009 Filed under: Uncategorized | http://earth2tech.com/2009/08/14/silver-spring-networks-soon-to-be-profitable/ [...]

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  2. [...] There’s also some greentech IPO front runners that are giving investors hope. They include lithium-ion battery firm A123Systems and smart grid networking company Silver Spring Networks, which estimates it will make revenues on the order of $200 million next year and soon be profitable. [...]

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  3. [...] year. Grosser and Weiss also invested in smart grid networking leader Silver Spring early on and kept on investing when the firm hit some early [...]

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  4. [...] Spring does seem to be bringing in enough revenue now to fuel such an expansion. CEO Scott Lang told Bloomberg last month that the company would hit profitability in the third quarter of this year and expects to hit $200 [...]

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  5. [...] has been much discussion about a Silver Spring IPO next year and CEO Scott Lang has said the company hopes to hit $200 million in revenues by 2010. Silver Spring is now competing with some of the larger IT networking companies [...]

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  6. [...] Scott Lang also told Bloomberg this summer that Silver Spring hopes to hit $200 million in revenues by 2010, and the writer suggested that the [...]

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  7. [...] technology. The Redwood City, Calif.-based company, which is one of several greentech firms considered likely candidates for an IPO this year, has already done deals with Florida Light & Power, PG&E, American Electric Power and Pepco [...]

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  8. [...] are a series of greentech IPOs expected in 2010 (Tesla, Silver Spring Networks, Solyndra, Codexis), but when it comes to acquisitions, the Ausra deal could end up being pretty [...]

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  9. [...] when it comes to alleged details on the most poorly kept secret in cleantech. Bloomberg first hinted at a Silver Spring IPO in August, while reporting that CEO Scott Lang was predicting profitability in the third quarter of 2009 and [...]

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