Despite that smart grid network company Silver Spring Networks has yet to go public, the company is chugging along and had a pretty good quarter, according to the latest amendment to its S-1. For the latest quarter, Silver Spring generated increased revenues and reduced losses from the quarter the year before.
For the three months ending March 31, 2012, Silver Spring generated $55.5 million in revenues, up from $46.7 million in revenues from the quarter the year earlier. The net loss for the most recent quarter was $18.4 million, a smaller loss than the loss of $33.4 million for the quarter a year earlier. Gross profit for the quarter was $10 million, up from a $1.3 million gross loss for the quarter the year before.
Silver Spring is still operating at a net loss, and has accumulated a deficit of $479.2 million as of March 31, 2012. Part of the reason for the losses is because the sales cycle for selling a wireless smart grid network to a utility is very long. Silver Spring has $404.5 million in deferred revenue as of March 31, 2012, which it will be able to collect at the end of those sales cycles.
Silver Spring needs to increasingly sell services over its networks, as there’s a limited amount of utility customers that will ultimately buy the end-to-end network and the margins aren’t all that high on the network, compared to software. The company is working with investor EMC on smart grid analytics.
Silver Spring raised money from both EMC and Hitachi in recent months. Will the company be able to raise money through an IPO this year? Your guess is as good as mine.