Echelon Corporation announced unaudited consolidated financial results for the third quarter and nine months ended September 30, 2016. Revenues were $8.2 million in the third quarter, down from $10.0 million in the same period of 2015 and up from $8.1 million in the second quarter of 2016. The increase in revenues from the second quarter of 2016 is attributable to its ongoing focus on growing lighting business. GAAP net loss for the third quarter was $1.3 million or $0.29 basic and diluted per share compared with a net loss of $1.0 million or $0.24 basic and diluted per share in the same period last year, and a net loss of $571,000, or $0.13 basic and diluted per share, in the previous quarter. The increase in losses were due primarily to foreign currency swings quarter-to-quarter. Non-GAAP net loss for the third quarter was $1.1 million or $0.25 diluted per share compared with non-GAAP net loss of $891,000 or $0.20 diluted per share for the third quarter of 2015, and $586,000, or $0.13 per share, in the previous quarter. Loss from operations was $1.222 million against $1.236 million a year ago. Loss before provision for income taxes was $1.279 million against $1.057 million a year ago.

For the nine-month period, the company reported revenues were $24.887 million against $29.214 million a year ago. Loss from operations was $2.987 million against $7.749 million a year ago. Loss before provision for income taxes was $2.746 million against $7.570 million a year ago. Net loss was $2.826 million or $0.64 basic and diluted per share against $7.634 million or $1.73 basic and diluted per share a year ago. Non-GAAP net loss was $2.894 million or $0.65 diluted per share against $4.188 million or $0.95 diluted per share a year ago. Net cash used in operating activities was $2.179 million against $4.189 million a year ago. Capital expenditures were $0.084 million against $0.083 million a year ago.

Echelon provided earnings guidance for the fourth quarter of 2016. Total revenues are expected to be $7.8 million to $8.2 million, gross margin is expected to be in a range of 55% to 57%, GAAP loss per share is expected to be between $0.27 and $0.39, based on 4.4 million fully diluted weighted average shares outstanding and excluding expected non-cash equity compensation charges of $0.09 per share, non-GAAP loss per share is expected to be between $0.18 and $0.30.