Silver Spring Networks reported Q3 revenue of $47.6 million, down 35.9% year-over-year. Net loss per diluted share was ($0.47), versus ($0.29) in the third quarter of last year.
Quarter-ending cash, cash equivalents, and short-term investments was $126.2 million versus $113.4 million in the third quarter of 2016. Billings were $82.8 million, up 8.7% year-over-year.
Cost of billings was $43.1 million or 52.1% of billings, versus $34.4 million or 45.1% in the third quarter of 2016.
“We delivered solid billings growth, underlying profitability, and significant cash flow from operations,” said Mike Bell, President and Chief Executive Officer, Silver Spring Networks. “New customer deployments continue for both domestic and international projects as we ramp deliveries of our Gen5 platform.”
In September, Itron agreed to acquire all outstanding shares of Silver Spring for $16.25 per share in cash. The transaction is valued at approximately $830 million, net of $118 million of Silver Spring’s cash. Silver Spring provides Internet of Important Things connectivity platforms and solutions to utilities and cities. In 2016, Silver Spring generated revenues of $311 million with a gross margin of 44 percent and ended the year with $1.2 billion of backlog. With its global footprint in the smart utility and smart city sectors, Silver Spring generated more than 20 percent of its revenues through its primarily recurring managed services and SaaS solutions, an area of strategic focus for Itron. To date, Silver Spring has delivered more than 27.3 million network-enabled devices across five continents.
