MONTCHANIN, Del., Aug. 12 /PRNewswire-FirstCall/ -- Acorn Energy, Inc. (Nasdaq: ACFN) today announced its results for the second quarter ended June 30, 2010. Below are the highlights and lowlights for the second quarter.

Q2 2010 and Recent Highlights:

    --  Group revenue for Q2 increased 17% to $9.1 million from $7.8 million
    --  Group gross profit increased 20% to $4.2 million from $3.5 million
    --  CoaLogix
        --  Gross margins grew to 41% in the first half of 2010 compared with
            35% in the first half of 2009
        --  Cormetech alliance agreement substantially increases market access
        --  New plant is operational
        --  Resolution of EES lawsuit
        --  Extension and expansion of credit lines
    --  Coreworx
        --  Acquisition of Decision Dynamics
        --  Launch of Coreworx 6.5 featuring Project Intelligence
        --  Launch of three new products:  Nuclear ITAAC solution, Deliverables
            Management, and Change Management
        --  Secured order for deployment of Coreworx on a major deep water
            project in China
        --  Secured $0.3 million in research and development credit financing
    --  DSIT
        --  Gross margins grew to 45% in the first half of 2010 compared to 41%
            in the first half of 2009
        --  Operating income of $1.0 million
        --  Successful demonstration of the PointShield® at a U.S. energy
            facility
    --  GridSense
        --  Acquisition of the assets of On-Line Monitoring for the assumption
            of debt

Q2 2010 Lowlights:

    --  Loss of $3.2 million for Q2 and $6.3 million for the first six months of
        2010 due primarily to substantial investment in new product development
        and sales and marketing on lower revenues at Coreworx.
    --  US Government nuclear loan guarantees delays have negatively impacted
        Coreworx by slowing in process sales opportunities
    --  Delays by utilities in funding smart grid projects have negatively
        impacted GridSense.

John Moore, CEO of Acorn Energy stated, "As we had indicated previously, the first half of 2010 resulted in modest revenue growth, while we expect the second half to be more robust. This is based on a number of factors: we expect CoaLogix to improve on its first half performance with a new plant coming on stream in the third quarter increasing processing capacity; Coreworx has a large number of proposals for providing software solutions to manage major energy infrastructure construction projects, with many deals expected to close towards the end of the year; DSIT is expected to continue its successful expansion from military into commercial installations for securing exposed water-based infrastructures from sabotage; and GridSense is expected to commence delivery of its unique products to electric utilities to enhance grid efficiencies as smart grid funds begin to flow from utilities benefiting from Federal government stimulus.

"Each of these missions is moving forward and we expect to reach our revenue projections despite the slowdown in economic recovery which often creates delays in contract awards."

CoaLogix

This leading company in the regeneration of SCR catalyst used by coal-fired power plants to reduce NOx emissions for a cleaner environment has increased its capacity (the first of three expansion phases) with the completion of its new Steele Creek plant. This addition is timely given the recently announced alliance agreement between Cormetech and CoaLogix. Cormetech is teaming up with CoaLogix to offer its utility customers CoaLogix' regenerated catalysts as an optional and complementary choice to its new catalyst. Cormetech is a North Carolina-based world leading manufacturer of catalysts. In the U.S. alone there is an installed base of $1.5 billion of catalysts, a large percentage of which are Cormetech's. Worldwide SCR installations by Cormetech total 1,100 in plants generating 100,000 MHW of power. The combination of new and regenerated catalyst can be considerably less expensive than new catalyst and mitigates the expense and problems associated with the disposal of deteriorated catalyst.

DSIT

DSIT's results continue to improve with increased sales, gross profit, gross margin and operating income as it looks to expand its portfolio of products with its new lightweight, compact and portable Diver Detection Sonar (DDS) system, the PointShield(TM). PointShield(TM) is a smaller, lighter version of AquaShield(TM) that will better meet the protection requirements for on-water facilities in small, restricted areas, such as water intake channels, canals or narrow entrances. DSIT has recently successfully demonstrated the PointShield(TM) at a U.S. energy facility as it looks to take advantage of Homeland Security opportunities in the U.S. market.

Coreworx

Coreworx' first half results have been below plan and are indicative of the challenges faced by a small enterprise engaged in changing old methodologies used by very large companies building mammoth construction projects. To provide prospective customers with the confidence in Coreworx' ability to successfully perform, Coreworx has built robust solutions, and the infrastructure necessary to support large customers/installations. As a result the Company is reporting losses as the business "crosses the chasm" between the "early adopters" and the "early majority". Coreworx' first half loss was $5.2 million due to increased product development and sales/marketing costs. Importantly, Coreworx is working to close on a number of large, near-term contracts and has a substantial and building pipeline of prospective opportunities. Coreworx' solutions save owner operators as much as 10% on multibillion dollar construction projects by increasing visibility to project deliverables, and cost enabling management to drive completion on time and on budget.

GridSense

Acorn commenced consolidating the results of GridSense on May 12, 2010 after acquiring the outstanding shares not previously owned by Acorn. Also in May, GridSense acquired Online Monitoring, Inc. (OMI), a recognized leader in the monitoring of specific transformer parts in electric utility transformers for the assumption of trade payables. OMI's capabilities compliment those of GridSense and add critical know-how and technology in smart grid distribution automation. We are expecting an increase in sales as stimulus grants for the U.S. Smart Grid are released to utilities.

U.S. Sensor Systems, Inc. (USSI)

Acorn began consolidating USSI's results on February 23, 2010 and recorded $0.4 million in revenue against a net loss of $0.4 million in the first half of 2010. For the second half of 2010, USSI's fiber optic oilfield sensing equipment is scheduled for participation in multiple field trials with major oil companies and oil service companies. USSI is also awaiting responses from numerous requested quotes for its fiber optic sensor systems in both the energy and security markets. For the first half of 2010 USSI's $0.4 million in new orders included a U.S. Navy contract for $0.3 million for the design, development and testing of a prototype security system that is being evaluated to protect 360 U.S. ports and harbors.

"Acorn is well positioned for growth in the second half of the year with the new CoaLogix capacity coming on-stream and a robust pipeline of opportunities across the portfolio." concluded Mr. Moore.

Conference Call Information

The Company will host an investor call on Friday, August 13, 2010 at 9:00am ET to discuss its second quarter 2010 results and developments at the Company.

To participate in the conference call, please dial (800) 860-2442 or (412) 858- 4600 (Intl) (no pass code required). You may also access the call through the Internet at www.acornenergy.com.

If you are unable to participate in the live call, a digital replay of the call will be available through 9:00am on August 30, 2010 by dialing (877) 344-7529 or (412) 317-0088 and entering access code # 443597.

About Acorn Energy

Acorn Energy, Inc. (Nasdaq: ACFN) is a publicly-traded holding company with equity interests in CoaLogix, Coreworx, DSIT, GridSense and U.S. Sensor Systems Inc. These companies leverage advanced technologies to transform and upgrade the energy infrastructure around the world. Acorn companies are focused on three problems in the energy sector: improving the efficiency of the energy grid, reducing the risk for owners of large energy assets, and reducing the environmental impact of the energy sector. Acorn's strategy is to take primarily controlling positions in companies led by great entrepreneurs. For more information visit http://www.acornenergy.com.

Safe Harbor Statement

This press release includes forward-looking statements, which are subject to risks and uncertainties. There is no assurance that the Company and its operating companies will be able to achieve the expected growth in revenues or meet the other expectations described or referred to above. A complete discussion of the risks and uncertainties which may affect Acorn Energy's business generally and the businesses of its subsidiaries is included in "Risk Factors" in the Company's most recent Annual Report on Form 10-K as filed by the Company with the Securities and Exchange Commission.

    Investor Contact:
    Paul G. Henning
    Cameron Associates
    (212) 554-5462
    Paul@cameronassoc.com

-Financial Tables to Follow-

                      ACORN ENERGY, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE SHEETS
                (IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

                                                                    As of
                                                      As of June  December
                          ASSETS                       30, 2010   31, 2009
                                                       ---------- --------
                                                      (unaudited)
    Current assets:
    Cash and cash equivalents                             $10,005  $11,208
    Restricted deposits                                     1,939    1,627
    Accounts receivable, net                                5,858    3,541
    Unbilled revenue and work-in-process                    5,417    4,113
    Inventory                                               3,730    1,848
    Other current assets                                    4,391    2,317
                                                            -----    -----
        Total current assets                               31,340   24,654
                                                           ------   ------
    Property and equipment, net                             8,975    3,357
    Other investments and loans to equity investees         2,537    2,796
    Funds in respect of employee termination
     benefits                                               2,141    2,074
    Restricted deposits                                       809      611
    Intangible assets, net                                 13,944    8,194
    Goodwill                                               13,748    6,679
    Deferred taxes                                            252      227
    Other assets                                              477      143
                                                              ---      ---
    Total assets                                          $74,223  $48,735
                                                          =======  =======

                  LIABILITIES AND EQUITY
    Current liabilities:
    Short-term bank credit and current maturities
     of long-term bank debt                                $1,121     $430
    Accounts payable                                        3,684    1,607
    Accrued payroll, payroll taxes and social
     benefits                                               1,679    1,409
    Advances from customers                                 1,826    1,924
    Other current liabilities                               6,961    3,064
                                                            -----    -----
        Total current liabilities                          15,271    8,434
                                                           ------    -----
    Long-term liabilities:
    Liability for employee termination benefits             3,259    3,129
    Long-term debt                                            355      405
    Other long-term liabilities                               349      669
                                                              ---      ---
    Total long-term liabilities                             3,963    4,203
                                                            -----    -----
    Equity:
    Acorn Energy, Inc. stockholders
       Common stock - $0.01 par value per share:              169      132
    Authorized - 30,000,000 shares; Issued
     -13,248,813 and 16,917,925
    shares at December 31, 2009 and June 30, 2010,
     respectively
    Additional paid-in capital                             78,491   58,373
    Warrants                                                  274      290
    Accumulated deficit                                   -29,618  -23,343
       Treasury stock, at cost -1,275,081 shares at
        December 31, 2009                                  -4,827   -4,827
    and June 30, 2010, respectively
    Accumulated other comprehensive income                   -213      152
                                                             ----      ---
        Total Acorn Energy, Inc. stockholders' equity      44,276   30,777
    Non-controlling interests                              10,713    5,321
                                                           ------    -----
        Total equity                                       54,989   36,098
                                                           ------   ------
         Total liabilities and equity                     $74,223  $48,735
                                                          =======  =======

                         ACORN ENERGY, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                    (IN THOUSANDS, EXCEPT NET LOSS PER SHARE DATA)

                                                      Three months
                                                          ended
                                                        June 30,
                                                        --------
                                                      2010        2009
                                                      ----        ----
    Revenues:
        Catalytic regeneration                      $4,855      $4,547
        Projects                                     2,751       2,036
        Software license and services                  897       1,075
        Smart grid distribution products and
         services                                      517          --
        Other                                          104         122
                                                     9,124       7,780
                                                     -----       -----
    Cost of sales:
        Catalytic regeneration                       3,000       2,931
        Projects                                     1,475       1,132
        Software license and services                  204         145
        Smart grid distribution products and
         services                                      191          --
        Other                                           83          82
                                                     4,953       4,290
                                                     -----       -----
    Gross profit                                     4,171       3,490
    Operating expenses:
      Research and development expenses, net
       of SRED credits of $1,016 in 2009               872        (624)
    Dividends received from EnerTech                    --          --
    Selling, general and administrative
     expenses                                        7,565       4,629
                                                     -----       -----
    Total operating expenses                         8,437       4,005
       Operating loss                               (4,266)       (515)
    Finance income (expense), net                     (355)         85
    Gain on investment in GridSense                  1,327          --
    Gain on sale of Comverge shares                     --         810
       Income (loss) before taxes on income         (3,294)        380
    Tax expense on income                             (123)         --
                                                      ----         ---
       Income (loss) from operations of the
        Company and its consolidated
        subsidiaries                                (3,417)        380
    Share in losses of GridSense                        --          --
       Net income (loss)                            (3,417)        380
    Net (income) loss attributable to non-
     controlling interests                             265         (37)
                                                       ---         ---
       Net income (loss) attributable to Acorn
        Energy Inc.                                ($3,152)       $343
                                                   =======        ====
    Basic and diluted earnings per share
     attributable to Acorn Energy  Inc.:
       Net income (loss) per share attributable
        to                                          ($0.21)      $0.03
                                                    ======       =====
          Acorn Energy Inc.  - basic

       Net income (loss) per share attributable
        to                                          ($0.21)      $0.03
                                                    ======       =====
          Acorn Energy Inc. - diluted

      Weighted average number of shares
       outstanding attributable  to Acorn
       Energy Inc. - basic                          15,161      11,377
      Weighted average number of shares
       outstanding attributable  to Acorn
       Energy Inc. - diluted                        15,161      11,553
                                                    ======      ======

                                                    Six months ended
                                                        June 30,
                                                        --------
                                                      2010           2009
                                                      ----           ----
    Revenues:
        Catalytic regeneration                      $9,333         $9,937
        Projects                                     5,258          4,002
        Software license and services                1,667          2,102
        Smart grid distribution products and
         services                                      517             --
        Other                                          203            217
                                                    16,978         16,258
                                                    ------         ------
    Cost of sales:
        Catalytic regeneration                       5,546          6,466
        Projects                                     2,817          2,351
        Software license and services                  380            416
        Smart grid distribution products and
         services                                      191             --
        Other                                          165            156
                                                     9,099          9,389
                                                     -----          -----
    Gross profit                                     7,879          6,869
    Operating expenses:
      Research and development expenses, net
       of SRED credits of $1,016 in 2009             1,542           (348)
    Dividends received from EnerTech                  (135)            --
    Selling, general and administrative
     expenses                                       13,886          8,807
                                                    ------          -----
    Total operating expenses                        15,293          8,459
                                                    ------          -----
       Operating loss                               (7,414)        (1,590)
    Finance income (expense), net                     (305)           (84)
    Gain on investment in GridSense                  1,327             --
    Gain on sale of Comverge shares                     --          1,227
       Income (loss) before taxes on income         (6,392)          (447)
    Tax expense on income                             (198)            --
                                                      ----            ---
       Income (loss) from operations of the
        Company and its consolidated
        subsidiaries                                (6,590)          (447)
    Share in losses of GridSense                        --           (129)
       Net income (loss)                            (6,590)          (576)
    Net (income) loss attributable to non-
     controlling interests                             315           (144)
                                                       ---           ----
       Net income (loss) attributable to Acorn
        Energy Inc.                                ($6,275)         ($720)
                                                   =======          =====
    Basic and diluted earnings per share
     attributable to Acorn Energy  Inc.:
       Net income (loss) per share attributable
        to                                          ($0.45)        ($0.06)
                                                    ======         ======
          Acorn Energy Inc.  - basic

       Net income (loss) per share attributable
        to                                          ($0.45)        ($0.06)
                                                    ======         ======
          Acorn Energy Inc. - diluted

      Weighted average number of shares
       outstanding attributable  to Acorn
       Energy Inc. - basic                          13,839         11,456
      Weighted average number of shares
       outstanding attributable  to Acorn
       Energy Inc. - diluted                        13,839         11,456
                                                    ======         ======

SOURCE Acorn Energy, Inc.