Silver Spring Networks announced financial results for its third quarter ended September 30, 2015.

Third Quarter Results (all comparisons made are against the prior year period, unless otherwise stated)

• Non-GAAP revenue US $74.7 million, up 5%.
• GAAP revenue $69.5 million, up 148%.
• Non-GAAP gross margin 44%, up 13 points.
• GAAP gross margin 47%, up 42 points.
• Non-GAAP net income $4.9 million versus a net loss of ($7.0) million.
• GAAP net loss ($0.6) million versus ($37.3) million.
• Non-GAAP earnings per share $0.10 versus ($0.14) loss per share.
• GAAP loss per share ($0.01) versus ($0.77) loss per share.
• $121.9 million net cash and short-term investments balance, on $4.3 million in cash flow from operations.

“We had another great quarter, expanding our footprint by delivering over 800,000 endpoints, achieving record gross margins, and generating solid cash flow,” said Scott Lang, Executive Chairman. “Our third quarter results demonstrate the strength of our business model and the leadership position we have built over the past decade.”

“I am excited to join Silver Spring Networks,” said Mike Bell, President and CEO. My first few months as CEO have reinforced my view of the strength of Silver Spring’s technology platform, business model and established leadership position at some of the world’s leading utilities and most iconic cities. I see significant potential for continued innovation and growth in our core smart grid and smart city markets, and longer term look to leverage our technology and platform into the broader Internet of Things opportunity.”

Business Highlights (through November 3, 2015, unless otherwise stated):

·         Delivered record 44% non-GAAP gross margin performance in the third quarter, due to growth, favorable product mix and manufacturing efficiencies.

·         Selected by Halifax, Nova Scotia Canada, to deploy our smart street light solution to network and control 43,000 LED luminaires over its 400,000 residents and over 12,000 square mile geographic area.

·         Expanded smart cities opportunity through an agreement with Acuity Brands, to jointly develop an intelligent lighting platform for utilities, cities and large campus operators.

·         Consumers Energy of Michigan launched itsinnovative consumer engagement and energy efficiency program, offering advanced capabilities to nearly 3 million residential electric and natural gas customers, on Silver Spring’s CustomerIQ Suite.

·         AusNet Services successfully connected their first installations of Silver Spring-powered advanced metering just 5 months after contract signing.

·         Unveiled several new innovative products, including SLV6, our next generation smart city control and management platform with more than 100 new features to expand support for smart city deployments and create more value for existing street light networks, and Operations Optimizer, the next generation of the flagship solution from Detectent that supports AMI Operations, Grid Operations, Revenue Assurance and Customer Programs.

·         22.3 million cumulative network endpoints delivered from inception through September 30, 2015, up 13% from a year ago.

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