EnSync Inc (NYSEMKT: ESNC) Hopes To Capitalize On Favorable Energy Regulations


EnSync Inc (NYSEMKT: ESNC) is betting on favorable energy regulation changes to fuel its growth in the coming quarters and years. According management, favorable U.S. energy policies should set the stage for the company to sell its solutions around the world. The company is also hoping that continued cost curtailment will drive bottom-line improvement and enhance the value for shareholders.

Supportive policies

According to EnSync Inc (NYSEMKT: ESNC), energy regulations at the local, federal and global levels have been supportive and the situation in the energy market is expected to continue getting better in the coming years. Perhaps the company is also having an eye on the opportunities created by the need to power the world with clean energy to reduce adverse environmental impacts such as global warming.

On the issue of favorable regulations, EnSync noted that reduction in net metering and implementation of demand charges and time of use rates are driving growth of energy storage solutions behind the meter and that is opening up sales opportunities for the company.

Efficiency drive for EnSync Inc (NYSEMKT: ESNC)

EnSync Inc (NYSEMKT: ESNC) is not only pursuing topline growth but also striving to keep its expenses low and drive bottom-line improvement. For example, the company came up with a cost-reduction plan to cut its quarterly operating expenses excluding depreciation to less than $3.8 million in two years. According to CFO, Jim Schott, the company hit its operating efficiency target two quarters in advance as operating expenses in F3Q2016 were only $3.6 million.

Going ahead, EnSync is focusing its attention on looking for additional cost efficiencies and unlocking new growth opportunities.

Financial results

For the latest quarter ended March 31, EnSync posted revenue of $0.1 million, down from $0.4 million in the previous quarter. But EPS loss of $0.08 was better than EPS loss of $0.09 in the corresponding quarter a year ago.

EnSync Inc (NYSEMKT: ESNC) finished the quarter with backlog for components, systems and services of about $2.1 million.


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