Telkonet Inc (fka TKO)

[siriusadult]

go tko's DD in case you missed it, follows:

The following Telkonet public announcements were taken from Reuters. Please read carefully and objectively.

(:http://stocks.us.reuters.com/stocks/keyDevelopments.asp?timestamp=20070202191200&page=1&ipts....


Telkonet, Inc. Announces Two Strategic AcquisitionsFri Feb 2 19:12:00 EST 2007

Telkonet, Inc. announced that the Company has entered into a Letter of Intent to acquire a technology developer of energy management systems. Their proprietary energy management controls eliminate wasted energy from heating and cooling unoccupied spaces. Telkonet has also entered into a Letter of Intent to acquire a US wireless hospitality company. Terms of the deal were not disclosed

Telkonet, Inc. Issues FY 2007 Revenue GuidanceWed Feb 21 14:30:00 EST 2007

Telkonet, Inc. announced that for fiscal 2007, it expects revenues to be approximately $25 million

NOTE THE DATES

February 2 - Announcement of two strategic acquisitions
February 21 - Announcement of $25million projected revenue for 2007.

Now as these 2 companies included a review of their revenue targets. It would be inappropriate then for Telkonet to "exclude" SSI and Ethostream revenue in Telkonet's 2007 revenue estimates annouunced on February 21 when SSI and Ethostream projected revenues for 2007 were known at that time and the two companies had already agreed to be acquired by Telkonet. This was material information that should have and was disemminated to shareholders on February 21.

While I have you here, let's also review the Q2 revenues. Ron Pickett said on the June 14 conference call that revenue would be between $3million and $4million. "Probably right in the middle" as he put it. I'll help you out here MLK. Right in the middle of $3-$4 million is $3.5million. Revenue came in at $3.7million. In other words they beat revenue projections. Once again, you are the only one that projected the $5million smokescreen. Also, Telkonet owns 60% of MST so they recognize MST revenue just like they recognize MST expenses so please put that $3.1million "real" revenue to bed as well. The June 14 conference call had MST 2007 revenue at $3million. Expect MST revenue recognition in the 3rd Q as well and appropriately so,

Otherwise, I'm sure you agree that the Customer Service contract deal announced today with ExtremeTV is very positive. I like the new COO Jason Tienor already. Customer Service is not traditionally a revenue generator but rather a business cost. The Telkonet Customer Support Representatives has become a revenue stream. Brilliant!! I see product installs for ExtremeTV coming next - Ethostream does that as well. It's my bet that Telkonet will acquire that company eventually for their original content. Telkonet is approaching this the right way. Combining operations first and when Telkonet's cashflow ramps up, they can pay cash for the whole company. Telkonet/MST having content could be intriguing.