Telkonet, Inc. (AMEX: TKO), the leader in providing in-building broadband access over existing electrical wiring and innovative energy management systems, last week reported that it has delivered its FIPS 140-2 validated, powerline networking solution to over 200 Department of Defense (DoD) sites nationwide. The Telkonet iWire System, using powerline communications (PLC) technology, taps into a building's existing internal electrical wiring to establish secure Internet connectivity throughout an entire building, eliminating the need to install additional cable or wiring. Telkonet said that an additional 600 DoD locations have been scheduled for deployment between now and through 2008, and will positively impact revenues well into next year. The company also reported that EthoStream, LLC, a Telkonet company, continues to recognize accelerated sales growth through 2007, expecting year-end sales of approximately $5 million. Combined with Telkonet SmartEnergy's revenue projection of $5 million for 2007, Telkonet's recent acquisitions appear to be key factors in the company's goal of becoming profitable by year end.Also of note, according to industrial giant General Electric's newsletter, which TKO has said nothing publicly about, GE Energy recently signed an exclusive agreement with TKO to develop a high-speed broadband networking platform designed specifically for substations, power plants or other utility sites where traditional connectivity is not economically, environmentally or technically feasible. Although PLC technology has been used by Telkonet for years to deliver simple, cost-effective and secure broadband network access in hotels, resorts and other commercial buildings, this technology has not been widely considered for monitoring and data acquisition over the low-voltage power networks in substations. Currently, GE is helping Telkonet evaluate the product from the R&D side, and to understand the requirements for electric utilities. A successful collaboration with GE Energy could lead to many new opportunities for Telkonet. Shares ended the week at $1.63, down 4 cents.
Theres sometimes a fine line between goals & greed...
