Tecogen (NASDAQ: TGEN) reported Q1 EPS of $0.00, $0.01 worse than the analyst estimate of $0.01. Revenue for the quarter came in at $10.18 million versus the consensus estimate of $9.43 million.

Major Highlights:

Financial

• Consolidated gross profit for the first quarter of 2018 was $3,837,803 compared to $2,914,673 in the first quarter of 2017, an increase of 31.7%, or $923,130, in gross profit year over year.
• On a combined basis, operating expenses rose to $3,766,897 for the first quarter of 2018 from $2,836,971 in the first quarter of 2017. The consolidation of American DG Energy's operations, an increase in research and development expenses of $121,616 and an increase in selling expenses to $675,118 from $447,452 accounted for the year-over-year increase.
• Excluding non-recurring merger related costs and stock compensation expense, adjusted non-GAAP EBITDA(1) was $303,757 for the quarter compared to $190,825 for the first quarter of 2017.
• Net income attributable to Tecogen for the three months ended March 31, 2018 was $20,759 compared to $44,787 for the same period in 2017. As discussed above, net income includes an unrealized loss of $19,681 due to market fluctuations in the EuroSite Power common stock owned by American DG Energy due to the implementation of a recent accounting standard change adopted by Tecogen in Q1 2018. Prior to this accounting change, unrealized gains and losses on this investment were accounted for as "other comprehensive income (loss)", falling below the net income line.
• Net income per share was $0.00 for the three months ended March 31, 2018 and 2017.
• On May 4, 2018, the Company and its wholly-owned subsidiaries, American DG Energy Inc. and TTcogen LLC, entered into a Credit Agreement with Webster Business Credit Corporation, providing the Company with a line of credit up to $10 million on a revolving secured basis, with availability based on certain accounts receivable and inventory balances.
• Current assets at quarter end of $23,704,894 were more than double current liabilities of $10,965,253. Current liabilities for the three months ended March 31, 2018 included $850,000 of short-term debt due to a related party, that Tecogen assumed with the acquisition of American DG Energy, and repaid in full on May 4, 2018 upon the closing of the $10 million revolving line of credit.

For earnings history and earnings-related data on Tecogen (TGEN) click here.