EnerLume Bets Big on Compact Fluorescents Staying Dominant in Commercial Sector (Pt 1 of 2)
Submitted by EnergyTechStocks.com
Although all the buzz is about super-efficient light emitting diode (LED) technology, EnerLume Energy Management Corp. CEO David Murphy is betting big on energy-efficient compact fluorescent lights (CFLs) remaining dominant in the commercial sector for at least several more years. That way EnerLume’s main product, an “intelligent” management system for CFLs that the company says reduces power demand 15% with only an 8% loss of luminosity, will propel EnerLume into the black, Murphy anticipates.
In an interview with EnergyTechStocks.com, Murphy declined to say when he expects Hamden, Conn.-based EnerLume to be in the black. He answered the question by saying the time frame for when the company starts earning a profit will be “significantly quickened” by a deal with a major distributor. He said he is “very comfortable” that such a deal will be consummated, although no date was given. He added that EnerLume already has “very substantial” customers, including a Big Box retailer, that are testing its fluorescent lighting energy management system in stores.
EnerLume trades in the over-the-counter market. It is one of several small companies whose business model is based generally on saving its customers money by saving energy. Energy efficiency as an investment theme keeps picking up steam, in part because the more the recession bites into corporations’ earnings, the more companies are trying to cut costs without sacrificing long-term growth plans.
EnerLume most recently reported a fiscal third quarter loss from continuing operations of $1,994,982, roughly the same as its year-earlier loss from continuing operations of $2,094,000. Sales in the quarter, which ended March 31, totaled $993,461 vs. $1.3 million a year earlier.
“We know LED is coming,” Murphy said during the interview, adding that while Enerlume also is looking at efficiency products for LEDs, it believes CFLs will be around for 12 to 15 years. The company’s goal is to offer customers a “complete turnkey lighting package” for commercial CFL installations, Murphy said. He added that he hopes the next steps after its intelligent lighting system will a new kind of energy efficient lamp and a private label ballast product.
Coming tomorrow, October 31, in Part 2 – The significance of Enerlume’s plans to sell a “demand response” product directly to utilities
