Telkonet, Inc. (TKOI) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.39 million in the quarter, against a net profit of $0.27 million in the last year period.

Revenue during the quarter dropped 12.80 percent to $3.54 million from $4.06 million in the previous year period. Gross margin for the quarter contracted 211 basis points over the previous year period to 54.34 percent. Operating margin for the quarter stood at negative 9.15 percent as compared to a positive 8.31 percent for the previous year period.

Operating loss for the quarter was $0.32 million, compared with an operating income of $0.34 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at negative $0.25 million compared with $0.41 million in the prior year period. At the same time, adjusted EBITDA margin stood at negative 7.13 percent for the quarter compared to 10.05 percent in the last year period.

"While the third quarter continues the recovery from the effects of our contested proxy contest earlier this year, the strength of our core business is shown by the 20% revenue growth year-to-date of our EcoSmart business," stated Jason Tienor, Telkonet chief executive officer. "As we continue to share Telkonet’s strategic vision and product development with partners and customers post-proxy, we continue to see expansion in product and market demand."