Good morning, and welcome to the Acorn Energy 2022 Third Quarter Conference Call. [Operator Instructions] As a reminder, today's conference is being recorded. I would now like to turn the conference over to Tracy Clifford, CFO of Acorn Energy and COO of its OmniMetrix subsidiary. Mrs. Clifford, please go ahead.

Thank you, and welcome, everyone, to today's conference call. As a reminder, many of the remarks that follow and answers to questions may be forward-looking in nature. These statements are subject to various risks and uncertainties. For example, the operating and financial performance of the company in 2022 and in future years is subject to risks associated with disruptions to business operations and customer demand resulting from executing the company's operating strategy, maintaining high renewal rates, growing its customer base, changes in technology, changes in the competitive environment, financial and economic risks, among other risks. Forward-looking statements are based on management's beliefs and assumptions made using information currently available to management pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are no assurances that Acorn or OmniMetrix will be able to achieve management's growth goals in 2022 or in future years. The company undertakes no obligation to disclose revisions to these forward-looking statements to reflect events or circumstances occurring after today. A full discussion of the risks and uncertainties that may affect the company is included in risk factors on Acorn's Form 10-K and filed with the Securities and Exchange Commission. Reconciliations of certain non-GAAP financial metrics to their corresponding GAAP measures are provided in today's press release, which is available in the Investor Relations section of the company's website. I'll now turn the call over to Jan Loeb, CEO of Acorn and its OmniMetrix subsidiary, for an overview of our business performance and outlook. Jan?

Thank you, Tracy. Good morning, and thanks to everyone for joining our call. The resilient hardware plus monitoring service model of Acorn's OmniMetrix subsidiary delivered year-over-year and sequential revenue growth in the third quarter. Total revenue growth for Q3 grew 5% versus Q3 of 2021 even in the face of macro headwinds, including rising interest rates, persistent high fuel prices, inflation and economic uncertainty. As we note each quarter, GAAP requires us to defer our hardware sales over 3 years and amortize it monthly into revenue. On a cash revenue basis, our growth was stronger at 5.6%, and we provide a reconciliation of GAAP to cash revenue in today's press release. For Q3, our hardware revenue growth was strong, rising 17.7% year-over-year. This reflects our solid base business coupled with recent large volume hardware orders from a real estate management company that is deploying smart building technology across a new portfolio of buildings under its management. On prior calls, we've discussed the sunsetting of legacy 3G monitoring units, a process which has now concluded, but it did have a residual negative impact on Q3 monitoring revenue as a result of certain customers that chose not to purchase new hardware with renewed service contracts when their older units were decommissioned over the past year. With this cycle now complete, we expect accretive monitoring revenue growth moving forward. On our last call, I said we anticipated a stronger second half and a return to an attractive, sustainable long-term path for growth. We started to see that in Q3 and expect positive trends to continue in Q4. Our positive outlook is based on Q4-to-date sales orders, purchasing and forecast discussions with current customers and new business leads. We are also confident about our longer-term growth prospects, especially in underpenetrated commercial and industrial markets…

Thanks, Jan. As Jan noted, our third quarter revenue rose approximately 5% to $1.78 million versus Q3 '21, reflecting an 18% increase in hardware revenue and a 5% decrease in monitoring revenue. Year-to-date, revenue increased 3% to $5.16 million with hardware up 13% and monitoring revenue down 4%. The increase in hardware revenue reflects the growing strength of our base business and a large volume of orders, as Jan also mentioned, in Q3 from a key customer. The decline in monitoring revenue relates to some customer disconnects over the past 12 months related to the sunsetting of legacy 3G monitoring units. We're continuing to focus our Power Generation customer portfolio expansion in large commercial and industrial customers, which we will believe will restore the growth trend in our monitoring revenue, and the negative impact of sunsetting will not be a factor in future years. Despite the decrease in total monitoring revenue, we're seeing an increase in our metric of ARPU, or average revenue per unit, due to product mix moving to more sales to commercial and industrial customers versus the residential customers, which is the result from our marketing focus on the segment. Our gross profit decreased 2% to $1.22 million in Q3 from $1.24 million in Q3 '21 primarily due to a higher portion of hardware revenue, which carries a lower margin than monitoring revenue as well as a noncash write-off of $31,000 for obsolete cathodic protection component inventory that's recorded in COGS. As we grow, we continue to look for opportunities to maintain and further increase gross margin and revenue as well as gain more market share, not just via price adjustment, but by offering more services such as product installation and custom reporting and also soliciting customer feedback on what other monitoring-type products, data tiers and feature…

[Operator Instructions] At this time, we have no questions. So I will turn the call back over to Mr. Jan Loeb for closing remarks.

Operator, you want to maybe give it another couple of seconds to see if anybody wants to come in?

Absolutely.

I know that we always give a very complete call. So there -- sometimes there are no questions. But just in case somebody would like to ask, let's give them an opportunity. Okay.

Okay. At this time, I will turn the call back over to Mr. Jan Loeb for closing remarks.

Thank you again for your interest in Acorn Energy. We continue to be excited about the investments we have made to further solidify the future of the company and our opportunities and the long-term prospects of Acorn's business. We appreciate the support, and I'm happy to speak with investors or prospective investors. We do have an investor call planned for December with the research group, littlegrapevine.com, and we will announce specific details shortly. You can also set up a call with myself or ask any questions through our IR team, whose contact information is in this morning's press release. We look forward to updating investors on our Q4 conference call. Thank you again. All the best.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.