“The first quarter marked another period of high growth for EnerNOC,” said Tim Healy, EnerNOC’s chairman and chief executive officer. “We experienced the highest quarterly megawatt additions in our company’s history. These record megawatt additions and high-profile utility contract wins are indicative of continued strong demand for EnerNOC’s capital-efficient demand response and energy efficiency applications aimed at helping businesses and institutions manage and reduce energy costs.

“The advancements we are making in our innovative smart grid applications are enabling us to continue to increase our gross margin and operating leverage,” Healy added. “Our strong start in the first quarter keeps us on track to deliver positive cash flow from operations in the second half of 2009 and positive GAAP earnings per share in 2010.”

Financial Summary:

The following financial results are reported on a US GAAP-basis, unless otherwise noted:

Cost of Revenues: Cost of revenues for the first quarter of 2009 totaled $10.5 million, compared to $12.1 million for the same period in 2008, a decrease of $1.6 million, or 13%.

Gross Profit/Gross Margin: Gross profit for the first quarter of 2009 was $7.9 million, compared to $6.5 million for the same period in 2008, an increase of $1.4 million, or 22%. Gross margin was 42.9% for the first quarter of 2009 compared to 34.8% for the same period in 2008.

Operating Expenses: Operating expenses for the first quarter of 2009 were $19.9 million, compared to $18.2 million for the same period in 2008, an increase of $1.7 million, or 9%.

Net Loss:

Non-GAAP Results:

Excluding stock-based compensation charges and amortization expense related to acquisition-related assets, non-GAAP net loss for the first quarter of 2009 was $9.5 million, or $0.48 per basic and diluted share, compared to a non-GAAP net loss of $8.3 million, or $0.43 per basic and diluted share, for the same period in 2008, an increase of $1.3 million, or 15%.

Cash and Cash Equivalents: As of March 31, 2009, the company had cash and cash equivalents totaling $54.5 million, a decrease of $6.3 million from cash and cash equivalents as of December 31, 2008.

Business Update:

EnerNOC’s first quarter 2009 business highlights included:

Signing utility contracts with seven utilities (Salt River Project, Xcel Energy, Idaho Power, Allegheny Power, Baltimore Gas and Electric, Delmarva Power and Light company, and Potomac Electric Power company) to deliver a total of 409 megawatts in those utilities’ service territories;

Increasing its demand response megawatts under management to over 2,700 as of March 31, 2009, an increase of about 650 megawatts during the quarter, representing the highest quarterly sales performance in company history;

Improving its operating leverage during the quarter, as evidenced by an increase in megawatts under management per full-time employee to about 7.6 as of March 31, 2009 from 5.3 as of March 31, 2008;

Increasing the number of commercial, institutional, and industrial demand response customers in its demand response network to about 2,000 and sites to about 4,800 as of March 31, 2009;

Signing a contract with the City of Boston to enroll certain City facilities into the company’s demand response network;

Signing monitoring-based commissioning (MBCx) energy efficiency contracts with two Fortune 50 companies;

Releasing PowerTrak 5.3, the latest version of the company’s 5th generation smart grid software application;

Launching PowerTalk, the industry’s first standards-based presence-enabled smart grid communications technology.

Company Update:

Subsequent to the end of the first quarter of 2009, the company:

-Increased megawatts under management by about 300, an amount of which resulted from sales efforts in the PJM Interconnection region, bringing the company’s total megawatts under management as of current date to over 3,000 across more than 5,000 customer sites.

Financial Outlook:

The company is increasing its revenue and earnings per share guidance for 2009 based on the continued momentum of the company’s core business and growing receptivity to its new business initiatives. The company continues to expect to generate positive cash flow from operations in the second half of 2009, and to deliver positive GAAP earnings per share for the year ending December 31, 2010.

Full Year 2009:

The company expects to deliver the following financial results for the year ending December 31, 2009:

Total revenue of $160 million to $172 million (previous guidance was $155 to $170 million);

GAAP net loss per basic and diluted share of $0.93 to $1.04 (previous guidance was a GAAP net loss of $1.00 to $1.20); and

Non-GAAP net loss per basic and diluted share of $0.33 to $0.44 (previous guidance was a non-GAAP net loss of $0.40 to $0.60).

Second Quarter 2009:

The company expects to deliver the following financial results for the quarter ending June 30, 2009:

Total revenue of $38 million to $40 million;

GAAP net loss per basic and diluted share of $0.30 to $0.37; and

Non-GAAP net loss per basic and diluted share of $0.15 to $0.22.

Non-GAAP net loss per share estimates exclude the impact of stock-based compensation charges and amortization expense related to acquisition-related assets.