About Silver Spring (adapted from Silver Spring prospectus):
Silver Spring Networks provide a leading networking platform and solutions that enable utilities to transform the power grid infrastructure into a "smart grid". The smart grid intelligently connects millions of devices that generate, control, monitor and consume power, providing timely information and control to both utilities and consumers. Silver Spring Networks claims "We believe that the application of networking technology to the power grid has the potential to transform the energy industry just as the application of networking technology enabled the Internet and revolutionized the computing industry."
Silver Spring Networks sees an opportunity in servicing the utility infrastructure when it says that: "The power grid is one of the most significant elements of contemporary industrial infrastructure that has yet to be extensively networked with modern technology."
Silver Spring Networks was founded in 2002, pioneering a fundamentally new approach to connect utilities with millions of devices on the power grid. They believe their technology will yield significant benefits to utilities, consumers and the environment, both in the near term and the future. They also state, "these benefits will fundamentally transform the world's relationship with energy."
The foundation of Silver Spring Networks technology is a standards-based and secure Internet Protocol, or IP, network. Their networking platform provides two-way communications between the utility back office and devices on the power grid. In addition to this networking platform, they offer a suite of solutions that run on top of the network and complementary services, all of which is collectively referred to as their "Smart Energy Platform".
Silver Spring Networks solutions include advanced metering, which allows utilities to automate a number of manual processes and improve operational efficiencies, offer flexible pricing programs to consumers, and improve customer service with faster outage detection and restoration; distribution automation, which provides utilities with real-time visibility into the health of the grid, enabling better management and control of power distribution assets to improve grid reliability; and demand-side management, which enables utilities to offer consumers a variety of programs and incentives to use energy more efficiently and reduce usage at times of peak demand.
Their service offerings include professional services to implement their products, managed services and software as a service, or SaaS, to assist utilities with managing the network and solutions, and ongoing customer support. The Smart Energy Platform comprises hardware, software and services and combines with devices manufactured by third-party partners to form end-to-end smart grid offerings. They have architected their networking platform to support multiple current and future smart grid solutions.
Silver Spring Networks's Smart Energy Platform is marketed directly to utilities around the world. They have been awarded contracts to network more than 17 million Silver Spring-enabled devices that connect homes and businesses, of which eight million have been networked as of June 30, 2011. Utility customers, as of June 30, 2011, include: Atlantic City Electric Company, a subsidiary of Pepco Holdings, Inc., or PHI; Baltimore Gas and Electric Company, a subsidiary of Constellation Energy Group, Inc.; CitiPower Pty and Powercor Australia Ltd, or CHED, subsidiaries of CHEDHA Holdings Pty Limited; Delmarva Power and Light Company, a subsidiary of PHI; Florida Power & Light Company, or FPL, a subsidiary of NextEra Energy, Inc.; Guelph Hydro Electric Systems, Inc; Jemena Electricity Networks (Vic) Ltd; Modesto Irrigation District, or MID; Oklahoma Gas and Electric Company, or OG&E, a subsidiary of OGE Energy Corp.; Pacific Gas and Electric Company, or PG&E, a subsidiary of PG&E Corporation; Potomac Electric Power Company, a subsidiary of PHI; and Sacramento Municipal Utility District.
For the years ended December 31, 2008, 2009 and 2010 Silver Spring Networks total revenue was $58,000, $3.3 million and $70.2 million, respectively. In the same periods, they generated billings of $17.5 million, $195.6 million and $261.4 million, respectively. For the three months ended March 31, 2010 and 2011, their revenue increased from $14.2 million to $46.7 million and billings increased from $51.1 million to $67.5 million.
This description is adapted from Silver Spring prospectus. This description is not intended to be a recommendation to buy stock from this company. We do not claim that all of the statements above were researched and found to be true. We present them as a general description based on what the company has said about itself at the time that they submitted their prospectus for an IPO offering. To see the company's full description, view their prospectus.. 
