Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion
Lighting), a provider of energy-efficient LED lighting, controls
and IoT systems, including turnkey project implementation, program
management and system maintenance, today announced preliminary
unaudited results for its fiscal year ended March 31, 2022 (FY
2022). Orion plans to report full FY 2022 results on Tuesday, June
7th and host an investor call at 10:00 a.m. ET; details of the call
will be announced separately. In addition, Orion will attend in
person the H.C. Wainwright Global Investment Conference in Miami
Beach, FL May 24th and 25th and the LD Micro Invitational in
Westlake Village, CA on June 7th and 8th.
Orion expects to report for FY 2022:
- Revenue of approximately $124M, an
increase of roughly 6% over $116.8M in FY 2021.
- A gross profit percentage of at
least 27%, up from 25.8% in FY 2021.
- Operating income of $8.2M - $8.4M,
compared to $6.8M in FY 2021.
- Financial liquidity of approximately
$35M at the close of FY 2022, including $14.5M of cash and cash
equivalents and $21M in availability under its credit
facility.
Mike Altschaefl, Orion’s CEO and Board Chair, commented,
“Orion’s FY 2022 revenue improvement included growth of almost 25%
in our business excluding our largest customer, more than
offsetting a decrease in this customer’s revenue to approximately
$61M or 49% of revenue, from $65M or 56% of revenue in FY 2021.
Beyond progress with major national accounts, we also achieved
significant growth in our energy service company (ESCO) and
electrical contractor distribution channels and benefitted from the
initial contribution from our maintenance services business.
OUTLOOK
“Despite our progress, Orion’s revenue continues to be impacted
by several large projects which have been postponed by our
customers as they respond to factors outside our control, including
delays in new facility construction, supply chain disruptions, and
COVID-19 related impacts to their businesses. These issues impacted
our performance in the second half of FY 2022 and continue to limit
our near-term visibility on the timing of various customer
projects.
“Our Board and management team remain excited and optimistic
about Orion’s long-term growth potential, supported by its deep
industry expertise, expanded capabilities, strong value proposition
and growing track record of customer successes.
“Orion envisions a realistic path to meet or exceed our FY 2022
revenue performance in FY 2023. Assuming approximately $25M in
revenue from our largest customer in FY 2023, meeting or exceeding
our FY 2022 revenue in FY 2023 implies significant growth in our
business outside of our largest customer. We have confidence in our
ability to achieve that performance, but it is subject to a range
of external uncertainties and their impact on customer decision
making that is difficult to predict.”
Orion cautions investors that its business outlook is subject to
a range of factors that are difficult to predict, including but not
limited to supply chain disruptions, shipping, logistics and new
construction issues, component availability, rising input costs,
labor supply challenges, the COVID-19 pandemic, and other potential
business and economic impacts.
Links to Details about Orion’s Upcoming Investor
Conferences:
HC Wainwright Global Investment Conference
LD Micro Invitational
About Orion Energy SystemsOrion provides
innovative LED lighting systems and turnkey project implementation
including installation and commissioning of fixtures, controls and
IoT systems, as well as ongoing system maintenance and program
management. We help our customers achieve energy savings with
healthy, safe and sustainable solutions, enabling them to reduce
their carbon footprint and digitize their business.
COVID-19 ImpactsThe COVID-19
pandemic has disrupted business, trade, commerce, financial and
credit markets, in the U.S. and globally. Orion’s business has been
materially adversely impacted by measures taken by government
entities and others to control the spread of the virus. As of the
date of this release, it is not possible to predict the overall
impact the COVID-19 pandemic will have on the Company's business,
liquidity, capital resources or financial results.
Safe Harbor StatementCertain
matters discussed in this press release, including under the
heading "Outlook" are "forward-looking statements" intended to
qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements may generally be identified as such
because the context of such statements will include words such as
"anticipate," "believe," "could," "estimate," "expect," "intend,"
"may," "plan," "potential," "predict," "project," "should," "will,"
"would" or words of similar import. Similarly, statements that
describe our future plans, objectives or goals are also
forward-looking statements. Such forward-looking statements are
subject to certain risks and uncertainties that could cause results
to differ materially from those expected, including, but not
limited to, the following: (i) our ability to manage general
economic, business and geopolitical conditions, including the
impacts of natural disasters, pandemics and outbreaks of contagious
diseases and other adverse public health developments, such as the
COVID-19 pandemic; (ii) the deterioration of market conditions,
including our dependence on customers' capital budgets for sales of
products and services, and adverse impacts on costs and the demand
for our products as a result of factors such as the COVID-19
pandemic and the implementation of tariffs; (iii) our ability to
adapt and respond to supply chain challenges, especially related to
shipping and logistics issues, component availability, rising input
costs, and a tight labor market; (iv) our ability to recruit, hire
and retain talented individuals in all disciplines of our company;
(v)our ability to successfully launch, manage and maintain our
refocused business strategy to successfully bring to market new and
innovative product and service offerings; (vi) our recent and
continued reliance on significant revenue to be generated in fiscal
2022 from the lighting and controls retrofit projects for two major
global logistics companies; (vii) our dependence on a limited
number of key customers, and the potential consequences of the loss
of one or more key customers or suppliers, including key contacts
at such customers; (viii) our ability to identify and successfully
complete transactions with suitable acquisition candidates in the
future as part of our growth strategy; (ix) the availability of
additional debt financing and/or equity capital to pursue our
evolving strategy and sustain our growth initiatives; (x) our risk
of potential loss related to single or focused exposure within the
current customer base and product offerings; (xi) our ability to
sustain our profitability and positive cash flows; (xii) our
ability to differentiate our products in a highly competitive and
converging market, expand our customer base and gain market share;
(xiii) our ability to manage and mitigate downward pressure on the
average selling prices of our products as a result of competitive
pressures in the light emitting diode ("LED") market; (xix) our
ability to manage our inventory and avoid inventory obsolescence in
a rapidly evolving LED market; (xx) our increasing reliance on
third parties for the manufacture and development of products,
product components, as well as the provision of certain services;
(xxi) our increasing emphasis on selling more of our products
through third party distributors and sales agents, including our
ability to attract and retain effective third party distributors
and sales agents to execute our sales model; (xxii) our ability to
develop and participate in new product and technology offerings or
applications in a cost effective and timely manner; (xxiii) our
ability to maintain safe and secure information technology systems;
(xxiv) our failure to comply with the covenants in our credit
agreement; (xxv) our ability to balance customer demand and
production capacity; (xxvi) our ability to maintain an effective
system of internal control over financial reporting; (xxvii) price
fluctuations (including as a result of tariffs), shortages or
interruptions of component supplies and raw materials used to
manufacture our products; (xxviii) our ability to defend our patent
portfolio and license technology from third parties; (xxix) a
reduction in the price of electricity; (xxx) the reduction or
elimination of investments in, or incentives to adopt, LED lighting
or the elimination of, or changes in, policies, incentives or
rebates in certain states or countries that encourage the use of
LEDs over some traditional lighting technologies; (xxxi) the cost
to comply with, and the effects of, any current and future industry
and government regulations, laws and policies; (xxxii) potential
warranty claims in excess of our reserve estimates, and (xxxiii)
the other risks described in our filings with the Securities and
Exchange Commission. Shareholders, potential investors and other
readers are urged to consider these factors carefully in evaluating
the forward-looking statements and are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements made herein are made only as of the date of this press
release and we undertake no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise. More detailed information about factors
that may affect our performance may be found in our filings with
the Securities and Exchange Commission, which are available at
http://www.sec.gov or at http://investor.oriones.com/ in the
Investor Relations section of our Website.
Twitter: @OrionLighting and
@OrionLightingIRStockTwits: @Orion_LED_IR
Investor Relations
Contacts |
|
Per Brodin, CFO |
William Jones; David Collins |
Orion Energy Systems, Inc. |
Catalyst IR |
pbrodin@oesx.com |
(212) 924-9800 or
OESX@catalyst-ir.com |
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