LED Lighting, EV Charging and Electrical Maintenance Provider Orion Announces Preliminary Q3’24 Revenue Growing to $25.8M-$26.2M and Improved Cash Position; Updates FY 2024 Anticipated Revenue Outlook to $90M-$95M
18 Janvier 2024 - 1:29PM
Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion
Lighting), a provider of energy-efficient LED lighting, electric
vehicle (EV) charging station solutions, and maintenance services,
in anticipation of upcoming investor conferences and sessions,
today announced preliminary revenue results for its fiscal 2024
third quarter (Q3’24) ended December 31, 2023 and updated its
anticipated revenue outlook for the full fiscal 2024 year ending
March 31, 2024. Orion expects to report final Q3’24 financial
results on Wednesday, February 7, 2024 and to hold an investor call
that day at 10:00 a.m. ET. In addition, management plans to discuss
its Q3’24 preliminary results at the Sidoti Microcap Conference on
January 18.
Orion’s preliminary results described in the press
release are subject to adjustment and finalization based on Orion’s
quarterly reporting period closing procedures and the related
review procedures conducted by its independent auditors.
Q3 Snapshot |
|
Prior Three Quarters |
$ in millions except per share figures |
Q3’24 Estimated* |
Q3'23 |
Estimated Change |
|
Q2’24 |
Q1’24 |
Q4’23 |
LED Lighting Revenue |
$18.6 |
$14.2 |
+$4.4 |
|
$13.6 |
$12.6 |
$14.5 |
Maintenance Revenue |
$4.6 |
$3.3 |
+$1.3 |
|
$3.6 |
$3.8 |
$3.7 |
EV Charging Revenue |
$2.8 |
$2.8 |
$0.0 |
|
$3.4 |
$1.2 |
$3.4 |
Total Revenue |
$26.0 |
$20.3 |
+28% |
|
$20.6 |
$17.6 |
$21.6 |
|
|
|
|
|
|
|
|
*Based on mid-point of revenue range
Revenue Highlights
Orion reported a preliminary Q3’24 revenue range
of $25.8M to $26.2M, an approximate increase of 28%, compared to
Q3’23 revenue of $20.3M. Based on the mid-point of the revenue
range, preliminary Q3’24 revenues were comprised as follows:
- LED Lighting revenue increased to approximately $18.6M in Q3’24
vs. $14.2M in Q3’23 and $13.6M in Q2’24, driven by anticipated
growth in contract activity for larger customers that is expected
to continue for the balance of FY 2024 and into FY 2025. Larger
projects include approximately $6.5M in remaining revenue from a
European retrofit project for the U.S. Department of Defense, an
ongoing external lighting project for Orion’s largest customer, and
an ongoing national LED lighting project for a global
warehouse/logistics customer.
- EV charging solutions revenue was approximately $2.8M in Q3’24
vs. $3.4M in Q2’24 and $2.8M in the year ago quarter. The Voltrek
business has substantially expanded and enhanced its team and
geographic reach and is seeing steady growth in its project
pipeline as well as new project quoting activity.
- Maintenance services revenue rose to approximately $4.6M in
Q3’24 compared to $3.6M in Q2’24 and $3.6M in Q3’23, principally
benefitting from a 3-year agreement to provide preventative
lighting maintenance services for a customer’s approximately 2,000
retail locations nationwide. Orion continues to focus on the
profitability of remaining legacy contracts.
- Orion closed Q3’24 with approximately $17.5M of financial
liquidity, comprised of approximately $5.0M of cash and cash
equivalents and approximately $12.5M net availability on its credit
facility. This is an improvement from Q2’24, when Orion had
approximately $12.9M of liquidity, including $4.0M of cash and cash
equivalents and $8.9M of net availability on its credit
facility.
Orion CEO Mike Jenkins commented, “As anticipated,
our LED lighting operations have been ramping to address a growing
base of larger client projects and our EV charging business
continues to gain traction in building its project pipeline,
however its quarter-to-quarter results were impacted by the timing
of larger projects. Our Q3’24 results reflected additional
customer-related delays on our European LED lighting project,
however we expect to complete the vast majority of the work during
our fourth quarter. As an outcome of some project delays, we have
updated our full year guidance to a range of $90M to $95M – growth
of 16-23%, from an earlier expectation of growth to at least
$100M.
“Finally, because we are confident about the
long-term potential for our business, we are investing time to get
out and meet with investors. We hope to speak with you at upcoming
events including the Sidoti Microcap Conference today, a non-deal
roadshow in late January, or the LD Micro Invitational in New York
City on April 8th & 9th.”
Business Outlook
- Orion now expects FY 2024 revenue growth between 16% and 23% to
a range of approximately $90M to $95M. This updated outlook implies
Q4’24 revenue in the range of $26M to $31M compared to $21.6M in
Q4’23.
- Growth over the balance of FY 2024 is largely expected from
large national account LED lighting projects including the large
DoD European retrofit project, an external lighting project for
Orion’s largest customer, and projects for a large
warehouse/logistics sector customer. Additionally, Orion expects
growth in EV charging solutions driven by its current project
pipeline. Maintenance services are expected to decrease slightly
over the balance of FY 2024, reflecting the impact of new pricing
on certain legacy customer renewal discussions.
About Orion Energy Systems Orion
provides energy efficiency and clean tech solutions, including LED
lighting and controls, maintenance services and electrical vehicle
(EV) charging solutions. Orion specializes in turnkey
design-through-installation solutions for large national customers
as well as projects through ESCO and distribution partners, with a
commitment to helping customers achieve their business and
environmental goals with healthy, safe and sustainable solutions
that reduce their carbon footprint and enhance business
performance.
Orion is committed to operating responsibly
throughout all areas of our organization. Learn more about our
Sustainability and Governance priorities, goals and progress here
or visit our website at www.orionlighting.com.
Safe Harbor Statement Certain
matters discussed in this press release 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 outlook, plans, expectations,
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 realize the anticipated benefits of the Voltrek
acquisition; (ii) we may encounter substantial difficulties, costs
and delays involved in integrating our operations with Voltrek’s
business; (iii) disruption of management’s attention from ongoing
business operations due to the Voltrek acquisition; (iv) 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; (v) 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; (vi) 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; (vii) our ability to recruit, hire and retain
talented individuals in all disciplines of our company; (viii) our
ability to successfully launch, manage and maintain our refocused
business strategy to successfully bring to market new and
innovative product and service offerings; (ix) potential asset
impairment charges and/or increases on our deferred tax asset
reserve; (x) 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;
(xi) our ability to identify and successfully complete transactions
with suitable acquisition candidates in the future as part of our
growth strategy; (xii) the availability of additional debt
financing and/or equity capital to pursue our evolving strategy and
sustain our growth initiatives; (xiii) our risk of potential loss
related to single or focused exposure within the current customer
base and product offerings; (xiv) our ability to achieve and
sustain profitability and positive cash flows; (xv) our ability to
differentiate our products in a highly competitive and converging
market, expand our customer base and gain market share; (xvi) our
ability to manage and mitigate downward pressure on the average
selling prices of our products as a result of competitive pressures
in the LED market; (xvii) our ability to manage our inventory and
avoid inventory obsolescence in a rapidly evolving LED market;
(xviii) our increasing reliance on third parties for the
manufacture and development of products, product components, as
well as the provision of certain services; (xix) 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; (xx) our ability to develop and
participate in new product and technology offerings or applications
in a cost effective and timely manner; (xxi) our ability to
maintain safe and secure information technology systems; (xxii) our
failure to comply with the covenants in our credit agreement;
(xxiii) our ability to balance customer demand and production
capacity; (xxiv) our ability to maintain an effective system of
internal control over financial reporting; (xxv) price fluctuations
(including as a result of tariffs), shortages or interruptions of
component supplies and raw materials used to manufacture our
products; (xxvi) our ability to defend our patent portfolio and
license technology from third parties; (xxvii) a reduction in the
price of electricity; (xxviii) 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; (xxix) the cost to comply
with, and the effects of, any current and future industry and
government regulations, laws and policies; (xxx) potential warranty
claims in excess of our reserve estimates; and (xxxi) 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
@OrionLightingIR StockTwits: @Orion_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 |
Orion Energy Systems (NASDAQ:OESX)
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