Orion Energy Systems, Inc. Announces Fiscal 2008 Third Quarter Financial Results
PLYMOUTH, Wis., Feb 6, 2008 (PrimeNewswire via COMTEX News Network) -- Orion Energy Systems, Inc. (Nasdaq:OESX), a power technology enterprise which completed its initial public offering on December 24, 2007, today announced its financial results for its fiscal 2008 third quarter and nine months ended December 31, 2007.
Business Highlights
* Completed initial public offering, raising net proceeds to Orion of $78.6 million. * Issued U.S. patent on the Apollo Light Pipe, totaling 17 Orion patents to date. * Received Super Nova award from the Alliance to Save Energy. * Expanded list of Fortune 500 customers to 90. * Recognized as supplier of the year by Sysco Foods.
"I am extremely pleased with results to date, both increasing revenue and profitability," commented Neal Verfuerth, CEO of Orion Energy Systems. "We posted solid growth in all our financial metrics, expanded our installed base and received a number of important validations. As I look forward, I am confident in our ability to achieve our goal of at least 62% annual revenue growth for fiscal 2008."
Financial Summary
Revenue. Total revenue was $23.3 million for Orion's fiscal 2008 third quarter, which resulted in year to date revenues of $58.4 million compared to $13.6 million for Orion's fiscal 2007 third quarter and $33.9 million for the nine months ended December 31, 2006. Revenue increased 73% year over year.
Gross Margin. Gross profit was $8.3 million for Orion's fiscal 2008 third quarter, which resulted in year to date gross profit of $20.2 million compared to $4.4 million for Orion's fiscal 2007 third quarter and $11.0 million for the nine months ended December 31, 2006. Gross profit increased 83% year over year. These increases were primarily the result of improved absorption of fixed costs resulting from increased sales volume.
Operating Expenses. Total operating expenses were $6.0 million (inclusive of $0.4 million of non-cash stock-based compensation expense) for Orion's fiscal 2008 third quarter, which resulted in year to date expenses of $14.4 million compared to $3.4 million (inclusive of $0.1 million of non-cash stock-based compensation expense) for Orion's fiscal 2007 third quarter and $9.6 million for the nine months ended December 31, 2006. Operating expenses increased 50% year over year. Included in Orion's third quarter fiscal 2008 operating expenses were $0.8 million of compensation charges relating to the completion of its initial public offering.
Operating Income. Operating income was $2.3 million for Orion's fiscal 2008 third quarter, which resulted in year to date operating income of $5.8 million compared to $0.9 million for Orion's fiscal 2007 third quarter and $1.4 million for the nine months ended December 31, 2006. Operating income increased 298% year over year.
Net Income. Net income was $1.2 million for Orion's fiscal 2008 third quarter, which resulted in year to date net income of $3.0 million compared to $0.6 million for Orion's fiscal 2007 third quarter and $0.6 million for the nine months ended December 31, 2006. Net income increased 423% year over year. Earnings per diluted share were $0.05 for the fiscal 2008 third quarter and $0.15 for the nine months ended December 31, 2007 compared to $0.03 for both the quarter and nine months ended December 31, 2006.
Cash. As of December 31, 2007, Orion had cash and cash equivalents totaling $83.3 million, an increase of $83.0 million since March 31, 2007, primarily as a result of Orion's initial public offering, including the exercise of the underwriters' over-allotment option, in December 2007.
Conference Call
Orion will host a conference call on Wednesday, February 6, at 5:30 p.m. Eastern (4:30 p.m. Central/2:30 p.m. Pacific) to discuss details regarding its fiscal 2008 third quarter and year to date performance. Domestic callers may access the earnings conference call by dialing 877-627-6580 (International callers, dial 719-325-4929). Investors and other interested parties may also go to the Investor Relations section of Orion's website at http://investor.oriones.com/events.cfm for a live webcast of the conference call. To ensure a timely connection, it is recommended that users register at least 15 minutes prior to the scheduled webcast.
Orion Energy Systems, Inc. (Nasdaq:OESX) is a leading power technology enterprise that designs, manufactures and implements energy management systems, consisting primarily of high-performance, energy efficient lighting systems and controls and related services, for commercial and industrial customers without compromising their quantity or quality of light.
The Orion Energy Systems, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4540
Safe Harbor Statement
Certain matters discussed in this press release are "forward-looking statements" intended to qualify for the safe harbors 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 "believe," "anticipate," "expect" or words of similar import. Similarly, statements that describe 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) Orion's ability to compete in a highly competitive market and its ability to respond successfully to market competition; (ii) the market acceptance of Orion's products and services; (iii) price fluctuations, shortages or interruptions of component supplies and raw materials used to manufacture Orion's products; (iv) loss of one or more key customers or suppliers; (v) a reduction in the price of electricity; (vi) the cost to comply with, and the effects of, any current and future government regulations, laws and policies; (vii) increased competition from government subsidiaries and utility incentive programs; (viii) dependence on customers' capital budgets for sales of products and services; (ix) Orion's ability to effectively manage its anticipated growth; and (x) potential warranty claims. 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 Orion undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(in thousands, except share and per share amounts)
Condensed Consolidated Statements of Operations
For the three and nine months ended December 31, 2006 and 2007
(unaudited)
Three months ended Nine months ended
December 31, December 31,
------------------------ ------------------------
2006 2007 2006 2007
----------- ----------- ----------- -----------
Revenue $ 13,563 $ 23,311 $ 33,874 $ 58,437
Cost of revenue 9,200 15,057 22,833 38,258
----------- ----------- ----------- -----------
Gross profit 4,363 8,254 11,041 20,179
Operating expenses:
General and
administrative 1,614 3,288 4,219 6,766
Sales and marketing 1,551 2,260 4,677 6,309
Research and
development 257 454 697 1,334
----------- ----------- ----------- -----------
Total operating
expenses 3,422 6,002 9,593 14,409
----------- ----------- ----------- -----------
Income from
operations 941 2,252 1,448 5,770
Other income
(expense):
Interest expense (261) (648) (774) (1,272)
Dividend and
interest income 16 286 28 480
----------- ----------- ----------- -----------
Total other
income
(expense) (245) (362) (746) (792)
----------- ----------- ----------- -----------
Income before
income tax 696 1,890 702 4,978
Income tax expense 136 737 137 2,023
----------- ----------- ----------- -----------
Net income 560 1,153 565 2,955
Accretion of
redeemable
preferred stock
and preferred
stock dividends (79) (75) (125) (225)
Participation
rights of
preferred stock
in undistributed
earnings (168) (259) (135) (775)
----------- ----------- ----------- -----------
Net income
attributable
to common
shareholders $ 313 $ 819 $ 305 $ 1,955
=========== =========== =========== ===========
Basic net income
per share
attributable
to common
shareholders $ 0.03 $ 0.06 $ 0.03 $ 0.17
Weighted-average
common shares
outstanding 9,071,133 13,889,162 9,025,740 11,774,702
Diluted net income
per share
attributable to
common
shareholders $ 0.03 $ 0.05 $ 0.03 $ 0.15
Weighted-average
common
shares and share
equivalents
outstanding 16,875,857 22,858,230 16,012,564 20,752,432
Supplemental
information:
FAS 123R
compensation
expense
Cost of revenue $ 5 $ 24 $ 11 $ 68
General and
administrative 27 185 85 565
Sales and
marketing 26 157 76 267
Research and
development 4 13 13 29
----------- ----------- ----------- -----------
Total $ 62 $ 379 $ 185 $ 929
=========== =========== =========== ===========
Cash incentive
compensation
related to
completion of
initial public
offering
included in
general and
administrative
expenses -- $ 742 -- $ 742
Stock
appreciation
right expense
related to
completion of
initial public
offering
included in
general and
administrative
expenses -- $ 27 -- $ 27
Condensed Consolidated Balance Sheets
As of March 31, 2007 and December 31, 2007 (unaudited)
March 31, December 31,
2007 2007
----------- -----------
Cash and cash equivalents $ 285 $ 83,295
Current assets 22,619 117,820
Property, plant and equipment, net 7,588 8,676
Total assets 33,583 128,763
Current liabilities 8,539 12,885
Long term debt 10,603 4,457
Total temporary equity and
shareholders' equity 14,308 111,240
Condensed Consolidated Statements of Cash Flows
For the nine months ended December 31, 2006 and 2007
(unaudited)
Nine months ended December 31,
-------------------------------
2006 2007
---------- ----------
Cash used in operating activities $ (4,931) $ (2,115)
Cash used in investing activities (495) (1,821)
Cash provided by financing activities 4,501 86,946
Net increase (decrease) in cash and
cash equivalents (925) 83,010
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SOURCE: Orion Energy Systems, Inc.
Orion Energy Systems, Inc.
Daniel J. Waibel, Chief Financial Officer
(920) 482-1920
Joann Horne, Investor Relations
(415) 445-3233
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