Orion Energy Systems, Inc. Announces Fiscal 2009 Second Quarter Results
PLYMOUTH, Wis., Nov 4, 2008 (GlobeNewswire via COMTEX News Network) -- Orion Energy Systems, Inc. (Nasdaq:OESX), a leading provider of energy management systems to the commercial and industrial sectors, today announced financial results for its fiscal 2009 second quarter ended September 30, 2008.
Fiscal 2009 Second Quarter Results
Revenue. Total revenue for the quarter was $18.8 million compared to $18.4 million for the fiscal 2008 second quarter, an increase of 2%.
Gross Profit. Gross profit for the quarter was $6.3 million compared to $6.3 million for the fiscal 2008 second quarter.
Operating Expenses. Total operating expenses for the quarter were $6.0 million compared to $4.3 million for the fiscal 2008 second quarter, an increase of 40%.
Income from Operations. Income from operations for the fiscal 2009 second quarter was $0.3 million compared to operating income of $2.0 million for the fiscal 2008 second quarter, a decrease of 85%.
Net Income. Net income for the quarter was $0.45 million compared to $1.1 million for the fiscal 2008 second quarter, a decrease of 59%. Earnings per diluted share were $0.02 for the quarter compared to $0.05 for the fiscal 2008 second quarter.
Results for the Six Months Ended September 30, 2008
Revenue. Total revenue for the six months ended September 30, 2008, was $34.9 million compared to $35.1 million for the same prior year period, a decrease of 1%.
Gross Profit. Gross profit for the six months ended September 30, 2008, was $11.5 million compared to $11.9 million for the same prior year period, a decrease of 3%.
Operating Expenses. Total operating expenses for the six months ended September 30, 2008, were $11.7 million compared to $8.4 million for the same prior year period, an increase of 39%.
Income (Loss) from Operations. Loss from operations for the six months ended September 30, 2008, was $0.2 million compared to operating income of $3.5 million for the same prior year period, a decrease of 106%.
Net Income. Net income for the six months ended September 30, 2008, was $0.5 million compared to $1.8 million for the same prior year period, a decrease of 72%. Earnings per diluted share were $0.02 for the six months ended September 30, 2008, compared to $0.09 for the same prior year period.
Business Highlights
* Deployed energy management systems in 301 facilities in the second
quarter of fiscal 2009, representing over 49 million square feet
retrofitted, and bringing Orion's installed base to 4,050
facilities.(1) This compares favorably to the 276 facilities and
34 million square feet retrofitted added in the first quarter of
fiscal 2009. New customer additions in the second quarter of
fiscal 2009 will result in $9.3 million in annual saved energy
costs and an annual reduction in indirect CO2 emissions from energy
savings by over 87 thousand tons. Since December 2001, the company
has benefited its customers and the environment as follows:
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Cumulative From
December 1, 2001 Through
September 30, 2008
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High intensity fluorescent (HIF) systems sold 1,310,000
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Total units sold (including HIF) 1,684,000
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Customer kilowatt demand reduction 387,000
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Customer kilowatt hours saved 5,915,123,000
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Customer electricity costs saved $455,465,000
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Indirect carbon dioxide emission reductions from
customers' energy savings (tons) 4,031,000
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Square footage retrofitted 670,099,000
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* Witnessed strong growth by Orion's VAR partner network. Sales to
VAR partners for the six months ended September 30, 2008, exceeded
prior year sales for the same period by 83%.
* Added 46 new contractor partners, bringing the total network of
contractor partners who have conducted business on a recurring
basis with Orion to over 320 as of September 30, 2008. Sales to
contractor partners for the six months ended September 30, 2008,
exceeded prior year sales for the same period by 79%.
* Launched the patent-pending Orion Virtual Power Plant(tm) negawatt
supply agreement and secured two customer contracts. Orion had
4.8 million kWh of negawatts under contract as of
September 30, 2008.
* Shipped 677 Apollo Solar Light Pipes(tm) during the second quarter,
compared to 204 shipped in the first quarter of fiscal 2009.
* Deployed Orion's proprietary wireless InteLite(tm) control systems
at 13 customer facilities during the second quarter, bringing to 18
the number of facilities with Orion wireless InteLite(tm) controls
installed, and demonstrating the successful progression of
InteLite(tm) through the phases of product development, testing,
launch and customer acceptance.
* Implemented a complete energy management system at the PepsiCo
facility in Curitiba, Brazil, a city widely regarded for its
leadership in environmentalism and urban planning. This energy
efficient facility is expected to be a potential model for future
PepsiCo facilities and the best practices implemented at this
facility may also be shared with other facilities in Curitiba.
* Repurchased over 1.4 million shares of outstanding common stock
during the second quarter as part of the $20 million share
repurchase program approved by Orion's Board of Directors on
July 17, 2008.
Full-Year Fiscal 2009 Outlook
Orion is revising its annual revenue guidance range to 0% to 9% year-over-year revenue growth. Total revenue for fiscal 2009 is now forecasted to be between $81 million and $88 million. Orion is also revising its annual earnings guidance with earnings per share for fiscal 2009 estimated to be between $0.06 and $0.11 per diluted share.
"While we regained momentum during the second quarter, the challenging economic environment has led us to re-evaluate our existing forecast for fiscal 2009 as we have seen some customers close facilities as well as some customers delay purchasing decisions, particularly new customers considering projects that have not been previously budgeted," commented Neal Verfuerth, CEO of Orion Energy Systems. "We anticipate utilizing the Orion Virtual Power Plant(tm) supply agreement to our advantage in this environment but because this is an innovative approach, we recognize that it may not immediately offset the lengthening sales cycles and delayed decision-making we are witnessing."
"Nevertheless, we are determined to remain well positioned to create long-term value for our stakeholders and will rigorously pursue operational and expense efficiencies so that, moving forward, we maintain our strong balance sheet, our profitability, and our ability to generate positive cash flows," said Verfuerth. "Given our confidence in Orion, we will continue to buy back our shares."
Conference Call
Orion will host a conference call on Tuesday, November 4, at 5:30 p.m. Eastern (4:30 p.m. Central/2:30 p.m. Pacific) to discuss details regarding its second quarter performance. Domestic callers may access the earnings conference call by dialing 877-719-9795 (International callers, dial 719-325-4806). 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.globenewswire.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 "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" 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) further deterioration of market conditions; (ii) Orion's ability to compete in a highly competitive market and its ability to respond successfully to market competition; (iii) increasing duration of customer sales cycles; (iv) the market acceptance of Orion's products and services, including the Orion Virtual Power Plant; (v) price fluctuations, shortages or interruptions of component supplies and raw materials used to manufacture Orion's products; (vi) loss of one or more key customers or suppliers; (vii) a reduction in the price of electricity; (viii) the cost to comply with, and the effects of, any current and future government regulations, laws and policies; (ix) increased competition from government subsidiaries and utility incentive programs; (x) dependence on customers' capital budgets for sales of products and services; (xi) Orion's ability to effectively manage its anticipated growth; and (xii) 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 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://www.oriones.com in the Investor Relations section of our website.
(1) Orion's total installed base of 4,050 facilities reflects a
downward adjustment of 13 due to removal of duplicate records
from historical data.
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 Six Months ended September 30, 2007 and 2008
(unaudited)
Three months ended Six months ended
---------------------- ----------------------
September 30, September 30,
2007 2008 2007 2008
---------- ---------- ---------- ----------
Revenue $ 18,405 $ 18,760 $ 35,126 $ 34,866
Cost of revenue 12,084 12,425 23,202 23,334
---------- ---------- ---------- ----------
Gross profit 6,321 6,335 11,924 11,532
Operating expenses:
General and
administrative 1,907 2,893 3,478 5,508
Sales and marketing 1,938 2,771 4,049 5,423
Research and
development 443 373 880 791
---------- ---------- ---------- ----------
Total operating
expenses 4,288 6,037 8,407 11,722
---------- ---------- ---------- ----------
Income (loss)
from operations 2,033 298 3,517 (190)
Other income (expense):
Interest expense (329) (41) (624) (108)
Dividend and
interest income 154 550 194 1,167
---------- ---------- ---------- ----------
Total other
income (expense) (175) 509 (430) 1,059
---------- ---------- ---------- ----------
Income before
income tax 1,858 807 3,087 869
Income tax expense 805 354 1,286 382
Net income 1,053 453 1,801 487
---------- ---------- ---------- ----------
Accretion of
redeemable preferred
stock and preferred
stock dividends (75) -- (150) --
Participation rights
of preferred stock in
undistributed earnings (292) -- (511) --
---------- ---------- ---------- ----------
Net income
attributable to
common shareholders $ 686 $ 453 $ 1,140 $ 487
========== ========== ========== ==========
Basic net income
per share attributable
to common
shareholders $ 0.06 $ 0.02 $ 0.11 $ 0.02
Weighted-average common
shares outstanding 11,283,160 26,959,790 10,711,695 26,998,857
Diluted net income per
share attributable to
common shareholders $ 0.05 $ 0.02 $ 0.09 $ 0.02
Weighted-average common
shares and share
equivalents
outstanding 20,394,499 29,018,991 19,782,208 29,613,684
Supplemental
information:
FAS 123R
compensation expense
Cost of revenue $ 23 $ 65 $ 44 $ 130
General and
administrative 315 171 380 425
Sales and marketing 57 145 110 271
Research
and development 8 7 16 20
---------- ---------- ---------- ----------
Total $ 403 $ 388 $ 550 $ 846
========== ========== ========== ==========
Condensed Consolidated Balance Sheets
As of March 31, 2008 and September 30, 2008 (unaudited)
March 31, 2008 September 30, 2008
------------------ ------------------
Cash and cash equivalents $ 78,312 $ 46,407
Short term investments 2,404 19,583
Accounts Receivable 17,666 16,371
Inventories 16,789 18,885
Current assets 116,896 104,382
Property and equipment, net 11,539 17,629
Total assets 130,702 124,670
Accounts Payable 7,521 7,478
Current liabilities 12,606 12,114
Long term debt 4,473 4,049
Total shareholders' equity 113,190 108,088
Condensed Consolidated Statements of Cash Flows
For the Six Months ended September 30, 2007 and 2008
(unaudited)
Six months ended September 30
---------------------------------
2007 2008
-------------- --------------
Cash provided by operating
activities $ 1,869 $ (371)
Cash used in investing
activities (4,844) (24,855)
Cash provided by (used in)
financing activities 9,554 (6,679)
-------- --------
Net increase (decrease) in cash
and cash equivalents $ 6,579 $(31,905)
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SOURCE: Orion Energy Systems, Inc.
Orion Energy Systems
Erik G. Birkerts, Chief Operating Officer
(920) 482-1924
FD Ashton Partners
Victoria Paris
(312) 553-6715
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