Orion Energy Systems, Inc. Announces Fiscal 2010 First Quarter Results
MANITOWOC, Wis., Aug 4, 2009 (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 2010 first quarter ended June 30, 2009.
"We met our first quarter top-line revenue target in spite of the continuing pressure experienced by our end market customers due to the macro-economic environment," commented Neal Verfuerth, CEO of Orion Energy Systems. "We also witnessed further traction with our customer financing program and would have recognized an additional $1.1 million in revenue if financed deals would have been structured as cash transactions. While we met the operating cost targets upon which we based our earnings guidance, our loss per share exceeded our forecast due to non-operating factors tied to tax accounting in which our effective tax benefit was smaller than anticipated."
Fiscal 2010 First Quarter Results
Revenue. Total revenue for the quarter was $12.6 million compared to $16.1 million for the fiscal 2009 first quarter, representing a decrease of 22%.
Gross Profit. Gross profit for the quarter was $3.5 million compared to $5.2 million for the fiscal 2009 first quarter, representing a decrease of 33%.
Operating Expenses. Total operating expenses for the quarter were $6.7 million compared to $5.7 million for the fiscal 2009 first quarter, representing an increase of 18%.
Loss from Operations. Loss from operations for the quarter was $3.2 million, representing a $2.7 million increase from $0.5 million operating loss in the fiscal 2009 first quarter.
Net Loss. Net loss for the quarter was $2.8 million compared to net income of $0.03 million for the fiscal 2009 first quarter, representing a decline of $2.8 million. Losses per diluted share were $0.13 for the quarter compared to earnings per diluted share of $0.00 for the fiscal 2009 first quarter.
Business Highlights
* Deployed energy management systems in 223 facilities in the first
quarter of fiscal 2010, representing over 25 million square feet
retrofitted, and bringing Orion's installed base to 4,796
facilities.
* Since December 2001, Orion has benefited its customers and the
environment as follows:
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Cumulative From December 1, 2001
Through June 30, 2009
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High intensity fluorescent (HIF) systems sold 1,524,114
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Total units sold (including HIF) 1,972,840
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Customer kilowatt demand reduction 459,900
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Customer kilowatt hours saved 8,530,438,143
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Customer electricity costs saved $642,983,737
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Indirect carbon dioxide emission reductions from
customers' energy savings (tons) 5,550,327(1)
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Square footage retrofitted 782,040,828
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* Secured 16 new Orion Virtual Power Plant(tm) supply agreements
during the first quarter, representing gross income streams of $2.3
million. Revenue for these customer projects will be recognized
across the 60-month term of the agreements. If these customer
projects had been structured as cash transactions, Orion would have
recognized $1.1 million of incremental revenue in the quarter, $378
thousand in contribution margin, and reduced loss per share by
approximately $0.02. As of June 30, 2009, Orion had over 94 million
kWh of "negawatts" under 36 supply agreements, representing
approximately $3.6 million of gross income streams.
* Witnessed continued contribution by Orion's VAR partner network on a
relative basis. Sales to VAR partners for the first quarter of
fiscal 2010 contributed 16.1% of total revenues compared to first
quarter fiscal 2009 in which sales to VAR partners contributed 17%
of total revenues.
* Added 31 new contractor partners during the first quarter, bringing
the total network of contractor partners who have conducted business
on a recurring basis with Orion to over 476 as of June 30, 2009.
Sales to contractor partners for the first quarter of fiscal 2010
contributed 15.9% of total revenues compared to first quarter fiscal
2009 in which sales to contractor partners contributed 17.6% of
total revenues.
* Deployed Intelite(r) wireless control systems at 24 customer
locations, resulting in 2,525 transceiver shipments and 61
Intelite(r) control panel shipments. Total deployments number 64
customer locations and 4,413 transceivers and 137 control panels
through June 30, 2009.
* Shipped 640 Apollo Solar Light Pipes during the first quarter.
Units installed in the marketplace total 2,282 through June 30,
2009.
Recent Developments
* Appointed James R. Kackley as President and Chief Operating Officer, effective July 22, 2009. Mr. Kackley will oversee Orion's day-to-day operations and will report to Neal Verfuerth, who will continue as Orion's CEO, responsible for the overall strategic vision and leadership direction for the company. * Secured purchase order for 1,035 Apollo Solar Light Pipe units, with shipments of the units to begin during the current quarter.
Fiscal 2010 Second Quarter Outlook
Second quarter fiscal 2010 revenues are anticipated to be between $13.2 million and $14.5 million. Loss per share for the second quarter of fiscal 2010 is estimated to be between $0.07 and $0.11.
Conference Call
Orion will host a conference call on Tuesday, August 4, 2009 at 5:30 p.m. Eastern (4:30 p.m. Central/2:30 p.m. Pacific) to discuss details regarding its first quarter and fiscal 2010 financial performance. Domestic callers may access the earnings conference call by dialing 888-455-2265 (International callers, dial 719-457-2626). 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 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, including key contacts at such customers; (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) Emissions rate calculated from EGRID database (EGRID2007 Version
1.1 - October 2008)
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 Months ended June 30, 2008 and 2009
(unaudited)
Three months ended
June 30,
----------------------
2008 2009
---------- ----------
Revenue $ 16,106 $ 12,628
Cost of revenue 10,909 9,127
---------- ----------
Gross profit 5,197 3,501
Operating expenses:
General and administrative 2,615 3,163
Sales and marketing 2,652 3,152
Research and development 418 419
---------- ----------
Total operating expenses 5,685 6,734
---------- ----------
Loss from operations (488) (3,233)
Other income (expense):
Interest expense (67) (56)
Dividend and interest income 617 123
---------- ----------
Total other income (expense) 550 67
---------- ----------
Income (loss) before income tax 62 (3,166)
Income tax expense (benefit) 28 (393)
---------- ----------
Net income (loss) attributable to common
shareholders $ 34 $ (2,773)
========== ==========
Basic net income per share attributable to
common shareholders $ 0.00 $ (0.13)
Weighted-average common shares outstanding 27,038,353 21,588,364
Diluted net income per share attributable to
common shareholders $ 0.00 $ (0.13)
Weighted-average common shares and share
equivalents outstanding 30,015,198 21,588,364
Supplemental information:
FAS 123R compensation expense
Cost of revenue $ 65 $ 59
General and administrative 254 122
Sales and marketing 126 129
Research and development 13 10
---------- ----------
Total $ 458 $ 320
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Condensed Consolidated Balance Sheets
As of March 31, 2009 and June 30, 2009 (unaudited)
March 31, 2009 June 30, 2009
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Cash and cash equivalents $ 36,163 $ 26,861
Short term investments 6,490 7,250
Accounts Receivable 11,572 11,474
Inventories 20,232 20,990
Current assets 78,374 69,617
Property and equipment, net 22,999 24,652
Total assets 103,722 97,613
Accounts Payable 7,817 4,385
Current liabilities 10,947 7,105
Long term debt 3,647 3,493
Total shareholders' equity 88,695 86,552
Condensed Consolidated Statements of Cash Flows
For the Three Months ended June 30, 2008 and 2009
(unaudited)
Three months ended June 30,
-----------------------------
2008 2009
-------------- -------------
Cash provided by (used in) operating
activities $ 949 $ (6,317)
Cash used in investing activities (26,235) (2,985)
Cash provided by financing activities 1,189 --
-------------- -------------
Net (decrease) in cash and cash
equivalents $ (24,097) $ (9,302)
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SOURCE: Orion Energy Systems, Inc.
Orion Energy Systems, Inc. Erik G. Birkerts, Executive Vice President (920) 482-1924 FD Victoria Paris (312) 553-6715
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