Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Dec. 31, 2015	Feb. 05, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	ORION ENERGY SYSTEMS, INC.
Entity Central Index Key	0001409375
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		27,754,478

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Assets
Cash and cash equivalents	$ 17,458	$ 20,002
Accounts receivable, net of allowances of $458 and $180 at March 31, 2015 and December 31, 2015, respectively	14,632	18,263
Inventories, net	18,435	14,283
Deferred contract costs	46	90
Prepaid expenses and other current assets	528	2,407
Total current assets	51,099	55,045
Property and equipment, net	19,186	21,223
Goodwill	4,409	4,409
Other intangible assets, net	5,371	6,335
Long-term accounts receivable	150	426
Other long-term assets	214	367
Total assets	80,429	87,805
Liabilities and Shareholders’ Equity
Accounts payable	12,020	11,003
Accrued expenses and other	3,471	5,197
Deferred revenue, current	361	287
Current maturities of long-term debt and capital leases	1,164	1,832
Total current liabilities	17,016	18,319
Revolving credit facility	4,973	2,500
Long-term debt, less current maturities and capital leases	316	722
Deferred revenue, long-term	1,042	1,231
Other long-term liabilities	538	522
Total liabilities	$ 23,885	$ 23,294
Commitments and contingencies
Shareholders’ equity:
Common stock, no par value: Shares authorized: 200,000,000 at March 31, 2015 and December 31, 2015; shares issued: 36,837,864 and 37,165,416 at March 31, 2015 and December 31, 2015; shares outstanding: 27,421,533 and 27,739,886 at March 31, 2015 and December 31, 2015	$ 0	$ 0
Additional paid-in capital	151,831	150,516
Treasury stock: 9,416,331 and 9,425,530 common shares at March 31, 2015 and December 31, 2015	(36,075)	(36,049)
Shareholder notes receivable	(4)	(4)
Retained deficit	(59,208)	(49,952)
Total shareholders’ equity	56,544	64,511
Total liabilities and shareholders’ equity	$ 80,429	$ 87,805

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Allowances for accounts receivable	$ 180	$ 458
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	37,165,416	36,837,864
Common stock, shares outstanding	27,739,886	27,421,533
Treasury stock, shares	9,425,530	9,416,331

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Product revenue	$ 16,094	$ 23,646	$ 46,872	$ 48,534
Service revenue	657	2,492	2,195	4,309
Total revenue	16,751	26,138	49,067	52,843
Cost of product revenue	11,574	20,293	35,988	53,512
Cost of service revenue	468	2,021	1,700	3,451
Total cost of revenue	12,042	22,314	37,688	56,963
Gross (loss) profit	4,709	3,824	11,379	(4,120)
Operating expenses:
General and administrative	3,861	3,816	11,135	11,328
Sales and marketing	2,409	3,771	8,112	10,016
Research and development	381	889	1,244	1,874
Total operating expenses	6,651	8,476	20,491	23,218
Loss from operations	(1,942)	(4,652)	(9,112)	(27,338)
Other income (expense):
Interest expense	(71)	(62)	(223)	(235)
Interest income	27	69	107	246
Total other income (expense)	(44)	7	(116)	11
Loss before income tax	(1,986)	(4,645)	(9,228)	(27,327)
Income tax expense	18	18	28	41
Net loss	$ (2,004)	$ (4,663)	$ (9,256)	$ (27,368)
Basic net loss per share attributable to common shareholders (in dollars per share)	$ (0.07)	$ (0.21)	$ (0.34)	$ (1.26)
Weighted-average common shares outstanding (in shares)	27,671,633	21,882,741	27,584,288	21,791,184
Diluted net loss per share (in dollars per share)	$ (0.07)	$ (0.21)	$ (0.34)	$ (1.26)
Weighted-average common shares and share equivalents outstanding (in shares)	27,671,633	21,882,741	27,584,288	21,791,184

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Operating activities
Net loss	$ (9,256)	$ (27,368)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	2,320	2,154
Amortization of long-term assets	1,055	1,106
Stock-based compensation expense	1,166	1,250
Impairment on assets	0	12,130
(Gain) loss on sale of property and equipment	18	(4)
Provision for inventory reserves	41	224
Provision for bad debts	245	236
Other	56	108
Changes in operating assets and liabilities, net of effects of acquisition:
Accounts receivable, current and long-term	3,660	(1,856)
Inventories	(4,192)	(2,975)
Deferred contract costs	44	(80)
Prepaid expenses and other assets	1,951	(3,645)
Accounts payable	1,017	8,090
Accrued expenses and other	(1,333)	721
Deferred revenue	(117)	(308)
Net cash used in operating activities	(3,325)	(10,217)
Investing activities
Purchase of property and equipment	(302)	(1,647)
Purchase of short-term investments	0	(2)
Additions to patents and licenses	(6)	(61)
Proceeds from sales of property, plant and equipment	0	1,040
Net cash used in investing activities	(308)	(670)
Financing activities
Payment of long-term debt and capital leases	(1,450)	(2,692)
Proceeds from long-term debt	0	446
Proceeds from revolving credit facility	47,996	0
Payment of revolving credit facility	(45,523)	0
Proceeds from issuance of common stock, net of offering costs	(1)	0
Proceeds from repayment of shareholder notes	0	11
Repurchase of common stock into treasury	(20)	0
Deferred financing costs	0	(75)
Net proceeds from the exercise of warrants and employee stock options	87	384
Net cash (used in) provided by financing activities	1,089	(1,926)
Net decrease in cash and cash equivalents	(2,544)	(12,813)
Cash and cash equivalents at beginning of period	20,002	17,568
Cash and cash equivalents at end of period	17,458	4,755
Supplemental cash flow information:
Cash paid for interest	128	147
Cash paid for income taxes	20	35
Supplemental disclosure of non-cash investing and financing activities:
Vendor financed capital lease addition	$ 377	$ 0

Description of Business	9 Months Ended
Description of Business	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Organization The Company includes Orion Energy Systems, Inc., a Wisconsin corporation, and all consolidated subsidiaries. The Company is a developer, manufacturer and seller of lighting and energy management systems to commercial and industrial businesses, predominantly in North America. See Note J “Segment Reporting” of these financial statements for further discussion of the Company's reportable segments. The Company’s corporate offices and primary manufacturing operations are located in Manitowoc, Wisconsin. The operations facility in Plymouth, Wisconsin was classified as an asset held for sale as of March 31, 2014 and was sold in May 2014. The Company leases office space in Jacksonville, Florida; Chicago, Illinois; and Houston, Texas.

Summary of Significant Accounting Policies

9 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Orion Energy Systems, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.

Reclassifications

Where appropriate, certain reclassifications have been made to prior years’ financial statements to conform to the current year presentation.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of results that may be expected for the year ending March 31, 2016 or other interim periods.

The condensed consolidated balance sheet at March 31, 2015 has been derived from the audited and adjusted consolidated financial statements at that date but does not include all of the information required by GAAP for complete financial statements.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2015 filed with the Securities and Exchange Commission on June 12, 2015.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during that reporting period. Areas that require the use of significant management estimates include revenue recognition, inventory obsolescence and bad debt reserves, accruals for warranty expenses, income taxes and certain equity transactions. Accordingly, actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid, short-term investments with original maturities of three months or less to be cash equivalents.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash, accounts receivable, accounts payable, accrued expenses and other and long-term debt. The carrying amounts of the Company’s financial instruments approximate their respective fair values due to the relatively short-term nature of these instruments, or in the case of long-term, because of the interest rates currently available to the Company for similar obligations. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP describes a fair value hierarchy based on the following three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value:

Level 1 — Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 — Valuations are based on quoted prices for similar assets or liabilities in active markets, or quoted prices in markets that are not active for which significant inputs are observable, either directly or indirectly.

Level 3 — Valuations are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. Inputs reflect management's best estimate of what market participants would use in valuing the asset or liability at the measurement date.

Accounts Receivable

Substantially all of the Company’s accounts receivable are due from companies in the commercial, industrial and agricultural industries, as well as wholesalers. Credit is extended based on an evaluation of a customer’s financial condition. Generally, collateral is not required for end users; however, the payment of certain trade accounts receivable from wholesalers is secured by irrevocable standby letters of credit and/or guarantees. Accounts receivable are generally due within 30-60 days. Accounts receivable are stated at the amount the Company expects to collect from outstanding balances. The Company provides for probable uncollectible amounts through a charge to earnings and a credit to an allowance for doubtful accounts based on its assessment of the current status of individual accounts. Balances that are still outstanding after the Company has used reasonable collection efforts are written off through a charge to the allowance for doubtful accounts and a credit to accounts receivable.

Also included in current receivables are amounts due from a third party finance company to which the Company has sold, without recourse, the future cash flows from its Orion Throughput Agreements, or OTAs, entered into with customers. Such receivables are recorded at the present value of the future cash flows discounted between 8.8% and 11%. As of December 31, 2015, the following amounts were due from the third party finance company in future periods (in thousands):



Fiscal 2016	$	247
Fiscal 2017	9
Total gross financed receivable	$	256
Less: amount representing interest	(5		)
Total net financed receivable	$	251

Financing Receivables

The Company considers its lease balances included in consolidated current and long-term accounts receivable from OTA sales-type leases to be financing receivables. Additional disclosures on the credit quality of the Company’s financing receivables are as follows:

Aging Analysis as of December 31, 2015 (in thousands):



	Not Past Due		1-90 days past due		Greater than 90 days past due			Total past due			Total sales-type leases
Lease balances included in consolidated accounts receivable—current	$	542	$	18	$	2		$	20		$	562
Lease balances included in consolidated accounts receivable—long-term	141		—		—			—			141
Total gross sales-type leases	683		18		2			20			703
Allowance	—		—		(1		)	(1		)	(1		)
Total net sales-type leases	$	683	$	18	$	1		$	19		$	702

Allowance for Credit Losses on Financing Receivables

The Company’s allowance for credit losses is based on management’s assessment of the collectability of customer accounts. A considerable amount of judgment is required in order to make this assessment, including a detailed analysis of the aging of the lease receivables and the current credit worthiness of the Company’s customers and an analysis of historical bad debts and other adjustments. If there is a deterioration of a major customer’s credit worthiness or if actual defaults are higher than historical experience, the estimate of the recoverability of amounts due could be adversely affected. The Company reviews, in detail, the allowance for doubtful accounts on a quarterly basis and adjusts the allowance estimate to reflect actual portfolio performance and any changes in future portfolio performance expectations. The Company believes that there is no impairment of the receivables for the sales-type leases. The Company incurred no write-offs against its OTA sales-type lease receivable balances in fiscal 2015 and $177 thousand for the three and nine months ended December 31, 2015.

Inventories

Inventories consist of raw materials and components, such as ballasts and drivers, light emitting diode (LED) chips, metal sheet and coil stock and molded parts; work in process inventories, such as frames and reflectors; and finished goods, including completed fixtures and accessories, such as lamps, sensors and power supplies. All inventories are stated at the lower of cost or market value with cost determined using the first-in, first-out (FIFO) method. The Company reduces the carrying value of its inventories for differences between the cost and estimated net realizable value, taking into consideration usage in the preceding 9 to 24 months, expected demand, and other information indicating obsolescence. The Company records as a charge to cost of product revenue the amount required to reduce the carrying value of inventory to net realizable value. As of March 31, 2015 and December 31, 2015, the Company had inventory obsolescence reserves of $1.6 million and $1.9 million, respectively.

Costs associated with the procurement and warehousing of inventories, such as inbound freight charges and purchasing and receiving costs, are also included in cost of product revenue.

Inventories were comprised of the following as of the dates set forth below (in thousands):



	March 31, 2015		December 31, 2015
Raw materials and components	$	8,474	$	10,265
Work in process	1,588		1,546
Finished goods	4,221		6,624
	$	14,283	$	18,435

Deferred Contract Costs

Deferred contract costs consist primarily of the costs of products delivered, and services performed, that are subject to additional performance obligations or customer acceptance. These deferred contract costs are expensed at the time the related revenue is recognized. Current deferred costs amounted to $0.1 million and $46 thousand as of March 31, 2015 and December 31, 2015, respectively.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist primarily of prepaid insurance premiums, prepaid license fees, purchase deposits, advance payments to contractors, unbilled revenue, prepaid taxes and miscellaneous receivables. Prepaid expenses and other current assets included $1.7 million and $55 thousand of unbilled revenue as of March 31, 2015 and December 31, 2015, respectively.

Long-Lived Assets

The Company evaluates the recoverability of long-lived assets with finite lives in accordance with Accounting Standards Codification, or ASC, Subtopic 360-10-35 which requires recognition of impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable based on estimated undiscounted cash flows, the impairment loss would be measured as the difference between the carrying amount of the assets and its fair value based on the present value of estimated future cash flows. The Company's long-lived assets include property, plant and equipment and intangible assets. For the three months ended December 31, 2015, the Company determined that events and circumstances indicated that the assets might be impaired due to the current period operating cash flow and a history of operating cash flow losses. The Company performed a quantitative assessment of these assets for all business units and its estimated undiscounted cash flows indicated that such carrying amounts were expected to be recovered. However, it is reasonably possible that the estimate of undiscounted cash flows may change in the near term resulting in the need to write down the long-lived assets to fair value.

Property and Equipment

The Company periodically reviews the carrying values of property and equipment for impairment in accordance with ASC 360, Property, Plant and Equipment, if events or changes in circumstances indicate that the assets may be impaired. The estimated future undiscounted cash flows expected to result from the use of the assets and their eventual disposition are compared to the assets' carrying amount to determine if a write down to market value is required.

Property and equipment were comprised of the following as of the dates set forth below (in thousands):



	March 31, 2015			December 31, 2015
Land and land improvements	$	1,511		$	1,515
Buildings	14,441			14,443
Furniture, fixtures and office equipment	8,600			8,676
Leasehold improvements	148			148
Equipment leased to customers under Power Purchase Agreements	4,997			4,997
Plant equipment	11,084			11,077
Construction in progress	379			118
	41,160			40,974
Less: accumulated depreciation and amortization	(19,937		)	(21,788		)
Net property and equipment	$	21,223		$	19,186

Equipment included above under capital leases was as follows (in thousands):



	March 31, 2015		December 31, 2015
Equipment	$	—	$	389
Less: accumulated depreciation and amortization	—		(46		)
Net Equipment	$	—	$	343

Depreciation expense related to capital leased equipment was $20 thousand and $46 thousand for the three and nine months ended December 31, 2015, respectively.

Depreciation is provided over the estimated useful lives of the respective assets, using the straight-line method. Depreciable lives by asset category are as follows:



Land improvements	10-15 years
Buildings and building improvements	3-39 years
Furniture, fixtures and office equipment	2-10 years
Leasehold improvements	Shorter of asset life or life of lease
Equipment leased to customers under Power Purchase Agreements	20 years
Plant equipment	3-10 years

Goodwill and Other Intangible Assets

The costs of specifically identifiable intangible assets that do not have an indefinite life are amortized over their estimated useful lives. Goodwill and intangible assets with indefinite lives are not amortized and are reviewed for impairment annually, as of January 1, or more frequently if impairment indicators arise. During the quarter ended December 31, 2015, the Company determined that a triggering event occurred due to the decline in the Company's share price when compared to the share price as of March 31, 2015 and due to the Company's history of operating losses. The Company performed a qualitative assessment of Goodwill and determined that no impairment had occurred.

Amortizable intangible assets are amortized over their estimated economic useful life to reflect the pattern of economic benefits consumed based upon the following lives and methods:



Patents	10-17 years	Straight-line
Licenses	7-13 years	Straight-line
Customer relationships	5-8 years	Accelerated based upon the pattern of economic benefits consumed
Developed technology	8 years	Accelerated based upon the pattern of economic benefits consumed
Non-competition agreements	5 years	Straight-line

Indefinite lived intangible assets are evaluated for potential impairment whenever events or circumstances indicate that the carrying value may not be recoverable based primarily upon whether expected future undiscounted cash flows are sufficient to support the asset recovery. If the actual useful life of the asset is shorter than the estimated life estimated by us, the asset may be deemed to be impaired and accordingly a write-down of the value of the asset determined by a discounted cash flow analysis or shorter amortization period may be required.

There was no change in the carrying value of goodwill during fiscal 2015 or for the nine months ended December 31, 2015.

Goodwill is allocated to each operating segment during the nine months ended December 31, 2015 as follows (in thousands):



	U.S. Markets		Orion Engineered Systems		Orion Distribution Services		Corporate and Other		Total
Goodwill at December 31, 2015	$	2,371	$	2,038	$	—	$	—	$	4,409

The components of, and changes in, the carrying amount of other intangible assets were as follows as of the dates set forth below (in thousands):



	March 31, 2015					December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Patents	$	2,447	$	(906	)	$	2,456	$	(1,010	)
Licenses	58		(58		)	58		(58		)
Trade name and trademarks	1,958		—			1,956		—
Customer relationships	3,600		(1,620		)	3,600		(2,357		)
Developed technology	900		(109		)	900		(224		)
Non-competition agreements	100		(35		)	100		(50		)
Total	$	9,063	$	(2,728	)	$	9,070	$	(3,699	)

As of December 31, 2015, the weighted average useful life of intangible assets was 6.35 years. The estimated amortization expense for each of the next five years is shown below (in thousands):



Fiscal 2016	$	257
Fiscal 2017	883
Fiscal 2018	608
Fiscal 2019	432
Fiscal 2020	346
Fiscal 2021	271
Thereafter	618
Total	$	3,415

Long-Term Receivables

The Company records a long-term receivable for the non-current portion of its sales-type capital lease OTA contracts. The receivable is recorded at the net present value of the future cash flows from scheduled customer payments. The Company uses the implied cost of capital from each individual contract as the discount rate.

Other Long-Term Assets

Other long-term assets include long-term security deposits, deferred costs for a long-term contract and deferred financing costs. Deferred financing costs as of March 31, 2015 and December 31, 2015 were $202 thousand and $120 thousand, respectively. Deferred financing costs related to debt issuances are amortized to interest expense over the life of the related debt issue (1 to 3 years) using the effective interest rate method.

Accrued Expenses and Other

Accrued expenses include warranty accruals, accrued wages and benefits, accrued vacation, accrued legal costs, accrued commissions, customer deposits, accrued project costs, sales tax payable and other various unpaid expenses. Accrued expenses include $1.3 million and $0.2 million of accrued project costs as of March 31, 2015 and December 31, 2015, respectively.

The Company generally offers a limited warranty of one year on its high intensity fluorescent (HIF) lighting products and a one-to ten-year limited warranty on its LED lighting products in addition to those standard warranties offered by major original equipment component manufacturers. The manufacturers’ warranties cover lamps, ballasts, drivers and LED chips, which are significant components in the Company’s lighting products. Included in other long-term liabilities is $0.3 million for warranty reserves related to solar operating systems. These warranties vary in length, with the longest coverage extended until 2030. Due to the limited warranty data available for solar operating systems of this nature, actual warranty claims may differ from the Company's estimate of these warranties.

Changes in the Company’s warranty accrual were as follows (in thousands):



	Three Months Ended December 31,						Nine Months Ended December 31,
	2014			2015			2014		2015
Beginning of period	$	466		$	1,043		$	263	$	1,015
Provision to product cost of revenue	685			(1		)	718		88
Charges	(35		)	(104		)	135		(165		)
End of period	$	1,116		$	938		$	1,116	$	938

Revenue Recognition

Revenue is recognized on the sales of our lighting and related energy efficiency systems and products when the following four criteria are met:


•	persuasive evidence of an arrangement exists;


•	delivery has occurred and title has passed to the customer;


•	the sales price is fixed and determinable and no further obligation exists; and


•	collectability is reasonably assured.

These four criteria are met for the Company’s product-only revenue upon delivery of the product and title passing to the customer. At that time, the Company provides for estimated costs that may be incurred for product warranties and sales returns. Revenues are presented net of sales tax and other sales related taxes.

For sales of the Company’s lighting and energy management technologies, consisting of multiple elements of revenue, such as a combination of product sales and services, the Company determines revenue by allocating the total contract revenue to each element based on their relative selling prices in accordance with ASC 605-25, Revenue Recognition - Multiple Element Arrangements. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (1) vendor-specific objective evidence (VSOE) of fair value, if available, (2) third-party evidence (TPE) of selling price if VSOE is not available, and (3) best estimate of the selling price if neither VSOE nor TPE is available (a description as to how the Company determined estimated selling price is provided below).

The nature of the Company’s multiple element arrangements for the sale of its lighting and energy management technologies is similar to a construction project, with materials being delivered and contracting and project management activities occurring according to an installation schedule. The significant deliverables include the shipment of products and related transfer of title and the installation.

To determine the selling price in multiple-element arrangements, the Company establishes the selling price for its lighting and energy management system products using management's best estimate of the selling price, as VSOE or TPE does not exist. Product revenue is recognized when products are shipped. For product revenue, management's best estimate of selling price is determined using a cost plus gross profit margin method. In addition, the Company records in service revenue the selling price for its installation and recycling services using management’s best estimate of selling price, as VSOE or TPE does not exist. Service revenue is recognized when services are completed and customer acceptance has been received. Recycling services provided in connection with installation entail the disposal of the customer’s legacy lighting fixtures. The Company’s service revenues, other than for installation and recycling that are completed prior to delivery of the product, are included in product revenue using management’s best estimate of selling price, as VSOE or TPE does not exist. These services include comprehensive site assessment, site field verification, utility incentive and government subsidy management, engineering design, and project management. For these services, along with the Company's installation and recycling services, under a multiple-element arrangement, management’s best estimate of selling price is determined by considering several external and internal factors including, but not limited to, economic conditions and trends, customer demand, pricing practices, margin objectives, competition, geographies in which the Company offers its products and services and internal costs. The determination of estimated selling price is made through consultation with and approval by management, taking into account all of the preceding factors.

For sales of solar photovoltaic systems, which are governed by customer contracts that require the Company to deliver functioning solar power systems and are generally completed within three to 15 months from the start of construction, the Company recognizes revenue from fixed price construction contracts using the percentage-of-completion method in accordance with ASC 605-35, Construction-Type and Production-Type Contracts. Under this method, revenue arising from fixed price construction contracts is recognized as work is performed based upon the percentage of incurred costs to estimated total forecasted costs. The Company has determined that the appropriate method of measuring progress on these sales is measured by the percentage of costs incurred to date of the total estimated costs for each contract as materials are installed. The percentage-of-completion method requires revenue recognition from the delivery of products to be deferred and the cost of such products to be capitalized as a deferred cost and asset on the balance sheet. The Company performs periodic evaluations of the progress of the installation of the solar photovoltaic systems using actual costs incurred over total estimated costs to complete a project. Provisions for estimated losses on uncompleted contracts, if any, are recognized in the period in which the loss first becomes probable and reasonably estimable.

The Company offers a financing program, called an OTA, for a customer’s lease of the Company’s energy management systems. The OTA is structured as a sales-type lease and upon successful installation of the system and customer acknowledgment that the system is operating as specified, revenue is recognized at the Company’s net investment in the lease, which typically is the net present value of the future cash flows.

The Company offered a financing program, called a power purchase agreement, or PPA, for the Company’s renewable energy product offerings. A PPA is a supply side agreement for the generation of electricity and subsequent sale to the end user. Upon the customer’s acknowledgment that the system is operating as specified, product revenue is recognized on a monthly basis over the life of the PPA contract, which is typically in excess of 10 years.

Deferred revenue relates to advance customer billings, investment tax grants received related to PPAs and a separate obligation to provide maintenance on OTAs and is classified as a liability on the Consolidated Balance Sheet. The fair value of the maintenance is readily determinable based upon pricing from third-party vendors. Deferred revenue related to maintenance services is recognized when the services are delivered, which occurs in excess of a year after the original OTA contract is executed.

Income Taxes

The Company recognizes deferred tax assets and liabilities for the future tax consequences of temporary differences between financial reporting and income tax basis of assets and liabilities, measured using the enacted tax rates and laws expected to be in effect when the temporary differences reverse. Deferred income taxes also arise from the future tax benefits of operating loss and tax credit carryforwards. A valuation allowance is established when management determines that it is more likely than not that all or a portion of a deferred tax asset will not be realized. As of December 31, 2015, the Company had a valuation allowance of $23.2 million against its deferred tax assets.

ASC 740, Income Taxes, also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination. The Company has classified the amounts recorded for uncertain tax benefits in the balance sheet as other liabilities (non-current) to the extent that payment is not anticipated within one year. The Company recognizes penalties and interest related to uncertain tax liabilities in income tax expense. Penalties and interest are immaterial and are included in the unrecognized tax benefits.

Deferred tax benefits have not been recognized for income tax effects resulting from the exercise of non-qualified stock options. These benefits will be recognized in the period in which the benefits are realized as a reduction in taxes payable and an increase in additional paid-in capital. For the three and nine months ended December 31, 2014 and 2015, there were no realized tax benefits from the exercise of stock options.

Stock Based Compensation

The Company accounts for stock-based compensation in accordance with ASC 718, Compensation - Stock Compensation. Under the fair value recognition provisions of ASC718, stock-based compensation is measured at the grant date based on the fair value of the award and is recognized as expense ratably over the requisite service period, net of estimated forfeitures. As more fully described in Note I, the Company awards restricted stock to employees, executive officers and directors. The Company did not issue any stock options during fiscal 2015 or for the nine months ended December 31, 2015.

Net Loss per Common Share

Basic net loss per common share is computed by dividing net loss attributable to common shareholders by the weighted-average number of common shares outstanding for the period and does not consider common stock equivalents.

Diluted net loss per common share reflects the dilution that would occur if stock options were exercised and restricted shares vested. In the computation of diluted net loss per common share, the Company uses the “treasury stock” method for outstanding options and restricted shares. The effect of net loss per common share is calculated based upon the following shares (in thousands except share amounts):



	Three Months Ended December 31,						Nine Months Ended December 31,
	2014			2015			2014			2015
Numerator:
Net loss (in thousands)	$	(4,663	)	$	(2,004	)	$	(27,368	)	$	(9,256	)
Denominator:
Weighted-average common shares outstanding	21,882,741			27,671,633			21,791,184			27,584,288
Weighted-average effect of assumed conversion of stock options and restricted shares	—			—			—			—
Weighted-average common shares and common share equivalents outstanding	21,882,741			27,671,633			21,791,184			27,584,288
Net loss per common share:
Basic	$	(0.21	)	$	(0.07	)	$	(1.26	)	$	(0.34	)
Diluted	$	(0.21	)	$	(0.07	)	$	(1.26	)	$	(0.34	)

The following table indicates the number of potentially dilutive securities outstanding as of the end of each period:



	December 31, 2014	December 31, 2015
Common stock options	2,529,484	2,178,826
Restricted shares	718,684	1,005,539
Total	3,248,168	3,184,365

Concentration of Credit Risk and Other Risks and Uncertainties

The Company purchases components necessary for its lighting products, including ballasts, lamps and LED components, from multiple suppliers. For the three and nine months ended December 31, 2014, one supplier accounted for 16% and 9% of total cost of revenue, respectively. For the three months ended December 31, 2015, two suppliers accounted for 18.1% and 12.6% of total cost of revenue. For the nine months ended December 31, 2015, no supplier accounted for more than 10% of total cost of revenue.

For the three and nine months ended December 31, 2014, one customer accounted for 21% and 12% of revenue, respectively. For the three and nine months ended December 31, 2015, no customer accounted for more than 10% of revenue.

As of March 31, 2015 and December 31, 2015, no customer accounted for more than 10% of accounts receivable.

Recent Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. Companies may use either a full retrospective or modified retrospective approach to adopt this ASU and management is currently evaluating which transition approach to use. In August 2015, the FASB issued ASU 2015-14, "Deferral of the Effective date", which defers the required adoption date of ASU 2014-09 by one year. As a result of the deferred effective date, ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2018, and early adoption is permitted for annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of ASU 2014-09.

In June 2014, the FASB issued Accounting Standards Update No. 2014-12, "Compensation - Stock Compensation" ("ASU 2014-12"). ASU 2014-12 is intended to resolve diverse accounting treatment for share based awards in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The standard is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015 and may be applied prospectively or retrospectively. The Company does not expect adoption of this standard will have a significant impact on the Company's consolidated financial statements.

In August 2014, the FASB issued Accounting Standards Update No. 2014-15, "Presentation of Financial Statements - Going Concern" ("ASU 2014-15"). ASU 2014-15 requires an entity's management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern and if those conditions exist, the required disclosures. The standard is effective for annual periods ending after December 15, 2016, and interim periods therein. The Company does not expect adoption of this standard will have a significant impact on the Company's consolidated financial statements.

In April 2015, the FASB issued Accounting Standards Update No. 2015-03, "Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"). ASU 2015-03 requires that debt issuance costs be reported in the balance sheet as a direct deduction from the face amount of the related liability, consistent with the presentation of debt discounts. Prior to the amendments, debt issuance costs were presented as a deferred charge on the balance sheet. The standard is effective for annual periods beginning after December 15, 2015 and interim periods within those fiscal years. The amendments must be applied retrospectively. The Company is currently evaluating the impact of ASU 2015-03.

In July 2015, the FASB issued Accounting Standards Update No. 2015-11, "Simplifying the Measurement of Inventory" ("ASU 2015-11"). ASU 2015-11 was issued to more closely align the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards. The core principle of this updated guidance is that an entity should measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in ASU 2015-11 apply to inventory that is measured using the first-in, first-out or average cost methods. ASU 2015-11 is effective for annual and interim reporting periods ending after December 15, 2016, including interim periods within those fiscal years and should be applied prospectively. Early adoption is permitted as of the beginning of an interim or annual reporting period. The Company does not expect adoption of this standard will have a significant impact on the Company's consolidated financial statements.

In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which requires management to classify all deferred tax liabilities and assets by jurisdiction as non-current on the balance sheet instead of separating deferred taxes into current and non-current amounts. The standard is effective for the Company beginning in fiscal 2018 and can be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. Early adoption is permitted as of the beginning of any interim or annual reporting period. The adoption of ASU 2015-17 is not expected to have a material impact on the Company’s financial condition or financial statement disclosures.

Acquisition	9 Months Ended
Acquisition	Dec. 31, 2015
Business Combinations [Abstract]
ACQUISITION	ACQUISITION On July 1, 2013, the Company completed the acquisition of Harris Manufacturing, Inc. and Harris LED, LLC (collectively, "Harris"). Harris was a Florida-based lighting company which engineered, designed, sourced and manufactured energy efficient lighting systems, including fluorescent and LED lighting solutions, and day-lighting products. The acquisition of Harris expanded the Company's product lines, including a patent pending LED lighting product designed for commercial office buildings, increased its sales force and provided growth opportunities into markets where the Company had previously not had a strong presence, specifically, new construction, retail store fronts, commercial office and government. The acquisition was consummated pursuant to a Stock and Unit Purchase Agreement, dated as of May 22, 2013 ("Purchase Agreement"), by and among Harris, the shareholders and members of Harris ("Harris Shareholders"), and the Company. The acquisition consideration paid to the Harris Shareholders was valued under the Purchase Agreement at an aggregate of $10.0 million, plus an adjustment of approximately $0.2 million to reflect the Company's acquisition of net working capital in excess of a targeted amount, plus an additional $0.6 million for the contingent consideration earn-out value assigned to non-employee Harris shareholders. The aggregate acquisition consideration was paid through a combination of $5.0 million in cash, $3.1 million in a three-year unsecured subordinated promissory note and the issuance of 856,997 shares of unregistered Company common stock. For purposes of the acquisition and the acquisition consideration, the shares of common stock issued in the acquisition of Harris were valued at $2.33 per share, which was the average closing share price as reported on the NYSE MKT for the 45 trading days preceding and the 22 trading days following the execution of the Purchase Agreement. For purposes of applying the purchase accounting provisions of ASC 805, Business Combinations, the shares of common stock issued in the acquisition were valued at $2.41 per share, which was the closing sale price of the Company's common stock as reported on the NYSE MKT on the July 1, 2013, date of acquisition. On October 21, 2013, the Company executed a letter agreement amending the Purchase Agreement. The letter agreement established a fixed future consideration of $1.4 million for the previously existing earn-out component of the Purchase Agreement and eliminated the requirement that certain revenue targets must be achieved. Under the letter agreement, on January 2, 2014, the Company issued $0.6 million, or 83,943 shares, of the Company's unregistered common stock. The fixed consideration was determined based upon the existing share calculation at a fair value of $3.80 per common share. In December 2014, the Company amended the letter agreement to defer the January 2, 2015 payment of $0.8 million in cash until February 13, 2015, to settle all outstanding obligations related to the earn-out component of the Purchase Agreement. Prior to the amendment discussed above, the contingent consideration arrangement required the Company to pay the Harris Shareholders up to $1.0 million in unregistered shares of the Company's common stock upon Harris' achievement of certain revenue milestones in calendar year 2013 and/or 2014, and, in the case of certain Harris Shareholders who became employees of the Company, their continued employment by the Company. The potential undiscounted amount of all future payments that the Company could have been required to make under the contingent consideration arrangement was between $0 and $1.0 million. The Company recorded $0.6 million for the non-employee Harris Shareholder portion of the contingent consideration liability on the acquisition date. Total contingent consideration of $0.5 million for employee Harris Shareholders was recorded as compensation expense through the end of calendar 2014. During the three and nine months ended December 31, 2014, the Company expensed $49 thousand and $0.1 million in compensation expense, respectively. On December 31, 2014, Harris was merged with and into the Company.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Related Party Transactions	9 Months Ended
Related Party Transactions	Dec. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS During the three months ended December 31, 2014 and 2015, the Company purchased goods and services in the amount of $10 thousand and $9 thousand, respectively, from an entity for which a director of the Company serves as a minority owner and President. During the nine months ended December 31, 2014 and 2015, the Company purchased goods and services in the amount of $26 thousand and $15 thousand, respectively, from an entity for which a director of the Company serves as a minority owner and President.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details

Long-Term Debt

9 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

LONG-TERM DEBT

Long-term debt as of March 31, 2015 and December 31, 2015 consisted of the following (in thousands):



	March 31, 2015			December 31, 2015
Revolving credit facility	2,500			4,973
Harris seller's note	1,607			816
Customer equipment finance notes payable	827			235
Equipment lease obligations	—			350
Other long-term debt	120			79
Total long-term debt	5,054			6,453
Less current maturities	(1,832		)	(1,164		)
Long-term debt, less current maturities	$	3,222		$	5,289

Revolving Credit Agreement

The Company has a revolving credit and security agreement (Credit Agreement) with Wells Fargo Bank, National Association. The Credit Agreement provides for a revolving credit facility (Credit Facility) that matures on February 6, 2018. Borrowings under the Credit Facility are initially limited to the lesser of (i) $15.0 million or (ii) a borrowing base requirement based on eligible receivables and inventory, and currently less approximately $10.3 million of reserves. Such limit may increase to $20.0 million, subject to the borrowing base requirement, after July 31, 2016, if the Company satisfies certain conditions. The Credit Facility includes a $2.0 million sublimit for the issuance of letters of credit.

From and after any increase in the Credit Facility limit from $15.0 million to $20.0 million, the Credit Agreement will require the Company to maintain as of the end of each month a minimum ratio for the trailing twelve-month period of (i) earnings before interest, taxes, depreciation and amortization, subject to certain adjustments, to (ii) the sum of cash interest expense, certain principal payments on indebtedness and certain dividends, distributions and stock redemptions, equal to at least 1.10 to 1.00. The Credit Agreement also contains other customary covenants, including certain restrictions on the Company’s ability to incur additional indebtedness, consolidate or merge, enter into acquisitions, guarantee obligations of third parties, make loans or advances, declare or pay any dividend or distribution on the Company’s stock, redeem or repurchase shares of the Company’s stock, or pledge or dispose of assets.

Each subsidiary of the Company is a joint and several co-borrower or guarantor under the Credit Agreement, and the Credit Agreement is secured by a security interest in substantially all of the Company’s and each subsidiary’s personal property (excluding various assets relating to customer OTAs) and a mortgage on certain real property.

Borrowings under the Credit Agreement bear interest at the daily three-month LIBOR plus 3.0% per annum, with a minimum interest charge for each year or portion of a year during the term of the Credit Agreement of $130,000, regardless of usage. As of December 31, 2015, the interest rate was 3.60%. The Company must pay an unused line fee of 0.25% per annum of the daily average unused amount of the Credit Facility and a letter of credit fee at the rate of 3.0% per annum on the undrawn amount of letters of credit outstanding from time to time under the Credit Facility.

As of December 31, 2015, the Company had no outstanding letters of credit. Borrowings outstanding as of December 31, 2015, amounted to approximately $5.0 million and are included in non-current liabilities in the accompanying Consolidated Balance Sheet. The Company estimates that as of December 31, 2015, it was eligible to borrow an additional $0.3 million under the Credit Facility based upon current levels of eligible inventory and accounts receivable.

Equipment Lease Obligation

In June 2015, the Company entered into a lease agreement with De Lage Landen Financial Services, Inc in the principal amount of $0.4 million to fund certain equipment. The lease amount is secured by the related equipment. The lease bears interest at a rate of 5.94% and matures in June 2020 with a $1 buyout option.

Income Taxes

9 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

The income tax provision for the nine months ended December 31, 2015 was determined by applying an estimated annual effective tax rate of (0.3)% to loss before taxes. The estimated effective income tax rate was determined by applying statutory tax rates to pretax loss adjusted for certain permanent book to tax differences and tax credits. As of December 31, 2015, the Company had recorded a valuation allowance of $23.2 million, equaling the net deferred tax asset due to the uncertainty of its realization value in the future. ASC 740, Income Taxes, requires that a deferred tax asset be reduced by a valuation allowance if there is less than a 50% chance that it will be realized. The determination of the realization of deferred tax assets requires considerable judgment. ASC 740 prescribes the consideration of both positive and negative evidence in evaluating the need for a valuation allowance. Negative evidence for the Company includes a four year operating loss and limited visibility into future earnings. Positive evidence includes the Company's recent new national account customer wins and the increase in revenue from new LED products. The Company has determined that the negative evidence outweighs the current positive evidence and has concluded to record a valuation allowance.

Below is a reconciliation of the statutory federal income tax rate and the effective income tax rate:



	Nine Months Ended December 31,
	2014		2015
Statutory federal tax rate	34.0	%	34.0	%
State taxes, net	3.0	%	3.5	%
Federal tax credit	0.3	%	0.8	%
State tax credit	0.1	%	0.3	%
Change in valuation reserve	(37.3	)%	(38.4	)%
Permanent items	(0.1	)%	(0.3	)%
Change in tax contingency reserve	—	%	(0.2	)%
Other, net	(0.2	)%	—	%
Effective income tax rate	(0.2	)%	(0.3	)%

The Company is eligible for tax benefits associated with the excess of the tax deduction available for exercises of non-qualified stock options, or NQSOs, over the amount recorded at grant. The amount of the benefit is based on the ultimate deduction reflected in the applicable income tax return. No benefits were recorded in fiscal 2015. No benefits were recorded for the nine months ended December 31, 2015 as a reduction in taxes payable and a credit to additional paid in capital based on the amount that was utilized during the year.

As of December 31, 2015, the Company had federal net operating loss carryforwards of approximately $50.6 million, of which $3.6 million are associated with the exercise of NQSOs that have not yet been recognized by the Company. The Company also has state net operating loss carryforwards of approximately $36.9 million, of which $4.3 million are associated with the exercise of NQSOs. The Company also has federal tax credit carryforwards of approximately $1.5 million and state tax credits of $0.5 million. As of December 31, 2015, the Company has recorded a valuation allowance of $23.2 million due to the uncertainty of its realization value in the future. The Company considers future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance. In the event that the Company determines that the deferred tax assets are able to be realized, an adjustment to the deferred tax asset would increase income in the period such determination is made.

Uncertain Tax Positions

As of December 31, 2015, the balance of gross unrecognized tax benefits was approximately $0.2 million, all of which would reduce the Company’s effective tax rate if recognized. The Company does not expect this amount to change during fiscal 2016 as none of the issues are currently under examination, the statutes of limitations do not expire within the period, and the Company is not aware of any pending litigation. Due to the existence of net operating loss and credit carryforwards, all years since 2002 are open to examination by tax authorities.

The Company has classified the amounts recorded for uncertain tax benefits in the balance sheet as other liabilities (non-current) to the extent that payment is not anticipated within one year. The Company recognizes penalties and interest related to uncertain tax liabilities in income tax expense. Penalties and interest are immaterial and are included in the unrecognized tax benefits. For the nine months ended December 31, 2014 and 2015, the Company had the following unrecognized tax benefit activity (in thousands):



	Nine Months Ended December 31,
	2014		2015
Unrecognized tax benefits as of beginning of period	$	210	$	212
Additions based on tax positions related to the current period positions	2		16
Unrecognized tax benefits as of end of period	$	212	$	228

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Operating Leases and Purchase Commitments The Company leases vehicles, equipment and facility space under operating leases expiring at various dates through 2018. Rent expense under operating leases was $0.1 million for the three months ended December 31, 2014 and 2015; and $0.3 million and $0.4 million for the nine months ended December 31, 2014 and 2015, respectively. The Company enters into non-cancellable purchase commitments for certain inventory items in order to secure better pricing and ensure materials are on hand to meet anticipated order volume and customer expectations, as well as for capital expenditures. As of December 31, 2015, the Company had entered into $5.3 million of purchase commitments for the next twelve months, including $0.3 million for operating lease commitments and $5.0 million for inventory purchase commitments. Litigation The Company is subject to various claims and legal proceedings arising in the ordinary course of business. As of the date hereof, the Company is unable to currently assess whether the final resolution of any of such claims or legal proceedings may have a material adverse effect on the Company. In addition to ordinary-course litigation, the Company is a party to the proceedings described below. On March 27, 2014, the Company was named as a defendant in a civil lawsuit filed by Neal R. Verfuerth, the Company's former chief executive officer who was terminated for cause in November 2012, in the United States District Court for the Eastern District of Wisconsin (Green Bay Division). The plaintiff alleges, among other things, that the Company breached certain agreements entered into with the plaintiff, including the plaintiff’s employment agreement, and violated certain laws. The complaint seeks, among other relief, unspecified pecuniary and compensatory damages, fees and such other relief as the court may deem just and proper. On November 4, 2014, the court granted the Company's motion to dismiss six of the plaintiff's claims. On January 9, 2015, the plaintiff filed an amended complaint re-alleging claims that were dismissed by the court, including, among other things, a retaliation claim and certain claims with respect to prior management agreements and certain intellectual property rights. On January 22, 2015, the Company filed a motion to dismiss and a motion to strike certain of the claims made in the amended complaint. On May 18, 2015, the court dismissed the intellectual property claims re-alleged in the January 9, 2015 amended complaint. The Company believes that it has substantial legal and factual defenses to the claims and allegations remaining in the case and that the Company will prevail in this proceeding. The Company intends to continue to defend against the claims vigorously. Based upon the current status of the lawsuit, the Company is currently unable to estimate any potential adverse impact on the Company from the plaintiff's claims and the Company does not believe the lawsuit will have a material adverse impact on it future continuing results of operations. On May 29, 2014, the Equal Employment Opportunity Commission (EEOC) filed a claim against the Company alleging certain violations of the Americans with Disabilities Act (ADA) with regard to an employee. On August 3, 2015, the Company reached a settlement related to the allegations, which was entirely funded by the Company's insurance carrier. In addition, on August 20, 2014, the EEOC filed a claim against the Company alleging certain violations of the ADA with respect to the Company's wellness program. Based upon the current status of the lawsuit, the Company is currently unable to estimate any potential adverse impact on the Company from the plaintiff's claims and the Company does not believe the lawsuit will have a material adverse impact on its future continuing results of operations. On December 10, 2015, a former employee filed a charge of discrimination against the Company alleging: (i) hostile work environment based on sexual harassment; (ii) sex discrimination during employment; and (iii) retaliation, and sex and age discrimination in terminating her employment. The former employee’s complaint has been referred to the regional EEOC office. The Company believes that it has substantial legal and factual defenses to the claims and allegations and the Company intends to defend against the claims vigorously. Based upon the current status of the lawsuit, the Company is currently unable to estimate any potential adverse impact on the Company from the plaintiff's claims and the Company does not believe the lawsuit will have a material adverse impact on its future continuing results of operations. State Tax Assessment The Company is currently negotiating a settlement with the Wisconsin Department of Revenue with respect to an assessment regarding the proper classification of the Company’s products for tax purposes under Wisconsin law. The issue under review is whether the installation of the Company’s lighting systems is considered a real property construction activity under Wisconsin law. The Company currently expects to resolve this matter with the Wisconsin Department of Revenue in fiscal 2016 for an amount not in excess of the amount it has accrued.

Shareholders' Equity

9 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Common Stock Transactions

On February 20, 2015, the Company completed an underwritten public offering of 5.46 million shares of its common stock, at an offering price to the public of $3.50 per share. Net proceeds of the offering approximated $17.5 million.

Shareholder Rights Plan

On January 7, 2009, the Company’s Board of Directors adopted a shareholder rights plan and declared a dividend distribution of one common share purchase right (Right) for each outstanding share of the Company’s common stock. The issuance date for the distribution of the Rights was February 15, 2009 to shareholders of record on February 1, 2009. Each Right entitles the registered holder to purchase from the Company one share of the Company’s common stock at a price of $30.00 per share, subject to adjustment (Purchase Price).

The Rights will not be exercisable (and will be transferable only with the Company’s common stock) until a “Distribution Date” occurs (or the Rights are earlier redeemed or expire). A Distribution Date generally will occur on the earlier of a public announcement that a person or group of affiliated or associated persons (Acquiring Person) has acquired beneficial ownership of 20% or more of the Company’s outstanding common stock (Shares Acquisition Date) or 10 business days after the commencement of, or the announcement of an intention to make, a tender offer or exchange offer that would result in any such person or group of persons acquiring such beneficial ownership.

If a person becomes an Acquiring Person, holders of Rights (except as otherwise provided in the shareholder rights plan) will have the right to receive that number of shares of the Company’s common stock having a market value of two times the then-current Purchase Price, and all Rights beneficially owned by an Acquiring Person, or by certain related parties or transferees, will be null and void. If, after a Shares Acquisition Date, the Company is acquired in a merger or other business combination transaction or 50% or more of its consolidated assets or earning power are sold, proper provision will be made so that each holder of a Right (except as otherwise provided in the shareholder rights plan) will thereafter have the right to receive that number of shares of the acquiring company’s common stock which at the time of such transaction will have a market value of two times the then-current Purchase Price.

Until a Right is exercised, the holder thereof, as such, will have no rights as a shareholder of the Company. At any time prior to a person becoming an Acquiring Person, the Board of Directors of the Company may redeem the Rights in whole, but not in part, at a price of $0.001 per Right. Unless they are extended or earlier redeemed or exchanged, the Rights will expire on January 7, 2019.

Employee Stock Purchase Plan

In August 2010, the Company’s Board of Directors approved a non-compensatory employee stock purchase plan, or ESPP. The ESPP authorizes 2.5 million shares to be issued from treasury or authorized shares to satisfy employee share purchases under the ESPP. All full-time employees of the Company are eligible to be granted a non-transferable purchase right each calendar quarter to purchase directly from the Company up to $20 thousand of the Company’s common stock at a purchase price equal to 100% of the closing sale price of the Company’s common stock on The NASDAQ Capital Market exchange on the last trading day of each quarter. The ESPP allows for employee loans from the Company, except for Section 16 officers, limited to 20% of an individual’s annual income and no more than $0.25 million outstanding at any one time. Interest on the loans is charged at the 10-year loan IRS rate and is payable at the end of each calendar year or upon loan maturity. The loans are secured by a pledge of any and all the Company’s shares purchased by the participant under the ESPP and the Company has full recourse against the employee, including offset against compensation payable. As of March 31, 2013, the Company had halted issuing new loans under the program. The Company had the following shares issued from treasury as of March 31, 2015 and for the three and nine months ended December 31, 2015:



	Shares Issued Under ESPP Plan	Closing Market Price	Shares Issued Under Loan Program	Dollar Value of Loans Issued		Repayment of Loans
Cumulative through March 31, 2015	154,269	$1.66 - 7.25	128,143	$	361,550	$	357,550
Quarter Ended June 30, 2015	541	$2.51	—	—		—
Quarter Ended September 30, 2015	779	$1.80	—	—		—
Quarter Ended December 31, 2015	1,170	$2.17	—	—		—
Total as of December 31, 2015	156,759	$1.66 - 7.25	128,143	$	361,550	$	357,550

Loans issued to employees are reflected on the Company’s balance sheet as a contra-equity account.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

+ Details

Stock Options and Restricted Shares

9 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK OPTIONS AND RESTRICTED SHARES

The Company has historically granted stock options and restricted stock awards under its 2003 Stock Option and 2004 Stock and Incentive Awards Plans (Plans). Under the terms of the Plans, the Company has reserved 13.5 million shares for issuance to key employees, consultants and directors. The options generally vest and become exercisable ratably between one month and five years although longer and shorter vesting periods have been used in certain circumstances. Exercisability of the options granted to employees are generally contingent on the employees’ continued employment and non-vested options are subject to forfeiture if employment terminates for any reason. Options under the Plans are granted as non-qualified stock options (NQSO) and have a maximum life of 10 years. Certain non-employee directors have elected to receive stock awards in lieu of cash compensation pursuant to elections made under the Company’s non-employee director compensation program. The Plans also provide to certain employees accelerated vesting in the event of certain changes of control of the Company as well as under other special circumstances.

In May 2013, the Compensation Committee of the Board of Directors changed the Company's long-term equity incentive grant policy so that only restricted shares are issued to all employees under the Plans instead of stock options. The restricted shares are settled in Company stock when the restriction period ends. Compensation cost for restricted shares granted to employees is recognized ratably over the vesting term, which is typically between three to five years, although on occasion, the vesting term may be one year or less. Settlement of the shares is contingent on the employees’ continued employment and non-vested shares are subject to forfeiture if employment terminates for any reason. For the three months ended December 31, 2014, an aggregate of 22 thousand restricted shares were granted valued at a price per share of between $4.79 and $5.16, which was the closing market price as of each grant date. For the nine months ended December 31, 2014, an aggregate of 393 thousand restricted shares were granted valued at a price per share of between $4.20 and $7.23, which was the closing market price as of each grant date.

For the three months ended December 31, 2015, an aggregate of 154 thousand restricted shares were granted valued at a price per share of between $1.76 and $2.04, which was the closing market price as of each grant date. For the nine months ended December 31, 2015, an aggregate of 724 thousand restricted shares were granted valued at a price per share of between $1.76 and $2.62, which was the closing market price as of each grant date.

For the three and nine months ended December 31, 2014, the Company issued 8 thousand and 22 thousand shares under the Plans to certain non-employee directors who elected to receive stock awards in lieu of cash compensation. The shares were valued at $4.20 per share to $5.23 per share, the closing market price as of the issuance dates. For the three and nine months ended December 31, 2015, the Company issued 11 thousand and 27 thousand shares under the Plans to certain non-employee directors who elected to receive stock awards in lieu of cash compensation. The shares were valued at $1.76 per share to $2.62 per share, the closing market price as of the issuance dates. Additionally, during the three and nine months ended December 31, 2015, the Company issued 2,500 shares to a consultant as part of a consulting compensation agreement. The shares were valued at $2.00 per share, the closing market price as of the issuance date.

The following amounts of stock-based compensation were recorded (in thousands):



	Three Months Ended December 31,				Nine Months Ended December 31,
	2014		2015		2014		2015
Cost of product revenue	$	16	$	9	$	40	$	29
General and administrative	300		327		910		902
Sales and marketing	139		74		281		210
Research and development	10		19		19		25
Total	$	465	$	429	$	1,250	$	1,166

As of December 31, 2015, compensation cost related to non-vested common stock-based compensation, excluding restricted share awards, amounted to $0.3 million over a remaining weighted average expected term of 4.5 years.

The following table summarizes information with respect to the Plans:



	Outstanding Awards
	Shares Available for Grant		Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Balance at March 31, 2015	1,078,600		2,426,836		$	3.50	5.38
Granted stock options	—		—
Granted shares	(29,457	)	—		—
Restricted shares	(723,815	)	—		—
Forfeited restricted shares	171,971		—		—
Forfeited stock options	203,600		(203,600	)	4.36
Exercised	—		(44,410	)	2.11
Balance at December 31, 2015	700,899		2,178,826		$	3.45	4.51	$	135,447
Exercisable at December 31, 2015			1,937,426		$	3.58	4.41	$	103,095

The aggregate intrinsic value represents the total pre-tax intrinsic value, which is calculated as the difference between the exercise price of the underlying stock options and the fair value of the Company’s closing common stock price of $2.17 as of December 31, 2015.

A summary of the status of the Company’s outstanding non-vested stock options as of December 31, 2015 was as follows:



Non-vested at March 31, 2015	581,842
Granted	—
Vested	(280,450	)
Forfeited	(62,200	)
Non-vested at December 31, 2015	239,192

During the first nine months of fiscal 2016, the Company granted restricted shares as follows (which are included in the above stock plan activity tables):



Balance at March 31, 2015	704,688
Shares issued	723,815
Shares vested	(250,993		)
Shares forfeited	(171,971		)
Shares outstanding at December 31, 2015	1,005,539
Per share price on grant date	$1.76 - $6.80
Compensation expense for the nine months ended December 31, 2015	$	850,639

For the nine months ended December 31, 2014, the Company recorded compensation expense related to granted restricted shares of $0.8 million.

As of December 31, 2015, the weighted average grant-date fair value of restricted shares granted was $2.14.

As of December 31, 2015, the amount of deferred stock-based compensation expense related to grants of restricted shares, to be recognized over a remaining period of 2.51 years, was approximately $2.3 million.

The Company has previously issued warrants in connection with various private placement stock offerings and services rendered. The warrants granted the holder the option to purchase common stock at specified prices for a specified period of time. No warrants were issued in fiscal 2015 or during the nine months ended December 31, 2015. During fiscal 2015, all warrants outstanding for a total of 38,980 shares were exercised at $2.25 per share and, as a result, none remain outstanding.

Segments

9 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

SEGMENTS

Beginning in fiscal 2015, the Company reorganized its business into the following business segments: U.S. markets, Orion engineered systems and Orion distribution services. The accounting policies are the same for each business segment as they are on a consolidated basis.

The descriptions of the Company’s segments and their summary financial information are presented below.

U.S. Markets

The U.S. Markets Division sells lighting solutions into the wholesale markets.

Engineered Systems

The Engineered Systems Division sells lighting products and construction and engineering services direct to end users. The Engineered Systems Division also completes the construction management services related to existing contracted solar PV projects.

Distribution Services

The Distribution Services Division sells lighting products to a developing network of broad line distributors and internationally.

Corporate and Other

Corporate and Other is comprised of operating expenses not directly allocated to the Company’s segments and adjustments to reconcile to consolidated results, which primarily include intercompany eliminations.



	Revenues				Operating Income (Loss)
	For the Three Months Ended December 31,				For the Three Months Ended December 31,
	2014		2015		2014			2015
(dollars in thousands)
Segments:
U.S. Markets	$	12,078	$	9,569	$	(1,686	)	$	235
Engineered Systems	13,707		6,408		(1,143		)	(577		)
Distribution Services	353		774		(152		)	2
Corporate and Other	—		—		(1,671		)	(1,602		)
	$	26,138	$	16,751	$	(4,652	)	$	(1,942	)

	Revenues				Operating Income (Loss)
	For the Nine Months Ended December 31,				For the Nine Months Ended December 31,
	2014		2015		2014			2015
(dollars in thousands)
Segments:
U.S. Markets	$	27,503	$	31,075	$	(12,123	)	$	(593	)
Engineered Systems	24,527		17,012		(9,973		)	(3,395		)
Distribution Services	813		980		(318		)	(157		)
Corporate and Other	—		—		(4,924		)	(4,967		)
	$	52,843	$	49,067	$	(27,338	)	$	(9,112	)



	Total Assets				Deferred Revenue
	March 31, 2015		December 31, 2015		March 31, 2015		December 31, 2015
(dollars in thousands)
Segments:
U.S. Markets	$	27,769	$	26,786	$	157	$	285
Engineered Systems	27,435		23,195		1,361		1,118
Distribution Services	261		929		—		—
Corporate and Other	32,340		29,519		—		—
	$	87,805	$	80,429	$	1,518	$	1,403

The Company’s revenue and long-lived assets outside the United States are insignificant.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
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+ Details

Subsequent Events	9 Months Ended
Subsequent Events	Dec. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transaction that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Nonrecognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and noted no subsequent event requiring accrual or disclosure.

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Principles of Consolidation

Reclassifications

Where appropriate, certain reclassifications have been made to prior years’ financial statements to conform to the current year presentation.

Basis of Presentation

Use of Estimates

Cash and Cash Equivalents

The Company considers all highly liquid, short-term investments with original maturities of three months or less to be cash equivalents.

Fair Value of Financial Instruments

Level 1 — Valuations are based on unadjusted quoted prices in active markets for identical assets or liabilities.

Accounts Receivable

Financing Receivables

Aging Analysis as of December 31, 2015 (in thousands):



	Not Past Due		1-90 days past due		Greater than 90 days past due			Total past due			Total sales-type leases
Lease balances included in consolidated accounts receivable—current	$	542	$	18	$	2		$	20		$	562
Lease balances included in consolidated accounts receivable—long-term	141		—		—			—			141
Total gross sales-type leases	683		18		2			20			703
Allowance	—		—		(1		)	(1		)	(1		)
Total net sales-type leases	$	683	$	18	$	1		$	19		$	702

Allowance for Credit Losses on Financing Receivables

Inventories

Costs associated with the procurement and warehousing of inventories, such as inbound freight charges and purchasing and receiving costs, are also included in cost of product revenue.

Deferred Contract Costs

Prepaid Expenses and Other Current Assets

Property and Equipment

Goodwill and Other Intangible Assets

Amortizable intangible assets are amortized over their estimated economic useful life to reflect the pattern of economic benefits consumed based upon the following lives and methods:



Patents	10-17 years	Straight-line
Licenses	7-13 years	Straight-line
Customer relationships	5-8 years	Accelerated based upon the pattern of economic benefits consumed
Developed technology	8 years	Accelerated based upon the pattern of economic benefits consumed
Non-competition agreements	5 years	Straight-line

Long-Term Receivables

Other Long-Term Assets

Accrued Expenses and Other

Revenue Recognition

Revenue is recognized on the sales of our lighting and related energy efficiency systems and products when the following four criteria are met:


•	persuasive evidence of an arrangement exists;


•	delivery has occurred and title has passed to the customer;


•	the sales price is fixed and determinable and no further obligation exists; and


•	collectability is reasonably assured.

Income Taxes

Stock Based Compensation

Net Loss per Common Share

Concentration of Credit Risk and Other Risks and Uncertainties

The Company purchases components necessary for its lighting products, including ballasts, lamps and LED components, from multiple suppliers.

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Due from the third party finance company in future periods

As of December 31, 2015, the following amounts were due from the third party finance company in future periods (in thousands):



Fiscal 2016	$	247
Fiscal 2017	9
Total gross financed receivable	$	256
Less: amount representing interest	(5		)
Total net financed receivable	$	251

Credit quality of the Company's financing receivables using Aging Analysis

Aging Analysis as of December 31, 2015 (in thousands):



	Not Past Due		1-90 days past due		Greater than 90 days past due			Total past due			Total sales-type leases
Lease balances included in consolidated accounts receivable—current	$	542	$	18	$	2		$	20		$	562
Lease balances included in consolidated accounts receivable—long-term	141		—		—			—			141
Total gross sales-type leases	683		18		2			20			703
Allowance	—		—		(1		)	(1		)	(1		)
Total net sales-type leases	$	683	$	18	$	1		$	19		$	702

Inventories

Inventories were comprised of the following as of the dates set forth below (in thousands):



	March 31, 2015		December 31, 2015
Raw materials and components	$	8,474	$	10,265
Work in process	1,588		1,546
Finished goods	4,221		6,624
	$	14,283	$	18,435

Property and equipment

Property and equipment were comprised of the following as of the dates set forth below (in thousands):



	March 31, 2015			December 31, 2015
Land and land improvements	$	1,511		$	1,515
Buildings	14,441			14,443
Furniture, fixtures and office equipment	8,600			8,676
Leasehold improvements	148			148
Equipment leased to customers under Power Purchase Agreements	4,997			4,997
Plant equipment	11,084			11,077
Construction in progress	379			118
	41,160			40,974
Less: accumulated depreciation and amortization	(19,937		)	(21,788		)
Net property and equipment	$	21,223		$	19,186

Depreciation is provided over the estimated useful lives of the respective assets, using the straight-line method. Depreciable lives by asset category are as follows:



Land improvements	10-15 years
Buildings and building improvements	3-39 years
Furniture, fixtures and office equipment	2-10 years
Leasehold improvements	Shorter of asset life or life of lease
Equipment leased to customers under Power Purchase Agreements	20 years
Plant equipment	3-10 years

Schedule of equipment under capital leases

Equipment included above under capital leases was as follows (in thousands):



	March 31, 2015		December 31, 2015
Equipment	$	—	$	389
Less: accumulated depreciation and amortization	—		(46		)
Net Equipment	$	—	$	343

Schedule of Intangible Assets and Goodwill

The components of, and changes in, the carrying amount of other intangible assets were as follows as of the dates set forth below (in thousands):



	March 31, 2015					December 31, 2015
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Patents	$	2,447	$	(906	)	$	2,456	$	(1,010	)
Licenses	58		(58		)	58		(58		)
Trade name and trademarks	1,958		—			1,956		—
Customer relationships	3,600		(1,620		)	3,600		(2,357		)
Developed technology	900		(109		)	900		(224		)
Non-competition agreements	100		(35		)	100		(50		)
Total	$	9,063	$	(2,728	)	$	9,070	$	(3,699	)

Goodwill is allocated to each operating segment during the nine months ended December 31, 2015 as follows (in thousands):



	U.S. Markets		Orion Engineered Systems		Orion Distribution Services		Corporate and Other		Total
Goodwill at December 31, 2015	$	2,371	$	2,038	$	—	$	—	$	4,409

Amortizable intangible assets are amortized over their estimated economic useful life to reflect the pattern of economic benefits consumed based upon the following lives and methods:



Patents	10-17 years	Straight-line
Licenses	7-13 years	Straight-line
Customer relationships	5-8 years	Accelerated based upon the pattern of economic benefits consumed
Developed technology	8 years	Accelerated based upon the pattern of economic benefits consumed
Non-competition agreements	5 years	Straight-line

The estimated amortization expense for each of the next five years is shown below (in thousands):



Fiscal 2016	$	257
Fiscal 2017	883
Fiscal 2018	608
Fiscal 2019	432
Fiscal 2020	346
Fiscal 2021	271
Thereafter	618
Total	$	3,415

Changes in warranty accrual

Changes in the Company’s warranty accrual were as follows (in thousands):



	Three Months Ended December 31,						Nine Months Ended December 31,
	2014			2015			2014		2015
Beginning of period	$	466		$	1,043		$	263	$	1,015
Provision to product cost of revenue	685			(1		)	718		88
Charges	(35		)	(104		)	135		(165		)
End of period	$	1,116		$	938		$	1,116	$	938

Summary of the effect of net income per common share

The effect of net loss per common share is calculated based upon the following shares (in thousands except share amounts):



	Three Months Ended December 31,						Nine Months Ended December 31,
	2014			2015			2014			2015
Numerator:
Net loss (in thousands)	$	(4,663	)	$	(2,004	)	$	(27,368	)	$	(9,256	)
Denominator:
Weighted-average common shares outstanding	21,882,741			27,671,633			21,791,184			27,584,288
Weighted-average effect of assumed conversion of stock options and restricted shares	—			—			—			—
Weighted-average common shares and common share equivalents outstanding	21,882,741			27,671,633			21,791,184			27,584,288
Net loss per common share:
Basic	$	(0.21	)	$	(0.07	)	$	(1.26	)	$	(0.34	)
Diluted	$	(0.21	)	$	(0.07	)	$	(1.26	)	$	(0.34	)

Number of potentially dilutive securities

The following table indicates the number of potentially dilutive securities outstanding as of the end of each period:



	December 31, 2014	December 31, 2015
Common stock options	2,529,484	2,178,826
Restricted shares	718,684	1,005,539
Total	3,248,168	3,184,365

Long-Term Debt (Tables)

9 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Long-term debt

Long-term debt as of March 31, 2015 and December 31, 2015 consisted of the following (in thousands):



	March 31, 2015			December 31, 2015
Revolving credit facility	2,500			4,973
Harris seller's note	1,607			816
Customer equipment finance notes payable	827			235
Equipment lease obligations	—			350
Other long-term debt	120			79
Total long-term debt	5,054			6,453
Less current maturities	(1,832		)	(1,164		)
Long-term debt, less current maturities	$	3,222		$	5,289

Income Taxes (Tables)

9 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Reconciliation of the statutory federal income tax rate and the effective income tax rate

Below is a reconciliation of the statutory federal income tax rate and the effective income tax rate:



	Nine Months Ended December 31,
	2014		2015
Statutory federal tax rate	34.0	%	34.0	%
State taxes, net	3.0	%	3.5	%
Federal tax credit	0.3	%	0.8	%
State tax credit	0.1	%	0.3	%
Change in valuation reserve	(37.3	)%	(38.4	)%
Permanent items	(0.1	)%	(0.3	)%
Change in tax contingency reserve	—	%	(0.2	)%
Other, net	(0.2	)%	—	%
Effective income tax rate	(0.2	)%	(0.3	)%

Unrecognized tax benefit activity

For the nine months ended December 31, 2014 and 2015, the Company had the following unrecognized tax benefit activity (in thousands):



	Nine Months Ended December 31,
	2014		2015
Unrecognized tax benefits as of beginning of period	$	210	$	212
Additions based on tax positions related to the current period positions	2		16
Unrecognized tax benefits as of end of period	$	212	$	228

Shareholders' Equity (Tables)

9 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

Employee stock purchase plan activity

The Company had the following shares issued from treasury as of March 31, 2015 and for the three and nine months ended December 31, 2015:



	Shares Issued Under ESPP Plan	Closing Market Price	Shares Issued Under Loan Program	Dollar Value of Loans Issued		Repayment of Loans
Cumulative through March 31, 2015	154,269	$1.66 - 7.25	128,143	$	361,550	$	357,550
Quarter Ended June 30, 2015	541	$2.51	—	—		—
Quarter Ended September 30, 2015	779	$1.80	—	—		—
Quarter Ended December 31, 2015	1,170	$2.17	—	—		—
Total as of December 31, 2015	156,759	$1.66 - 7.25	128,143	$	361,550	$	357,550

Stock Options and Restricted Shares (Tables)

9 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based compensation

The following amounts of stock-based compensation were recorded (in thousands):



	Three Months Ended December 31,				Nine Months Ended December 31,
	2014		2015		2014		2015
Cost of product revenue	$	16	$	9	$	40	$	29
General and administrative	300		327		910		902
Sales and marketing	139		74		281		210
Research and development	10		19		19		25
Total	$	465	$	429	$	1,250	$	1,166

Summary of share based payment awards

The following table summarizes information with respect to the Plans:



	Outstanding Awards
	Shares Available for Grant		Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Balance at March 31, 2015	1,078,600		2,426,836		$	3.50	5.38
Granted stock options	—		—
Granted shares	(29,457	)	—		—
Restricted shares	(723,815	)	—		—
Forfeited restricted shares	171,971		—		—
Forfeited stock options	203,600		(203,600	)	4.36
Exercised	—		(44,410	)	2.11
Balance at December 31, 2015	700,899		2,178,826		$	3.45	4.51	$	135,447
Exercisable at December 31, 2015			1,937,426		$	3.58	4.41	$	103,095

Summary of outstanding non-vested stock options

A summary of the status of the Company’s outstanding non-vested stock options as of December 31, 2015 was as follows:



Non-vested at March 31, 2015	581,842
Granted	—
Vested	(280,450	)
Forfeited	(62,200	)
Non-vested at December 31, 2015	239,192

Summary of restricted shares granted

During the first nine months of fiscal 2016, the Company granted restricted shares as follows (which are included in the above stock plan activity tables):



Balance at March 31, 2015	704,688
Shares issued	723,815
Shares vested	(250,993		)
Shares forfeited	(171,971		)
Shares outstanding at December 31, 2015	1,005,539
Per share price on grant date	$1.76 - $6.80
Compensation expense for the nine months ended December 31, 2015	$	850,639

Segments (Tables)

9 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment reporting information



	Revenues				Operating Income (Loss)
	For the Three Months Ended December 31,				For the Three Months Ended December 31,
	2014		2015		2014			2015
(dollars in thousands)
Segments:
U.S. Markets	$	12,078	$	9,569	$	(1,686	)	$	235
Engineered Systems	13,707		6,408		(1,143		)	(577		)
Distribution Services	353		774		(152		)	2
Corporate and Other	—		—		(1,671		)	(1,602		)
	$	26,138	$	16,751	$	(4,652	)	$	(1,942	)

	Revenues				Operating Income (Loss)
	For the Nine Months Ended December 31,				For the Nine Months Ended December 31,
	2014		2015		2014			2015
(dollars in thousands)
Segments:
U.S. Markets	$	27,503	$	31,075	$	(12,123	)	$	(593	)
Engineered Systems	24,527		17,012		(9,973		)	(3,395		)
Distribution Services	813		980		(318		)	(157		)
Corporate and Other	—		—		(4,924		)	(4,967		)
	$	52,843	$	49,067	$	(27,338	)	$	(9,112	)



	Total Assets				Deferred Revenue
	March 31, 2015		December 31, 2015		March 31, 2015		December 31, 2015
(dollars in thousands)
Segments:
U.S. Markets	$	27,769	$	26,786	$	157	$	285
Engineered Systems	27,435		23,195		1,361		1,118
Distribution Services	261		929		—		—
Corporate and Other	32,340		29,519		—		—
	$	87,805	$	80,429	$	1,518	$	1,403

Summary of Significant Accounting Policies - Narrative (Details) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Mar. 31, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Mar. 31, 2014
Segment Reporting Information [Line Items]
Accounts receivable are due, minimum period (days)		30 days
Accounts receivable are due, maximum period (days)		60 days
Long-term receivables from OTA contracts present value of the future cash flows discounted rate, minimum		8.80%
Long-term receivables from OTA contracts present value of the future cash flows discounted rate, maximum		11.00%
Lease receivable provision write-off	$ 177,000	$ 177,000	$ 0
Inventory obsolescence reserve	1,900,000	1,900,000	1,600,000
Deferred contract costs	46,000	46,000	90,000
Unbilled revenue	55,000	55,000	1,700,000
Deferred financing costs	120,000	$ 120,000	202,000
Deferred financing costs amortized over useful life of debt issue minimum (years)		1 year
Deferred financing costs amortized over useful life of debt issue maximum (years)		3 years
Accrued project costs	200,000	$ 200,000	1,300,000
Product warranty accrual	938,000	$ 938,000	$ 1,015,000	$ 1,043,000	$ 1,116,000	$ 466,000	$ 263,000
Solar power systems completion period minimum (months)		3 months
Solar power systems completion period maximum (months)		15 months
Power purchase agreement product revenue is recognized term (years)		10 years
Deferred tax assets valuation allowance		$ 23,200,000
Orion Engineered Systems
Segment Reporting Information [Line Items]
Product warranty accrual	$ 300,000	$ 300,000
High Intensity Fluorescent Lighting Products
Segment Reporting Information [Line Items]
Limited warranty term (years)		1 year
Minimum
Segment Reporting Information [Line Items]
Length of time of inventory usage considered for inventory reserve (months)		9 months
Minimum \| LED Lighting Products
Segment Reporting Information [Line Items]
Limited warranty term (years)		1 year
Maximum
Segment Reporting Information [Line Items]
Length of time of inventory usage considered for inventory reserve (months)		24 months
Maximum \| LED Lighting Products
Segment Reporting Information [Line Items]
Limited warranty term (years)		10 years

Summary of Significant Accounting Policies - LT Receivables (Details) $ in Thousands	Dec. 31, 2015 USD ($)
Due from the third party finance company in future periods
Fiscal 2016	$ 247
Fiscal 2017	9
Total gross financed receivable	256
Amount representing interest	(5)
Total net financed receivable	$ 251

Summary of Significant Accounting Policies - Financing Receivables (Details) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Mar. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Write-offs against OTA sales-type lease receivable	$ 177,000	$ 177,000	$ 0
Credit quality of the Company's financing receivables using Aging Analysis
Allowance	(180,000)	(180,000)	(458,000)
Total net sales-type leases	14,632,000	14,632,000	$ 18,263,000
Not Past Due
Credit quality of the Company's financing receivables using Aging Analysis
Lease balances included in consolidated accounts receivable—current	542,000	542,000
Lease balances included in consolidated accounts receivable—long-term	141,000	141,000
Total gross sales-type leases	683,000	683,000
Allowance	0	0
Total net sales-type leases	683,000	683,000
1-90 days past due
Credit quality of the Company's financing receivables using Aging Analysis
Lease balances included in consolidated accounts receivable—current	18,000	18,000
Lease balances included in consolidated accounts receivable—long-term	0	0
Total gross sales-type leases	18,000	18,000
Allowance	0	0
Total net sales-type leases	18,000	18,000
Greater than 90 days past due
Credit quality of the Company's financing receivables using Aging Analysis
Lease balances included in consolidated accounts receivable—current	2,000	2,000
Lease balances included in consolidated accounts receivable—long-term	0	0
Total gross sales-type leases	2,000	2,000
Allowance	(1,000)	(1,000)
Total net sales-type leases	1,000	1,000
Total past due
Credit quality of the Company's financing receivables using Aging Analysis
Lease balances included in consolidated accounts receivable—current	20,000	20,000
Lease balances included in consolidated accounts receivable—long-term	0	0
Total gross sales-type leases	20,000	20,000
Allowance	(1,000)	(1,000)
Total net sales-type leases	19,000	19,000
Total sales-type leases
Credit quality of the Company's financing receivables using Aging Analysis
Lease balances included in consolidated accounts receivable—current	562,000	562,000
Lease balances included in consolidated accounts receivable—long-term	141,000	141,000
Total gross sales-type leases	703,000	703,000
Allowance	(1,000)	(1,000)
Total net sales-type leases	$ 702,000	$ 702,000

Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Inventories
Raw materials and components	$ 10,265	$ 8,474
Work in process	1,546	1,588
Finished goods	6,624	4,221
Total	$ 18,435	$ 14,283

Summary of Significant Accounting Policies - Prop Plant and Equip (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Property and equipment
Equipment	$ 40,974	$ 41,160
Accumulated depreciation and amortization	(21,788)	(19,937)
Net property and equipment	19,186	21,223
Land and land improvements
Property and equipment
Equipment	1,515	1,511
Buildings
Property and equipment
Equipment	14,443	14,441
Furniture, fixtures and office equipment
Property and equipment
Equipment	8,676	8,600
Leasehold improvements
Property and equipment
Equipment	148	148
Equipment leased to customers under Power Purchase Agreements
Property and equipment
Equipment	4,997	4,997
Plant equipment
Property and equipment
Equipment	11,077	11,084
Construction in progress
Property and equipment
Equipment	$ 118	$ 379

Summary of Significant Accounting Policies - Equipment Under Capital Leases (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
Property, Plant and Equipment [Line Items]
Equipment	$ 40,974	$ 40,974		$ 41,160
Accumulated depreciation and amortization	(21,788)	(21,788)		(19,937)
Net property and equipment	19,186	19,186		21,223
Depreciation		2,320	$ 2,154
Assets Held under Capital Leases
Property, Plant and Equipment [Line Items]
Equipment	389	389		0
Accumulated depreciation and amortization	(46)	(46)		0
Net property and equipment	343	343		$ 0
Depreciation	$ 20	$ 46

Summary of Significant Accounting Policies - PPE Useful Lives (Details)	9 Months Ended
	Dec. 31, 2015
Land and land improvements \| Minimum
Depreciation using the straight-line method
Property, plant and equipment, useful life (years)	10 years
Land and land improvements \| Maximum
Depreciation using the straight-line method
Property, plant and equipment, useful life (years)	15 years
Buildings and building improvements \| Minimum
Depreciation using the straight-line method
Property, plant and equipment, useful life (years)	3 years
Buildings and building improvements \| Maximum
Depreciation using the straight-line method
Property, plant and equipment, useful life (years)	39 years
Furniture, fixtures and office equipment \| Minimum
Depreciation using the straight-line method
Property, plant and equipment, useful life (years)	2 years
Furniture, fixtures and office equipment \| Maximum
Depreciation using the straight-line method
Property, plant and equipment, useful life (years)	10 years
Leasehold improvements
Depreciation using the straight-line method
Property, plant and equipment estimated useful life	Shorter of asset life or life of lease
Equipment leased to customers under Power Purchase Agreements
Depreciation using the straight-line method
Property, plant and equipment, useful life (years)	20 years
Plant equipment \| Minimum
Depreciation using the straight-line method
Property, plant and equipment, useful life (years)	3 years
Plant equipment \| Maximum
Depreciation using the straight-line method
Property, plant and equipment, useful life (years)	10 years

Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2015	Mar. 31, 2015
Goodwill [Roll Forward]
Goodwill	$ 4,409	$ 4,409
Intangible assets, estimated economic useful life (years)	6 years 4 months 6 days
Gross carrying amount	$ 9,070	9,063
Accumulated amortization	(3,699)	(2,728)
Finite-Lived Intangible Assets, Estimated Amortization Expense
Fiscal 2016	257
Fiscal 2017	883
Fiscal 2018	608
Fiscal 2019	432
Fiscal 2020	346
Fiscal 2021	271
Thereafter	618
Total	3,415
Patents
Goodwill [Roll Forward]
Gross carrying amount	2,456	2,447
Accumulated amortization	(1,010)	(906)
Licenses
Goodwill [Roll Forward]
Gross carrying amount	58	58
Accumulated amortization	(58)	(58)
Trade name and trademarks
Goodwill [Roll Forward]
Gross carrying amount	1,956	1,958
Accumulated amortization	0	0
Customer relationships
Goodwill [Roll Forward]
Gross carrying amount	3,600	3,600
Accumulated amortization	$ (2,357)	(1,620)
Developed technology
Goodwill [Roll Forward]
Intangible assets, estimated economic useful life (years)	8 years
Gross carrying amount	$ 900	900
Accumulated amortization	$ (224)	(109)
Non-competition agreement
Goodwill [Roll Forward]
Intangible assets, estimated economic useful life (years)	5 years
Gross carrying amount	$ 100	100
Accumulated amortization	(50)	$ (35)
U.S. Markets
Goodwill [Roll Forward]
Goodwill	2,371
Orion Engineered Systems
Goodwill [Roll Forward]
Goodwill	2,038
Orion Distribution Services
Goodwill [Roll Forward]
Goodwill	0
Corporate and Other
Goodwill [Roll Forward]
Goodwill	$ 0
Minimum \| Patents
Goodwill [Roll Forward]
Intangible assets, estimated economic useful life (years)	10 years
Minimum \| Licenses
Goodwill [Roll Forward]
Intangible assets, estimated economic useful life (years)	7 years
Minimum \| Customer relationships
Goodwill [Roll Forward]
Intangible assets, estimated economic useful life (years)	5 years
Maximum \| Patents
Goodwill [Roll Forward]
Intangible assets, estimated economic useful life (years)	17 years
Maximum \| Licenses
Goodwill [Roll Forward]
Intangible assets, estimated economic useful life (years)	13 years
Maximum \| Customer relationships
Goodwill [Roll Forward]
Intangible assets, estimated economic useful life (years)	8 years

Summary of Significant Accounting Policies - Warranty Accrual (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning of period	$ 1,043	$ 466	$ 1,015	$ 263
Provision to product cost of revenue	(1)	685	88	718
Charges	(104)	(35)	(165)	135
End of period	$ 938	$ 1,116	$ 938	$ 1,116

Summary of Significant Accounting Policies - EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Numerator:
Net loss	$ (2,004)	$ (4,663)	$ (9,256)	$ (27,368)
Denominator:
Weighted-average common shares outstanding (in shares)	27,671,633	21,882,741	27,584,288	21,791,184
Weighted-average effect of assumed conversion of stock options and restricted shares (in shares)	0	0	0	0
Weighted-average common shares and common share equivalents outstanding (in shares)	27,671,633	21,882,741	27,584,288	21,791,184
Net income (loss) per common share:
Basic net income (loss) per share attributable to common shareholders (in dollars per share)	$ (0.07)	$ (0.21)	$ (0.34)	$ (1.26)
Diluted net income (loss) per share (in dollars per share)	$ (0.07)	$ (0.21)	$ (0.34)	$ (1.26)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Summary of Significant Accounting Policies - Dilutive Securities (Details) - shares	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Number of potentially dilutive securities
Potentially dilutive securities outstanding (shares)	3,184,365	3,248,168
Common stock options
Number of potentially dilutive securities
Potentially dilutive securities outstanding (shares)	2,178,826	2,529,484
Restricted shares
Number of potentially dilutive securities
Potentially dilutive securities outstanding (shares)	1,005,539	718,684

Summary of Significant Accounting Policies - Concentration Risk (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 31, 2015 customer supplier	Dec. 31, 2014 customer supplier	Dec. 31, 2015 customer supplier	Dec. 31, 2014 customer supplier	Mar. 31, 2015 customer
Cost of Sales \| Supplier Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage		16.00%	10.00%	9.00%
Concentration risk, percent attributable to supplier one	18.10%
Concentration risk, percent attributable to supplier two	12.60%
Concentration risk, number of entities involved in risk calculation \| supplier	2	1	0	1
Sales Revenue, Services, Net \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage	10.00%	21.00%	10.00%	12.00%
Concentration risk, number of entities involved in risk calculation	0	1	0	1
Accounts Receivable \| Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, percentage			10.00%		10.00%
Concentration risk, number of entities involved in risk calculation			0		0

Acquisition - Acquisition Agreement (Details) - Harris - USD ($) $ / shares in Units, $ in Millions	Jan. 02, 2014	Jul. 01, 2013	Feb. 13, 2015	Oct. 21, 2013
Business Acquisition [Line Items]
Purchase agreement, value		$ 10.0
Purchase agreement, potential adjustment, amount		0.2
Contingent consideration earn-out value		0.6
Acquisition consideration, cash		5.0
Acquisition consideration, debt		$ 3.1
Acquisition Consideration, debt term (years)		3 years
Acquisition consideration, shares	83,943	856,997
Acquisition consideration, share price (per share)		$ 2.33
Acquisition share price determination, trading days before purchase agreement		45 days
Acquisition share price determination, trading days after purchase agreement		22 days
Purchase accounting provisions, share price (per share)		$ 2.41
Fixed future consideration				$ 1.4
Shares of Company common stock, value	$ 0.6
Fixed future consideration, fair value of existing common shares (usd per share)	$ 3.80
Fixed future consideration cash payment			$ 0.8

Acquisition - Contingent Consideration (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2014	Dec. 31, 2014	Jul. 01, 2013
Business Acquisition [Line Items]
Compensation expense	$ 49	$ 100
Harris
Business Acquisition [Line Items]
Contingent consideration maximum amount of liability			$ 1,000
Contingent consideration minimum amount of liability			0
Contingent consideration, recorded liability			600
Contingent consideration, recorded as compensation expense			$ 500

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Entity that Current Director Owns Minority Interest and Serves as Board of Directors Chairman
Related Party Transaction [Line Items]
Purchases from related party	$ 9	$ 10	$ 15	$ 26

Long-Term Debt - Narrative (Details)	9 Months Ended
Long-Term Debt - Narrative (Details)	Dec. 31, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)
Line of Credit Facility [Line Items]
Letters of credit outstanding	$ 0
Revolving credit facility	$ 4,973,000		$ 2,500,000
Equipment lease obligations
Line of Credit Facility [Line Items]
Lease agreement, principal amount		$ 400,000
Lease interest rate (percent)	5.94%
Net equipment lease obligation buyout option	$ 1
Revolving credit facility \| Credit Agreement \| Wells Fargo Bank, National Association
Line of Credit Facility [Line Items]
Credit facility current limit	15,000,000.0
Credit facility, maximum limit	$ 20,000,000.0
Credit facility, minimum indebtedness ratio	1.10
Interest payment	$ 130,000
Interest rate (percent)	3.60%
Unused commitment fee (percent)	0.25%
Revolving credit facility	$ 5,000,000
Credit facility, additional borrowing capacity	$ 300,000
Revolving credit facility \| Credit Agreement \| Wells Fargo Bank, National Association \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate (percent)	3.00%
Revolving credit facility \| Credit Agreement \| Wells Fargo Bank, National Association \| Maximum
Line of Credit Facility [Line Items]
Credit facility current limit	$ 15,000,000.0
Revolving credit facility \| Credit Agreement \| Wells Fargo Bank, National Association \| Minimum
Line of Credit Facility [Line Items]
Credit facility current limit	10,300,000
Letter of Credit \| Credit Agreement \| Wells Fargo Bank, National Association
Line of Credit Facility [Line Items]
Credit facility, maximum limit	$ 2,000,000.0
Unused commitment fee (percent)	3.00%

Long-Term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Long-term debt
Total long-term debt	$ 6,453	$ 5,054
Current maturities	(1,164)	(1,832)
Long-term debt, less current maturities	5,289	3,222
Revolving credit facility
Long-term debt
Total long-term debt	4,973	2,500
Harris seller's note
Long-term debt
Total long-term debt	816	1,607
Customer equipment finance notes payable
Long-term debt
Total long-term debt	235	827
Equipment lease obligations
Long-term debt
Total long-term debt	350	0
Other long-term debt
Long-term debt
Total long-term debt	$ 79	$ 120

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	9 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015	Mar. 31, 2014
Income Taxes (Textual) [Abstract]
Estimated annual effective tax rate	(0.30%)	(0.20%)
Valuation allowance	$ 23,200
Unrecognized tax benefits	228	$ 212	$ 212	$ 210
Federal
Income Taxes (Textual) [Abstract]
Operating loss carryforwards	50,600
Exercise of NQSOs	3,600
Tax credit carryforwards	1,500
State
Income Taxes (Textual) [Abstract]
Operating loss carryforwards	36,900
Exercise of NQSOs	4,300
Tax credit carryforwards	$ 500

Income Taxes - Reconciliation of Statutory Federal Rate and Effective Rate (Details)	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of the statutory federal income tax rate and the effective income tax rate
Statutory federal tax rate	34.00%	34.00%
State taxes, net	3.50%	3.00%
Federal tax credit	0.80%	0.30%
State tax credit	0.30%	0.10%
Change in valuation reserve	(38.40%)	(37.30%)
Permanent items	(0.30%)	(0.10%)
Change in tax contingency reserve	(0.20%)	0.00%
Other, net	0.00%	(0.20%)
Effective income tax rate	(0.30%)	(0.20%)

Income Taxes - Unrecognized Tax Benefit Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits [Roll Forward]
Unrecognized tax benefits as of beginning of period	$ 212	$ 210
Additions based on tax positions related to the current period positions	16	2
Unrecognized tax benefits as of end of period	$ 228	$ 212

Commitments and Contingencies (Details) $ in Millions		3 Months Ended		9 Months Ended
Commitments and Contingencies (Details) $ in Millions	Nov. 04, 2014 Claim	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Long-term Purchase Commitment [Line Items]
Rent expense under operating leases		$ 0.1	$ 0.1	$ 0.4	$ 0.3
Non-cancellable purchase commitments		5.3		5.3
Operating lease commitments		0.3		0.3
Number of plaintiff's claims dismissed (claim) \| Claim	6
Inventories
Long-term Purchase Commitment [Line Items]
Purchase obligations		$ 5.0		$ 5.0

Shareholders' Equity - Narrative (Details) - USD ($)		1 Months Ended	9 Months Ended
Shareholders' Equity - Narrative (Details) - USD ($)	Feb. 20, 2015	Aug. 31, 2010	Dec. 31, 2015	Dec. 31, 2014	Feb. 15, 2009
Stockholders' Equity Note [Abstract]
Underwritten public offering (shares)	5,460,000
Offering price (usd per share)	$ 3.50
Proceeds from issuance of common stock, net of offering costs	$ 17,500,000		$ (1,000)	$ 0
Number of common stock called by each right (shares)					1
Right issue share price (usd per share)					$ 30.00
Minimum subscription percentage			20.00%
Number of business days			10 days
Share acquisition percentage			50.00%
Prior to a person becoming an Acquiring Person, the Board of Directors of the Company's redemption Rate on per Right Shares			$ 0.001
Employee stock purchase plan authorized		2,500,000
Maximum amount limit for ESPP per employee		$ 20,000
Purchase price to market price matching percentage		100.00%
Sec 16 Officers limit percentage on ESPP based on annual income		20.00%
Sec 16 officers maximum limit on ESPP in amounts		$ 250,000
Interest loans charged period (years)		10 years

Shareholders' Equity - Shares Issued From Treasury (Details) - USD ($)	3 Months Ended			56 Months Ended	65 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2015
Shares issued from treasury
Shares Issued Under ESPP Plan	1,170	779	541	154,269	156,759
Closing Market Price	$ 2.17	$ 1.80	$ 2.51
Shares Issued Under Loan Program	0	0	0	128,143
Shares Issued Under Loan Program, Total					128,143
Dollar Value of Loans Issued	$ 0	$ 0	$ 0	$ 361,550
Dollar Value of Loans Issued, Total					$ 361,550
Repayment of Loans	$ 0	$ 0	$ 0	$ 357,550
Repayment of Loans, Total					$ 357,550
Minimum
Shares issued from treasury
Closing Market Price				$ 1.66	$ 1.66
Maximum
Shares issued from treasury
Closing Market Price				$ 7.25	$ 7.25

Stock Options and Restricted Shares - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	May. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum life of option under the plan (years)				10 years
Recognition of compensation cost for restricted shares, typical vesting term (years)				4 years 6 months
Recognition of compensation cost for restricted shares, alternate vesting term (years)	1 year
Grant of shares to consultant as part of consulting compensation agreement		2,500		2,500
Stock awards issued in lieu of cash compensation (usd per share)		$ 2.00		$ 2.00
Compensation cost related to non-vested common stock-based compensation		$ 300,000		$ 300,000
Common stock closing price (usd per share)		$ 2.17		$ 2.17
Compensation expense related to granted restricted shares		$ 429,000	$ 465,000	$ 1,166,000	$ 1,250,000
Number of warrants (shares)		0		0		38,980
Exercise price (usd per share)		$ 2.25		$ 2.25
Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued		154,000	22,000	724,000	393,000
Compensation expense related to granted restricted shares				$ 850,639	$ 800,000
Weighted-average per share price on grant date (usd per share)				$ 2.14
Deferred stock-based compensation related to grants of restricted shares, period of recognition				2 years 6 months 4 days
Deferred stock-based compensation related to grants of restricted shares				$ 2,300,000
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognition of compensation cost for restricted shares, typical vesting term (years)	3 years
Minimum \| Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average per share price on grant date (usd per share)		$ 1.76	$ 4.79	$ 1.76	$ 4.20
Weighted-average per share price on grant date (usd per share)				1.76
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Recognition of compensation cost for restricted shares, typical vesting term (years)	5 years
Maximum \| Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average per share price on grant date (usd per share)		$ 2.04	$ 5.16	2.62	$ 7.23
Weighted-average per share price on grant date (usd per share)				$ 6.80
2003 Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reserved shares for issuance to key employees		13,500,000		13,500,000
2003 Stock Option and 2004 Stock and Incentive Awards Plans \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				1 month
2003 Stock Option and 2004 Stock and Incentive Awards Plans \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				5 years
2004 Stock and Incentive Awards Plan \| Non-Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grant of shares to consultant as part of consulting compensation agreement		11,000	8,000	27,000	22,000
2004 Stock and Incentive Awards Plan \| Minimum \| Non-Employee Director
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock awards issued in lieu of cash compensation (usd per share)		$ 1.76	$ 4.2	$ 2.62	$ 5.23

Stock Options and Restricted Shares - Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Stock-based compensation
Total	$ 429	$ 465	$ 1,166	$ 1,250
Cost of product revenue
Stock-based compensation
Total	9	16	29	40
General and administrative
Stock-based compensation
Total	327	300	902	910
Sales and marketing
Stock-based compensation
Total	74	139	210	281
Research and development
Stock-based compensation
Total	$ 19	$ 10	$ 25	$ 19

Stock Options and Restricted Shares - Summary of Stock Option and Stock Incentive Award Plans (Details) - USD ($)	9 Months Ended	12 Months Ended
	Dec. 31, 2015	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward]
Shares Available for Grant, Beginning Balance	1,078,600
Shares Available for Grant, Granted to Non-Employee	(29,457)
Shares Available for Grant, Ending Balance	700,899	1,078,600
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Number of Shares, Beginning Balance	2,426,836
Number of Shares, Granted	0
Number of Shares, Forfeited	(203,600)
Number of Shares, Exercised	(44,410)
Number of Shares, Ending Balance	2,178,826	2,426,836
Number of Shares, Exercisable	1,937,426
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted Average Exercise Price, Beginning Balance (in dollars per share)	$ 3.50
Weighted Average Exercise Price, Granted Stock Options (in dollars per share)
Weighted Average Exercise Price, Forfeited (in dollars per share)	$ 4.36
Weighted Average Exercise Price, Exercised (in dollars per share)	2.11
Weighted Average Exercise Price, Ending Balance (in dollars per share)	3.45	$ 3.50
Weighted Average Exercise Price, Exercisable Ending Balance (in dollars per share)	$ 3.58
Weighted Average Remaining Contractual Term (in years)	4 years 6 months 4 days	5 years 4 months 17 days
Weighted Average Remaining Contractual Term, Exercisable (in years)	4 years 4 months 28 days
Aggregate Intrinsic Value, Ending Balance (in dollars)	$ 135,447
Aggregate Intrinsic Value, Exercisable (in dollars)	$ 103,095
Common stock options
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward]
Shares Available for Grant, Granted to Employee	0
Shares Available for Grant, Forfeited	203,600
Restricted shares
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward]
Shares Available for Grant, Granted to Employee	(723,815)
Shares Available for Grant, Forfeited	171,971

Stock Options and Restricted Shares - Outstanding Non-vested Stock Options (Details)	9 Months Ended
	Dec. 31, 2015 shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Non-vested at March 31, 2015	581,842
Granted	0
Vested	(280,450)
Forfeited	(62,200)
Non-vested at December 31, 2015	239,192

Stock Options and Restricted Shares - Restricted Shares (Details) - USD ($)	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Summary of restricted shares granted to key employees
Compensation expense for the nine months ended December 31, 2015	$ 429,000	$ 465,000	$ 1,166,000	$ 1,250,000
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued	2,500		2,500
Share-based Goods and Nonemployee Services Transaction, Securities Issued Valuation Price Per Share	$ 2.00		$ 2.00
Restricted shares
Summary of restricted shares granted to key employees
Balance at March 31, 2015			704,688
Shares issued			723,815
Shares vested			(250,993)
Shares forfeited			(171,971)
Shares outstanding at December 31, 2015	1,005,539		1,005,539
Weighted-average per share price on grant date (usd per share)			$ 2.14
Compensation expense for the nine months ended December 31, 2015			$ 850,639	$ 800,000
Restricted shares \| Minimum
Summary of restricted shares granted to key employees
Weighted-average per share price on grant date (usd per share)			$ 1.76
Restricted shares \| Maximum
Summary of restricted shares granted to key employees
Weighted-average per share price on grant date (usd per share)			$ 6.80

Segments - Revenues and Operating Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Corporate and Other
Revenues	$ 16,751	$ 26,138	$ 49,067	$ 52,843
Operating Income (Loss)	(1,942)	(4,652)	(9,112)	(27,338)
U.S. Markets
Corporate and Other
Revenues	9,569	12,078	31,075	27,503
Operating Income (Loss)	235	(1,686)	(593)	(12,123)
Engineered Systems
Corporate and Other
Revenues	6,408	13,707	17,012	24,527
Operating Income (Loss)	(577)	(1,143)	(3,395)	(9,973)
Distribution Services
Corporate and Other
Revenues	774	353	980	813
Operating Income (Loss)	2	(152)	(157)	(318)
Corporate and Other
Corporate and Other
Revenues	0	0	0	0
Operating Income (Loss)	$ (1,602)	$ (1,671)	$ (4,967)	$ (4,924)

Segments - Assets and Deferred Revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Mar. 31, 2015
Corporate and Other
Total Assets	$ 80,429	$ 87,805
Deferred Revenue	1,403	1,518
U.S. Markets
Corporate and Other
Total Assets	26,786	27,769
Deferred Revenue	285	157
Engineered Systems
Corporate and Other
Total Assets	23,195	27,435
Deferred Revenue	1,118	1,361
Distribution Services
Corporate and Other
Total Assets	929	261
Deferred Revenue	0	0
Corporate and Other
Corporate and Other
Total Assets	29,519	32,340
Deferred Revenue	$ 0	$ 0