Orion Energy Systems, Inc. (NYSE MKT: OESX) (“Orion” or the “Company”),
a leading designer and manufacturer of energy management systems
consisting primarily of high-performance, energy-efficient lighting
platforms, today announced financial results for its fiscal 2014 fourth
quarter and year ended March 31, 2014.
Operating Highlights
Total revenue for fiscal 2014 was $88.6 million, compared to $86.1
million in fiscal 2013.
Total revenue for the fiscal 2014 fourth quarter declined to $12.6
million, from $22.3 million in the prior-year period, largely as a
result of delayed lighting sales coupled with a decline in the number
of solar projects under construction as Orion deemphasizes its
non-core solar business.
The Company continued to expand its penetration into the LED market,
as product revenue from LED lighting systems increased 156.9% year
over year to $4.8 million in fiscal 2014 and 117.6% year over year to
$1.3 million in the fiscal 2014 fourth quarter. The Company believes
that its LED lighting systems will be a primary driver of its sales
during fiscal 2015.
The Company continued to implement a number of cost-cutting
initiatives throughout the year to increase efficiency and streamline
costs, including consolidating all operations into its headquarters in
Manitowoc. In the fourth quarter of fiscal 2014, the Company sold its
leased corporate jet, resulting in expected savings of $1.0 million
per year.
Orion generated $9.9 million in net cash from operations during fiscal
2014 compared to $2.3 million during fiscal 2013. The Company’s
working capital at March 31, 2014, was $33.1 million compared to $34.8
million at March 31, 2013.
Management Comments
John Scribante, Chief Executive Officer of Orion, stated, “We continued
to make progress during fiscal 2014 through improved operating
efficiencies and better positioning our Company to take advantage of a
lighting retrofit marketplace with ample opportunity for growth. We have
successfully undergone a transformation of Orion’s operations with the
implementation of LEAN manufacturing processes, reorganization of the
Company’s salesforce while increasing the number of salespeople to
better serve Orion’s customers, and completion of the acquisition and
integration of Harris Manufacturing and Harris LED to expand our product
offering of LED and expand our customer base, all while generating $9.9
million in cash from operations during fiscal 2014. In the fourth
quarter, we experienced a slower-than-expected adoption by potential
customers of our newer LED product offerings and retrofit solutions that
affected our sales in the short term. We believe this is due to larger
national companies delaying the decision to integrate newer technologies
as the LED advantages start to overtake existing infrastructure. Our
pipeline of opportunities has been growing at unprecedented levels. We
remain focused on expanding the value proposition of our core lighting
solutions and are not dissuaded from our long-term objectives, nor do we
feel that a longer timeline diminishes the progress our team has made
since my appointment 18 months ago.”
Mr. Scribante continued, “We successfully integrated Harris into our
operations and in January 2014 launched the industry’s first complete
suite of LED Troffer Door Retrofit (LDR) products that are completely
assembled within the door frame for ease of installation. Our LDR
product provides potential customers in office, retail and industrial
markets with quality lighting, immediate reduction of energy costs and
non-invasive quick installation. We are beginning to gain traction as
our team introduces these new LED solutions to the market and are
singularly focused on driving sales.”
Financial Review
Fiscal 2014 Fourth Quarter
Contacts
Investor Relations Contact:
Orion
Energy Systems
Scott Jensen
Chief Financial Officer
(920)
892-9340
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