EX-99.1 2 c54286exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
CONTACT: Linda Diedrich
Orion Energy Systems
(920) 482-1988
Scott Jensen
Chief Financial Officer
Orion Energy Systems
(920) 892-5454
Orion Energy Systems, Inc. Announces Fiscal 2010 Second Quarter Results
MANITOWOC, WI, October 27, 2009 — Orion Energy Systems, Inc. (NASDAQ: OESX), a power technology enterprise that designs, manufactures and deploys energy management solutions for the commercial and industrial sectors, today announced financial results for its fiscal 2010 second quarter ended September 30, 2009.
Since December 2001, the Company’s integrated systems have benefited its customers and the environment by reducing:
    customer energy demand by 477,133 kilowatts, or 9.2 billion kilowatt hours;
 
    customer energy costs by more than $711 million; and
 
    indirect carbon dioxide emissions of more than 6 million tons.
“We are pleased with the progress achieved in the fiscal second quarter of 2010 as we exceeded our quarterly revenue guidance with revenue of $14.6 million and exceeded our quarterly earnings per share guidance with a loss of $0.06 per share, as well as generated positive operating cash flow. The value proposition of our integrated systems, strong customer relationships and industry expertise continue to resonate with commercial and industrial businesses despite the ongoing macro-economic uncertainty,” commented Neal Verfuerth, CEO of Orion Energy Systems. “Further, our innovative technologies and expertise has positioned Orion as a leader in the energy management space, which should allow us to deliver sustained long-term growth. While we realize that the current environment remains challenging, our healthy balance sheet, strong liquidity position and focus on maximizing the deployment of capital will position Orion well to benefit as market conditions improve.”
Key Business Highlights
    Total bookings for the quarter were $20.3 million, including $2.4 million of Orion Virtual Power PlantÔ (“OVPP”) supply agreements. Orion defines bookings as customer purchase orders received during the quarter, including both purchase orders payable in cash and for OVPP supply deliveries over the life of the OVPP contracts.
 
    Increased facilities retrofitted with the Compact Modular™ HIF technology to 5,082, representing 807 million square feet as of the end of the second quarter of fiscal 2010.

 


 

    Total deployments of the InteLite® wireless controls increased to 119 customer locations, 11,716 transceivers and 192 control panels, representing 5.3 million square feet as of the end of the second quarter of fiscal 2010.
 
    Nearly doubled the number of installed Apollo® solar light pipes to 3,591 total installed units, representing 1.6 million square feet as of the end of the second quarter of fiscal 2010.
Fiscal 2010 Third Quarter Outlook
Third quarter fiscal 2010 revenues are anticipated to be between $16.5 million and $18.0 million. Earnings per share for the third quarter of fiscal 2010 are estimated to be between a loss of $(0.03) and earnings of $0.01 per diluted share.
Conference Call
Orion will host a conference call on Tuesday, October 27, 2009 at 5:30 p.m. Eastern (4:30 p.m. Central/2:30 p.m. Pacific) to discuss details regarding its second quarter fiscal 2010 performance. Domestic callers may access the earnings conference call by dialing 888-576-4398 (International callers, dial 719-325-2103). Investors and other interested parties may also go to the Investor Relations section of Orion’s website at http://investor.oriones.com/events.cfm for a live webcast of the conference call. To ensure a timely connection, it is recommended that users register at least 15 minutes prior to the webcast.
About Orion Energy Systems
Orion Energy Systems, Inc. (Nasdaq: OESX) is a leading power technology enterprise that designs, manufactures and deploys energy management systems, consisting primarily of high-performance, energy efficient lighting systems and controls and related services, for commercial and industrial customers without compromising their quantity or quality of light.
Safe Harbor Statement
Certain matters discussed in this press release are “forward-looking statements” intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may generally be identified as such because the context of such statements will include words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties that could cause results to differ materially from those expected, including, but not limited to, the following: (i) further deterioration of market condition, including customer capital expenditure budgets; (ii) Orion’s ability to compete in a highly competitive market and its ability to respond successfully to market competition; (iii) increasing duration of customer sales cycles; (iv) the market acceptance of Orion’s products and services, including the Orion Virtual Power Plant; (v) price fluctuations, shortages or interruptions of component supplies and raw materials used to manufacture Orion’s products; (vi) loss of one or more key customers or suppliers, including key contacts at such customers; (vii) a reduction in

 


 

the price of electricity; (viii) the cost to comply with, and the effects of, any current and future government regulations, laws and policies; (ix) increased competition from government subsidies and utility incentive programs; (x) dependence on customers’ capital budgets for sales of products and services; (xi) Orion’s development of, and participation in, new product and technology offerings or applications; (xii) legal proceedings, including the securities litigation pending against Orion; and (xiii) potential warranty claims. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are made only as of the date of this press release and Orion undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, which are available at http://www.sec.gov or at http://www.oriones.com in the Investor Relations section of our website.

 


 

ORION ENERGY SYSTEMS, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(in thousands, except share and per share amounts)
Condensed Consolidated Statements of Operations
for the Three and Six Months ended September 30, 2008 and 2009
(unaudited)
                                 
    Three months ended     Six months ended  
    September 30,     September 30,  
    2008     2009     2008     2009  
Revenue
  $ 18,760     $ 14,619     $ 34,866     $ 27,247  
Cost of revenue
    12,425       9,854       23,334       18,981  
 
                       
Gross profit
    6,335       4,765       11,532       8,266  
Operating expenses:
                               
General and administrative
    2,893       3,143       5,508       6,306  
Sales and marketing
    2,771       2,961       5,423       6,113  
Research and development
    373       492       791       911  
 
                       
Total operating expenses
    6,037       6,596       11,772       13,330  
 
                       
Income (loss) from operations
    298       (1,831 )     (190 )     (5,064 )
Other income (expense):
                               
Interest expense
    (41 )     (74 )     (108 )     (130 )
Dividend and interest income
    550       76       1,167       198  
 
                       
Total other income (expense)
    509       2       1,059       68  
 
                       
Income (loss) before income tax
    807       (1,829 )     869       (4,996 )
Income tax expense (benefit)
    354       (430 )     382       (824 )
 
                       
Net income (loss)
  $ 453     $ (1,399 )   $ 487     $ (4,172 )
 
                       
Basic net income per share attributable to common shareholders
  $ 0.02     $ (0.06 )   $ 0.02     $ (0.19 )
Weighted-average common shares outstanding
    26,959,790       21,707,477       26,998,857       21,648,246  
Diluted net income per share attributable to common shareholders
  $ 0.02     $ (0.06 )   $ 0.02     $ (0.19 )
Weighted-average common shares and share equivalents outstanding
    29,018,991       21,707,477       29,613,684       21,648,246  
 
                               
Supplemental information:
                               
FAS 123R compensation expense
                               
Cost of revenue
  $ 65     $ 53     $ 130     $ 112  
General and administrative
    171       145       425       267  
Sales and marketing
    145       136       271       265  
Research and development
    7       9       20       19  
 
                       
Total
  $ 388     $ 343     $ 846     $ 663  
 
                       

 


 

Condensed Consolidated Balance Sheets
As of March 31, 2009 and September 30, 2009 (unaudited)
                 
    March 31, 2009   September 30, 2009
Cash and cash equivalents
  $ 36,163     $ 33,413  
Short term investments
    6,490       1,000  
Accounts Receivable
    11,572       12,742  
Inventories
    20,232       19,672  
Current assets
    78,374       69,112  
Property and equipment, net
    22,999       25,739  
Total assets
    103,722       98,307  
Accounts Payable
    7,817       5,479  
Current liabilities
    10,947       9,057  
Long term debt
    3,647       3,337  
Total shareholders’ equity
    88,695       85,406  
Condensed Consolidated Statements of Cash Flows
For the Six Months ended September 30, 2008 and 2009
(unaudited)
                 
    Six months ended September 30,  
    2008     2009  
Cash used in operating activities
  $ (371 )   $ (4,149 )
Cash provided by (used in) investing activities
    (24,855 )     1,715  
Cash used in financing activities
    (6,679 )     (316 )
 
           
Net (decrease) in cash and cash equivalents
  $ (31,905 )   $ (2,750 )