Orion Lighting Sees Continued Strength in Demand for Its Energy-Saving LED Lighting Solutions with $11M in Recent Orders and ...
September 12 2018 - 8:00AM
Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), a
provider of enterprise-grade LED lighting and energy project
solutions, today provided an update on order activity which is
currently trending ahead of the Company’s 10% revenue growth goal
for the fiscal 2019 year ending March 31, 2019. In total, Orion has
secured over $11 million in recent orders and letters of intent
from major national accounts.
As anticipated, business from major automotive manufacturers
continues to show strength, with over $8 million in orders and
letters of intent for turnkey LED lighting retrofit projects having
been secured over the last several weeks. These projects are
currently slated to be completed and booked as revenue principally
in the third and fourth quarters of fiscal 2019. Automotive
industry business is currently running modestly ahead of full year
revenue expectations of $14M in fiscal 2019.
Additionally, Orion recently secured contracts and letters of
intent for approximately $3 million in turnkey LED lighting
retrofit projects for over 35 U.S. government facilities.
Orion’s industry-leading ISON™ High Bay LED fixtures continue to
be an important contributor to the Company’s national account sales
activity, along with the Company’s LDR® LED retrofit lighting
systems designed for fast, efficient replacement of standard-sized,
in-ceiling “troffer” fixtures.
Mike Altschaefl, Orion’s CEO, commented, “The pace of Orion’s
order bookings has accelerated in recent weeks and we are now
running well ahead of last year. Based on this activity, we are
increasingly comfortable that we will achieve and possibly exceed
our full year 10% revenue growth goal – with much of our
improvement weighted toward the second half of the year. We are
seeing particularly strong traction from national accounts, where
we typically find the greatest engagement in Orion’s value
proposition, which is focused on quality, service, and energy and
cost savings.
“We are also seeing continued improvement in our agent driven
sales activity as well as bookings through Energy Service Companies
(ESCOs) and resellers.”
About Orion Energy Systems, Inc.
(www.orionlighting.com)Orion is a provider of
enterprise-grade LED lighting and energy project solutions. Orion
manufactures and markets connected lighting systems encompassing
LED solid-state lighting and smart controls. Orion systems
incorporate patented design elements that deliver significant
energy, efficiency, optical and thermal performance that drive
financial, environmental, and work-space benefits for a wide
variety of customers, including nearly 40% of the Fortune 500.
Safe Harbor Statement
Certain matters discussed in this press release, including under
the headings “Highlights,” “Updated Financial Outlook,” and “CEO
Commentary,” are "forward-looking statements" intended to qualify
for the safe harbor 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 our
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) our ability to achieve our expected revenue growth,
gross margin, and EBITDA objectives in fiscal 2019 and beyond; (ii)
our ability to achieve profitability and positive cash flows; (iii)
our levels of cash and our limited borrowing capacity under our
revolving line of credit; (iv) the availability of additional debt
financing and/or equity capital; (v) our increasing emphasis on
selling more of our products through third party distributors and
sales agents, including our ability to attract and retain effective
third party distributors and sales agents to execute our sales
model; (vi) our ability to develop and participate in new product
and technology offerings or applications in a cost effective and
timely manner; (vii) our ability to manage the ongoing decreases in
the average selling prices of our products as a result of
competitive pressures in the evolving LED market; (viii) our
ability to manage our inventory and avoid inventory obsolescence in
a rapidly evolving LED market; (ix) our lack of major sources of
recurring revenue and the potential consequences of the loss of one
or more key customers or suppliers, including key contacts at such
customers; (x) our ability to adapt to increasing convergence in
the LED market; (xi) our ability to differentiate our products in a
highly competitive market; (xii) the deterioration of market
conditions, including our dependence on customers' capital budgets
for sales of products and services; (xiii) our ability to complete
and execute our strategy in a highly competitive market and our
ability to respond successfully to market competition; (xiv) our
increasing reliance on third parties for the manufacture and
development of products and product components; (xv) our ability to
successfully implement our strategy of focusing mainly on lighting
solutions using LED technologies; (xvi) the market acceptance of
our products and services; (xvii) our ability to realize expected
cost savings on the timetable and amounts expected from our cost
reduction initiatives; (xviii) adverse developments with respect to
litigation and other legal matters pursuant to which we are
subject, (xix) our failure to comply with the covenants in our
revolving credit agreement; (xx) our fluctuating quarterly results
of operations as we focus on new LED technologies and continue to
focus investing in our third party distribution sales channel;
(xxi) our ability to recruit, hire and retain talented individuals
in all disciplines of our company; (xxii) price fluctuations,
shortages or interruptions of component supplies and raw materials
used to manufacture our products; (xxiii) our ability to defend our
patent portfolio; (xxiv) a reduction in the price of electricity;
(xxv) the cost to comply with, and the effects of, any current and
future government regulations, laws and policies; (xxvi) potential
warranty claims in excess of our reserve estimates; (xxvii) our
inability to timely and effectively remediate any material
weaknesses in our internal control of financial reporting and/or
our failure to maintain an effective system of internal control
over financial reporting and (xxviii) the other risks described in
our filings with the SEC. 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 we undertake 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://investor.oriones.com/
in the Investor Relations section of our Website.
Twitter:
@OrionLighting and
@OrionLightingIRStockTwits:
@Orion_LED_IR
Orion SalesJosh Kurtz, SVP SalesOrion Energy
Systems, Inc.(920) 892-5702
Media & Investor Relations Bill Hull,
CFO Orion Energy Systems, Inc. (312)
660-3575
William Jones; Tanya Kamatu Catalyst IR (212) 924-9800 or
oesx@catalyst-ir.com
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