Orion Secures Add-On Customer Commitment for an Estimated $64 Million in Turnkey LED Lighting Installation Projects, Bringing...
May 20 2019 - 8:27AM
Orion Energy Systems,
Inc. (NASDAQ: OESX)
(Orion Lighting), announced today that it has received a commitment
to again expand the retrofit of a major national account customer’s
lighting systems with Orion’s state-of-the-art LED lighting and
wireless IoT enabled control solutions at additional locations
nationwide. Orion anticipates additional revenue of $64 million
under this next phase, which is dependent on the customer’s
issuance of purchase orders. Installations for this expanded phase
are slated to commence in Orion's fiscal 2020 second quarter ending
September 30, 2019 and be completed during its fiscal year ending
March 31, 2020.
This expanded phase builds on both an $11 million letter of
intent and a $35 million contract previously announced and brings
total anticipated LED lighting installation revenue from the
customer to $110 million. The project includes the installation of
LED lighting fixtures along with state-of-the-art Internet of
Things (IoT) control integration, to deliver enhanced functionality
and data gathering capabilities designed to help facility managers
enhance operating performance.
Orion’s selection was again based on its proven ability to
design, develop and install customized, highly energy-efficient,
U.S.-manufactured LED lighting solutions on a turnkey basis.
Contract services include initial energy audits, project
engineering, custom fixture design, fixture manufacturing, IoT
enabled control systems, IoT system commissioning and full project
management through installation at customer locations
nationwide.
Orion CEO, Mike Altschaefl, commented, “It is gratifying that
Orion’s performance with this customer provided it with the
confidence to substantially expand our role in their nationwide LED
lighting retrofit plans. Teamwork, experience, innovation and
Orion’s industry leading commitment to customer service are key
factors underlying our ability to successfully execute such large
retrofit projects. We look forward to the successful completion of
these installations and are optimistic regarding the potential to
secure additional projects with this customer.
“Our years of experience at successfully completing similar
national projects uniquely qualifies Orion as a leader in large
scale energy efficient lighting and smart building retrofits. We
continue moving forward to build and expand on the success of our
national account base for their lighting retrofit and smart
building technology integration projects. I thank the entire
Orion team for their dedication to this effort.”
About Orion Energy Systems 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
and controls that deliver significant energy efficiency as well as
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 are "forward-looking statements" intended to
qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995, including
specifically the revenue expectations with respect to the new
contract and Orion's fiscal 2020 revenue growth expectations. 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 2020
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
Investor Relations
Contacts: |
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Bill Hull, CFO |
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William Jones; Tanya Kamatu |
Orion Energy Systems, Inc. |
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Catalyst Global |
(312) 660-3575 |
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(212) 924-9800 |
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oesx@catalyst-ir.com |
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