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Tag: OESX

  • Orion Energy Systems Inc. (OESX) Plunges Deep Pre-Market on Q3’22 Revenue Expectations & Reduced FY2022 Outlook

    Orion Energy Systems Inc. (OESX) Plunges Deep Pre-Market on Q3’22 Revenue Expectations & Reduced FY2022 Outlook

    On January 18, Orion Energy Systems Inc. (OESX) shared preliminary expectations of its Q3 FY2022 revenue. Additionally, the company also reduced its FY2022 revenue outlook. Consequently, the stock plunged deep in the pre-market.

    In the regular session, OESX stock decreased by 5.90% at its closing price of $3.99. Following the announcement, the stock lost a further 9.77% to reach $3.60 in the pre-market.

    The Lighting systems and retrofit lighting solutions provider, Orion Energy Systems Inc. has a market capitalization of $131.75 million. Currently, the company has 31.07 million shares outstanding in the market.

    OESX Revenue Expectations and Outlook

    As per Tuesday’s announcement, the company disclosed its expected revenue for Q3 as well as revised its FY2022 outlook.

    OESX’s third quarter of fiscal 2022 ended on December 31, 2021. For the Q3 FY2022, the company expects revenue of $30.5 million approx., preliminarily.

    Moreover, the company reduced its full fiscal 2022 revenue outlook to $130 million, against the previous $150 million. This represents an increase of 11% year over year. Furthermore, the reason for reducing the outlook is customer delays on some large projects. The delays were due to customer response to supply chain disruptions and the impact of Covid-19 on their businesses.

    According to OESX’s CEO and Board Chair, Mike Altschaefl, the company has not lost the delayed projects and will hopefully continue with them as the customers overcome the challenges.

    In addition, the company plans to host its third-quarter fiscal 2022 call on February 9, 2022. Along with the Q3 financial results, the company will also provide further details on the quarter and its fiscal 2022 outlook.

    Stay-Lite Lighting’s Acquisition

    On January 05, the company announced the acquisition of Stay-Lite Lighting. Stay-Lite Lighting is a lighting and electrical maintenance service provider nationwide. Stay-Lite is an active member of the International Association of Lighting Management Companies. It provides self-performing services like indoor and outdoor lighting repairs, sign repairs and manufacturer warranty support, etc. Further, the annual revenues of Stay-Lite are $9 million approx.

    As per the details, Bridgewood Advisors and Taureau Group acted as advisors to Orion and Stay-Lite, respectively, for the acquisition.

    According to Mr. Altschaefl, this acquisition has added high-profile retail customers and self-performing capabilities (15 states) to OESX’s portfolio along with a network of service coverage (nationwide).

    Following the acquisition, Stay-Lite Lighting will operate as an Orion Energy Systems business, Stay-Lite.

  • Orion Energy Systems, Inc. (OESX) Stock Relatively Stable After Disclosure of Promising Q4 2021 Financial Reports

    Orion Energy Systems, Inc. (OESX) stock prices were down by a marginal 0.52% as of the market closing on June 24th, 2021, bringing the price per share down to USD$5.74. Subsequent pre-market fluctuations have seen the stock climb by 0.17%, bringing it up to USD$5.75.

    Quarterly Revenue Reports

    Revenues for the fourth quarter of the fiscal year 2021 were reported at USD$35.5 million, up 37% from the USD$25.9 million reported in the prior year quarter. This difference is largely attributable to strong national retrofit activity as the vicegrip of the pandemic loosened relatively over the course of the fiscal year. The 2021 quarter was also bolstered by several sizeable national retrofit projects, some of which were for a specialty retailer, as well as a significant national retail customer.

    Yearly Revenue Reports

    Revenue for the full fiscal year 2021 came in at USD$116.8, down from USD$150.8 million in the prior fiscal year. This difference is primarily driven by stoppages arising from the onset of the global coronavirus pandemic, as well as projects being delayed earlier in the fiscal year.

    Operating Expenses

    The last quarter of fiscal 2021 reported operating expenses in the amount of 18.8% of sales, down from the 23.7% reported in the fourth quarter of fiscal 2020. This difference is largely the result of fixed cost absorption from higher business volume in the 2021 quarter. Operating expenses for the full fiscal year 2021 were USD$23.3 million, marginally down from the USD$24 million reported for fiscal 2020. Despite this, operating expenses as a percentage of sales improved year-over-year from 19.9% to 15.9%, reflecting the difference in business volume.

    Cash from Operating Activities

    USD$7.4 million were generated in cash from operating activities over the course of the last quarter of fiscal 2021. This is a significant improvement on the USD$6.1 million reported in the year-ago quarter. The difference is primarily driven by higher net income and favorable working capital changes. The full fiscal year 2021 saw the company generate USD$1.7 million in cash from operating activities, down from the USD$20.3 million reported for the fiscal year 2020. This massive difference is explained by a lower net income as well as the effects of working capital investments.

    Future Outlook for OESX

    Armed with the strength of its most recent financial reports marking the end of fiscal 2021, the company is poised to capitalize on the opportunities afforded to it. OESX is keen to continue its trajectory of success well into the upcoming fiscal year. Current and potential investors are hopeful that management will continue to leverage the resources at their disposal to facilitate significant and sustained increases in shareholder value.