Orion Energy Systems, Inc. Reports Record Results for Fiscal Year Ended March 31, 2008
PLYMOUTH, Wis., May 14, 2008 (PrimeNewswire via COMTEX News Network) -- Orion Energy Systems, Inc. (Nasdaq:OESX), a leading provider of energy management systems to the commercial and industrial sectors, today announced financial results for the fourth quarter and fiscal year ended March 31, 2008.
Orion ended its fiscal year with record results, with revenues increasing 67% to $80.7 million versus $48.2 million in fiscal 2007. Net income increased by $3.5 million to $4.4 million compared to $929,000 in fiscal 2007. Earnings per diluted share were $0.19 versus $0.05 in fiscal 2007, an increase of 280%.
"The demand for Orion's end-use energy efficiency solutions is clearly reflected in our strong top-line growth during fiscal 2008. While we have made great strides in the last year, we have significant runway for continued improvements through solid sales execution and increased operational efficiencies," commented Neal Verfuerth, CEO of Orion Energy Systems. "Heading into fiscal 2009, we believe that our leading technology, proven return on investment, and track record of performance by our sales and implementation team position us to achieve our 50% annual revenue growth target."
Fiscal 2008 Fourth Quarter Results
Revenue. Total revenue for the fourth quarter of fiscal 2008 increased 55% to $22.3 million versus $14.3 million for the fiscal 2007 fourth quarter.
Gross Profit. Gross profit for the fourth quarter of fiscal 2008 increased 72.9% to $8.0 million compared to $4.7 million for the fiscal 2007 fourth quarter.
Operating Expenses. Total operating expenses for the fiscal 2008 fourth quarter were $6.5 million compared to $4.1 million for the fiscal 2007 fourth quarter.
Income from Operations. Operating income increased 190% to $1.6 million for the fiscal 2008 fourth quarter versus $0.5 million for the fiscal 2007 fourth quarter.
Net Income. Net income was $1.5 million for the fiscal 2008 fourth quarter compared to $0.4 million for the fiscal 2007 fourth quarter. Earnings per diluted share were $0.05 for the fiscal 2008 fourth quarter versus $0.01 for the fiscal 2007 fourth quarter.
Fiscal 2008 Year-End Results
Revenue. Total revenue for fiscal 2008 increased 67% to $80.7 million compared to $48.2 million for the year ended March 31, 2007.
Gross Profit. Fiscal 2008 gross profit was $28.2 million, an increase of 79.8% compared to $15.7 million for the year ended March 31, 2007. Gross profit margins increased to 35.0% from 32.6% in fiscal 2007.
Operating Expenses. Total operating expenses were $20.9 million for fiscal 2008 versus $13.7 for the year ended March 31, 2007. Operating expenses increased 52% year over year.
Income from Operations. Income from operations for fiscal 2008 increased 269% to $7.4 million compared to $2.0 million for the year ended March 31, 2007.
Net Income. Net income increased 375% to $4.4 million for fiscal 2008 compared to $0.9 million for fiscal 2007. Earnings per diluted share for fiscal 2008 were $0.19, which favorably compared to $0.05 for the year ended March 31, 2007.
Cash. As of March 31, 2008, Orion had cash and cash equivalents totaling $78.3 million, an increase of $78.0 million since March 31, 2007, primarily due to Orion's initial public offering in December 2007.
Business Highlights
* Deployed energy management systems in 957 facilities in fiscal
2008, bringing Orion's installed base to 3,655 facilities.
* Further improved the efficiency and effectiveness of Orion's
sales force through deployment of advanced technologies and
innovative sales management processes.
* Increased the ratio of revenue per salesperson to $1.7 million in
fiscal 2008 from $1.1 million in fiscal 2007, while concurrently
reducing sales and marketing expense as a percentage of revenue
to 10.9% in fiscal 2008 from 13.4% in fiscal 2007.
* Launched grass roots marketing campaign aimed at building out our
wholesale channel network.
* Completed manufacturing plant upgrades and reconfiguration, which
will support a significant increase in Orion's revenue run rate
with modest additional capital expenditures.
* New customer additions in fiscal 2008 resulted in $34 million in
annual saved energy costs and an annual reduction in indirect CO2
emissions from energy savings by 306,000 tons. Since December
2001, the Company has benefited its customers and the environment
as follows:
Cumulative From
December 1, 2001
Through
March 31, 2008
------------------------------------------------------------
High intensity fluorescent (HIF)
systems sold 1,133,000
------------------------------------------------------------
Total units sold (including HIF) 1,465,000
------------------------------------------------------------
Customer kilowatt demand reduction 334,000
------------------------------------------------------------
Customer kilowatt hours saved 4,563,331,000
------------------------------------------------------------
Customer electricity costs saved $ 351,376,000
------------------------------------------------------------
Indirect carbon dioxide emission
reductions from customers' energy
savings (tons) 4,449,000
------------------------------------------------------------
Square footage retrofitted 586,763,000
------------------------------------------------------------
Conference Call
Orion will host a conference call on Wednesday, May 14, at 5:30 p.m. Eastern (4:30 p.m. Central/2:30 p.m. Pacific) to discuss details regarding its fiscal 2008 fourth quarter and year-end performance. Domestic callers may access the earnings conference call by dialing 877-681-3374 (International callers, dial 719-325-4943). 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 scheduled webcast.
Orion Energy Systems, Inc. (Nasdaq:OESX) is a leading power technology enterprise that designs, manufactures and implements 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.
The Orion Energy Systems, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4540
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) Orion's ability to compete in a highly competitive market and its ability to respond successfully to market competition; (ii) the market acceptance of Orion's products and services; (iii) price fluctuations, shortages or interruptions of component supplies and raw materials used to manufacture Orion's products; (iv) loss of one or more key customers or suppliers; (v) a reduction in the price of electricity; (vi) the cost to comply with, and the effects of, any current and future government regulations, laws and policies; (vii) increased competition from government subsidiaries and utility incentive programs; (viii) dependence on customers' capital budgets for sales of products and services; (ix) Orion's ability to effectively manage its anticipated growth; and (x) 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 Months and Fiscal Years ended March 31, 2007 and 2008
(unaudited)
Three months ended Fiscal year ended
March 31, March 31,
------------------------ ------------------------
2007 2008 2007 2008
----------- ----------- ----------- -----------
Revenue $ 14,309 $ 22,250 $ 48,183 $ 80,687
Cost of revenue 9,654 14,203 32,487 52,462
----------- ----------- ----------- -----------
Gross profit 4,655 8,047 15,696 28,225
Operating
expenses:
General and
administrative 1,943 3,434 6,162 10,200
Sales and
marketing 1,782 2,523 6,459 8,832
Research and
development 381 498 1,078 1,832
----------- ----------- ----------- -----------
Total
operating
expenses 4,106 6,455 13,699 20,864
----------- ----------- ----------- -----------
Income from
operations 549 1,592 1,997 7,361
Other income
(expense):
Interest expense (270) (118) (1,044) (1,390)
Dividend and
interest income 173 709 201 1,189
----------- ----------- ----------- -----------
Total other
income
(expense) (97) 591 (843) (201)
----------- ----------- ----------- -----------
Income before
income tax 452 2,183 1,154 7,160
Income tax
expense 88 727 225 2,750
----------- ----------- ----------- -----------
Net income 364 1,456 929 4,410
Accretion of
redeemable
preferred stock
and preferred
stock dividends (76) -- (201) (225)
Conversion of
preferred stock (83) -- (83) --
Participation
rights of
preferred stock
in undistributed
earnings (71) -- (205) (775)
----------- ----------- ----------- -----------
Net income
attributable
to common
shareholders $ 134 $ 1,456 $ 440 $ 3,410
=========== =========== =========== ===========
Basic net income
per share
attributable to
common
shareholders $ 0.01 $ 0.05 $ 0.05 $ 0.22
Weighted-average
common shares
outstanding 9,247,666 26,952,215 9,080,461 15,548,189
Diluted net
income per share
attributable to
common
shareholders $ 0.01 $ 0.05 $ 0.05 $ 0.19
Weighted-average
common shares
and share
equivalents
outstanding 16,997,070 30,070,210 16,432,647 23,453,803
Supplemental
information:
FAS 123R
compensation
expense
Cost of
revenue $ 13 $ 54 $ 24 $ 122
General and
administrative 69 287 154 852
Sales and
marketing 77 108 153 375
Research and
development 19 13 32 42
----------- ----------- ----------- -----------
Total $ 178 $ 462 $ 363 $ 1,391
=========== =========== =========== ===========
Cash incentive
compensation
related to
completion
of initial
public
offering
included in
general and
administrative
expenses $ -- $ -- $ -- $ 742
Condensed Consolidated Balance Sheets
As of March 31, 2007 and March 31, 2008 (unaudited)
March 31, March 31,
2007 2008
--------- ---------
Cash and cash equivalents $ 285 $ 78,312
Current assets 22,619 116,896
Property and equipment, net 7,588 11,539
Total assets 33,583 130,072
Current liabilities 8,539 12,606
Long term debt 10,603 4,473
Total temporary equity and
shareholders' equity 14,308 113,190
Condensed Consolidated Statements of Cash Flows
For the fiscal years ended March 31, 2007 and 2008
(unaudited)
Fiscal year ended
March 31,
----------------------
2007 2008
--------- ---------
Cash used in operating activities $ (6,234) $ (1,362)
Cash used in investing activities (969) (7,437)
Cash provided by financing activities 6,399 86,826
Net increase (decrease) in cash and
cash equivalents (804) 78,027
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SOURCE: Orion Energy Systems, Inc.
Orion Energy Systems, Inc.
Erik G. Birkerts, VP Strategy & Corporate Communications
(920) 482-1924
FD Ashton Partners
Victoria Paris
(312) 553-6715
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