Orion Energy Systems, Inc. (NYSE MKT: OESX) (“Orion” or the “Company”), a leading power technology enterprise, today announced financial results for its fiscal 2014 third quarter ended December 31, 2013.
“The third quarter was one in which we continued to focus on market development, cash flow generation, and earnings growth,” said John Scribante, Chief Executive Officer of Orion Energy Systems. “While revenue in the period was slightly impacted by the government shutdown and some end-of-year order slippage, as well as declining revenue from our large solar project, we saw signs of strengthening LED demand going forward. Orion’s value proposition has resulted in traction across several new national accounts including a leading financial services firm, an international food conglomerate, a major automotive OEM and a North American-based retail food chain. Overall, the retrofit market continues to show attractive industry trends that we expect to support top line growth both this year and next.
“The integration of Harris is complete, and all manufacturing operations have been moved to Manitowoc. With this behind us, we will pursue additional synergies and operational efficiencies while focusing on our expanded LDR product line - which we anticipate should help drive earnings growth in the quarters to come. We are also looking for strategic acquisition opportunities to enhance our revenue and earnings growth, strengthen our market leadership position and bolster our LED product portfolio. We remain dedicated to increasing shareholder returns, and we will accomplish this by building on our technology, our people, and expanding our reputation in the energy management industry.”
Third Quarter of Fiscal 2014
For the fiscal 2014 third quarter ended December 31, 2013, the Company reported revenue of $27.7 million compared to $29.1 million for the third quarter of fiscal 2013. The slight decline in revenue year-over-year reflects the impact of the federal government shutdown and some national account order delays which, in aggregate, amounted to approximately $2 million of lower revenue. Revenue from solar renewable energy projects was $6.8 million for the fiscal 2014 third quarter compared to $9.6 million for the fiscal 2013 third quarter, as the Company continues to deemphasize its focus on solar prospects. The Company reported income from operations of $0.9 million for the third quarter of fiscal 2014, including the impact of $(0.2) million in Harris integration-related expenses, versus $0.6 million for the three months ended December 31, 2012.