Energy Focus, Inc. Reports Third Quarter 2016 Results

SOLON, Ohio, Nov. 14, 2016 (GLOBE NEWSWIRE) -- Energy Focus, Inc. (NASDAQ:EFOI), a leader in LED lighting technologies, today announced financial results for the third quarter ended September 30, 2016.

Third Quarter 2016 Financial Highlights:
  • Net sales of $8.3 million, consisting of $3.6 million in commercial and $4.7 million in military sales, compared to $18.3 million in the prior year's period, principally consisting of $3.3 million in commercial and $14.9 million in military sales
  • Gross margin was 37.3%, compared with 49.8% in the prior year's quarter, due to an expected shift in product mix that was more heavily weighted in commercial products sales
  • Net loss of $3.2 million, or $(0.27) per diluted share, compared to net income of $4.3 million, or $0.40 per diluted share in the third quarter last year
  • Cash balance of $19.6 million at the end of the quarter with no debt

Third Quarter 2016 Operational Highlights:
  • Military and Maritime: U.S. Navy qualified Energy Focus fixtures for use in new ship construction, making Energy Focus the first new lighting fixture supplier to the Navy for new construction in 70 years
  • Public Sector: Retrofitted 7 school districts, and received orders from 12 federal, municipal or state institutions
  • Healthcare: Continued shipping to the leading healthcare client in Northeast Ohio and received initial order commitments from a leading global, nonprofit medical research and healthcare institution based in Minnesota
  • Commercial & Industrial: Received additional order commitments for facility retrofits of one of the world's largest tire manufacturers
  • Higher and Private Education: Continued product shipments to five colleges and universities
  • Released 3 new products, including our new 500 D Series product line offering 150 lumens per watt efficiency and dimmable capability, which received second place in the "Call for Innovation" competition held by the Department of Energy's Federal Energy Management Program (FEMP)
  • Rick Fedrizzi, founder and former CEO of U.S. Green Building Council, joined Energy Focus Advisory Board

"As indicated in our press release on November 3, we delayed the release of our third quarter earnings report in order to have ample time to fully evaluate and quantify the impact of reported, abnormal failures of the Company's commercial Intellitube® products," said James Tu, Chief Executive Officer and President of Energy Focus, Inc. "The failures did not involve any health or safety matters and appear to be limited to very specific situations in which the product had been installed in a certain manner or with certain ballasts.  I'm pleased to report that with encouraging ingenuity and teamwork among our engineering, production and finance departments, in a short order we were able to identify the root cause, develop corresponding remedies and determine a course of action under our standard warranty policy and warranty reserve at September 30, 2016 and that the impact, at less than 1% of our third quarter sales, was not material to our current quarter results. In addition, we do not expect any significant, lingering technology or quality ramifications going forward associated with this issue."

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