MANITOWOC, Wis., Jan. 18, 2024 (GLOBE NEWSWIRE) — Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), a provider of energy-efficient LED lighting, electric vehicle (EV) charging station solutions, and maintenance services, in anticipation of upcoming investor conferences and sessions, today announced preliminary revenue results for its fiscal 2024 third quarter (Q3’24) ended December 31, 2023 and updated its anticipated revenue outlook for the full fiscal 2024 year ending March 31, 2024. Orion expects to report final Q3’24 financial results on Wednesday, February 7, 2024 and to hold an investor call that day at 10:00 a.m. ET. In addition, management plans to discuss its Q3’24 preliminary results at the Sidoti Microcap Conference on January 18.
Orion’s preliminary results described in the press release are subject to adjustment and finalization based on Orion’s quarterly reporting period closing procedures and the related review procedures conducted by its independent auditors.
| Q3 Snapshot | Prior Three Quarters | ||||||
| $ in millions except per share figures |
Q3’24 Estimated* |
Q3’23 | Estimated Change | Q2’24 | Q1’24 | Q4’23 | |
| LED Lighting Revenue | $18.6 | $14.2 | +$4.4 | $13.6 | $12.6 | $14.5 | |
| Maintenance Revenue | $4.6 | $3.3 | +$1.3 | $3.6 | $3.8 | $3.7 | |
| EV Charging Revenue | $2.8 | $2.8 | $0.0 | $3.4 | $1.2 | $3.4 | |
| Total Revenue | $26.0 | $20.3 | +28% | $20.6 | $17.6 | $21.6 | |
*Based on mid-point of revenue range
Revenue Highlights
Orion reported a preliminary Q3’24 revenue range of $25.8M to $26.2M, an approximate increase of 28%, compared to Q3’23 revenue of $20.3M. Based on the mid-point of the revenue range, preliminary Q3’24 revenues were comprised as follows:
- LED Lighting revenue increased to approximately $18.6M in Q3’24 vs. $14.2M in Q3’23 and $13.6M in Q2’24, driven by anticipated growth in contract activity for larger customers that is expected to continue for the balance of FY 2024 and into FY 2025. Larger projects include approximately $6.5M in remaining revenue from a European retrofit project for the U.S. Department of Defense, an ongoing external lighting project for Orion’s largest customer, and an ongoing national LED lighting project for a global warehouse/logistics customer.
- EV charging solutions revenue was approximately $2.8M in Q3’24 vs. $3.4M in Q2’24 and $2.8M in the year ago quarter. The Voltrek business has substantially expanded and enhanced its team and geographic reach and is seeing steady growth in its project pipeline as well as new project quoting activity.
- Maintenance services revenue rose to approximately $4.6M in Q3’24 compared to $3.6M in Q2’24 and $3.6M in Q3’23, principally benefitting from a 3-year agreement to provide preventative lighting maintenance services for a customer’s approximately 2,000 retail locations nationwide. Orion continues to focus on the profitability of remaining legacy contracts.
- Orion closed Q3’24 with approximately $17.5M of financial liquidity, comprised of approximately $5.0M of cash and cash equivalents and approximately $12.5M net availability on its credit facility. This is an improvement from Q2’24, when Orion had approximately $12.9M of liquidity, including $4.0M of cash and cash equivalents and $8.9M of net availability on its credit facility.
Orion CEO Mike Jenkins commented, “As anticipated, our LED lighting operations have been ramping to address a growing base of larger client projects and our EV charging business continues to gain traction in building its project pipeline, however its quarter-to-quarter results were impacted by the timing of larger projects. Our Q3’24 results reflected additional customer-related delays on our European LED lighting project, however we expect to complete the vast majority of the work during our fourth quarter. As an outcome of some project delays, we have updated our full year guidance to a range of $90M to $95M – growth of 16-23%, from an earlier expectation of growth to at least $100M.
“Finally, because we are confident about the long-term potential for our business, we are investing time to get out and meet with investors. We hope to speak with you at upcoming events including the Sidoti Microcap Conference today, a non-deal roadshow in late January, or the LD Micro Invitational in New York City on April 8th & 9th.”
Business Outlook
- Orion now expects FY 2024 revenue growth between 16% and 23% to a range of approximately $90M to $95M. This updated outlook implies Q4’24 revenue in the range of $26M to $31M compared to $21.6M in Q4’23.
- Growth over the balance of FY 2024 is largely expected from large national account LED lighting projects including the large DoD European retrofit project, an external lighting project for Orion’s largest customer, and projects for a large warehouse/logistics sector customer. Additionally, Orion expects growth in EV charging solutions driven by its current project pipeline. Maintenance services are expected to decrease slightly over the balance of FY 2024, reflecting the impact of new pricing on certain legacy customer renewal discussions.
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