Orion Energy Systems (OESX) Misses Q4 EPS by 10c, Beats on Revenues

Orion Energy Systems (NASDAQ: OESX) reported Q4 EPS of ($0.26), $0.10 worse than the analyst estimate of ($0.16). Revenue for the quarter came in at $15.29 million versus the consensus estimate of $15.18 million.

Fiscal 2018 Outlook

Given recent demand fluctuations in the market for retrofit LED lighting and limited visibility on near-term demand trends, management is not providing specific financial guidance for fiscal 2018 at this time. However, management is providing a directional outlook and goals for 2018 as follows. Orion expects the continued execution of its agent-driven sales strategy should enable it to achieve a revenue growth goal of 10-15% for full year FY 2018.

Further, based on this targeted revenue growth goal and the implementation of its cost reduction initiatives, Orion believes it can reach its goals of achieving a 30% gross profit margin and breakeven on an earnings before interest, taxes, depreciation and amortization (EBITDA) basis, by its fiscal 2018 fourth quarter, before non-recurring items. As noted above, Orion expects to record a non-recurring charge of $1.5 - $2.0 million, principally in Q1 FY 2018, related to its cost cutting initiatives.

Orion cautions investors that these are full fiscal year goals and targets, and that Orion’s quarterly and full fiscal year performance could vary materially from these targets. Orion will revisit its FY 2018 directional outlook and financial goals on each quarterly earnings call and update them as appropriate.

Fiscal 2017 Financial Highlights

• Revenue rose 4% to $70.2M;
• Gross margin expanded 110 basis points to 24.7% versus 23.6% in FY 2016;
• Net loss was $12.3M in FY 2017 compared to $20.1M in FY 2016;
• Cash and cash equivalents were $17.3M at fiscal 2017 year-end; and
• Year-end order backlog rose to $7.3M at FY 2017 year-end versus $5.6M in FY 2016 year-end.

For earnings history and earnings-related data on Orion Energy Systems (OESX) click here.

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