Energy Focus (EFOI) Reports Q1 Loss of $0.45, Revenues Miss

Energy Focus (NASDAQ: EFOI) reported Q1 EPS of ($0.45), versus ($0.18) reported last year. Revenue for the quarter came in at $2.6 million versus the consensus estimate of $3.75 million.

First Quarter 2021 and Subsequent Business Highlights:

• Net sales of $2.6 million, down 30.3% compared to the first quarter of 2020 and down 29.6% sequentially from the fourth quarter of 2020, reflecting fluctuations in timing of military orders and funding, and continued COVID-19-related challenges in the commercial sector
• Loss from operations of $2.3 million, compared to a loss from operations of $1.3 million in the first quarter of 2020 and sequentially to a loss from operations of $0.9 million in the fourth quarter of 2020
• Net loss of $1.6 million, or $(0.45) per basic and diluted share of common stock, compared to a net loss of $0.5 million, or $(0.18) per basic and diluted share of common stock, in the first quarter of 2020. Sequentially, the net loss increased by $1.7 million compared to net income of $0.1 million, or $0.01 per basic and diluted share of common stock, inclusive of a $1.2 million non-cash gain from the change in fair value of outstanding warrants, in the fourth quarter of 2020
• $0.8 million Paycheck Protection Program loan was forgiven in February 2021
• Cash of $0.5 million as of March 31, 2021, compared to $1.8 million as of December 31, 2020. Subsequent to the end of the quarter, the Company increased its inventory-based line of credit by $0.5 million and secured a net $1.5 million bridge loan, increasing overall liquidity

“On top of fluctuations in the timing of military orders and funding, first quarter results reflect the full impact of the pandemic on our commercial business as enterprise facilities remained well under-occupied and lighting retrofit budgets remained highly constrained during the quarter,” stated James Tu, Chairman and CEO of Energy Focus, Inc. “That said, over the past few weeks, we have begun to see initial signs of increasing project activities in the commercial sector, as retrofit budgets begin to loosen due to economy reopening in some parts of the country. Barring significant and unexpected delays in logistics or component delivery lead times, we are cautiously optimistic that the worst from the pandemic is now behind us, and we expect sequential top and bottom-line improvements in the second quarter and beyond.”

“Despite the past year’s unprecedented challenges in the lighting and retrofit industry, we are more excited than ever about the Company’s long-term prospects,” continued Mr. Tu. “Over the past year, we continued to invest in expanding our EnFocusTM lighting control platform technologies, and we developed a comprehensive UV-C disinfection (UVCD) product portfolio that leverages our extensive know-how in lighting, as well as advanced technologies from our engineering development partners. We plan to launch next generation, award-winning EnFocusTM products with occupancy sensing and autonomous circadian lighting for both commercial and residential applications in the second half of the year. Meanwhile, we just launched our pilot mUVeCrewTM robotic disinfection services in the Cleveland area, and expect our nUVoTM air disinfection devices to be available in the third quarter, including nUVoTM Tower, a powerful disinfection device for large rooms and nUVoTM Traveler, a tumbler-sized portable UV-C disinfection device that is ideal for automobiles and other personal spaces, as well as our abUVTM modular UV-C disinfection and human-centric lighting fixture. We continue to expand our agency distribution and channel partner networks to market and distribute our LED lighting and upcoming UVCD products. As the economy starts to reopen more broadly and our new products enter the markets in the coming months, we look forward to helping businesses and homes elevate safety, health and sustainability performances through our advanced and impactful human-centric lighting products.”

For earnings history and earnings-related data on Energy Focus (EFOI) click here.

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