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Strong Rebound in Turnkey LED Lighting Retrofit Activity from National Accounts Improves Orion Energy’s Outlook; Orion Reports Q2 Net Income of $1.9M, or $0.06 Per Share, on Revenue of $26.3M; Investor Call Today at 10am ET
MANITOWOC, Wis., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), is a provider of LED lighting systems and
About this update from Orion Energy Systems, Inc.
[{"type":"text","content":"MANITOWOC, Wis., Nov. 05, 2020 (GLOBE NEWSWIRE) -- Orion Energy Systems, Inc. (NASDAQ: OESX) (Orion Lighting), is a provider of LED lighting systems and turnkey project implementation including installation and commissioning of fixtures, controls and IoT systems, as well as ongoing system maintenance and program management, helping customers to enhance the efficiency of their business while reducing their carbon footprint. Today, Orion reported results for its FY 2021 second quarter ended September 30, 2020 (Q2’21). Orion will hold an investor call today at 10:00 a.m. ET (9:00 a.m. CT) – details below.\n Highlights Q2’21 revenue grew sequentially to $26.3M from $10.8M in Q1’21, reflecting substantial major account activity, and was below Q2’20 record revenue of $48.3M. The variance with last year relates principally to the impact of COVID-19. Starting in March 2020, customers had suspended existing projects and delayed new projects, however activity began to reinvigorate in August 2020.Previously delayed turnkey installations for a major national account resumed in early August. Based on approximately $41M in recent contract extensions, Orion now expects this customer to contribute at least $56M in product and service revenue in FY 2021.Q2’21 gross profit percentage improved to 27.6% versus 24.4% in Q1’21, driven by higher sequential revenue, and 26.5% in Q2’20 despite significantly lower revenue, primarily due to new product introductions, product mix, proactive sourcing and cost management efforts.Q2’21 operating expenses increased 15.3% to $5.4M versus $4.7M in Q1’21and decreased 8.8% versus $5.9M in Q2’20, reflecting sales commissions on relative revenue and the benefit of cost reductions at the outset of the pandemic, partially offset by initial investments to support the rebound in customer activity and improved business outlook.Orion ended the quarter with $27.4M in working capital, including cash of $12.1M, and had $7.9M outstanding on its revolving credit facility.Reflecting a ramp-up in project activity from new and existing customers and barring any significant COVID-19 business impacts, Orion now anticipates both Q3’21 and Q4’21revenue of at least $40M in each quarter and expects to achieve financial results in FY 2022 that should at least match those delivered in FY 2020. Q2 Financial Highlights Prior Three Quarters...