Wed, Jun 12, 8:10 PM (87 days ago)
Orion Energy Systems, Inc. reported a significant improvement in financial performance for the fiscal year ended March 31, 2024, with revenues increasing by 17.1% to $90.6 million, driven by a 10.7% rise in product revenue and a 35.2% surge in service revenue. This growth was primarily attributed to a significant government retrofit project in the Lighting segment and increased revenues in the EV segment. Gross profit improved to $20.9 million, reflecting a gross margin of 23.1%, up from 22.6% in the previous year. However, the company posted a net loss of $11.7 million, a notable improvement from the $34.3 million loss in fiscal 2023. The reduction in the net loss was influenced by a decrease in general and administrative expenses by 14.1% and a significant reduction in acquisition-related costs. Operating expenses overall were down by 5.3%. Despite these improvements, the company faced challenges with increased costs in the Maintenance segment and higher interest expenses. Looking forward, Orion aims to focus on executing and marketing turnkey LED retrofit capabilities, continuing product innovation, leveraging smart lighting systems for IoT applications, and expanding its EV charging business. The company also plans to enhance profitability within its maintenance service offerings and support its ESCO and agent-driven distribution sales channels. Orion's liquidity position includes $5.2 million in cash and cash equivalents and $10.0 million drawn against a $25.0 million revolving credit facility. The company also secured a $3.5 million term loan in April 2024 to support its financial flexibility.