Orion Sees Profit Double; Sales Boosted By Demand for Energy- Efficient Lights
By THOMAS CONTENT
Demand for energy-efficient lights by Fortune 500 companies such as Miller Brewing and Big Lots helped sales jump 72% in the fiscal third quarter for Orion Energy Systems Inc. of Plymouth.
The company, which went public in December, said its profit doubled to $1.15 million from $560,000 in the quarter, with earnings per share rising to 5 cents from 3 cents.
The boost came even as the company reported $729,000 in costs linked to the public offering.
Seeking to take advantage of investor interest in environmental and clean-energy technologies, Orion went public in an offering that raised $78.6 million.
Orion sells energy-efficient lighting systems that help reduce energy costs at manufacturing plants, warehouses and stores. The company has 90 customers among companies that are members of the Fortune 500.
During a conference call with investment analysts, Neal Verfuerth, chief executive, said Orion is rolling out new products including one that enables companies to use a wireless device to reduce the power output of their lighting during peak periods of energy demand.
A New Jersey utility may fund the use of Orion’s technology by all of that utility’s manufacturing customers, Chief Financial Officer Daniel Waibel said. A ruling by New Jersey utility regulators is expected soon on that issue.
“Our products are must-haves versus nice-to-haves, as we help customers save money,” Verfuerth said.
But analysts on the conference call questioned why the company’s sales may slow in the current quarter. Though sales are up 72% through nine months, the company is forecasting 62% sales growth for the full fiscal year that ends March 31.
Verfuerth defended the company’s sales pace, saying he’s proud that the company is able to “continue to develop technology while growing at more than 60% and grow the bottom line at the same time.”
Before the earnings were announced, Orion’s shares closed Wednesday at $14.90, up 22 cents. Since going public at $13, the shares have swung from a high of $22.46 to a low of $12.57.
Orion Energy Systems Inc.
3rd quarter %
12/31 2007 2006 change
Sales $23.3 $13.6 +71.9
Net income 1.15 0.56 +105.9
EPS (diluted) 0.05 0.03 +66.7
9 months
Sales $58.4 $33.9 +72.5
Net income 2.96 0.57 +423.0
EPS (diluted) 0.15 0.03 +400.0
Figures in millions except for earnings per share. Percentages are based on unrounded sales and income figures.
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