MANITOWOC, Wisc. — Orion Energy Systems, Inc. (Orion Lighting) announced that it preliminarily expects revenue of approximately $30.5M for its FY 2022 third quarter ended December 31, 2021. Due to customer delays on several larger LED lighting and controls projects, primarily caused by the response of customers to supply chain disruptions and COVID-19 related impacts to their businesses, Orion now anticipates FY 2022 revenue of approximately $130M, as compared to its prior expectation of at least $150M. Orion’s updated FY 2022 revenue outlook represents growth of approximately 11% over FY 2021 revenue of $116.8M.
Mike Altschaefl, Orion’s CEO and Board Chair, commented, “Specific project delays driving our revised FY 2022 revenue outlook include a major automotive customer that has postponed approximately $7M in expected FY 2022 project activity, principally due to the impact of component shortages in their operations; a major online retailer that has temporarily halted new facility construction projects due to shortages and delays in obtaining key construction materials and equipment, impacting roughly $5M in expected FY 2022 project activity; the delay of a government-related turnkey LED retrofit project of approximately $7M; and slower than expected activity with our two large national logistics customers. Importantly, Orion has not lost any of these customers or projects and ongoing customer dialogues suggest that the bulk of these projects will likely proceed as these customers overcome supply-chain and COVID-19 related challenges.
“Business with our largest customer, a major national retailer, remains strong, and we continue to identify new opportunities. In addition, based on progress we are making in our maintenance business with our major national retail customer and other customers, combined with the expanded scope and capabilities of the Stay-Lite Lighting business, we have formed a solid nationwide lighting and electrical maintenance service platform that should generate annual recurring revenue in excess of $20 million in FY 2023.
“Our Board and management team remain committed to and confident in achieving the Company’s long-term strategic plan which seeks to grow the business, via organic and inorganic initiatives, into a company with $500M in annual revenue over approximately five years. Orion’s strategic plan envisions organic growth averaging at least 10% per year, augmented by external growth, including strategic acquisitions, business partnerships and other initiatives.
“Orion remains well-funded to support our strategic growth plan with a quarter-end cash position of approximately $17M and availability of approximately $24M under our credit facility after funding the Stay-Lite acquisition.”
Orion will provide more perspective on its fiscal 2022 Q3 quarter and the Company’s fiscal 2022 outlook with the release of its final third quarter financial results and regular quarterly call, currently planned for February 9th.
Orion cautions investors that its business outlook is subject to a range of factors that are difficult to predict, including but not limited to supply chain disruptions, shipping and logistics issues, component availability, rising input costs, labor supply challenges, the COVID-19 pandemic, and other potential business and economic impacts.
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