Orion Energy Systems Inc (OESX) Q2'24 Revenue Grows 17% to $20.6M
Orion Energy Systems Inc (NASDAQ:OESX) reported a 17% increase in Q2'24 revenue to $20.6M compared to $17.6M in Q2'23.
Despite a net loss of $4.4M, the company maintains a positive outlook, expecting FY 2024 revenue growth of 30% or more to approximately $100M.
Significant growth was seen in the EV charging solutions revenue, which rose to $3.4M in Q2'24 from $1.2M in Q1'24.
The company ended Q2'24 with $12.9M of financial liquidity.
Orion Energy Systems Inc (NASDAQ:OESX), a provider of energy-efficient LED lighting, maintenance services, and electric vehicle (EV) charging station solutions, reported its fiscal 2024 second quarter (Q2'24) results on November 7, 2023. The company saw a 17% increase in revenue, rising to $20.6M from $17.6M in the same quarter of the previous year. Despite a net loss of $4.4M, the company maintains a positive outlook, expecting FY 2024 revenue growth of 30% or more to approximately $100M.
Financial Highlights
Orion Energy Systems Inc (NASDAQ:OESX) reported several financial highlights in its Q2'24 earnings. The company's EV charging solutions revenue rose to $3.4M in Q2'24 from $1.2M in Q1'24. The maintenance services revenue increased by 5% to $3.6M in Q2'24 from $3.4M in Q2'23. LED Lighting revenue also increased to $13.6M in Q2'24 from $12.6M in Q1'24.
Orion CEO Mike Jenkins commented,
Q2 revenue grew 17% both sequentially and year-over-year, reflecting increasing activity across our businesses which should accelerate meaningfully over the balance of FY24."
Business Outlook
Orion Energy Systems Inc (NASDAQ:OESX) continues to expect FY 2024 revenue growth of 30% or more to approximately $100M, with the bulk of the increase occurring in the second half of the year. The company anticipates strengthening in the EV and LED lighting sectors due to increased project activation and equipment sales through partners.
Financial Results
Orions Q224 revenue was $20.6M vs. $17.6M in Q223, mainly reflecting the addition of Voltrek and maintenance revenue growth, partially offset by lower lighting revenues. Gross profit improved to $4.6M, compared to $4.4M in Q223, despite a decline in gross profit percentage to 22.2% versus 25.3%. Orions Q224 net loss was ($4.4M), or ($0.14) per share, including the $1.1M earnout accrual associated with Voltrek vs. a net loss of ($2.3M), or ($0.07) per share in the prior-year period.
Balance Sheet and Cash Flow
Orion ended Q224 with $45.3M of current assets, including $4.0M of cash and cash equivalents, $16.1M of accounts receivables, and $20.2M of inventory. Net of current liabilities, working capital was $16.2M. Orion had financial liquidity of $12.9M at the close of Q224, reflecting its cash position plus $8.9M of net credit facility availability. Orion had $10.0M of borrowings outstanding on its credit facility at quarter end.
Explore the complete 8-K earnings release (here) from Orion Energy Systems Inc for further details.
This article first appeared on GuruFocus.
