Orion Energy Systems, Inc. (OESX)
F2Q09 (Qtr End 09/30/08) Earnings Call Transcript
November 4, 2008, 5:30 pm ET
Erik Birkerts – COO
Neal Verfuerth – President and CEO
Scott Jensen – CFO and Treasurer
Eric Prouty – Canaccord Adams
Eric Stine – Northland Securities
Jeff Osborne – Thomas Weisel Partners
Glenn Wortman – Sidoti & Company
Previous Statements by OESX
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» Orion Energy Systems, Inc. F1Q09 (Qtr End 06/30/08) Earnings Call Transcript
I will now turn the call over to Mr. Erik Birkerts. Erik, you may begin.
Thank you, Nathan, and thank you for joining us for Orion Energy Systems Fiscal 2009 Second Quarter Conference Call. With me on the call today are Neal Verfuerth, President and CEO, and Scott Jensen, CFO.
Neal will begin by providing some highlights from the quarter as well as describe progress within our business. Scott with then provide financial detail on the second quarter, and I will spend time at the conclusion of the call discussing our expectations for the remainder of our fiscal year before we open up the line to take your questions.
Before we begin, I will read the Safe Harbor Statement. Our remarks that follow, including answers to your questions, include statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are generally identified as such because the context of such statements will include words such as “believe,” “anticipate,” “expect,” or words of similar import. Similarly, statements that describe future plans, objectives, or goals are also forward-looking statements.
These forward-looking statements are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters that we have described in our press release issued this afternoon and furnished to the Securities and Exchange Commission on Form 8-K and Form 10-K filed with the SEC on June 27, 2008 and other filings we make with the SEC.
Except as described in these filings, we disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly conference call, if at all.
Now, I'd like to turn the call over to Neal.
Thanks, Erik. I'd like to welcome everyone to our Orion Energy Systems Fiscal 2009 Second Quarter Conference Call. There is much happening on the national scene today, given the election, so we appreciate the time you're all spending with us this afternoon.
For the second quarter of fiscal 2009, we reported revenues of $18.8 million versus $18.4 million in the second quarter of fiscal '08. Net income for the quarter was $453,000 compared to $1.1 million in the same period last year, and earnings per diluted share were $0.02 versus $0.05 in fiscal 2008.
I'd like to emphasize upfront that we felt it prudent to revise our guidance given the uncertainty surrounding the economy. However, we expect to remain profitable, cash flow positive and maintain a strong balance sheet over the second half of our fiscal year.
We believe our fiscal strength positions us well to continue to build Orion's long-term enterprise value for our stakeholders. Because of this, we're going to continue to buyback our shares.
During the second quarter, we made further progress in executing against our core strategy of capturing the sizeable retrofit market opportunity. As you may recall from previous calls, we see the retrofit market opportunity at greater than $9 billion, and we are focused on aggressively pursuing it.
We are proud that in the second quarter of the fiscal year 2009 we've installed our high performance Phase 1 lighting platform in over 300 facilities, an increase over the 276 facilities we completed in the first quarter.
Our installed base of customer facilities now numbers over 4,000 facilities and represents over 670 million square feet of space. With an available market estimated at over 20 billion square feet, illuminated by the legacy HID lighting, we are still very much in the front end of our opportunity.
We reduced our annual – we reduced for our customers' annual energy demand by 128 million kilowatt hours and since 2001, we've reduced customer energy consumption by over 387 megawatts. Not only do we help our customers save money, but our technology also delivers a workable solution to the capacity and distribution issues facing the electric industry today.
Our customer additions within the quarter will reduce their carbon footprints for over 87,000 tons of indirect CO2 emissions annually. Since 2001, we've removed over four million tons of indirect CO2 emissions. This not only benefits the environment, but may also result in incremental revenue opportunities for our customers and for Orion when the market for emissions credits gains further momentum.
Given that, I've been very engaged with the sales team this quarter. I'd like to comment on some of the efforts to capture the retrofit market. With regard to new customers acquired during the quarter, we witnessed across a broad base a new customer versus signing of any high profile multi-site rollout agreements.
For example, in the second quarter, we worked with 11 new national account customers, retrofitting 18 locations in 12 States. Now that we've proven ourselves to these customers, we can see upsell opportunities as well as potentials for additional multi-site rollout agreements to address remaining North American footprints.