August 3, 2022
Orion Sales Drop 49%, CEO to be Replaced
Company hits reset button as The Home Depot business winds down
It’s been a turbulent time for Orion Energy Systems. Like all lighting companies, Orion has been challenged with COVID, continuous cost increases and supply chain challenges over the last two years. Additionally, Orion’s largest customer, The Home Depot, is winding down its large, steady stream of projects. The Home Depot business alone contributed an additional $61 million to $121 million each year for the last three fiscal years. In fiscal year 2023, the company expects $23 million from The Home Depot.
Today the company reported results for its fiscal 2023 first quarter ended June 30, 2022. Revenues were $17.9 million, a $17.2 million drop compared to the same quarter a year ago. Additionally, the company reported a Q1 net loss of $2.8 million.
Concurrent with today’s quarterly report, Orion has also announced the retirement of 63-year-old Mike Altschaefl, Orion’s Board Chair and CEO, effective November 10, 2022. Michael H. Jenkins, the Company’s Executive Vice President and Chief Operating Officer, will assume the role of Chief Executive Officer and will also join Orion’s Board, effective November 10th.
Altschaefl explained that the lackluster quarterly results were impacted by "a continuation of customer project delays that also impacted our results in the second half of last year, along with some slowing of our sales cycle as new and existing customers work through current economic conditions."