February 13, 2023
Orion Reports Q3 Revenue of $20.3M
Company sees 30% revenue growth ahead
Orion Energy Systems reported its third quarter results, citing $20.3 million revenues – seemingly on track to deliver on its yearlong projections to finish the year stronger than it started.
In January, the company revised the full-year sales forecast, projecting a final result for the fiscal year ending in March 31 to be between $77 million and $80 million. Prior guidance cited a range of $90 million to $110 million.
Fiscal year to date, Orion has delivered $55.75 million in revenue. Based on the company’s January revised guidance, the current and last quarter of fiscal year 2023 which ends on March 31, should deliver revenue in the range of $21.2 million to 24.2 million.
Large tax expense impacts income: For the three months ended December 31, 2022 and 2021, Orion recorded income tax expense of $19.4 million and $0.2 million, respectively, using this methodology. For the nine months ended December 31, 2022 and 2021, Orion recorded income tax expense of $17.9 million and $2.4 million, respectively, using this methodology. The increase in the Company’s tax expense relates primarily to a non-cash charge of $17.8 million in relation to recording a valuation allowance associated with the Company’s domestic federal and state deferred tax assets.
Net income (loss) in millions for nine months ended December 31.
Adding a fourth company division:
Orion has historically reported three business segments. With Orion’s acquisition of Voltrek on October 5, 2022, Orion has now added a fourth reporting segment, Orion Electric Vehicle Charging Division (“EV”).
Orion Services Group Division
The OSG segment develops and sells lighting products and provides construction, engineering along with installation and maintenance services for Orion's commercial lighting and energy management systems. OSG provides engineering, design, lighting products and in many cases turnkey solutions for large national accounts, governments, municipalities, schools and other customers.
Orion Distribution Services Division
The ODS segment sells lighting products through manufacturer representative agencies and a network of North American broadline electrical distributors and contractors.
Orion U.S. Markets Division
The USM segment sells commercial lighting systems and energy management systems to contractors and energy service companies ("ESCOs").
Orion Electric Vehicle Charging Division
The EV segment offers leading electric vehicle charging expertise and provides turnkey solutions with ongoing support to all commercial verticals.
Business Outlook
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Orion expects continued sequential revenue growth in Q4’23 vs. Q3’23, which should be the strongest quarter of FY’23, likely exceeding Q4’22 revenue of $22.1M.
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Correspondingly, full FY’23 revenue of $77M to $80M is expected.
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Orion also expects FY’24 revenue growth of 30% or more over FY’23 and plans to provide more specific details about its FY’24 outlook when it reports its Q4 results.
