Orion Energy Systems, Inc. (OESX) experienced a decrease of 13.53% in the aftermarket because the company announced that it expects Q3’22 revenue to be approximately $30.5M. However, the last trading session closed at $3.99 with a decrease of 5.9%.
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Quarter 3’2021 Revenue Expectations – What is it?
On 18th January 2022, OESX stated that revenue for the third quarter of FY 2022, is expected to be around $30.5 million. Due to client delays on many bigger LED lighting and controls projects, particularly as a result of customers’ reactions to supply chain disruptions and COVID-19-related business repercussions, Orion now expects revenue of around $130 million in FY 2022, down from at least $150 million before. Moreover, Orion’s revised FY 2022 sales forecast implies an 11% increase above FY 2021 revenue of $116.8 million.
What’s Next?
OESX is seeking new business. Based on the progress the company is making in with the maintenance business with the major national retail customer and other customers, as well as the keep pace with the growth and capabilities of the Stay-Lite Lighting business, that should yield yearly basis ongoing revenue in excess of $20 million in FY 2023. Moreover, the company has established a strong nationwide lighting and electrical maintenance platform.
Furthermore, the Board of Directors and senior management team are dedicated to and confident in the Company’s long-term strategic strategy, which aims to expand the business to $500 million in annual sales over the next five years through organic and inorganic efforts. Not only this but organic growth of at least 10% each year is planned for Orion’s strategic strategy, which will be supplemented by external expansion such as strategic acquisitions, commercial alliances, and other efforts.
Lighting and Electrical Maintenance Service Provider Acquisition
OESX reported on 5th January 2022 that it has acquired Stay-Lite Lighting, national lighting, and electrical maintenance service company. The acquisition would help Orion Maintenance Services, which offers lighting and electrical services to clients, develop faster. Moreover, the addition of Stay-Lite Lighting to the Orion portfolio brings high-profile retail customers, self-performing capabilities in 15 states, and a countrywide network of service coverage.
This will assist the present and prospective customers significantly since it increases the service and maintenance network, skills, and offering while adding 50 years of lighting industry expertise and technical understanding. Last but not the least, as the company continues to extend the maintenance services with the top retail clients, this is a timely addition of service capabilities that gives more resources they can use for future development.
