On January 18, Orion Energy Systems Inc. (OESX) shared preliminary expectations of its Q3 FY2022 revenue. Additionally, the company also reduced its FY2022 revenue outlook. Consequently, the stock plunged deep in the pre-market.
In the regular session, OESX stock decreased by 5.90% at its closing price of $3.99. Following the announcement, the stock lost a further 9.77% to reach $3.60 in the pre-market.
The Lighting systems and retrofit lighting solutions provider, Orion Energy Systems Inc. has a market capitalization of $131.75 million. Currently, the company has 31.07 million shares outstanding in the market.
OESX Revenue Expectations and Outlook
As per Tuesday’s announcement, the company disclosed its expected revenue for Q3 as well as revised its FY2022 outlook.
OESX’s third quarter of fiscal 2022 ended on December 31, 2021. For the Q3 FY2022, the company expects revenue of $30.5 million approx., preliminarily.
Moreover, the company reduced its full fiscal 2022 revenue outlook to $130 million, against the previous $150 million. This represents an increase of 11% year over year. Furthermore, the reason for reducing the outlook is customer delays on some large projects. The delays were due to customer response to supply chain disruptions and the impact of Covid-19 on their businesses.
According to OESX’s CEO and Board Chair, Mike Altschaefl, the company has not lost the delayed projects and will hopefully continue with them as the customers overcome the challenges.
In addition, the company plans to host its third-quarter fiscal 2022 call on February 9, 2022. Along with the Q3 financial results, the company will also provide further details on the quarter and its fiscal 2022 outlook.
Stay-Lite Lighting’s Acquisition
On January 05, the company announced the acquisition of Stay-Lite Lighting. Stay-Lite Lighting is a lighting and electrical maintenance service provider nationwide. Stay-Lite is an active member of the International Association of Lighting Management Companies. It provides self-performing services like indoor and outdoor lighting repairs, sign repairs and manufacturer warranty support, etc. Further, the annual revenues of Stay-Lite are $9 million approx.
As per the details, Bridgewood Advisors and Taureau Group acted as advisors to Orion and Stay-Lite, respectively, for the acquisition.
According to Mr. Altschaefl, this acquisition has added high-profile retail customers and self-performing capabilities (15 states) to OESX’s portfolio along with a network of service coverage (nationwide).
Following the acquisition, Stay-Lite Lighting will operate as an Orion Energy Systems business, Stay-Lite.
