Q4 2024 Orion Energy Systems Inc Earnings Call Transcript
Key Points
- Orion Energy Systems Inc (OESX) achieved its strongest revenue quarter of the year in Q4, ending within its full-year revenue guidance.
- The company expects 10% to 15% revenue growth in fiscal 2025, driven by strong performance in LED lighting and EV charging segments.
- The EV business recorded a 96% increase in revenue for fiscal 2024, with a strong pipeline of over $45 million in opportunities.
- The company successfully executed a large Department of Defense base project in Germany, showcasing its project management capabilities.
- Orion Energy Systems Inc (OESX) introduced new BABA-compliant LED lighting fixtures, which are expected to drive growth due to federal funding requirements.
- The maintenance segment faced challenges with unprofitable contracts, leading to a reduction in revenue by approximately $6.8 million.
- The company expects a $5 million contraction in maintenance services revenue in fiscal 2025 due to the loss of three legacy customers.
- Operating expenses declined due to a net earnout reversal, but this indicates volatility in financial performance.
- The company recorded a noncash impairment charge of $456,000 for intangible assets acquired as part of the Stay-Lite acquisition.
- There will be some negative effect on gross margins in Q1 fiscal 2025 as the company works through remaining work orders for lapsed maintenance contracts.
Good morning, everyone, and welcome to Orion Energy Systems' fiscal 2024 fourth-quarter conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to turn the conference over to Bill Jones, Investor Relations, to begin.
Thanks, Michelle. And good morning, everyone, and thank you for joining this call today. Mike Jenkins, Orion's CEO; and Per Brodin, Orion's CFO, will review the company's Q4 and full-year results, the company's financial position, and its fiscal '25 outlook. Then we will open the call to investor questions.
Today's conference call is being recorded. And a replay will be posted on the Investor Relations section of Orion's website, orionlighting.com.
As a reminder, remarks that follow and answers to questions include statements that are forward-looking as per the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally include words such as anticipate, believe, expect, project,
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