Orion Energy Systems Inc. (OESX, Financial) filed Amended Quarterly Report for the period ended 2011-09-30.
Orion Energy Sy has a market cap of $49.7 million; its shares were traded at around $2.04 with and P/S ratio of 0.5.
Revenue. Product revenue increased from $15.1 million for the fiscal 2011 second quarter to $30.1 million for the fiscal 2012 second quarter, an increase of $15.0 million, or 99.6%. The increase in product revenue was a result of increased sales of solar PV systems and our high intensity fluorescent, or HIF, lighting systems. Service revenue increased from $0.8 million for the fiscal 2011 second quarter to $3.4 million for the fiscal 2012 second quarter, an increase of $2.6 million or 338.6%. The increase in service revenues was a result of the increased solar PV systems installed during the fiscal 2012 second quarter total revenues. Total service revenue from renewable energy systems was $2.5 million for the fiscal 2012 second quarter compared to $37,000 for the fiscal 2011 second quarter. Product revenue increased from $30.8 million for the fiscal 2011 first half to $47.5 million for the fiscal 2012 first half, an increase of $16.7 million, or 53.9%. Total revenue from renewable energy systems was $17.2 million for the fiscal 2012 first half compared to $1.9 million for the fiscal 2011 first half, an increase of $15.3 million, or 805%. Service revenue increased from $2.0 million for the fiscal 2011 first half to $4.2 million for the fiscal 2012 first half, an increase of $2.2 million or 112.7%. The increase in service revenue was a result of the related installation revenue resulting from the increased sales of solar PV systems.
Cost of Revenue and Gross Margin. Our cost of product revenue increased from $9.7 million for the fiscal 2011 second quarter to $21.4 million for the fiscal 2012 second quarter, an increase of $11.7 million, or 120.1%. Our cost of service revenue increased from $0.5 million for the fiscal 2011 second quarter to $2.6 million for the fiscal 2012 second quarter, an increase of $2.1 million, or 431.5%. Total gross margin was 35.4% and 28.0% for the fiscal 2011 second quarter and fiscal 2012 second quarters, respectively. Total cost of product revenue increased from $20.1 million for the fiscal 2011 first half to $33.0 million for the fiscal 2012 first half, an increase of $12.9 million, or 64.8%. Our cost of service revenue increased from $1.4 million for the fiscal 2011 first half to $3.3 million for the fiscal 2012 first half, an increase of $1.9 million, or 131.0%. Total gross margin decreased from 34.6% for the fiscal 2011 first half to 29.8% for the fiscal 2012 first half. For the fiscal 2012 first half, our gross margin declined due to a higher mix of renewable product and service revenues from our Orion Engineered Systems division. Our gross margin on renewable revenues was 18.5% during the fiscal 2012 first half. Gross margin from our HIF integrated systems revenue for the fiscal 2012 first half was 35.4%.
Sales and Marketing. Our sales and marketing expenses increased from $3.3 million for the fiscal 2011 second quarter to $3.7 million for the fiscal 2012 second quarter, an increase of $0.4 million, or 13.0%. Our sales and marketing expenses increased from $6.9 million for the fiscal 2011 first half to $7.5 million for the fiscal 2012 first half, an increase of $0.6 million, or 8.9%. The increase was a result of increased costs for headcount additions to our direct sales force and for our newly formed telemarketing department, higher commission expense on our increased revenue and increased depreciation for our new customer relationship management, or CRM, system. Total sales and marketing employee headcount was 79 and 93 at September 30, 2010 and September 30, 2011, respectively.
Income Taxes. Our income tax benefit changed from $1.7 million for the fiscal 2011 second quarter to an income tax expense of $1.0 million for the fiscal 2012 second quarter, a fluctuation of $2.7 million, or 161.5%. Our income tax benefit changed from $2.5 million for the fiscal 2011 first half to an income tax expense of $0.4 million for the fiscal 2012 first half, a fluctuation of $2.9 million, or 117.2%. Our effective income tax rate for the fiscal 2011 first half was 100.2%, compared to 43.4% for the fiscal 2012 first half. The change in effective rate was due to the conversion of our incentive stock options, or ISOs, to non-qualified stock options, or NQSOs, completed during the fourth quarter of fiscal 2011, a decrease from the prior year for non-deductible expenses and an increase in fiscal 2011 for the state valuation reserve. The conversion of our ISOs to NQSOs eliminated the volatility in our effective tax rates at lower pre-tax earnings levels and should result in an effective tax rate in the 40% range for future periods.
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Orion Energy Sy has a market cap of $49.7 million; its shares were traded at around $2.04 with and P/S ratio of 0.5.
Highlight of Business Operations:
An increase in our revenue of $14.2 million (74%), an increase in our net income of $1.5 million and an increase in our earnings per share of $0.06 for the quarter ended September 30, 2011, and an increase in our revenue of $9.7 million (23%), an increase in our net income of $0.9 million (300%) and an increase in our earnings per share of $0.03 (300%) for the six months ended September 30, 2011; andRevenue. Product revenue increased from $15.1 million for the fiscal 2011 second quarter to $30.1 million for the fiscal 2012 second quarter, an increase of $15.0 million, or 99.6%. The increase in product revenue was a result of increased sales of solar PV systems and our high intensity fluorescent, or HIF, lighting systems. Service revenue increased from $0.8 million for the fiscal 2011 second quarter to $3.4 million for the fiscal 2012 second quarter, an increase of $2.6 million or 338.6%. The increase in service revenues was a result of the increased solar PV systems installed during the fiscal 2012 second quarter total revenues. Total service revenue from renewable energy systems was $2.5 million for the fiscal 2012 second quarter compared to $37,000 for the fiscal 2011 second quarter. Product revenue increased from $30.8 million for the fiscal 2011 first half to $47.5 million for the fiscal 2012 first half, an increase of $16.7 million, or 53.9%. Total revenue from renewable energy systems was $17.2 million for the fiscal 2012 first half compared to $1.9 million for the fiscal 2011 first half, an increase of $15.3 million, or 805%. Service revenue increased from $2.0 million for the fiscal 2011 first half to $4.2 million for the fiscal 2012 first half, an increase of $2.2 million or 112.7%. The increase in service revenue was a result of the related installation revenue resulting from the increased sales of solar PV systems.
Cost of Revenue and Gross Margin. Our cost of product revenue increased from $9.7 million for the fiscal 2011 second quarter to $21.4 million for the fiscal 2012 second quarter, an increase of $11.7 million, or 120.1%. Our cost of service revenue increased from $0.5 million for the fiscal 2011 second quarter to $2.6 million for the fiscal 2012 second quarter, an increase of $2.1 million, or 431.5%. Total gross margin was 35.4% and 28.0% for the fiscal 2011 second quarter and fiscal 2012 second quarters, respectively. Total cost of product revenue increased from $20.1 million for the fiscal 2011 first half to $33.0 million for the fiscal 2012 first half, an increase of $12.9 million, or 64.8%. Our cost of service revenue increased from $1.4 million for the fiscal 2011 first half to $3.3 million for the fiscal 2012 first half, an increase of $1.9 million, or 131.0%. Total gross margin decreased from 34.6% for the fiscal 2011 first half to 29.8% for the fiscal 2012 first half. For the fiscal 2012 first half, our gross margin declined due to a higher mix of renewable product and service revenues from our Orion Engineered Systems division. Our gross margin on renewable revenues was 18.5% during the fiscal 2012 first half. Gross margin from our HIF integrated systems revenue for the fiscal 2012 first half was 35.4%.
Sales and Marketing. Our sales and marketing expenses increased from $3.3 million for the fiscal 2011 second quarter to $3.7 million for the fiscal 2012 second quarter, an increase of $0.4 million, or 13.0%. Our sales and marketing expenses increased from $6.9 million for the fiscal 2011 first half to $7.5 million for the fiscal 2012 first half, an increase of $0.6 million, or 8.9%. The increase was a result of increased costs for headcount additions to our direct sales force and for our newly formed telemarketing department, higher commission expense on our increased revenue and increased depreciation for our new customer relationship management, or CRM, system. Total sales and marketing employee headcount was 79 and 93 at September 30, 2010 and September 30, 2011, respectively.
Income Taxes. Our income tax benefit changed from $1.7 million for the fiscal 2011 second quarter to an income tax expense of $1.0 million for the fiscal 2012 second quarter, a fluctuation of $2.7 million, or 161.5%. Our income tax benefit changed from $2.5 million for the fiscal 2011 first half to an income tax expense of $0.4 million for the fiscal 2012 first half, a fluctuation of $2.9 million, or 117.2%. Our effective income tax rate for the fiscal 2011 first half was 100.2%, compared to 43.4% for the fiscal 2012 first half. The change in effective rate was due to the conversion of our incentive stock options, or ISOs, to non-qualified stock options, or NQSOs, completed during the fourth quarter of fiscal 2011, a decrease from the prior year for non-deductible expenses and an increase in fiscal 2011 for the state valuation reserve. The conversion of our ISOs to NQSOs eliminated the volatility in our effective tax rates at lower pre-tax earnings levels and should result in an effective tax rate in the 40% range for future periods.
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