Orion Energy Systems Inc. (OESX, Financial) filed Quarterly Report for the period ended 2012-12-31.
Orion Energy Systems, Inc. has a market cap of $51.7486 million; its shares were traded at around $2.58 with and P/S ratio of 0.695.
Cost of Revenue and Gross Margin. Our cost of product revenue decreased from $17.4 million for the fiscal 2012 third quarter to $15.7 million for the fiscal 2013 third quarter, a decrease of $1.7 million, or 10%. Our cost of service revenue increased from $2.4 million for the fiscal 2012 third quarter to $4.8 million for the fiscal 2013 third quarter, an increase of $2.4 million, or 96%. Gross margin increased from 27.4% for the fiscal 2012 third quarter to 29.5% for the fiscal 2013 third quarter. For the fiscal 2013 third quarter, our gross margin percentage increased due to improved margins on solar PV projects from our Orion Engineered Systems Division. Our gross margin percentage on renewable revenues from this division was 23.7% during the fiscal 2013 third quarter compared to 13.1% for the fiscal 2012 third quarter. Gross margin from our HIF integrated systems revenue for the 2013 third quarter was 32.3% compared to 32.2% for the fiscal 2012 third quarter. Our cost of product revenue decreased from $50.5 million for the first nine months of fiscal 2012 to $37.2 million for the first nine months of fiscal 2013, a decrease of $13.3 million, or 26.4%. Our cost of service revenue increased from $5.7 million for the first nine months of fiscal 2012 to $7.9 million for the first nine months of fiscal 2013, an increase of $2.2 million, or 37.8%. Total gross margin increased from 29.0% for the first nine months of fiscal 2012 to 29.4% for the first nine months of fiscal 2013. For the first nine months of fiscal 2013, our decrease in total gross margin on product revenues versus the first nine months of fiscal 2012 was due to the reduced revenue from sales of our energy management systems and the impact of our fixed manufacturing costs on lower unit volumes of our HIF lighting energy management systems and reduced revenues from sales of solar PV systems.. Gross margins
General and Administrative. Our general and administrative expenses were unchanged at $2.8 million for both the fiscal 2012 and fiscal 2013 third quarters. During the fiscal 2013 third quarter, we incurred legal expenses of $0.4 million related to unusual items, including the SEC investigation related to our solar revenue recognition restatement, the favorable investigation and dismissal of a whistleblower complaint from our former CEO and other legal matters. Additionally, we recorded $0.3 million in accrued bonus expense related to our fiscal 2013 plan based on our achieving our targeted cost reduction and profit initiatives. Our general and administrative expenses increased from $8.6 million for the first nine months of fiscal 2012 to $10.8 million for the first nine months of fiscal 2013, an increase of $2.2 million, or 25%. The increase for the first nine months of fiscal 2013 was due to $1.7 million of expenses resulting from our reorganization and cost reduction initiatives, increased legal expenses related to unusual items of $0.7 million and increased audit expenses of $0.2 million related to the re-audit of our fiscal 2011 financial statements, offset by headcount and discretionary spending reductions.
Sales and Marketing. Our sales and marketing expenses increased from $4.1 million for the fiscal 2012 third quarter to $4.7 million for the fiscal 2013 third quarter, an increase of $0.6 million, or 17%. The increase was due to bad debt expense of $0.5 million related to an uncollectable receivable, a $0.2 million increase in commission expenses related to increased solar PV revenue and $0.1 million in increased depreciation for information technology systems. These increases were partially offset by reduced discretionary spending. Our sales and marketing expenses increased from $11.6 million for the first nine months of fiscal 2012 to $13.2 million for the first nine months of fiscal 2013, an increase of $1.6 million, or 15%. The increase was due to the full year impact of headcount additions from our prior year investment into the formation and staffing of our telemarketing function, the establishment and staffing of our Houston technology center, headcount additions for retail sales and sales and project management to support the increase in our solar PV backlog and a $0.3 million increase in bad debt versus the prior year. Total sales and marketing headcount was 97 and 96 at December 31, 2011 and 2012, respectively.
Cash provided by operating activities for the first nine months of fiscal 2012 was $6.5 million and consisted of net cash of $1.7 million provided by changes in operating assets and liabilities and net income adjusted for non-cash expense items of $4.8 million. Cash provided by changes in operating assets and liabilities consisted of a decrease of $6.9 million in deferred contract costs due to project progress for solar projects, a $1.2 million decrease in total accounts receivable due to customer payments received and a $3.0 million increase in accounts payable related to payment terms on inventory purchases. Cash used from changes in operating assets and liabilities included a $3.6 million increase in inventory purchases due to a $1.6 million increase in fluorescent lamps due to supply concerns over shortages of rare earth minerals, a $1.2 million increase in raw materials for new products and to help address certain electronic component supply concerns and a $0.8 million increase in our work-in process inventories for product orders that were to be delivered in our fiscal 2012 fourth quarter and a $6.1 million decrease in deferred revenue as a result of project completions.
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Orion Energy Systems, Inc. has a market cap of $51.7486 million; its shares were traded at around $2.58 with and P/S ratio of 0.695.
Highlight of Business Operations:
Revenue. Product revenue decreased from $24.3 million for the fiscal 2012 third quarter to $22.7 million for the fiscal 2013 third quarter, a decrease of $1.6 million, or 7%. The decrease in product revenue was a result of decreased sales of our high intensity fluorescent, or HIF, integrated lighting systems. Service revenue increased from $3.1 million for the fiscal 2012 third quarter to $6.4 million for the fiscal 2013 third quarter, an increase of $3.3 million, or 105%. The increase in service revenue was a result of the related service revenue from the increase in sales of solar renewable energy systems. Total revenue from renewable energy systems was $9.6 million for the fiscal 2013 third quarter compared to $6.9 million for the fiscal 2012 third quarter, an increase of $2.7 million, or 39%. Product revenue decreased from $71.7 million for the first nine months of fiscal 2012 to $53.2 million for the first nine months of fiscal 2013, a decrease of $18.5 million, or 26%. Service revenue increased from $7.4 million for the first nine months of fiscal 2012 to $10.6 million for the first nine months of fiscal 2013, an increase of $3.2 million, or 45%. Total revenue from renewable energy systems was $15.0 million for the first nine months of fiscal 2013 compared to $24.0 million for the first nine months of fiscal 2012, a decrease of $9.0 million, or 38%. During the first nine months of fiscal 2012, we had two large solar PV projects under construction and did not have similar size projects under construction during the first nine months of fiscal 2013.Cost of Revenue and Gross Margin. Our cost of product revenue decreased from $17.4 million for the fiscal 2012 third quarter to $15.7 million for the fiscal 2013 third quarter, a decrease of $1.7 million, or 10%. Our cost of service revenue increased from $2.4 million for the fiscal 2012 third quarter to $4.8 million for the fiscal 2013 third quarter, an increase of $2.4 million, or 96%. Gross margin increased from 27.4% for the fiscal 2012 third quarter to 29.5% for the fiscal 2013 third quarter. For the fiscal 2013 third quarter, our gross margin percentage increased due to improved margins on solar PV projects from our Orion Engineered Systems Division. Our gross margin percentage on renewable revenues from this division was 23.7% during the fiscal 2013 third quarter compared to 13.1% for the fiscal 2012 third quarter. Gross margin from our HIF integrated systems revenue for the 2013 third quarter was 32.3% compared to 32.2% for the fiscal 2012 third quarter. Our cost of product revenue decreased from $50.5 million for the first nine months of fiscal 2012 to $37.2 million for the first nine months of fiscal 2013, a decrease of $13.3 million, or 26.4%. Our cost of service revenue increased from $5.7 million for the first nine months of fiscal 2012 to $7.9 million for the first nine months of fiscal 2013, an increase of $2.2 million, or 37.8%. Total gross margin increased from 29.0% for the first nine months of fiscal 2012 to 29.4% for the first nine months of fiscal 2013. For the first nine months of fiscal 2013, our decrease in total gross margin on product revenues versus the first nine months of fiscal 2012 was due to the reduced revenue from sales of our energy management systems and the impact of our fixed manufacturing costs on lower unit volumes of our HIF lighting energy management systems and reduced revenues from sales of solar PV systems.. Gross margins
General and Administrative. Our general and administrative expenses were unchanged at $2.8 million for both the fiscal 2012 and fiscal 2013 third quarters. During the fiscal 2013 third quarter, we incurred legal expenses of $0.4 million related to unusual items, including the SEC investigation related to our solar revenue recognition restatement, the favorable investigation and dismissal of a whistleblower complaint from our former CEO and other legal matters. Additionally, we recorded $0.3 million in accrued bonus expense related to our fiscal 2013 plan based on our achieving our targeted cost reduction and profit initiatives. Our general and administrative expenses increased from $8.6 million for the first nine months of fiscal 2012 to $10.8 million for the first nine months of fiscal 2013, an increase of $2.2 million, or 25%. The increase for the first nine months of fiscal 2013 was due to $1.7 million of expenses resulting from our reorganization and cost reduction initiatives, increased legal expenses related to unusual items of $0.7 million and increased audit expenses of $0.2 million related to the re-audit of our fiscal 2011 financial statements, offset by headcount and discretionary spending reductions.
Sales and Marketing. Our sales and marketing expenses increased from $4.1 million for the fiscal 2012 third quarter to $4.7 million for the fiscal 2013 third quarter, an increase of $0.6 million, or 17%. The increase was due to bad debt expense of $0.5 million related to an uncollectable receivable, a $0.2 million increase in commission expenses related to increased solar PV revenue and $0.1 million in increased depreciation for information technology systems. These increases were partially offset by reduced discretionary spending. Our sales and marketing expenses increased from $11.6 million for the first nine months of fiscal 2012 to $13.2 million for the first nine months of fiscal 2013, an increase of $1.6 million, or 15%. The increase was due to the full year impact of headcount additions from our prior year investment into the formation and staffing of our telemarketing function, the establishment and staffing of our Houston technology center, headcount additions for retail sales and sales and project management to support the increase in our solar PV backlog and a $0.3 million increase in bad debt versus the prior year. Total sales and marketing headcount was 97 and 96 at December 31, 2011 and 2012, respectively.
Cash provided by operating activities for the first nine months of fiscal 2012 was $6.5 million and consisted of net cash of $1.7 million provided by changes in operating assets and liabilities and net income adjusted for non-cash expense items of $4.8 million. Cash provided by changes in operating assets and liabilities consisted of a decrease of $6.9 million in deferred contract costs due to project progress for solar projects, a $1.2 million decrease in total accounts receivable due to customer payments received and a $3.0 million increase in accounts payable related to payment terms on inventory purchases. Cash used from changes in operating assets and liabilities included a $3.6 million increase in inventory purchases due to a $1.6 million increase in fluorescent lamps due to supply concerns over shortages of rare earth minerals, a $1.2 million increase in raw materials for new products and to help address certain electronic component supply concerns and a $0.8 million increase in our work-in process inventories for product orders that were to be delivered in our fiscal 2012 fourth quarter and a $6.1 million decrease in deferred revenue as a result of project completions.
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