Revolution Lighting Tech Shares Quiet Despite Letter from CEO to Holders
In a letter addressed to shareholders, Robert V. LaPenta, CEO and Chairman of Revolution Lighting Technologies, Inc. (NASDAQ: RVLT), addressed the company's plans for continued expansion and development in 2013. Revolution Lighting Technologies designs, manufactures and distributes high-quality LED lighting products internationally under the Seesmart, Lumificient and Array brand names.
Dear Fellow Shareholders:
2012 was a transition year for Revolution Lighting and we enter 2013 with great excitement and promise in the changes taking place in the LED Lighting marketplace and within Revolution Lighting.
On September 25, 2012, Aston Capital completed its initial capital investment in Revolution Lighting (formerly known as Nexxus Lighting.) The investment was used to extinguish the company's outstanding debt and resolve all outstanding legal issues.
We then repositioned the company's strategic focus from the consumer retail market, to the larger and rapidly growing commercial, industrial, and municipal segments. We believe a successful company in this space will require a broad, state of the art, quality product portfolio, as well as a large well trained distribution network. We accomplished both of these goals when we acquired Seesmart Technologies, Inc. on December 20th 2012. The integration is going extremely well, and with our recently announced equity transactions, we enter 2013 well capitalized and prepared for the exciting market potential that we believe lies ahead.
There are many studies documenting the changes taking place in the worldwide lighting market. The reports describe the transition to solid state LED sources, with anticipated annual growth rates ranging from 30% to 50% over the next 5 to 7 years. Today LED lighting represents less than 15% of the available market. LED penetration by the year 2020 is expected to grow to 75% with a market total in excess of $100 billion. Revolution is in the right place at the right time. Our pipeline of opportunities is expanding and customer acceptance is happening now.
Realizing the potential savings for LED lighting sources, governments around the world are enacting legislation mandating the transition away from traditional lighting technologies. In the US, the Energy Independence and Security Act of 2007 was enacted to facilitate the transition. LED lighting can be over 80% more efficient than traditional legacy lighting and is being utilized as a way to not only "Go Green" but also to recognize significant electricity savings. It is estimated that over 40% of a building's energy usage is generated from lighting. In addition, most LED lighting is 100% recyclable and when combined with its 80% plus greater efficiency, it is easy to see why LED lighting is becoming the new standard around the world. Other countries including Japan, South Korea, China and Indonesia have recently enacted legislation mandating the transition to more efficient lighting technologies. Japan's penetration rate is expected to rise to 73.8% by 2015 while South Korea and China are expected to see significant gains as well.
Our vision at RVLT is simple. We will provide LED lighting solutions that are innovative, energy efficient, cost effective and with the highest standards for customer service. We've made progress on fulfilling this vision, but we have plenty of work ahead. As part of this growing process, we are working to create better metrics to track our progress, invest in long-term innovation and build new partnerships to help achieve our performance and goals.
We will continue to invest in technology and state of the art products with the highest quality and performance. An example of our recent efforts is highlighted by the recent introduction of the UL-listed 15-watt LED tube lamp from our Seesmart division, immediately becoming the most efficient four-foot T8 lamp on the market, utilizing the lowest wattage and generating the highest light output in its category.
The early trends for 2013 are encouraging and we expect to see significant gains in topline growth and profitability for the year.
With our management team, our dedicated employees, our portfolio of quality products and our extensive distribution network, Revolution Lighting is well positioned to succeed for the benefit of our employees, our customers and our shareholders.
Robert V. LaPenta
CEO & Chairman
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