Orion Energy Misses Q4 Earnings Consensus On Unfavorable Mix - Orion Energy Sys (NASDAQ:OESX)

Orion Energy Systems, Inc. OESX reported a Q4 FY23 revenue of $21.6 million, missing the consensus of $22.6 million.
The gross margin declined to 21.9% from 23.8% a year ago due to unfavorable product and services mix.
The company reported an EPS loss of $(0.16), which missed the consensus of $(0.06).
Total operating expenses rose to $9.6 million from $6.6 million in the quarter, owing to acquisition-related costs of $2.5 million and higher G&A expenses of $0.9 million, reflecting the addition of Voltrek operations.
Orion generated a negative adjusted EBITDA of $(1.6) million in the quarter, compared to an adjusted EBITDA loss of $(0.4) million a year ago.
Orion used cash of $(2.3) million in operating activities in FY23, with positive operating cash flow in Q4, due to the timing of certain projects and strong cash receipts near fiscal year-end.
Orion ended the fiscal with $23.2 million of liquidity, including $16.0 million of cash and cash equivalents and $7.2 million available on the credit facility.
Outlook: For FY24, Orion reaffirms revenue growth of 30% or more to about $100 million, with a significant proportion of revenue expected in H2.
Orion plans to reduce LED lighting inventory by about $5 million in H1 FY24.
"We anticipate very substantial growth at Voltrek over the next several years and are working to leverage Orion's national service and project management capabilities and reach in order to provide turnkey EV charging solutions across the country. We are already in dialogue with a growing base of large national accounts and expect to see the initial benefit of our investments in the second half of FY 2024," said Mike Jenkins, CEO.
Price Action: OESX shares are trading higher by 4.67% at $1.57 on the last check Tuesday.

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