Orion Energy Systems, Inc (OESX) saw its loss narrow to $0.97 million, or $0.03 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $3.60 million, or $0.13 a share. Revenue during the quarter grew 18.71 percent to $18.67 million from $15.73 million in the previous year period. Gross margin for the quarter expanded 1493 basis points over the previous year period to 33.44 percent. Operating margin for the quarter stood at negative 5.33 percent as compared to a negative 22.67 percent for the previous year period.
Operating loss for the quarter was $1 million, compared with an operating loss of $3.57 million in the previous year period.
John Scribante, Chief Executive Officer, commented that “Orion’s second quarter results began to show the benefits of the prior two years of management’s efforts to improve products, margins, and channels. We have developed the best retrofit LED lighting product lines in the market. Our high-end LED fixtures recently set a new industry record at 214 lumens per watt and our market-leading position is helping us deliver stronger financial performance as customers can clearly see the value proposition of our lighting solutions. This, in turn, is leading to higher gross margins and is making it easier for Orion to recruit and develop partners in our expanding agency channel. ”
Orion Energy Systems expects revenue to grow in the range of 10 percent to 20 percent for the financial year 2016.
Operating cash flow turns positive
Orion Energy Systems, Inc has generated cash of $0.63 million from operating activities during the first half as against cash outgo of $5.32 million in the last year period. Cash flow from investing activities was $2.16 million for the first half as against cash outgo of $0.19 million in the last year period.
Cash flow from financing activities was $0.40 million for the first six months as against cash outgo of $1.05 million in the last year period.
Cash and cash equivalents stood at $18.73 million as on Sep. 30, 2016, up 39.33 percent or $5.29 million from $13.45 million on Sep. 30, 2015.
Working capital decreases marginally
Orion Energy Systems, Inc has witnessed a decline in the working capital over the last year. It stood at $30.59 million as at Sep. 30, 2016, down 4.55 percent or $1.46 million from $32.05 million on Sep. 30, 2015. Current ratio was at 2.61 as on Sep. 30, 2016, down from 3.21 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 46 days for the quarter from 137 days for the last year period. Days sales outstanding went down to 77 days for the quarter compared with 102 days for the same period last year.
Days inventory outstanding has decreased to 63 days for the quarter compared with 113 days for the previous year period. At the same time, days payable outstanding went up to 94 days for the quarter from 78 for the same period last year.
Debt moves up
Orion Energy Systems, Inc has witnessed an increase in total debt over the last one year. It stood at $5.34 million as on Sep. 30, 2016, up 21.51 percent or $0.95 million from $4.39 million on Sep. 30, 2015. Total debt was 7.79 percent of total assets as on Sep. 30, 2016, compared with 5.71 percent on Sep. 30, 2015. Debt to equity ratio was at 0.12 as on Sep. 30, 2016, up from 0.08 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
