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Orion Energy posts loss as customers delay LED lighting purchases

2014-05-13 17:25

Customers delayed orders of energy efficient lighting systems, pushing Manitowoc-based Orion Energy Systems Inc. to a fourth-quarter loss led light in china.

Orion Energy Systems Inc. posted a loss of $8.8 million, or 41 cents a share, reersing a profit of $565,000, or 3 cents a share, in last year’s fourth quarter.

A decline in solar installation projects and customer moves to delay purchase of energy-efficient lighting systems led to a sharp drop in sales, to $12.6 million from $22.3 million last year.

The loss for all of 2014 was $6.2 million, down from $10.4 million the prior year.

Orion, through its acquisition of Harris LED and Harris Manufacturing of Florida is projecting significant dimmable LED tube lights sales from light-emitting diode technology using a product that can be easily installed to replace conventional fluorescent fixtures in offices and other commercial buildings.

During the quarter, Orion sought to cut costs, closing its facility in Plymouth in Sheboygan County and consolidating work done there at its corporate headquarters in Manitowoc. The company said it expects to generate savings of $1 million a year from the sale of its corporate jet, but the plane was sold at a loss of $1.5 million, boosting corporate expenses during the fourth quarter.

LED sales rose year-over-year but not to the level LED grille lights the company was hoping. In the fourth quarter, which ended March 31, the company said Monday. LED sales totaled $1.3 million, or 12% of sales, in the quarter.

“In the fourth quarter, we experienced a slower-than-expected adoption by potential customers of our newer LED product offerings and retrofit solutions that affected our sales in the short term,” said John Scribante, chief executive, in a prepared statement. “We believe this is due to larger national companies delaying the decision to integrate newer technologies as the LED advantages start to overtake existing infrastructure.”

Full-year sales rose to $88.6 million from $86.1 million, and Orion is forecasting sales in the fiscal year that just began will range from $80 million to $105 million in the year that began April 1.

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