Orion Announces Changes to Management Team; New Focus on Achieving Profitability; Temporarily Postpones May 26 Earnings Call
MANITOWOC, Wis.–(BUSINESS WIRE)–$OESX #LED–Orion Energy Systems, Inc. (NASDAQ:OESX), a leading designer and
manufacturer of high-performance, energy efficient LED lighting
products, announced that its Board of Directors has restructured Orion’s
management team with the directive to focus on achieving profitability
while continuing to increase revenues.
As part of this management restructuring, Chief Executive Officer, John
Scribante, has left the Company. Current Board Chair, Mike Altschaefl,
has assumed the Chief Executive Officer role. Scott Green, current
Executive Vice President – Sales, has become Orion’s new Chief Operating
Officer, with ongoing primary responsibility for improving the Company’s
sales generation. Mike Potts and Marc Meade, both current Executive Vice
Presidents, have primary responsibility for substantially reducing
Orion’s cost structure and for streamlining operations. Bill Hull
remains as Chief Financial Officer.
“We want to thank John for his leadership over the past 4 ½ years and
his many contributions to the Company. John led the Company through the
successful acquisition of Harris Lighting and navigated us through the
transformation from a legacy fluorescent lighting company to a
recognized force in the LED market,” said Altschaefl.
“The Board will change the near-term focus of Orion’s management team in
order to increase the Company’s emphasis on achieving profitability
through increased revenue and a reduced cost structure,” said Altschaefl.
Although Orion’s fiscal 2017 fourth quarter and year-end financial
results are not expected to be materially different than as previously
announced on a preliminary basis, in order to allow Orion’s management
team to provide investors with more specific details on its goals and
objectives for fiscal 2018, Orion’s previously scheduled May 26, 2017
earnings call is being temporarily postponed. A new earnings call date
and time will be announced in the near future.
About Orion Energy Systems
Orion is a leading designer and producer of energy efficient lighting
and retrofit lighting solutions for commercial and industrial buildings.
Orion manufacturers and markets connected lighting systems encompassing
LED solid-state lighting and intelligent controls. Orion’s systems
incorporate patented design elements that deliver significant energy,
efficiency, optical and thermal performance that drive financial,
environmental, and work-space benefits for a wide variety of customers,
including nearly 40% of the Fortune 500.
Safe Harbor Statement
Certain matters discussed in this press release are intended to qualify
for the safe harbor from liability established by the Private Securities
Litigation Reform Act of 1995. These forward-looking statements may
generally be identified as such because the context of such statements
will include words such as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,”
“should,” “will,” “would” or words of similar import. Similarly,
statements that describe the Company’s future plans, objectives or goals
are also forward-looking statements. Such forward-looking statements are
subject to certain risks and uncertainties that could cause results to
differ materially from those expected, including, but not limited to,
the following: (i) our ability to achieve our expected revenue growth
and gross margin objectives in fiscal 2018 and beyond; (ii) our ability
to achieve profitability and positive cash flows; (iii) our levels of
cash and our limited borrowing capacity under our revolving line of
credit; (iv) the availability of additional debt financing and/or equity
capital; (v) our increasing emphasis on selling more of our products
through third party distributors and sales agents, including our ability
to attract and retain effective third party distributors and sales
agents to execute our sales model; (vi) our ability to develop and
participate in new product and technology offerings or applications in a
cost effective and timely manner; (vii) our ability to manage the
ongoing decreases in the average selling prices of our products as a
result of competitive pressures in the evolving LED market; (viii) our
ability to manage our inventory and avoid inventory obsolescence in a
rapidly evolving LED market; (ix) our lack of major sources of recurring
revenue and the potential consequences of the loss of one or more key
customers or suppliers, including key contacts at such customers; (xi)
our ability to adapt to increasing convergence in the LED market; (xii)
our ability to differentiate our products in a highly competitive
market; (xiii) the deterioration of market conditions, including our
dependence on customers’ capital budgets for sales of products and
services; (xiv) our ability to complete and execute our strategy in a
highly competitive market and our ability to respond successfully to
market competition; (xv) our increasing reliance on third parties for
the manufacture and development of products and product components;
(xvi) our ability to successfully implement our strategy of focusing
mainly on lighting solutions using LED technologies; (xvii) the market
acceptance of our products and services; (xviii) our ability to realize
expected cost savings from cost reduction initiatives; (xix) adverse
developments with respect to litigation and other legal matters pursuant
to which we are subject, including the ongoing litigation initiated
against us by our former chief executive officer; (xx) our failure to
comply with the covenants in our revolving credit agreement; (xxi) our
fluctuating quarterly results of operations as we focus on new LED
technologies and continue to focus investing in our third party
distribution sales channel; (xxii) our ability to recruit, hire and
retain talented individuals in all disciplines of our company; (xxiii)
price fluctuations, shortages or interruptions of component supplies and
raw materials used to manufacture our products; (xxiv) our ability to
defend our patent portfolio; (xxv) a reduction in the price of
electricity; (xxvi) the cost to comply with, and the effects of, any
current and future government regulations, laws and policies; (xxvii)
potential warranty claims in excess of our reserve estimates and
(xxviii) the other risks described in our filings with the SEC.
Shareholders, potential investors and other readers are urged to
consider these factors carefully in evaluating the forward-looking
statements and are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements made herein
are made only as of the date of this press release and the Company
undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events or
otherwise. More detailed information about factors that may affect our
performance may be found in our filings with the Securities and Exchange
Commission, which are available at http://www.sec.gov
or at http://www.orionlighting.com
in the Investor Relations section of the Company’s Web site.
Contacts
Orion Energy Systems, Inc.
Bill Hull, CFO, 312-660-3575