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Orion Energy Systems shareholders approve board nominees, executive pay

EditorLina Guerrero
Published 08/13/2024, 04:39 PM
OESX
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MANITOWOC, WI - Orion Energy Systems, Inc. (NASDAQ:OESX), a manufacturer of efficient lighting and energy management systems, announced the results of its 2024 Annual Meeting of Shareholders on Tuesday. Shareholders voted on several key proposals during the meeting held on Thursday last week, with a strong turnout of approximately 71% of eligible votes cast.

In the election of directors, three Class II directors, Ellen B. Richstone, Richard A. Shapiro, and Heather L. Wishart-Smith, were elected to serve until the 2027 Annual Meeting of Shareholders. Each nominee received overwhelming support, securing over 90% of the votes cast.

Additionally, shareholders participated in an advisory "Say-On-Pay" vote to approve the compensation of the company's named executive officers as disclosed in the Definitive Proxy Statement. The executive compensation package received approval from 88% of the votes cast.

The final proposal on the agenda was the ratification of BDO USA, P.C. as the company's independent registered public accounting firm for the fiscal year 2025. This proposal also received strong support, with BDO USA, P.C. being ratified by over 99% of the votes cast.

In other recent news, Orion Energy Systems reported a 13% increase in Q1 2025 revenue, reaching $19.9 million, primarily driven by its electric vehicle charging system installation business.

The company secured contracts worth over $11 million for Eversource Energy (NYSE:ES)'s EV make-ready program and has a pipeline of opportunities totaling over $45 million.

Orion also anticipates growth in its LED Lighting Solutions and Maintenance Services segments. The company's financial liquidity stands strong at $14 million as of June 30, 2024.

Furthermore, Orion is confident about achieving its revenue growth target of between $100 million and $104 million for fiscal year 2025. The company plans to convert a significant portion of its $45 million pipeline in the EV charging business. However, it expects a contraction of $4 million to $5 million in the Maintenance Services segment.

Finally, Orion's CEO Mike Jenkins introduced a new product, TritonPro, aimed at accessing a larger market segment. The company also anticipates $18 million in revenue from their EV business this year, with significant contributions from an Eversource contract. These are part of the recent developments in Orion Energy Systems."

InvestingPro Insights

As Orion Energy Systems, Inc. (NASDAQ:OESX) garners strong shareholder support, the company's financial metrics and market performance provide additional context for investors. With a market capitalization of $31.11 million, the company demonstrates a presence in the industry, albeit as a smaller player. Despite a significant revenue growth of 20.47% in the last twelve months as of Q1 2023, the company's P/E ratio stands at -3.62, indicating that investors are expecting negative earnings.

InvestingPro Tips highlight that Orion Energy Systems is quickly burning through cash and has not been profitable over the last twelve months. This aligns with the company's reported operating income margin of -7.84%, suggesting challenges in achieving profitability. However, the company's liquid assets do exceed short-term obligations, providing some financial flexibility. In terms of stock performance, the company has experienced a strong return over the last three months with a 15.32% price total return, yet it has taken a significant hit over the last week and does not pay a dividend to shareholders, which may affect investor sentiment.

For investors seeking a deeper analysis, there are additional InvestingPro Tips available, offering a comprehensive look at the company's financial health and market performance. These insights can be accessed through InvestingPro's platform for those interested in a more granular analysis of Orion Energy Systems.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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