Orion CEO sees $11M Letter of Intent as 'very significant win'
In an exclusive interview with The Fly, Orion Energy (OESX) CEO Mike Altschaefl discussed some of the company's costumers and the recently announced $11M Letter of Intent with an existing client to do a nationwide rollout of lighting retrofit: "From a customer standpoint, we are in a variety of markets including the industrial market, the commercial market, retail automotive, food storage, healthcare, agriculture, and we have a pretty good size public sector business. One of our larger customers is Toyota (TM). Ford (F) is also one of our large automotive customers, where they may have a large assembly plant where we custom design fixtures and then manage the installation of fixtures in their facilities whenever they are doing a retrofit of their lighting fixtures solutions. On the retail side, we might do the actual physical retail store or we might also do quite a bit of work in the distribution centers. Our fixtures are in two primary areas. One would be what you would call industrial fixtures, in buildings with 20 to 40-foot ceilings where we are replacing old fluorescent fixtures with LED fixtures. The second primary area would be in your commercial or office environment where we are working with suspended ceilings. From an LED standpoint, the value proposition is that you generally get a 50% energy reduction, as well as 50% more light and better light coming to the work surface for your customers. We did announce back in January that we had secured and $11M letter of intent with an existing customer to do a nationwide rollout of some lighting retrofit for them and we expect most of that to fall into our fourth quarter, which ends March 31st, 2019. We expect to have upside potential from that same customer going forward. We have not publicly acknowledged who that customer is for competitive reasons and other business reasons. But it is a very nice win for us and a very significant win for us. In fiscal 2018, we were about $60M in revenue. For our fiscal 2019, which will end March 31st, we have publicly stated that we expect to grow 5%-10%, which would be between $63M-$66M. Our third quarter was $16.3M, which was a 23% increase over the second quarter and we expect our fourth quarter to be between $20M-$23M. So, we've been on a very nice growth pace the last half of this fiscal year." "Meet the Company" is The Fly's recurring series of exclusive short interviews with Executive Officers to offer a deeper look inside the company.