Orion expects to show profit

By Thomas Content
Milwaukee Journal Sentinel

Orion Energy Systems Inc. (OESX) expects to report a slight profit in the first quarter, a period in which sales were far lower than company projections, company executives said this morning.

The announcement came as the company’s shares were pummeled this morning, down more than a third of their value.

The Plymouth-based maker of energy-saving lighting systems used in warehouses and factories saw sales well below expectations in the first quarter. The company announced after stock markets closed Tuesday that sales growth in the current year would be 25 to 27 percent, rather than 50 percent. The company also named a new chief operating officer and new chief financial officer.

Scott Jensen, the new CFO, said the company expects to report a profit of less than 1 cent per share when results are announced on Aug. 5.

Sales in the first quarter were lower than expected in part because of the economy and in part because of time invested in the quarter in recruiting and training new salespeople rather than generating sales, said Neal Verfuerth, Orion chief executive. Sales were particularly weak in April and May before rebounding in June to help put the company “in the black,” he said.

In heavy trading this morning, Orion’s shares were trading sharply lower. The shares, which closed Tuesday at $8.60, were trading as low as $4.48 per share this morning. By mid-morning, they were back above $5.30.