MANITOWOC, WI - Orion Energy Systems, Inc. (NASDAQ:OESX), a manufacturer specializing in electric lighting and wiring equipment, has received a notification from The NASDAQ Stock Market LLC indicating non-compliance with the exchange's minimum bid price requirement.
The notice, dated today, states that Orion's common stock did not maintain the required minimum bid price of $1.00 per share for 30 consecutive business days.
Despite the warning, Orion's stock will continue trading on the Nasdaq Capital Market under the ticker "OESX". The company has been granted a 180-day period until March 19, 2025, to regain compliance.
To meet the requirements, the stock must close at $1.00 or higher for at least 10 consecutive business days. If Orion fails to comply within the allotted time, it may be eligible for an additional 180-day grace period, provided it meets certain conditions and possibly considers a reverse stock split.
Orion's management has expressed commitment to its growth strategy and cost control, highlighting a 13% year-over-year growth in the first quarter of fiscal 2025 and projecting a 10-15% revenue increase for the full fiscal year. The company believes that achieving these targets will help regain compliance with Nasdaq's requirements.
The SEC filing also outlines various forward-looking statements, reflecting management's views on market conditions, competitive pressures, and operational strategies. Orion's leadership emphasizes the importance of innovation and market differentiation to sustain profitability and growth. However, the company acknowledges the risks associated with fluctuating prices, competition, economic conditions, and the need to maintain effective internal systems.
In other recent news, Orion Energy Systems has been making significant strides. The company experienced a 13% increase in Q1 2025 revenue, primarily driven by its electric vehicle charging system installation business. Orion secured contracts exceeding $2 million for LED lighting system installations at various U.S. manufacturing sites of a longstanding automotive OEM client.
In addition, Orion secured contracts worth over $11 million for Eversource Energy (NYSE:ES)'s EV make-ready program, indicating a strong pipeline of opportunities.
At the 2024 Annual Meeting of Shareholders, Orion Energy Systems' shareholders approved board nominees and executive pay, with three directors elected to serve until the 2027 Annual Meeting.
The compensation of the company's named executive officers also received approval, and BDO USA, P.C. was ratified as the company's independent registered public accounting firm for fiscal year 2025.
The company's liquidity position remains robust at $14 million as of June 30, 2024. Despite expecting a contraction in the Maintenance Services segment, Orion is confident about achieving its revenue growth target of between $100 million and $104 million for fiscal year 2025.
Finally, Orion's CEO Mike Jenkins introduced a new product, TritonPro, aimed at accessing a larger market segment. These are some of the recent developments at Orion Energy Systems.
InvestingPro Insights
As Orion Energy Systems, Inc. (NASDAQ:OESX) navigates through its compliance challenge with NASDAQ's minimum bid price requirement, a closer look at key financial metrics and analyst insights provided by InvestingPro may offer investors a clearer picture of the company’s current standing. Orion's market capitalization stands at a modest $28.45 million, reflecting the size and scale of the business in its sector. The company's revenue growth is notable, with a 20.47% increase over the last twelve months as of Q1 2025, and a quarterly revenue growth of 13.02% in Q1 2025, aligning with the management's reported year-over-year growth.
However, despite these positive growth figures, the company is quickly burning through cash, as indicated by an InvestingPro Tip. This, coupled with a negative P/E ratio of -3.29 for the last twelve months as of Q1 2025, suggests that profitability remains a challenge. Analysts do not anticipate Orion to be profitable this year, another critical InvestingPro Tip to consider. Moreover, the company's stock is trading near its 52-week low, which could be a point of concern for potential investors.
For those interested in digging deeper, there are additional InvestingPro Tips available on the platform that can provide further guidance on Orion's financial health and market performance. With the next earnings date on November 5, 2024, stakeholders will be keen to see if the company's strategic initiatives will lead to a turnaround sufficient to satisfy NASDAQ's requirements and stabilize investor confidence.
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