ý | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the fiscal year ended March 31, |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
For the transition period from to |
Wisconsin | 39-1847269 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
2210 Woodland Drive, Manitowoc, WI | 54220 | |||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | ||
Common stock, no par value | NYSE | ||
Common stock purchase rights | NYSE |
Large accelerated filer | ¨ | Accelerated filer | o | |||||
Non-accelerated filer | Smaller reporting company | ý |
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ITEM 1. | BUSINESS |
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Revenue | Net Income (Loss) | Earnings (Loss) Per Diluted Share | ||||||||||||||||||||||||||||||
Previously | As | % | Previously | As | % | Previously | As | |||||||||||||||||||||||||
Period | Reported | Restated | Change | Reported | Restated | Change | Reported | Restated | ||||||||||||||||||||||||
Quarter Ended June 30, 2009 | $ | 12,628 | $ | 13,875 | 9.9 | % | $ | (2,773 | ) | $ | (2,080 | ) | 25.0 | % | $ | (0.13 | ) | $ | (0.10 | ) | ||||||||||||
Quarter Ended Sept. 30, 2009 | 14,619 | 16,075 | 10.0 | % | (1,399 | ) | (932 | ) | 33.4 | % | $ | (0.06 | ) | $ | (0.04 | ) | ||||||||||||||||
Quarter Ended Dec. 31, 2009 | 19,295 | 20,827 | 7.9 | % | 807 | 754 | (6.6 | )% | $ | 0.04 | $ | 0.03 | ||||||||||||||||||||
Quarter Ended March 31, 2010 | 18,876 | 17,296 | (8.4 | )% | (825 | ) | (1,215 | ) | (47.3 | )% | $ | (0.04 | ) | $ | (0.05 | ) | ||||||||||||||||
Quarter Ended June 30, 2010 | 14,688 | 16,977 | 15.6 | % | (1,055 | ) | (536 | ) | 49.2 | % | $ | (0.05 | ) | $ | (0.02 | ) | ||||||||||||||||
Quarter Ended Sept. 30, 2010 | 13,715 | 15,853 | 15.6 | % | (160 | ) | 540 | 437.5 | % | $ | (0.01 | ) | $ | 0.02 | ||||||||||||||||||
Quarter Ended Dec. 31, 2010 | 29,671 | 30,056 | 1.3 | % | 644 | 756 | 17.4 | % | $ | 0.03 | $ | 0.03 |
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Cumulative from | ||||
December 1, 2001 | ||||
through March 31, 2011 | ||||
(In thousands, unaudited) | ||||
HIF lighting systems sold(1) | 2,056 | |||
Total units sold (including HIF lighting systems) | 2,715 | |||
Customer kilowatt demand reduction(2) | 639 | |||
Customer kilowatt hours saved(2)(3) | 15,494,020 | |||
Customer electricity costs saved(4) | $ | 1,193,040 | ||
Indirect carbon dioxide emission reductions from customers’ energy savings (tons)(5) | 10,067 | |||
Square footage retrofitted(6) | 1,054,122 |
Cumulative From December 1, 2001 Through March 31, 2013 | |||
(in thousands, unaudited) | |||
HIF lighting systems sold(1) | 2,522 | ||
Total units sold (including HIF lighting systems) | 3,500 | ||
Customer kilowatt demand reduction(2) | 806 | ||
Customer kilowatt hours saved(2)(3) | 26,324,924 | ||
Customer electricity costs saved(4) | $ | 2,021,339 | |
Indirect carbon dioxide emission reductions from customers’ energy savings (tons)(5) | 17,152 | ||
Square footage retrofitted(6) | 1,317,237 |
(1) | “HIF lighting systems” includes all HIF units sold under the brand name “Compact Modular” and its predecessor, “Illuminator.” |
(2) | A substantial majority of our HIF lighting systems, which generally operate at approximately 224 watts per six-lamp fixture, are installed in replacement of HID fixtures, which generally operate at approximately 465 watts per fixture in commercial and industrial applications. We calculate that each six-lamp HIF lighting system we install in replacement of an HID fixture generally reduces electricity consumption by approximately 241 watts (the difference between 465 watts and 224 watts). In retrofit projects |
(3) | We calculate the number of kilowatt hours saved on a cumulative basis by assuming the demand kilowatt (kW) reduction for each fixture and assuming that each such unit has averaged 7,500 annual operating hours since its installation. |
(4) | We calculate our customers’ electricity costs saved by multiplying the cumulative total customer kilowatt hours saved indicated in the table by $0.077 per |
(5) | We calculate this figure by multiplying (i) the estimated amount of carbon dioxide emissions that result from the generation of one |
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(6) | Based on |
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According to the ACEEE, as of September 2012, 24 states have implemented, or were in the process of implementing, Energy Efficiency Resource Standards, or EERS, or have an energy efficiency component to their Renewable Portfolio Standard, or RPS, which generally requires utilities to allocate funds to energy efficiency programs to meet near-term energy savings targets set by state governments or regulatory authorities. In addition, 30 states have implemented RPS which requires the addition of renewable generation or capacity to the generating portfolios of utilities conducting business in those states, according to the EIA 2013 Annual Energy Outlook. In recent years, there has also been an increased focus on “decoupling,” a regulatory initiative designed to break the linkage between utility kWh sales and revenues, in order to remove the disincentives for utilities to promote load reducing initiatives. Decoupling aims to encourage utilities to actively promote energy efficiency by allowing utilities to generate revenues and returns on investment by employing energy management solutions. According to the Center for Climate and Energy Studies, as of May 31, 2013, 16 states had adopted |
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site field verification, or SFV, during which we perform a test implementation of our energy management system at a customer’s facility upon request; utility incentive and government subsidy management, where we assist our customers in identifying, applying for and obtaining available utility incentives or government subsidies; engineering design, which involves designing a customized system to suit our customer’s facility lighting and energy management needs, and providing the customer with a written analysis of the potential energy savings and lighting and environmental benefits associated with the designed system; 13 project management, which involves our working with the electrical contractor in overseeing and managing all phases of implementation from delivery through installation for a single facility or through multi-facility roll-outs tied to a defined project schedule; installation services, for our products, which we provide through our national network of qualified third-party installers; and recycling in connection with our retrofit installations, where we remove, dispose of and recycle our customer’s legacy lighting fixtures. |
American Standard International Inc. Anheuser-Busch Companies, Inc. Avery Dennison Corp. Big Lots Inc. The Coca-Cola Co. | Ecolab, Inc. Gap, Inc. General Electric Co. Kraft Foods Inc. Miller Coors LLC | Newell Rubbermaid Inc. OfficeMax, Inc. PepsiCo Inc. Sealed Air Corp. Sherwin-Williams Co. | SYSCO Corp. | ||||||
Textron, Inc. | |||||||||
Toyota Motor Corp. | |||||||||
United Stationers Inc. | |||||||||
U.S. Foodservice |
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ITEM 1A. | RISK FACTORS |
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ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
ITEM 3. | LEGAL PROCEEDINGS |
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ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED SHAREHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
High | Low | |||||||
Fiscal 2010 | ||||||||
First Quarter | $ | 4.66 | $ | 3.25 | ||||
Second Quarter | $ | 3.92 | $ | 2.68 | ||||
Third Quarter | $ | 4.76 | $ | 3.05 | ||||
Fourth Quarter | $ | 6.35 | $ | 4.37 | ||||
Fiscal 2011 | ||||||||
First Quarter | $ | 5.43 | $ | 2.84 | ||||
Second Quarter | $ | 3.43 | $ | 2.10 | ||||
Third Quarter | $ | 4.14 | $ | 3.11 | ||||
Fourth Quarter | $ | 4.94 | $ | 3.21 |
High | Low | ||||||
Fiscal 2012 | |||||||
First Quarter | $ | 4.29 | $ | 2.99 | |||
Second Quarter | $ | 4.10 | $ | 2.31 | |||
Third Quarter | $ | 3.20 | $ | 2.34 | |||
Fourth Quarter | $ | 3.46 | $ | 2.20 | |||
Fiscal 2013 | |||||||
First Quarter | $ | 2.51 | $ | 1.90 | |||
Second Quarter | $ | 2.41 | $ | 1.40 | |||
Third Quarter | $ | 1.98 | $ | 1.12 | |||
Fourth Quarter | $ | 3.09 | $ | 1.60 |
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Equity Compensation Plan Information | ||||||||||
Plan Category | Number of Securities to be Issued Upon Exercise of Outstanding Options and Vesting of Restricted Shares | Weighted Average Exercise Price of Outstanding Options and Restricted Shares | Number of Securities Remaining Available for Future Issuances Under the Equity Compensation Plans (1) | |||||||
Equity Compensation plans approved by security holders | 3,417,523 | $ | 3.37 | 1,632,778 | ||||||
Equity Compensation plans not approved by security holders | — | — | — | |||||||
Total | 3,417,523 | $ | 3.37 | 1,632,778 |
Number of | ||||||||||||
Securities | ||||||||||||
Number of | Remaining Available | |||||||||||
Securities to be | for Future | |||||||||||
Issued Upon | Weighted Average | Issuances Under the | ||||||||||
Exercise of | Exercise Price of | Equity Compensation | ||||||||||
Plan Category | Outstanding Options | Outstanding Options | Plans(1) | |||||||||
Equity Compensation plans approved by security holders | 3,658,768 | $ | 3.83 | 1,577,676 | ||||||||
Equity Compensation plans not approved by security holders | — | — | — | |||||||||
Total | 3,658,768 | $ | 3.83 | 1,577,676 | ||||||||
(1) | Excludes shares reflected in the column titled “Number of Securities to be Issued Upon Exercise of Outstanding Options”. |
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March 31, 2008 | March 31, 2009 | March 31, 2010 | March 31, 2011 | March 31, 2012 | March 31, 2013 | |||||||||||||||||||
Orion Energy Systems, Inc. | $ | 100 | $ | 46 | $ | 51 | $ | 42 | $ | 25 | $ | 26 | ||||||||||||
Russell 2000 Index | $ | 100 | $ | 63 | $ | 102 | $ | 128 | $ | 128 | $ | 149 | ||||||||||||
NASDAQ Clean Edge Green Energy Index | $ | 100 | $ | 46 | $ | 69 | $ | 75 | $ | 47 | $ | 48 |
December 19, | March 31, | March 31, | March 31, | March 31, | |||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | |||||||||||||||||||||
Orion Energy Systems, Inc. | $ | 100 | $ | 73 | $ | 34 | $ | 38 | $ | 31 | |||||||||||||||
Russell 2000 Index | $ | 100 | $ | 91 | $ | 57 | $ | 93 | $ | 117 | |||||||||||||||
NASDAQ Clean Edge Green Energy Index | $ | 100 | $ | 78 | $ | 36 | $ | 54 | $ | 58 | |||||||||||||||
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ITEM 6. | SELECTED FINANCIAL DATA |
Fiscal Year Ended March 31, | ||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | ||||||||||||||||
(As Restated)(5) | ||||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
Consolidated statements of operations data: | ||||||||||||||||||||
Product revenue | $ | 40,201 | $ | 65,359 | $ | 63,008 | $ | 60,882 | $ | 86,443 | ||||||||||
Service revenue | 7,982 | 15,328 | 9,626 | 7,191 | 6,015 | |||||||||||||||
Total revenue | 48,183 | 80,687 | 72,634 | 68,073 | 92,458 | |||||||||||||||
Cost of product revenue(1) | 26,511 | 42,127 | 42,235 | 40,063 | 58,251 | |||||||||||||||
Cost of service revenue | 5,976 | 10,335 | 6,801 | 5,266 | 4,499 | |||||||||||||||
Total cost of revenue | 32,487 | 52,462 | 49,036 | 45,329 | 62,750 | |||||||||||||||
Gross profit | 15,696 | 28,225 | 23,598 | 22,744 | 29,708 | |||||||||||||||
General and administrative expenses(1) | 6,162 | 10,200 | 10,451 | 12,836 | 11,431 | |||||||||||||||
Sales and marketing expenses(1) | 6,459 | 8,832 | 11,261 | 12,596 | 13,740 | |||||||||||||||
Research and development expenses(1) | 1,078 | 1,832 | 1,942 | 1,891 | 2,333 | |||||||||||||||
Income (loss) from operations | 1,997 | 7,361 | (56 | ) | (4,579 | ) | 2,204 | |||||||||||||
Interest expense | 1,044 | 1,390 | 167 | 256 | 406 | |||||||||||||||
Loss on sale of receivables | — | — | — | 561 | 1,012 | |||||||||||||||
Extinguishment of debt | — | — | — | 250 | — | |||||||||||||||
Dividend and interest income | 201 | 1,189 | 1,661 | 670 | 571 | |||||||||||||||
Income (loss) before income tax | 1,154 | 7,160 | 1,438 | (4,476 | ) | 1,357 | ||||||||||||||
Income tax expense (benefit) | 225 | 2,750 | 927 | (1,003 | ) | (243 | ) | |||||||||||||
Net income (loss) | 929 | 4,410 | 511 | (3,473 | ) | 1,600 | ||||||||||||||
Accretion of redeemable preferred stock and preferred stock dividends(2) | (201 | ) | (225 | ) | — | — | — | |||||||||||||
Conversion of preferred stock(3) | (83 | ) | — | — | — | — | ||||||||||||||
Participation rights of preferred stock in undistributed earnings(4) | (205 | ) | (775 | ) | — | — | — | |||||||||||||
Net income (loss) attributable to common shareholders | $ | 440 | $ | 3,410 | $ | 511 | $ | (3,473 | ) | $ | 1,600 | |||||||||
Net income (loss) per share attributable to common shareholders: | ||||||||||||||||||||
Basic | $ | 0.05 | $ | 0.22 | $ | 0.02 | $ | (0.16 | ) | $ | 0.07 | |||||||||
Diluted | $ | 0.05 | $ | 0.19 | $ | 0.02 | $ | (0.16 | ) | $ | 0.07 | |||||||||
Weighted-average shares outstanding: | ||||||||||||||||||||
Basic | 9,080 | 15,548 | 25,352 | 21,844 | 22,678 | |||||||||||||||
Diluted | 16,433 | 23,454 | 27,445 | 21,844 | 23,198 |
As of March 31, | ||||||||||||||||||||
2007 | 2008 | 2009 | 2010 | 2011 | ||||||||||||||||
(As Restated)(5) | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Consolidated balance sheet data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 285 | $ | 78,312 | $ | 36,163 | $ | 23,364 | $ | 11,560 | ||||||||||
Short-term investments | — | 2,404 | 6,490 | 1,000 | 1,011 | |||||||||||||||
Total assets | 33,583 | 130,702 | 103,722 | 104,578 | 114,990 | |||||||||||||||
Long-term debt, less current maturities | 10,603 | 4,473 | 3,647 | 3,156 | 4,225 | |||||||||||||||
Temporary equity (Series C convertible redeemable preferred stock) | 4,953 | — | — | — | — | |||||||||||||||
Series B convertible preferred stock | 5,959 | — | — | — | — | |||||||||||||||
Shareholder notes receivable | (2,128 | ) | — | — | — | (193 | ) | |||||||||||||
Shareholders’ equity | $ | 9,355 | $ | 113,190 | $ | 88,695 | $ | 88,387 | $ | 92,387 |
Fiscal Year Ended March 31, | |||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||
Consolidated statements of operations data: | |||||||||||||||||||
Product revenue | $ | 63,008 | $ | 60,882 | $ | 75,870 | $ | 90,782 | $ | 72,604 | |||||||||
Service revenue | 9,626 | 7,191 | 6,167 | 9,780 | 13,482 | ||||||||||||||
Total revenue | 72,634 | 68,073 | 82,037 | 100,562 | 86,086 | ||||||||||||||
Cost of product revenue(1) | 42,235 | 40,063 | 49,809 | 62,842 | 49,551 | ||||||||||||||
Cost of service revenue | 6,801 | 5,266 | 4,589 | 7,682 | 9,805 | ||||||||||||||
Total cost of revenue | 49,036 | 45,329 | 54,398 | 70,524 | 59,356 | ||||||||||||||
Gross profit | 23,598 | 22,744 | 27,639 | 30,038 | 26,730 | ||||||||||||||
General and administrative expenses(1)(2) | 10,451 | 12,836 | 11,686 | 11,399 | 13,946 | ||||||||||||||
Sales and marketing expenses(1)(2) | 11,261 | 12,596 | 13,674 | 15,599 | 17,129 | ||||||||||||||
Research and development expenses(1) | 1,942 | 1,891 | 2,333 | 2,518 | 2,259 | ||||||||||||||
(Loss) Income from operations | (56 | ) | (4,579 | ) | (54 | ) | 522 | (6,604 | ) | ||||||||||
Interest expense | (167 | ) | (256 | ) | (406 | ) | (551 | ) | (567 | ) | |||||||||
(Loss) gain on sale of OTA contract receivables | — | (561 | ) | (1,012 | ) | 32 | — | ||||||||||||
Extinguishment of debt | — | 250 | — | — | — | ||||||||||||||
Dividend and interest income | 1,661 | 670 | 571 | 850 | 845 | ||||||||||||||
Income (loss) before income tax | 1,438 | (4,476 | ) | (901 | ) | 853 | (6,326 | ) | |||||||||||
Income tax expense (benefit)(2) | 927 | (1,003 | ) | (1,242 | ) | 370 | 4,073 | ||||||||||||
Net income (loss) | $ | 511 | $ | (3,473 | ) | $ | 341 | $ | 483 | $ | (10,399 | ) | |||||||
Net income (loss) per share attributable to common shareholders: | |||||||||||||||||||
Basic | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | 0.02 | $ | (0.50 | ) | |||||||
Diluted | $ | 0.02 | $ | (0.16 | ) | $ | 0.01 | $ | 0.02 | $ | (0.50 | ) | |||||||
Weighted-average shares outstanding: | |||||||||||||||||||
Basic | 25,352 | 21,844 | 22,678 | 22,953 | 20,997 | ||||||||||||||
Diluted | 27,445 | 21,844 | 23,198 | 23,387 | 20,997 |
(1) | Includes stock-based compensation expense recognized under Financial Accounting Standards Board Accounting Standards Codification Topic 718, or ASC Topic 718, as follows: |
Fiscal Year Ended March 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
(in thousands) | |||||||||||
Cost of product revenue | $ | 187 | $ | 189 | $ | 114 | |||||
General and administrative expenses | 560 | 548 | 578 | ||||||||
Sales and marketing expenses | 523 | 501 | 451 | ||||||||
Research and development expenses | 31 | 29 | 21 | ||||||||
Total stock-based compensation expense | $ | 1,301 | $ | 1,267 | $ | 1,164 |
Fiscal Year Ended March 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
(In thousands) | ||||||||||||
Cost of product revenue | $ | 269 | $ | 222 | $ | 187 | ||||||
General and administrative expenses | 676 | 539 | 560 | |||||||||
Sales and marketing expenses | 587 | 691 | 523 | |||||||||
Research and development expenses | 45 | 39 | 31 | |||||||||
Total stock-based compensation expense | $ | 1,577 | $ | 1,491 | $ | 1,301 | ||||||
(2) | ||
As of March 31, | |||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | |||||||||||||||
(in thousands) | |||||||||||||||||||
Consolidated balance sheet data: | |||||||||||||||||||
Cash and cash equivalents | $ | 36,163 | $ | 23,364 | $ | 11,560 | $ | 23,011 | $ | 14,376 | |||||||||
Short-term investments | 6,490 | 1,000 | 1,011 | 1,016 | 1,021 | ||||||||||||||
Total assets | 103,722 | 104,578 | 121,087 | 125,650 | 102,097 | ||||||||||||||
Long-term debt, less current maturities | 3,647 | 3,156 | 4,225 | 6,704 | 4,109 | ||||||||||||||
Shareholder notes receivable | — | — | (193 | ) | (221 | ) | (265 | ) | |||||||||||
Total shareholders’ equity | $ | 88,695 | $ | 88,387 | $ | 90,455 | $ | 92,769 | $ | 77,769 |
ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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Fiscal 2012 | $ | 432 | ||
Fiscal 2013 | 432 | |||
Fiscal 2014 | 431 | |||
Fiscal 2015 | 431 | |||
Fiscal 2016 | 431 | |||
Beyond | 998 | |||
Total expected future discounted revenue from PPAs | $ | 3,155 | ||
Fiscal 2014 | $ | 451 | |
Fiscal 2015 | 247 | ||
Fiscal 2016 | 247 | ||
Fiscal 2017 | 247 | ||
Fiscal 2018 | 246 | ||
Beyond | 867 | ||
Total expected future discounted revenue from PPA's | $ | 2,305 |
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Fiscal Year Ended | Fiscal Year Ended | |||||||
March 31, 2010 | March 31, 2011 | |||||||
(As Restated) | ||||||||
Total Contracted Revenues | $ | 73.9 | $ | 103.9 | ||||
Change in cash order backlog(1) | (0.4 | ) | (4.6 | ) | ||||
Change in OTA backlog(2) | (1.5 | ) | (0.7 | ) | ||||
Contracted Revenue from PPAs(3) | (1.7 | ) | (1.9 | ) | ||||
PPA GAAP revenue recognized | 0.0 | 0.4 | ||||||
Other miscellaneous(4) | (2.2 | ) | (4.6 | ) | ||||
Revenue — GAAP basis | $ | 68.1 | $ | 92.5 | ||||
Fiscal Year ended March 31, 2012 | Fiscal Year ended March 31, 2013 | |||||||
Total Contracted Revenues | $ | 122.6 | $ | 75.5 | ||||
Change in backlog(1) | (24.5 | ) | 19.5 | |||||
Solar PV change orders(2) | 4.3 | — | ||||||
Change in solar contracts(3) | — | (10.1 | ) | |||||
PPA GAAP revenue recognized | 0.6 | 0.7 | ||||||
Other miscellaneous(4) | (2.4 | ) | 0.5 | |||||
Revenue – GAAP basis | $ | 100.6 | $ | 86.1 |
(1) | Change in backlog reflects the (increase) or decrease in cash orders at the end of the respective period where product delivery or service performance has not yet occurred. GAAP revenue will be recognized when the performance conditions have been |
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(3) | Change in solar contracts reflects the decrease in contracted revenue related to customer contracts that were terminated due to a contingency concern or were expected to be sold to other integrators at a discounted rate. |
(4) | Other miscellaneous includes a reduction from OTA contracted revenues measured at gross future cash flows and GAAP revenue measured at the net present value of future cash flows for completed OTA projects. |
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Fiscal Year Ended March 31, | ||||||||||||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Amount | % of Revenue | Amount | % of Revenue | % Change | Amount | % of Revenue | % Change | |||||||||||||||||||
Product revenue | $ | 75,870 | 92.5 | % | $ | 90,782 | 90.3 | % | 19.7 | % | $ | 72,604 | 84.3 | % | (20.0 | )% | ||||||||||
Service revenue | 6,167 | 7.5 | % | 9,780 | 9.7 | % | 58.6 | % | 13,482 | 15.7 | % | 37.9 | % | |||||||||||||
Total revenue | 82,037 | 100.0 | % | 100,562 | 100.0 | % | 22.6 | % | 86,086 | 100.0 | % | (14.4 | )% | |||||||||||||
Cost of product revenue | 49,809 | 60.7 | % | 62,842 | 62.5 | % | 26.2 | % | 49,551 | 57.5 | % | (21.1 | )% | |||||||||||||
Cost of service revenue | 4,589 | 5.6 | % | 7,682 | 7.6 | % | 67.4 | % | 9,805 | 11.4 | % | 27.6 | % | |||||||||||||
Total cost of revenue | 54,398 | 66.3 | % | 70,524 | 70.1 | % | 29.6 | % | 59,356 | 68.9 | % | (15.8 | )% | |||||||||||||
Gross profit | 27,639 | 33.7 | % | 30,038 | 29.9 | % | 8.7 | % | 26,730 | 31.1 | % | (11.0 | )% | |||||||||||||
General and administrative expenses | 11,686 | 14.2 | % | 11,399 | 11.3 | % | (2.5 | )% | 13,946 | 16.2 | % | 22.3 | % | |||||||||||||
Sales and marketing expenses | 13,674 | 16.7 | % | 15,599 | 15.5 | % | 14.1 | % | 17,129 | 19.9 | % | 9.8 | % | |||||||||||||
Research and development expenses | 2,333 | 2.9 | % | 2,518 | 2.5 | % | 7.9 | % | 2,259 | 2.7 | % | (10.3 | )% | |||||||||||||
(Loss) income from operations | (54 | ) | (0.1 | )% | 522 | 0.5 | % | (1,066.7 | )% | (6,604 | ) | (7.7 | )% | (1,365.1 | )% | |||||||||||
Interest expense | (406 | ) | (0.5 | )% | (551 | ) | (0.5 | )% | 35.7 | % | (567 | ) | (0.6 | )% | 2.9 | % | ||||||||||
(Loss) gain on sale of OTA contract receivables | (1,012 | ) | (1.2 | )% | 32 | — | % | (103.2 | )% | — | — | % | — | % | ||||||||||||
Interest income | 571 | 0.7 | % | 850 | 0.9 | % | 48.9 | % | 845 | 1.0 | % | (0.6 | )% | |||||||||||||
(Loss) income before income tax | (901 | ) | (1.1 | )% | 853 | 0.9 | % | (194.7 | )% | (6,326 | ) | (7.3 | )% | (841.6 | )% | |||||||||||
Income tax (benefit) expense | (1,242 | ) | (1.5 | )% | 370 | 0.4 | % | (129.8 | )% | 4,073 | 4.8 | % | 1,000.8 | % | ||||||||||||
Net income (loss) | $ | 341 | 0.4 | % | $ | 483 | 0.5 | % | 41.6 | % | $ | (10,399 | ) | (12.1 | )% | (2,253.0 | )% |
Fiscal Year Ended March 31, | ||||||||||||||||||||||||||||||||
2009 | 2010 | 2011 | ||||||||||||||||||||||||||||||
% of | % of | % | % of | % | ||||||||||||||||||||||||||||
Amount | Revenue | Amount | Revenue | Change | Amount | Revenue | Change | |||||||||||||||||||||||||
(As Restated) (1) | ||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Product revenue | $ | 63,008 | 86.7 | % | $ | 60,882 | 89.4 | % | (3.4 | )% | $ | 86,443 | 93.5 | % | 42.0 | % | ||||||||||||||||
Service revenue | 9,626 | 13.3 | % | 7,191 | 10.6 | % | (25.3 | )% | 6,015 | 6.5 | % | (16.4 | )% | |||||||||||||||||||
Total revenue | 72,634 | 100.0 | % | 68,073 | 100.0 | % | (6.3 | )% | 92,458 | 100.0 | % | 35.8 | % | |||||||||||||||||||
Cost of product revenue | 42,235 | 58.1 | % | 40,063 | 58.9 | % | (5.1 | )% | 58,251 | 63.0 | % | 45.4 | % | |||||||||||||||||||
Cost of service revenue | 6,801 | 9.4 | % | 5,266 | 7.7 | % | (22.6 | )% | 4,499 | 4.9 | % | (14.6 | )% | |||||||||||||||||||
Total cost of revenue | 49,036 | 67.5 | % | 45,329 | 66.6 | % | (7.6 | )% | 62,750 | 67.9 | % | 38.4 | % | |||||||||||||||||||
Gross profit | 23,598 | 32.5 | % | 22,744 | 33.4 | % | (3.6 | )% | 29,708 | 32.1 | % | 30.6 | % | |||||||||||||||||||
General and administrative expenses | 10,451 | 14.4 | % | 12,836 | 18.9 | % | 22.8 | % | 11,431 | 12.4 | % | (10.9 | )% | |||||||||||||||||||
Sales and marketing expenses | 11,261 | 15.5 | % | 12,596 | 18.5 | % | 11.9 | % | 13,740 | 14.9 | % | 9.1 | % | |||||||||||||||||||
Research and development expenses | 1,942 | 2.7 | % | 1,891 | 2.8 | % | (2.6 | )% | 2,333 | 2.5 | % | 23.4 | % | |||||||||||||||||||
Income (loss) from operations | (56 | ) | (0.1 | )% | (4,579 | ) | (6.7 | )% | NM | 2,204 | 2.4 | % | 148.1 | % | ||||||||||||||||||
Interest expense | (167 | ) | 0.2 | % | (256 | ) | (0.4 | )% | (53.3 | )% | (406 | ) | (0.4 | )% | 58.6 | % | ||||||||||||||||
Loss on sale of receivable | — | — | % | (561 | ) | (0.8 | )% | NM | (1,012 | ) | (1.1 | )% | 80.4 | % | ||||||||||||||||||
Extinguishment of debt | — | — | % | 250 | 0.4 | % | 100.0 | % | — | — | % | (100.0 | )% | |||||||||||||||||||
Dividend and interest income | 1,661 | 2.3 | % | 670 | 1.0 | % | (59.7 | )% | 571 | 0.6 | % | (14.8 | ) % | |||||||||||||||||||
Income (loss) before income tax | 1,438 | 2.0 | % | (4,476 | ) | (6.6 | )% | (411.3 | )% | 1,357 | 1.5 | % | 130.3 | % | ||||||||||||||||||
Income tax expense (benefit) | 927 | 1.3 | % | (1,003 | ) | (1.5 | )% | (208.2 | )% | (243 | ) | (0.2 | )% | 75.8 | % | |||||||||||||||||
Net income (loss) | $ | 511 | 0.7 | % | $ | (3,473 | ) | (5.1 | )% | (779.6 | )% | $ | 1,600 | 1.7 | % | 146.1 | % | |||||||||||||||
43
44
For the year ended March 31, | |||||||||||
(dollars in thousands) | 2011 | 2012 | 2013 | ||||||||
Revenues | $ | 77,861 | $ | 72,097 | $ | 67,437 | |||||
Operating income | $ | 6,460 | $ | 4,974 | $ | 245 | |||||
Operating margin | 8.3 | % | 6.9 | % | 0.4 | % |
For the year ended March 31, | |||||||||||
(dollars in thousands) | 2011 | 2012 | 2013 | ||||||||
Revenues | $ | 4,176 | $ | 28,465 | $ | 18,649 | |||||
Operating income | $ | (1,507 | ) | $ | 569 | $ | 671 | ||||
Operating margin | (36.1 | )% | 2.0 | % | 3.6 | % |
45
For the Year Ended March 31, | ||||||||
2010 | 2011 | |||||||
(Dollars in thousands) | ||||||||
Revenues | $ | 59, 649 | $ | 71,866 | ||||
Operating income | 1,203 | 5,754 | ||||||
Operating Margin | 2.0 | % | 8.0 | % |
46
For the Year Ended March 31, | ||||||||
2010 | 2011 | |||||||
(Dollars in thousands) | ||||||||
Revenues | $ | 8,423 | $ | 20,592 | ||||
Operating (loss) income | (471 | ) | 1,371 | |||||
Operating Margin | (5.6 | )% | 6.7 | % |
47
For the Three Months Ended | |||||||||||||||||||||||||||||||
Jun 30, 2011 | Sep 30, 2011 | Dec 31, 2011 | Mar 31, 2012 | Jun 30, 2012 | Sep 30, 2012 | Dec 31, 2012 | Mar 31, 2013 | ||||||||||||||||||||||||
(in thousands, unaudited) | |||||||||||||||||||||||||||||||
Product revenue | $ | 17,361 | $ | 30,111 | $ | 24,274 | $ | 19,036 | $ | 13,580 | $ | 16,931 | $ | 22,660 | $ | 19,433 | |||||||||||||||
Service revenue | 860 | 3,364 | 3,132 | 2,424 | 1,730 | 2,477 | 6,427 | 2,848 | |||||||||||||||||||||||
Total revenue | 18,221 | 33,475 | 27,406 | 21,460 | 15,310 | 19,408 | 29,087 | 22,281 | |||||||||||||||||||||||
Cost of product revenue | 11,592 | 21,447 | 17,445 | 12,358 | 9,597 | 11,867 | 15,708 | 12,379 | |||||||||||||||||||||||
Cost of service revenue | 622 | 2,647 | 2,447 | 1,966 | 1,340 | 1,736 | 4,798 | 1,931 | |||||||||||||||||||||||
Total cost of revenue | 12,214 | 24,094 | 19,892 | 14,324 | 10,937 | 13,603 | 20,506 | 14,310 | |||||||||||||||||||||||
Gross profit | 6,007 | 9,381 | 7,514 | 7,136 | 4,373 | 5,805 | 8,581 | 7,971 | |||||||||||||||||||||||
General and administrative expenses | 3,075 | 2,748 | 2,848 | 2,728 | 3,302 | 4,638 | 2,848 | 3,158 | |||||||||||||||||||||||
Sales and marketing expenses | 3,775 | 3,728 | 4,054 | 4,042 | 3,952 | 4,561 | 4,730 | 3,886 | |||||||||||||||||||||||
Research and development expenses | 622 | 597 | 552 | 747 | 697 | 710 | 427 | 425 | |||||||||||||||||||||||
Income (loss) from operations | (1,465 | ) | 2,308 | 60 | (381 | ) | (3,578 | ) | (4,104 | ) | 576 | 502 | |||||||||||||||||||
Interest expense | (87 | ) | (150 | ) | (160 | ) | (154 | ) | (161 | ) | (142 | ) | (138 | ) | (126 | ) | |||||||||||||||
(Loss) gain on sale of asset | — | 26 | 4 | 2 | — | — | — | — | |||||||||||||||||||||||
Interest income | 154 | 214 | 226 | 256 | 225 | 218 | 213 | 189 | |||||||||||||||||||||||
Income (loss) before income tax | (1,398 | ) | 2,398 | 130 | (277 | ) | (3,514 | ) | (4,028 | ) | 651 | 565 | |||||||||||||||||||
Income tax expense (benefit) | (606 | ) | 1,040 | 56 | (120 | ) | (1,574 | ) | 5,631 | — | 16 | ||||||||||||||||||||
Net income (loss) | $ | (792 | ) | $ | 1,358 | $ | 74 | $ | (157 | ) | $ | (1,940 | ) | $ | (9,659 | ) | $ | 651 | $ | 549 |
For the Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, | Sept. 30, | Dec. 31, | Mar. 31, | June 30, | Sept. 30, | Dec. 31, | Mar. 31, | |||||||||||||||||||||||||
2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 | |||||||||||||||||||||||||
(As Restated) | (As Restated) | (As Restated) | (As Restated) | (As Restated) | (As Restated) | (As Restated) | ||||||||||||||||||||||||||
(In thousands, unaudited) | ||||||||||||||||||||||||||||||||
Product revenue | $ | 11,924 | $ | 15,219 | $ | 18,737 | $ | 15,002 | $ | 15,758 | $ | 15,086 | $ | 28,048 | $ | 27,551 | ||||||||||||||||
Service revenue | 1,951 | 856 | 2,090 | 2,294 | 1,219 | 767 | 2,008 | 2,021 | ||||||||||||||||||||||||
Total revenue | 13,875 | 16,075 | 20,827 | 17,296 | 16,977 | 15,853 | 30,056 | 29,572 | ||||||||||||||||||||||||
Cost of product revenue | 8,748 | 10,122 | 11,860 | 9,333 | 10,307 | 9,745 | 19,228 | 18,971 | ||||||||||||||||||||||||
Cost of service revenue | 1,255 | 632 | 1,568 | 1,811 | 917 | 498 | 1,674 | 1,410 | ||||||||||||||||||||||||
Total cost of revenue | 10,003 | 10,754 | 13,428 | 11,144 | 11,224 | 10,243 | 20,902 | 20,381 | ||||||||||||||||||||||||
Gross profit | 3,872 | 5,321 | 7,399 | 6,152 | 5,753 | 5,610 | 9,154 | 9,191 | ||||||||||||||||||||||||
General and administrative expenses | 3,163 | 3,143 | 3,051 | 3,479 | 2,945 | 2,988 | 2,709 | 2,789 | ||||||||||||||||||||||||
Sales and marketing expenses | 3,152 | 2,962 | 3,063 | 3,420 | 3,590 | 3,299 | 3,235 | 3,616 | ||||||||||||||||||||||||
Research and development expenses | 419 | 491 | 404 | 576 | 610 | 573 | 614 | 536 | ||||||||||||||||||||||||
Income (loss) from operations | (2,862 | ) | (1,275 | ) | 881 | (1,323 | ) | (1,392 | ) | (1,250 | ) | 2,596 | 2,250 | |||||||||||||||||||
Interest expense | 54 | 73 | 66 | 63 | 70 | 55 | 98 | 183 | ||||||||||||||||||||||||
Loss on sale of asset | — | — | — | 561 | — | — | — | 1,012 | ||||||||||||||||||||||||
Extinguishment of debt | — | — | — | 250 | — | — | — | — | ||||||||||||||||||||||||
Dividend and interest income | 236 | 147 | 157 | 130 | 93 | 153 | 189 | 136 | ||||||||||||||||||||||||
Income (loss) before income tax | (2,682 | ) | (1,201 | ) | 972 | (1,567 | ) | (1,369 | ) | (1,152 | ) | 2,687 | 1,191 | |||||||||||||||||||
Income tax expense (benefit) | (600 | ) | (269 | ) | 218 | (352 | ) | (833 | ) | (1,692 | ) | 1,931 | 351 | |||||||||||||||||||
Net income (loss) | $ | (2,080 | ) | $ | (932 | ) | $ | 754 | $ | (1,215 | ) | $ | (536 | ) | $ | 540 | $ | 756 | $ | 840 | ||||||||||||
Jun 30, 2011 | Sep 30, 2011 | Dec 31, 2011 | Mar 31, 2012 | Jun 30, 2012 | Sep 30, 2012 | Dec 31, 2012 | Mar 31, 2013 | ||||||||||||||||
(in thousands, unaudited) | |||||||||||||||||||||||
Product revenue | 95.3 | % | 90.0 | % | 88.6 | % | 88.7 | % | 88.7 | % | 87.2 | % | 77.9 | % | 87.2 | % | |||||||
Service revenue | 4.7 | % | 10.0 | % | 11.4 | % | 11.3 | % | 11.3 | % | 12.8 | % | 22.1 | % | 12.8 | % | |||||||
Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||
Cost of product revenue | 63.6 | % | 64.1 | % | 63.7 | % | 57.6 | % | 62.7 | % | 61.1 | % | 54.0 | % | 55.6 | % | |||||||
Cost of service revenue | 3.4 | % | 7.9 | % | 8.9 | % | 9.1 | % | 8.7 | % | 9.0 | % | 16.5 | % | 8.6 | % | |||||||
Total cost of revenue | 67.0 | % | 72.0 | % | 72.6 | % | 66.7 | % | 71.4 | % | 70.1 | % | 70.5 | % | 64.2 | % | |||||||
Gross margin | 33.0 | % | 28.0 | % | 27.4 | % | 33.3 | % | 28.6 | % | 29.9 | % | 29.5 | % | 35.8 | % | |||||||
General and administrative expenses | 16.9 | % | 8.2 | % | 10.4 | % | 12.7 | % | 21.6 | % | 23.9 | % | 9.8 | % | 14.2 | % | |||||||
Sales and marketing expenses | 20.7 | % | 11.1 | % | 14.8 | % | 18.8 | % | 25.8 | % | 23.5 | % | 16.3 | % | 17.4 | % | |||||||
Research and development expenses | 3.4 | % | 1.8 | % | 2.0 | % | 3.6 | % | 4.6 | % | 3.6 | % | 1.4 | % | 1.9 | % | |||||||
Income (loss) from operations | (8.0 | )% | 6.9 | % | 0.2 | % | (1.8 | )% | (23.4 | )% | (21.1 | )% | 2.0 | % | 2.3 | % | |||||||
Interest expense | (0.5 | )% | (0.4 | )% | (0.5 | )% | (0.7 | )% | (1.1 | )% | (0.8 | )% | (0.5 | )% | (0.6 | )% | |||||||
(Loss) gain on sale of asset | 0.0 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | |||||||
Interest income | 0.8 | % | 0.6 | % | 0.8 | % | 1.2 | % | 1.5 | % | 1.1 | % | 0.7 | % | 0.8 | % | |||||||
Income (loss) before income tax | (7.7 | )% | 7.2 | % | 0.5 | % | (1.3 | )% | (23.0 | )% | (20.8 | )% | 2.2 | % | 2.5 | % | |||||||
Income tax expense (benefit) | (3.4 | )% | 3.1 | % | 0.2 | % | (0.6 | )% | (10.3 | )% | 29.0 | % | 0.0 | % | 0.0 | % | |||||||
Net income (loss) | (4.3 | )% | 4.1 | % | 0.3 | % | (0.7 | )% | (12.7 | )% | (49.8 | )% | 2.2 | % | 2.5 | % |
June 30, | Sept. 30, | Dec. 31, | Mar. 31, | June 30, | Sept. 30, | Dec. 31, | Mar. 31, | |||||||||||||||||||||||||
2009 | 2009 | 2009 | 2010 | 2010 | 2010 | 2010 | 2011 | |||||||||||||||||||||||||
(As Restated) | (As Restated) | (As Restated) | (As Restated) | (As Restated) | (As Restated) | (As Restated) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Product revenue | 85.9 | % | 94.7 | % | 90.0 | % | 86.7 | % | 92.8 | % | 95.2 | % | 93.3 | % | 93.2 | % | ||||||||||||||||
Service revenue | 14.1 | % | 5.3 | % | 10.0 | % | 13.3 | % | 7.2 | % | 4.8 | % | 6.7 | % | 6.8 | % | ||||||||||||||||
Total revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100 | % | ||||||||||||||||
Cost of product revenue | 63.0 | % | 63.0 | % | 56.9 | % | 54.0 | % | 60.7 | % | 61.5 | % | 64.0 | % | 64.2 | % | ||||||||||||||||
Cost of service revenue | 9.0 | % | 3.9 | % | 7.5 | % | 10.4 | % | 5.4 | % | 3.1 | % | 5.6 | % | 4.8 | % | ||||||||||||||||
Total cost of revenue | 72.0 | % | 66.9 | % | 64.5 | % | 64.4 | % | 66.1 | % | 64.6 | % | 69.5 | % | 68.9 | % | ||||||||||||||||
Gross margin | 28.0 | % | 33.1 | % | 35.5 | % | 35.6 | % | 33.9 | % | 35.4 | % | 30.5 | % | 31.1 | % | ||||||||||||||||
General and administrative expenses | 22.8 | % | 19.6 | % | 14.6 | % | 20.1 | % | 17.3 | % | 18.8 | % | 9.0 | % | 9.4 | % | ||||||||||||||||
Sales and marketing expenses | 22.8 | % | 18.4 | % | 14.7 | % | 19.8 | % | 21.1 | % | 20.8 | % | 10.8 | % | 12.2 | % | ||||||||||||||||
Research and development expenses | 3.0 | % | 3.1 | % | 1.9 | % | 3.3 | % | 3.6 | % | 3.6 | % | 2.0 | % | 1.8 | % | ||||||||||||||||
Income (loss) from operations | (20.6 | )% | (7.9 | )% | 4.2 | % | (7.6 | ) % | (8.2 | )% | (7.9 | ) % | 8.6 | % | 7.6 | % | ||||||||||||||||
Interest expense | 0.4 | % | 0.5 | % | 0.3 | % | 0.4 | % | 0.4 | % | 0.3 | % | 0.3 | % | 0.6 | % | ||||||||||||||||
Loss on sale of asset | — | % | — | % | — | % | (3.2 | )% | — | % | — | % | — | % | (3.4 | )% | ||||||||||||||||
Extinguishment of debt | — | % | — | % | — | % | 1.4 | % | — | % | — | % | — | % | — | % | ||||||||||||||||
Dividend and interest income | 1.7 | % | 0.9 | % | 0.8 | % | 0.7 | % | 0.5 | % | 0.9 | % | 0.6 | % | 0.4 | % | ||||||||||||||||
Income (loss) before income tax | (19.3 | )% | (7.5 | )% | 4.7 | % | (9.1 | )% | (8.1 | )% | (7.3 | )% | 8.9 | % | 4.0 | % | ||||||||||||||||
Income tax expense (benefit) | (4.3 | )% | (1.7 | )% | 1.0 | % | (2.1 | )% | (4.9 | )% | (10.7 | )% | 6.4 | % | 1.2 | % | ||||||||||||||||
Net income (loss) | (15.0 | )% | (5.8 | )% | 3.7 | % | (7.0 | )% | (3.2 | )% | 3.4 | % | 2.5 | % | 2.8 | % | ||||||||||||||||
48
49
Fiscal Year Ended March 31, | |||||||||||||||||||||||
2010 | |||||||||||||||||||||||
2009 | (As Restated) | 2011 | Fiscal Year Ended March 31, | ||||||||||||||||||||
(In thousands) | 2011 | 2012 | 2013 | ||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Operating activities | $ | 3,239 | $ | (10,718 | ) | $ | (8,737 | ) | $ | (8,645 | ) | $ | 11,495 | $ | 2,261 | ||||||||
Investing activities | (17,873 | ) | (3,070 | ) | (5,702 | ) | (5,121 | ) | (4,532 | ) | (2,271 | ) | |||||||||||
Financing activities | (27,515 | ) | 989 | 2,635 | 1,962 | 4,488 | (8,625 | ) | |||||||||||||||
Decrease in cash and cash equivalents | $ | (42,149 | ) | $ | (12,799 | ) | $ | (11,804 | ) | ||||||||||||||
(Decrease) increase in cash and cash equivalents | $ | (11,804 | ) | $ | 11,451 | $ | (8,635 | ) |
50
51
Payments Due By Period | |||||||||||||||||||
Total | Less than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||
(in thousands) | |||||||||||||||||||
Bank debt obligations | $ | 6,706 | $ | 2,597 | $ | 3,320 | $ | 325 | $ | 464 | |||||||||
Cash interest payments on debt | 676 | 320 | 249 | 70 | 37 | ||||||||||||||
Operating lease obligations | 6,290 | 953 | 1,825 | 1,567 | 1,945 | ||||||||||||||
Purchase order and capital expenditure commitments(1) | 11,480 | 10,124 | 1,356 | — | — | ||||||||||||||
Total | $ | 25,152 | $ | 13,994 | $ | 6,750 | $ | 1,962 | $ | 2,446 |
Payments Due By Period | ||||||||||||||||||||
Less than | More than | |||||||||||||||||||
Total | 1 Year | 1-3 Years | 3-5 Years | 5 Years | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Bank debt obligations | $ | 5,362 | $ | 1,137 | $ | 2,168 | $ | 1,427 | $ | 630 | ||||||||||
Cash interest payments on debt | 1,019 | 276 | 292 | 140 | 311 | |||||||||||||||
Operating lease obligations | 9,325 | 1,748 | 2,284 | 1,797 | 3,496 | |||||||||||||||
Purchase order and capital expenditure commitments(1) | 14,457 | 11,595 | 2,862 | — | — | |||||||||||||||
Total | $ | 30,163 | $ | 14,756 | $ | 7,606 | $ | 3,364 | $ | 4,437 | ||||||||||
(1) | Reflects non-cancellable purchase commitments in the amount of |
52
53
Level 1 — | Quoted prices in active markets for identical assets or liabilities. | |
Level 2 — | Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3 — | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
54
Fiscal Year Ended March 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
Weighted average expected term | 5.7 years | 6.6 years | 5.7 years | |||||||||
Risk-free interest rate | 3.01 | % | 2.68 | % | 2.14% | |||||||
Expected volatility | 60 | % | 60 | % | 60%-74.8% | |||||||
Expected forfeiture rate | 2 | % | 3 | % | 11.4% |
Fiscal Year Ended March 31, | |||||
2011 | 2012 | 2013 | |||
Weighted average expected term | 5.7 years | 5.7 years | 5.5 years | ||
Risk-free interest rate | 2.1% | 1.5% | 0.8% | ||
Expected volatility | 60.0% – 74.8% | 70.0% | 72.5% – 74.4% | ||
Expected forfeiture rate | 11.4% | 15.1% | 21.4% |
55
Item 7A | Quantitative and Qualitative Disclosure About Market Risk |
56
Page | ||||
Number | ||||
58
59
60
March 31, | ||||||||
2010 | 2011 | |||||||
(As Restated) | ||||||||
(In thousands, except share and per share amounts) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 23,364 | $ | 11,560 | ||||
Short-term investments | 1,000 | 1,011 | ||||||
Accounts receivable, net of allowances of $382 and $436 | 15,991 | 27,618 | ||||||
Inventories, net | 25,991 | 29,507 | ||||||
Deferred tax assets | 1,244 | 947 | ||||||
Prepaid expenses and other current assets | 4,112 | 2,499 | ||||||
Total current assets | 71,702 | 73,142 | ||||||
Property and equipment, net | 28,193 | 30,017 | ||||||
Patents and licenses, net | 1,590 | 1,620 | ||||||
Deferred tax assets | 974 | 2,112 | ||||||
Long-term accounts receivable | 2,092 | 6,030 | ||||||
Other long-term assets | 27 | 2,069 | ||||||
Total assets | $ | 104,578 | $ | 114,990 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Accounts payable | $ | 7,761 | $ | 12,479 | ||||
Accrued expenses | 4,128 | 2,586 | ||||||
Current maturities of long-term debt | 562 | 1,137 | ||||||
Total current liabilities | 12,451 | 16,202 | ||||||
Long-term debt, less current maturities | 3,156 | 4,225 | ||||||
Deferred revenue | 186 | 1,777 | ||||||
Other long-term liabilities | 398 | 399 | ||||||
Total liabilities | 16,191 | 22,603 | ||||||
Commitments and contingencies (See Note G) | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, $0.01 par value: Shares authorized: 30,000,000 shares at March 31, 2010 and 2011; no shares issued and outstanding at March 31, 2010 and 2011 | — | — | ||||||
Common stock, no par value: Shares authorized: 200,000,000 at March 31, 2010 and 2011; shares issued: 29,911,203 and 30,312,758 at March 31, 2010 and 2011; shares outstanding: 22,442,380 and 22,893,803 at March 31, 2010 and 2011 | — | — | ||||||
Additional paid-in capital | 122,515 | 124,805 | ||||||
Treasury stock: 7,468,823 common shares at March 31, 2010 and 7,431,897 at March 31, 2011 | (32,011 | ) | (31,708 | ) | ||||
Shareholder notes receivable | — | (193 | ) | |||||
Retained deficit | (2,117 | ) | (517 | ) | ||||
Total shareholders’ equity | 88,387 | 92,387 | ||||||
Total liabilities and shareholders’ equity | $ | 104,578 | $ | 114,990 | ||||
March 31, | |||||||
2012 | 2013 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 23,011 | $ | 14,376 | |||
Short-term investments | 1,016 | 1,021 | |||||
Accounts receivable, net of allowances of $947 and $900 | 19,167 | 18,397 | |||||
Inventories, net | 18,132 | 15,230 | |||||
Deferred contract costs | 2,193 | 2,118 | |||||
Deferred tax assets | 1,549 | — | |||||
Prepaid expenses and other current assets | 2,174 | 2,465 | |||||
Total current assets | 67,242 | 53,607 | |||||
Property and equipment, net | 30,225 | 27,947 | |||||
Long-term inventory | 12,328 | 11,491 | |||||
Patents and licenses, net | 1,689 | 1,709 | |||||
Deferred tax assets | 2,609 | — | |||||
Long-term accounts receivable | 7,555 | 5,069 | |||||
Other long-term assets | 4,002 | 2,274 | |||||
Total assets | $ | 125,650 | $ | 102,097 | |||
Liabilities and Shareholders’ Equity | |||||||
Accounts payable | $ | 14,300 | $ | 7,773 | |||
Accrued expenses and other | 3,018 | 5,457 | |||||
Deferred revenue, current | 2,614 | 2,946 | |||||
Current maturities of long-term debt | 2,791 | 2,597 | |||||
Total current liabilities | 22,723 | 18,773 | |||||
Long-term debt, less current maturities | 6,704 | 4,109 | |||||
Deferred revenue, long-term | 3,048 | 1,258 | |||||
Other long-term liabilities | 406 | 188 | |||||
Total liabilities | 32,881 | 24,328 | |||||
Commitments and contingencies (See Note F) | — | — | |||||
Shareholders’ equity: | |||||||
Common stock, no par value: Shares authorized: 200,000,000 at March 31, 2012 and 2013; shares issued: 30,445,479 and 30,498,900 at March 31, 2012 and 2013; shares outstanding: 22,785,258 and 20,162,397 at March 31, 2012 and 2013 | — | — | |||||
Additional paid-in capital | 126,753 | 128,104 | |||||
Treasury stock: 7,660,221 and 10,336,503 common shares at March 31, 2012 and 2013 | (32,470 | ) | (38,378 | ) | |||
Shareholder notes receivable | (221 | ) | (265 | ) | |||
Retained deficit | (1,293 | ) | (11,692 | ) | |||
Total shareholders’ equity | 92,769 | 77,769 | |||||
Total liabilities and shareholders’ equity | $ | 125,650 | 102,097 |
Fiscal Year Ended March 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
(As Restated) | ||||||||||||
(In thousands, except share and per share amounts) | ||||||||||||
Product revenue | $ | 63,008 | 60,882 | $ | 86,443 | |||||||
Service revenue | 9,626 | 7,191 | 6,015 | |||||||||
Total revenue | 72,634 | 68,073 | 92,458 | |||||||||
Cost of product revenue | 42,235 | 40,063 | 58,251 | |||||||||
Cost of service revenue | 6,801 | 5,266 | 4,499 | |||||||||
Total cost of revenue | 49,036 | 45,329 | 62,750 | |||||||||
Gross profit | 23,598 | 22,744 | 29,708 | |||||||||
Operating expenses: | ||||||||||||
General and administrative | 10,451 | 12,836 | 11,431 | |||||||||
Sales and marketing | 11,261 | 12,596 | 13,740 | |||||||||
Research and development | 1,942 | 1,891 | 2,333 | |||||||||
Total operating expenses | 23,654 | 27,323 | 27,504 | |||||||||
Income (loss) from operations | (56 | ) | (4,579 | ) | 2,204 | |||||||
Other income (expense): | ||||||||||||
Interest expense | (167 | ) | (256 | ) | (406 | ) | ||||||
Loss on sale of OTA contract receivables | — | (561 | ) | (1,012 | ) | |||||||
Extinguishment of debt | — | 250 | — | |||||||||
Dividend and interest income | 1,661 | 670 | 571 | |||||||||
Total other income (expense) | 1,494 | 103 | (847 | ) | ||||||||
Income (loss) before income tax | 1,438 | (4,476 | ) | 1,357 | ||||||||
Income tax expense (benefit) | 927 | (1,003 | ) | (243 | ) | |||||||
Net income (loss) | $ | 511 | $ | (3,473 | ) | $ | 1,600 | |||||
Basic net income (loss) per share attributable to common shareholders | $ | 0.02 | $ | (0.16 | ) | $ | 0.07 | |||||
Weighted-average common shares outstanding | 25,351,839 | 21,844,150 | 22,678,411 | |||||||||
Diluted net income (loss) per share | $ | 0.02 | $ | (0.16 | ) | $ | 0.07 | |||||
Weighted-average common shares and share equivalents outstanding | 27,445,290 | 21,844,150 | 23,198,063 |
Fiscal Year Ended March 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Product revenue | $ | 75,870 | $ | 90,782 | $ | 72,604 | |||||
Service revenue | 6,167 | 9,780 | 13,482 | ||||||||
Total revenue | 82,037 | 100,562 | 86,086 | ||||||||
Cost of product revenue | 49,809 | 62,842 | 49,551 | ||||||||
Cost of service revenue | 4,589 | 7,682 | 9,805 | ||||||||
Total cost of revenue | 54,398 | 70,524 | 59,356 | ||||||||
Gross profit | 27,639 | 30,038 | 26,730 | ||||||||
Operating expenses: | |||||||||||
General and administrative | 11,686 | 11,399 | 13,946 | ||||||||
Sales and marketing | 13,674 | 15,599 | 17,129 | ||||||||
Research and development | 2,333 | 2,518 | 2,259 | ||||||||
Total operating expenses | 27,693 | 29,516 | 33,334 | ||||||||
(Loss) income from operations | (54 | ) | 522 | (6,604 | ) | ||||||
Other income (expense): | |||||||||||
Interest expense | (406 | ) | (551 | ) | (567 | ) | |||||
(Loss) gain on sale of OTA contract receivables | (1,012 | ) | 32 | — | |||||||
Interest income | 571 | 850 | 845 | ||||||||
Total other (expense) income | (847 | ) | 331 | 278 | |||||||
(Loss) income before income tax | (901 | ) | 853 | (6,326 | ) | ||||||
Income tax (benefit) expense | (1,242 | ) | 370 | 4,073 | |||||||
Net income (loss) | $ | 341 | $ | 483 | $ | (10,399 | ) | ||||
Basic net income (loss) per share attributable to common shareholders | $ | 0.02 | $ | 0.02 | $ | (0.50 | ) | ||||
Weighted-average common shares outstanding | 22,678,411 | 22,953,037 | 20,996,625 | ||||||||
Diluted net income (loss) per share | $ | 0.01 | $ | 0.02 | $ | (0.50 | ) | ||||
Weighted-average common shares and share equivalents outstanding | 23,198,063 | 23,386,525 | 20,996,625 |
Shareholders’ Equity | ||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Shares | Additional Paid-in Capital | Treasury Stock | Shareholder Notes Receivable | Retained Earnings (Deficit) | Total Shareholders’ Equity | |||||||||||||||||
Balance, March 31, 2010 | 22,442,380 | $ | 122,515 | $ | (32,011 | ) | $ | — | $ | (2,117 | ) | $ | 88,387 | |||||||||
Issuance of stock and warrants for services | 15,475 | 51 | — | — | — | 51 | ||||||||||||||||
Exercise of stock options and warrants for cash | 386,080 | 529 | — | — | — | 529 | ||||||||||||||||
Shares issued under Employee Stock Purchase Plan | 65,776 | (132 | ) | 353 | (196 | ) | — | 25 | ||||||||||||||
Tax expense from exercise of stock options | — | (132 | ) | — | — | — | (132 | ) | ||||||||||||||
Collection of shareholder notes receivable | — | — | — | 3 | — | 3 | ||||||||||||||||
Stock-based compensation | — | 1,301 | — | — | — | 1,301 | ||||||||||||||||
Treasury stock purchase | (15,908 | ) | — | (50 | ) | — | — | (50 | ) | |||||||||||||
Net income | — | — | — | — | 341 | 341 | ||||||||||||||||
Comprehensive income | — | — | — | — | — | 341 | ||||||||||||||||
Balance, Balance, March 31, 2011 | 22,893,803 | $ | 124,132 | $ | (31,708 | ) | $ | (193 | ) | $ | (1,776 | ) | $ | 90,455 | ||||||||
Issuance of stock and warrants for services | 29,308 | 85 | — | — | — | 85 | ||||||||||||||||
Exercise of stock options and warrants for cash | 103,413 | 147 | — | — | — | 147 | ||||||||||||||||
Shares issued under Employee Stock Purchase Plan | 37,034 | 133 | (22 | ) | (84 | ) | — | 27 | ||||||||||||||
Tax benefit from exercise of stock options | — | 989 | — | — | — | 989 | ||||||||||||||||
Collection of shareholder notes receivable | — | — | — | 56 | — | 56 | ||||||||||||||||
Stock-based compensation | — | 1,267 | — | — | — | 1,267 | ||||||||||||||||
Treasury stock purchase | (278,300 | ) | — | (740 | ) | — | — | (740 | ) | |||||||||||||
Net income | — | — | — | — | 483 | 483 | ||||||||||||||||
Comprehensive income | — | — | — | — | — | 483 | ||||||||||||||||
Balance, Balance, March 31, 2012 | 22,785,258 | $ | 126,753 | $ | (32,470 | ) | $ | (221 | ) | $ | (1,293 | ) | $ | 92,769 | ||||||||
Issuance of stock and warrants for services | 33,422 | 71 | — | — | — | 71 | ||||||||||||||||
Exercise of stock options and warrants for cash | 20,000 | 45 | — | — | — | 45 | ||||||||||||||||
Shares issued under Employee Stock Purchase Plan | 47,598 | 1 | 94 | (82 | ) | — | 13 | |||||||||||||||
Tax benefit from exercise of stock options | — | 70 | — | — | — | 70 | ||||||||||||||||
Collection of shareholder notes receivable | — | — | 38 | — | 38 | |||||||||||||||||
Stock-based compensation | — | 1,164 | — | — | — | 1,164 | ||||||||||||||||
Treasury stock purchase | (2,723,881 | ) | — | (6,002 | ) | — | — | (6,002 | ) | |||||||||||||
Net loss | — | — | — | — | (10,399 | ) | (10,399 | ) | ||||||||||||||
Comprehensive loss | — | — | — | — | — | (10,399 | ) | |||||||||||||||
Balance, Balance, March 31, 2013 | 20,162,397 | $ | 128,104 | $ | (38,378 | ) | $ | (265 | ) | $ | (11,692 | ) | $ | 77,769 |
Shareholders’ Equity | ||||||||||||||||||||||||||||
Common Stock | Accumulated | |||||||||||||||||||||||||||
Additional | Shareholder | Other | Retained | Total | ||||||||||||||||||||||||
Paid-in | Treasury | Notes | Comprehensive | Earnings | Shareholders’ | |||||||||||||||||||||||
Shares | Capital | Stock | Receivable | Loss | (Deficit) | Equity | ||||||||||||||||||||||
(In thousands, except share amounts) | ||||||||||||||||||||||||||||
Balance, March 31, 2008 | 26,963,408 | $ | 114,090 | $ | (1,739 | ) | $ | — | $ | (6 | ) | $ | 845 | $ | 113,190 | |||||||||||||
Issuance of stock and warrants for services | 16,627 | 105 | — | — | — | — | 105 | |||||||||||||||||||||
Exercise of stock options and warrants for cash | 1,519,838 | 2,032 | — | — | — | — | 2,032 | |||||||||||||||||||||
Tax benefit from exercise of stock options | — | 1,103 | — | — | — | — | 1,103 | |||||||||||||||||||||
Stock-based compensation | — | 1,577 | — | — | — | — | 1,577 | |||||||||||||||||||||
Treasury stock purchase | (6,971,090 | ) | — | (29,797 | ) | — | — | — | (29,797 | ) | ||||||||||||||||||
Net income | — | — | — | — | — | 511 | 511 | |||||||||||||||||||||
Unrealized loss on short-term investments | — | — | — | — | (26 | ) | — | (26 | ) | |||||||||||||||||||
Comprehensive income | — | — | — | — | — | — | 485 | |||||||||||||||||||||
Balance, March 31, 2009 | 21,528,783 | $ | 118,907 | $ | (31,536 | ) | $ | — | $ | (32 | ) | $ | 1,356 | $ | 88,695 | |||||||||||||
Issuance of stock and warrants for services | 11,211 | 48 | — | — | — | — | 48 | |||||||||||||||||||||
Exercise of stock options and warrants for cash | 1,024,113 | 1,989 | — | — | — | — | 1,989 | |||||||||||||||||||||
Tax benefit from exercise of stock options | — | 80 | — | — | — | — | 80 | |||||||||||||||||||||
Stock-based compensation | — | 1,491 | — | — | — | — | 1,491 | |||||||||||||||||||||
Treasury stock purchase | (121,727 | ) | — | (475 | ) | — | — | — | (475 | ) | ||||||||||||||||||
Net loss (As Restated) | — | — | — | — | — | (3,473 | ) | (3,473 | ) | |||||||||||||||||||
Unrealized gain on short-term investments | — | — | — | — | 32 | — | 32 | |||||||||||||||||||||
Comprehensive Loss (As Restated) | — | — | — | — | — | — | (3,441 | ) | ||||||||||||||||||||
Balance, March 31, 2010 (As Restated) | 22,442,380 | $ | 122,515 | $ | (32,011 | ) | $ | — | $ | — | $ | (2,117 | ) | $ | 88,387 | |||||||||||||
Issuance of stock and warrants for services | 15,475 | 51 | — | — | — | — | 51 | |||||||||||||||||||||
Exercise of stock options and warrants for cash | 386,080 | 529 | — | — | — | — | 529 | |||||||||||||||||||||
Shares issued under Employee Stock Purchase Plan | 65,776 | (132 | ) | 353 | (196 | ) | — | — | 25 | |||||||||||||||||||
Tax benefit from exercise of stock options | — | 541 | — | — | — | — | 541 | |||||||||||||||||||||
Collection of shareholder notes receivable | — | — | — | 3 | — | — | 3 | |||||||||||||||||||||
Stock-based compensation | — | 1,301 | — | — | — | — | 1,301 | |||||||||||||||||||||
Treasury stock purchase | (15,908 | ) | — | (50 | ) | — | — | — | (50 | ) | ||||||||||||||||||
Net income | — | — | — | — | — | 1,600 | 1,600 | |||||||||||||||||||||
Comprehensive income | — | — | — | — | — | — | 1,600 | |||||||||||||||||||||
Balance, March 31, 2011 | 22,893,803 | $ | 124,805 | $ | (31,708 | ) | $ | (193 | ) | $ | — | $ | (517 | ) | $ | 92,387 | ||||||||||||
63
Fiscal Year Ended March 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Operating activities | |||||||||||
Net income (loss) | $ | 341 | $ | 483 | $ | (10,399 | ) | ||||
Adjustments to reconcile net income (loss) to net cash (used in) provided by | |||||||||||
operating activities: | |||||||||||
Depreciation and amortization | 3,270 | 4,236 | 4,577 | ||||||||
Stock-based compensation expense | 1,301 | 1,267 | 1,164 | ||||||||
Deferred income tax (benefit) expense | (1,184 | ) | (755 | ) | 4,158 | ||||||
Loss on sale of property and equipment | 1,025 | 133 | 69 | ||||||||
Provision for bad debts | 375 | 190 | 757 | ||||||||
Other | 51 | 85 | 71 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, current and long-term | (12,944 | ) | 3,740 | 2,499 | |||||||
Inventories, current and long-term | (3,098 | ) | (1,371 | ) | 3,739 | ||||||
Deferred contract costs | (8,036 | ) | 7,396 | 75 | |||||||
Prepaid expenses and other assets | (2,542 | ) | (2,025 | ) | 1,315 | ||||||
Accounts payable | 4,722 | 1,817 | (6,527 | ) | |||||||
Accrued expenses | (1,606 | ) | 841 | 2,221 | |||||||
Deferred revenue | 9,680 | (4,542 | ) | (1,458 | ) | ||||||
Net cash (used in) provided by operating activities | (8,645 | ) | 11,495 | 2,261 | |||||||
Investing activities | |||||||||||
Purchase of property and equipment | (2,611 | ) | (4,324 | ) | (2,159 | ) | |||||
Purchase of property and equipment leased to customers under PPAs | (2,343 | ) | (3 | ) | — | ||||||
Purchase of short-term investments | (11 | ) | (5 | ) | (5 | ) | |||||
Additions to patents and licenses | (157 | ) | (224 | ) | (153 | ) | |||||
Proceeds from sales of property, plant and equipment | 1 | 24 | 46 | ||||||||
Net cash used in investing activities | (5,121 | ) | (4,532 | ) | (2,271 | ) | |||||
Financing activities | |||||||||||
Payment of long-term debt | (2,077 | ) | (1,856 | ) | (3,169 | ) | |||||
Proceeds from long-term debt | 3,721 | 5,989 | 380 | ||||||||
Proceeds from repayment of shareholder notes | 3 | 56 | 38 | ||||||||
Repurchase of common stock into treasury | — | (740 | ) | (6,007 | ) | ||||||
Excess tax benefits from stock-based compensation | (132 | ) | 989 | 70 | |||||||
Deferred financing costs | (57 | ) | (124 | ) | — | ||||||
Proceeds from issuance of common stock | 504 | 174 | 63 | ||||||||
Net cash provided by (used in) financing activities | 1,962 | 4,488 | (8,625 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | (11,804 | ) | 11,451 | (8,635 | ) | ||||||
Cash and cash equivalents at beginning of period | 23,364 | 11,560 | 23,011 | ||||||||
Cash and cash equivalents at end of period | $ | 11,560 | $ | 23,011 | $ | 14,376 | |||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | 368 | $ | 488 | $ | 535 | |||||
Cash paid for income taxes | $ | 34 | $ | 104 | $ | 102 | |||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Shares issued from treasury for shareholder note receivable | $ | 196 | $ | 84 | $ | 82 | |||||
Shares surrendered into treasury for stock option exercise | $ | 50 | $ | — | $ | — |
Fiscal Year Ended March 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
(As Restated) | ||||||||||||
(In thousands) | ||||||||||||
Operating activities | ||||||||||||
Net income (loss) | $ | 511 | $ | (3,473 | ) | $ | 1,600 | |||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||
Depreciation and amortization | 1,841 | 2,673 | 2,867 | |||||||||
Stock-based compensation expense | 1,577 | 1,491 | 1,301 | |||||||||
Deferred income tax (benefit) provision | 145 | (1,112 | ) | (840 | ) | |||||||
Loss (gain) on sale of assets | (31 | ) | 546 | 999 | ||||||||
Change in allowance for notes and accounts receivable | 144 | 458 | 54 | |||||||||
Extinguishment of debt | — | (139 | ) | — | ||||||||
Other | 106 | 48 | 51 | |||||||||
Accounts receivable | 5,950 | (4,579 | ) | (11,681 | ) | |||||||
Inventories | (2,793 | ) | (6,409 | ) | (3,516 | ) | ||||||
Prepaid expenses and other assets | (2,580 | ) | (1,979 | ) | (2,748 | ) | ||||||
Accounts payable | 296 | (56 | ) | 4,718 | ||||||||
Accrued expenses | (1,927 | ) | 1,813 | (1,542 | ) | |||||||
Net cash provided by (used in) operating activities | 3,239 | (10,718 | ) | (8,737 | ) | |||||||
Investing activities | ||||||||||||
Purchase of property and equipment | (13,140 | ) | (5,649 | ) | (3,192 | ) | ||||||
Purchase of property and equipment leased to customers under PPAs | — | (2,651 | ) | (2,343 | ) | |||||||
Purchase of short-term investments | (4,113 | ) | — | (11 | ) | |||||||
Sale of short-term investments | — | 5,522 | — | |||||||||
Additions to patents and licenses | (1,121 | ) | (299 | ) | (157 | ) | ||||||
Proceeds from sales of long term assets | 858 | — | — | |||||||||
Gain on sale of long term investment | (361 | ) | — | — | ||||||||
Proceeds from disposal of equipment | 4 | 7 | 1 | |||||||||
Net cash used in investing activities | (17,873 | ) | (3,070 | ) | (5,702 | ) | ||||||
Financing activities | ||||||||||||
Proceeds from issuance of long-term debt | — | 200 | 3,721 | |||||||||
Proceeds from shareholder notes | — | — | 3 | |||||||||
Deferred financing and offering costs | — | — | (57 | ) | ||||||||
Repurchase of common stock into treasury | (29,340 | ) | (475 | ) | — | |||||||
Payment of long-term debt | (854 | ) | (805 | ) | (2,077 | ) | ||||||
Excess benefit for deferred taxes on stock-based compensation | 1,103 | 80 | 541 | |||||||||
Proceeds from issuance of common stock | 1,576 | 1,989 | 504 | |||||||||
Net cash provided by (used in) financing activities | (27,515 | ) | 989 | 2,635 | ||||||||
Net increase (decrease) in cash and cash equivalents | (42,149 | ) | (12,799 | ) | (11,804 | ) | ||||||
Cash and cash equivalents at beginning of period | 78,312 | 36,163 | 23,364 | |||||||||
Cash and cash equivalents at end of period | $ | 36,163 | $ | 23,364 | $ | 11,560 | ||||||
Supplemental cash flow information: | ||||||||||||
Cash paid for interest | $ | 350 | $ | 277 | $ | 368 | ||||||
Cash paid for income taxes | 134 | 32 | 34 | |||||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||
Shares issued from treasury for stock note receivable | $ | — | $ | — | $ | 196 | ||||||
Shares surrendered into treasury for stock option exercise | $ | 457 | $ | — | $ | 50 | ||||||
Long-term note receivable received on sale of investment | 297 | — | — |
64
NOTE A — DESCRIPTION OF BUSINESS |
65
Consolidated Balance Sheet as of March 31, 2010 | ||||||||||||
As Previously | ||||||||||||
Reported | Adjustments | As Restated | ||||||||||
ASSETS: | ||||||||||||
Accounts receivable | $ | 14,617 | $ | 1,374 | $ | 15,991 | ||||||
Deferred tax assets, current | — | 1,244 | 1,244 | |||||||||
Prepaid expenses and other current assets | 2,974 | 1,138 | 4,112 | |||||||||
Total current assets | 67,946 | 3,756 | 71,702 | |||||||||
Property and equipment, net | 30,500 | (2,307 | ) | 28,193 | ||||||||
Deferred tax assets, long-term | 2,610 | (1,636 | ) | 974 | ||||||||
Accounts receivable, long-term | 975 | 1,144 | 2,119 | |||||||||
Total assets | 103,621 | 957 | 104,578 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||||||||||||
Accrued expenses | 3,844 | 285 | 4,129 | |||||||||
Deferred tax liabilities, current | 44 | (44 | ) | — | ||||||||
Total current liabilities | 12,211 | 241 | 12,452 | |||||||||
Retained deficit | (2,834 | ) | 717 | (2,117 | ) |
Consolidated Statement of Operations | ||||||||||||
Fiscal Year | ||||||||||||
Ended March 31, | ||||||||||||
As Previously | 2010 | |||||||||||
Reported | Adjustments | As Restated | ||||||||||
Total revenue | $ | 65,418 | $ | 2,655 | $ | 68,073 | ||||||
Total cost of sales | 43,894 | 1,435 | 45,329 | |||||||||
Gross Profit | 21,524 | 1,220 | 22,744 | |||||||||
Operating (loss) income | (5,799 | ) | 1,220 | (4,579 | ) | |||||||
Loss on sale of receivables | — | (561 | ) | (561 | ) | |||||||
Dividend and interest income | 269 | 401 | 670 | |||||||||
Income tax provision | (1,350 | ) | 347 | (1,003 | ) | |||||||
Net (loss) income | (4,190 | ) | 717 | (3,473 | ) | |||||||
Net loss per common share — basic and diluted | $ | (0.19 | ) | $ | 0.03 | $ | (0.16 | ) | ||||
Weighted average common shares outstanding — basic and diluted | 21,844,150 | — | 21,844,150 |
66
Consolidated Statement of Cash Flows | ||||||||||||
Fiscal Year | ||||||||||||
Ended March 31, | ||||||||||||
As Previously | 2010 | |||||||||||
Reported | Adjustments | As Restated | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net income (loss) | $ | (4,190 | ) | $ | 717 | $ | (3,473 | ) | ||||
Depreciation and amortization | 3,072 | (399 | ) | 2,673 | ||||||||
Loss (gain) on sale of assets | (16 | ) | 562 | 546 | ||||||||
Deferred income tax (benefit) provision | (1,425 | ) | 313 | (1,112 | ) | |||||||
Accounts receivable | (3,205 | ) | (1,374 | ) | (4,579 | ) | ||||||
Prepaid expenses and other | 268 | (2,247 | ) | (1,979 | ) | |||||||
Accrued expenses | 1,529 | 284 | 1,813 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Purchase of property and equipment leased to customers under operating leases | (4,795 | ) | 2,144 | (2,651 | ) |
March 31, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Cash and Cash | Short Term | |||||||||||||||||||||||||||||||||||||||||||
Cost | Gains | Losses | Fair Value | Equivalents | Investments | ||||||||||||||||||||||||||||||||||||||||||
March 31, 2012 | March 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Investments | ||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 22,297 | $ | — | $ | — | $ | 22,297 | $ | 22,297 | $ | — | $ | 486 | $ | — | $ | — | $ | 486 | $ | 486 | $ | — | |||||||||||||||||||||||
Bank certificates of deposit | 1,000 | — | — | 1,000 | — | 1,000 | |||||||||||||||||||||||||||||||||||||||||
Bank certificate of deposit | 1,016 | — | — | 1,016 | — | 1,016 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 23,297 | $ | — | $ | — | $ | 23,297 | $ | 22,297 | $ | 1,000 | $ | 1,502 | $ | — | $ | — | $ | 1,502 | $ | 486 | $ | 1,016 | |||||||||||||||||||||||
March 31, 2013 | March 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short-Term Investments | ||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 487 | $ | — | $ | — | $ | 487 | $ | 487 | $ | — | |||||||||||||||||||||||||||||||||||
Bank certificate of deposit | 1,021 | — | — | 1,021 | — | 1,021 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,508 | $ | — | $ | — | $ | 1,508 | $ | 487 | $ | 1,021 |
67
March 31, 2011 | ||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Cash and Cash | Short Term | ||||||||||||||||||||
Cost | Gains | Losses | Fair Value | Equivalents | Investments | |||||||||||||||||||
Money market funds | $ | 485 | $ | — | $ | — | $ | 485 | $ | 485 | $ | — | ||||||||||||
Bank certificates of deposit | 1,011 | — | — | 1,011 | — | 1,011 | ||||||||||||||||||
Total | $ | 1,496 | $ | — | $ | — | $ | 1,496 | $ | 485 | $ | 1,011 | ||||||||||||
68
Greater | ||||||||||||||||||||||||
Not Past | 1-90 days | than 90 days | Total sales-type | |||||||||||||||||||||
Due | past due | past due | Total past due | leases | ||||||||||||||||||||
Lease balances included in consolidated accounts receivable — current | $ | 1,190 | $ | 17 | $ | 5 | $ | 22 | $ | 1,212 | ||||||||||||||
Lease balances included in consolidated accounts receivable — long-term | 3,696 | — | — | — | 3,696 | |||||||||||||||||||
Total gross sales-type leases | 4,886 | 17 | 5 | 22 | 4,908 | |||||||||||||||||||
Allowance | — | — | (2 | ) | (2 | ) | (2 | ) | ||||||||||||||||
Total net sales-type leases | $ | 4,886 | $ | 17 | $ | 3 | $ | 20 | $ | 4,906 | ||||||||||||||
Not Past Due | 1-90 days past due | Greater than 90 days past due | Total past due | Total sales-type leases | |||||||||||||||
Lease balances included in consolidated accounts receivable—current | $ | 2,833 | $ | 40 | $ | 20 | $ | 60 | $ | 2,893 | |||||||||
Lease balances included in consolidated accounts receivable—long-term | 5,521 | — | — | — | 5,521 | ||||||||||||||
Total gross sales-type leases | 8,354 | 40 | 20 | 60 | 8,414 | ||||||||||||||
Allowance | — | (4 | ) | (20 | ) | (24 | ) | (24 | ) | ||||||||||
Total net sales-type leases | $ | 8,354 | $ | 36 | $ | — | $ | 36 | $ | 8,390 |
Not Past Due | 1-90 days past due | Greater than 90 days past due | Total past due | Total sales-type leases | |||||||||||||||
Lease balances included in consolidated accounts receivable—current | $ | 2,817 | $ | 97 | $ | 151 | $ | 248 | $ | 3,065 | |||||||||
Lease balances included in consolidated accounts receivable—long-term | 4,009 | — | — | — | 4,009 | ||||||||||||||
Total gross sales-type leases | 6,826 | 97 | 151 | 248 | 7,074 | ||||||||||||||
Allowance | — | — | (74 | ) | (74 | ) | (74 | ) | |||||||||||
Total net sales-type leases | $ | 6,826 | $ | 97 | $ | 77 | $ | 174 | $ | 7,000 |
Balance at beginning of period | Provisions charged to expense | Write offs and other | Balance at end of period | |||||||||||||
March 31, | (in Thousands) | |||||||||||||||
2012 | Allowance for Doubtful Accounts on financing receivables | $ | 2 | $ | 81 | $ | 59 | $ | 24 | |||||||
2013 | Allowance for Doubtful Accounts on financing receivables | $ | 24 | $ | 50 | $ | — | $ | 74 |
March 31, | March 31, | |||||||
2010 | 2011 | |||||||
Raw materials and components | $ | 11,107 | $ | 12,005 | ||||
Work in process | 669 | 459 | ||||||
Finished goods | 14,215 | 17,043 | ||||||
$ | 25,991 | $ | 29,507 | |||||
69
March 31, 2012 | March 31, 2013 | ||||||
Raw materials and components | $ | 10,466 | $ | 8,207 | |||
Work in process | 969 | 846 | |||||
Finished goods | 6,697 | 6,177 | |||||
$ | 18,132 | $ | 15,230 |
March 31, | |||||||||||||||
2010 | 2011 | ||||||||||||||
(As Restated) | |||||||||||||||
March 31, 2012 | March 31, 2013 | ||||||||||||||
Land and land improvements | $ | 1,436 | $ | 1,474 | $ | 1,545 | $ | 1,562 | |||||||
Buildings | 14,072 | 15,104 | 14,717 | 15,918 | |||||||||||
Furniture, fixtures and office equipment | 6,615 | 8,323 | 11,000 | 11,995 | |||||||||||
Leasehold improvements | — | 9 | 54 | 58 | |||||||||||
Equipment leased to customers under Power Purchase Agreements | — | 4,994 | 4,997 | 4,997 | |||||||||||
Plant equipment | 7,627 | 8,067 | 9,990 | 10,620 | |||||||||||
Construction in progress | 5,774 | 2,272 | 1,080 | 91 | |||||||||||
43,383 | 45,241 | ||||||||||||||
35,524 | 40,243 | ||||||||||||||
Less: accumulated depreciation and amortization | (7,331 | ) | (10,226 | ) | (13,158 | ) | (17,294 | ) | |||||||
Net property and equipment | $ | 28,193 | $ | 30,017 | $ | 30,225 | $ | 27,947 | |||||||
March 31, | ||||||||
2010 | 2011 | |||||||
Equipment | $ | 25 | $ | — | ||||
Less: accumulated amortization | (20 | ) | — | |||||
Net equipment | $ | 5 | $ | — | ||||
Land improvements | ||||
Buildings and building improvements | ||||
Leasehold improvements | Shorter of asset life or life of lease | |||
Furniture, fixtures and office equipment | ||||
Plant equipment |
70
Fiscal 2012 | $ | 122 | ||
Fiscal 2013 | 119 | |||
Fiscal 2014 | 118 | |||
Fiscal 2015 | 118 | |||
Fiscal 2016 | 117 | |||
Thereafter | 1,026 | |||
$ | 1,620 | |||
Fiscal 2014 | $ | 149 | |
Fiscal 2015 | 148 | ||
Fiscal 2016 | 148 | ||
Fiscal 2017 | 148 | ||
Fiscal 2018 | 148 | ||
Thereafter | 968 | ||
$ | 1,709 |
71
Fiscal 2012 | $ | — | ||
Fiscal 2013 | 955 | |||
Fiscal 2014 | 993 | |||
Fiscal 2015 | 936 | |||
Fiscal 2016 | 292 | |||
Total gross long-term receivable | 3,176 | |||
Less: amount representing interest | (1,090 | ) | ||
Net long-term receivable | $ | 2,086 | ||
Fiscal 2014 | $ | 1,011 | |
Fiscal 2015 | 955 | ||
Fiscal 2016 | 309 | ||
Fiscal 2017 | 9 | ||
Total gross long-term receivable | 2,284 | ||
Less: amount representing interest | (278 | ) | |
Net long-term receivable | $ | 2,006 |
March 31, | ||||||||
2010 | 2011 | |||||||
Beginning of year | $ | 55 | $ | 60 | ||||
Provision to cost of revenue | 80 | 114 | ||||||
Charges | (75 | ) | (115 | ) | ||||
End of year | $ | 60 | $ | 59 | ||||
March 31, | |||||||
2012 | 2013 | ||||||
Beginning of year | $ | 59 | $ | 84 | |||
Provision to product cost of revenue | 102 | 402 | |||||
Charges | (77 | ) | (202 | ) | |||
End of year | $ | 84 | $ | 284 |
72
delivery has occurred and title has passed to the customer; the sales price is fixed and determinable and no further obligation exists; and collectability is reasonably assured |
73
March 31, | March 31, | |||||||
2010 | 2011 | |||||||
Deferred revenue — current liability | $ | 338 | $ | 262 | ||||
Deferred revenue — long term liability | 186 | 1,777 | ||||||
Total deferred revenue | $ | 524 | $ | 2,039 | ||||
74
75
Fiscal Year Ended March 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
Weighted average expected term | 5.7 years | 6.6 years | 5.7 years | |||||||||
Risk-free interest rate | 3.01 | % | 2.68 | % | 2.14 | % | ||||||
Expected volatility | 60 | % | 60 | % | 60.0 - 74.8 | % | ||||||
Expected forfeiture rate | 2.0 | % | 3.0 | % | 11.4 | % |
Fiscal Year Ended March 31, | ||||||||
2011 | 2012 | 2013 | ||||||
Weighted average expected term | 5.7 years | 5.7 years | 5.5 years | |||||
Risk-free interest rate | 2.1 | % | 1.5 | % | 0.8 | % | ||
Expected volatility | 60.0 - 74.8% | 70.0 | % | 72.5 - 74.4% | ||||
Expected forfeiture rate | 11.4 | % | 15.1 | % | 21.4 | % |
Fiscal Year Ended March 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
(As Restated) | ||||||||||||
Numerator: | ||||||||||||
Net income (loss) (in thousands) | $ | 511 | $ | (3,473 | ) | $ | 1,600 | |||||
Denominator: | ||||||||||||
Weighted-average common shares outstanding | 25,351,839 | 21,844,150 | 22,678,411 | |||||||||
Weighted-average effect of assumed conversion of stock options and warrants | 2,093,451 | — | 519,652 | |||||||||
Weighted-average common shares and common share equivalents outstanding | 27,445,290 | 21,844,150 | 23,198,063 | |||||||||
Net income (loss) per common share: | ||||||||||||
Basic | $ | 0.02 | $ | (0.16 | ) | $ | 0.07 | |||||
Diluted | $ | 0.02 | $ | (0.16 | ) | $ | 0.07 |
Fiscal Year Ended March 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Numerator: | |||||||||||
Net income (loss) (in thousands) | $ | 341 | $ | 483 | $ | (10,399 | ) | ||||
Denominator: | |||||||||||
Weighted-average common shares outstanding | 22,678,411 | 22,953,037 | 20,996,625 | ||||||||
Weighted-average effect of assumed conversion of stock options and warrants | 519,652 | 433,488 | — | ||||||||
Weighted-average common shares and share equivalents outstanding | 23,198,063 | 23,386,525 | 20,996,625 | ||||||||
Net income (loss) per common share: | |||||||||||
Basic | $ | 0.02 | $ | 0.02 | $ | (0.50 | ) | ||||
Diluted | $ | 0.01 | $ | 0.02 | $ | (0.50 | ) |
March 31, | ||||||||||||||||||||
2009 | 2010 | 2011 | March 31, | |||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||
Common stock options | 3,680,945 | 3,546,249 | 3,658,768 | 3,658,768 | 3,697,633 | 3,312,523 | ||||||||||||||
Restricted shares | — | — | 105,000 | |||||||||||||||||
Common stock warrants | 488,504 | 76,240 | 38,980 | 38,980 | 38,980 | 38,980 | ||||||||||||||
Total | 4,169,449 | 3,622,489 | 3,697,748 | 3,697,748 | 3,736,613 | 3,456,503 | ||||||||||||||
76
77
March 31, | ||||||||
2010 | 2011 | |||||||
Term note | $ | 1,017 | $ | 782 | ||||
Customer equipment finance notes payable | — | 1,793 | ||||||
First mortgage note payable | 926 | 853 | ||||||
Debenture payable | 847 | 807 | ||||||
Lease obligations | 7 | — | ||||||
Other long-term debt | 921 | 1,127 | ||||||
Total long-term debt | 3,718 | 5,362 | ||||||
Less current maturities | (562 | ) | (1,137 | ) | ||||
Long-term debt, less current maturities | $ | 3,156 | $ | 4,225 | ||||
78
March 31, | |||||||
2012 | 2013 | ||||||
Term note | $ | 532 | $ | 263 | |||
Customer equipment finance notes payable | 6,568 | 4,408 | |||||
First mortgage note payable | 776 | 694 | |||||
Debenture payable | 765 | 721 | |||||
Other long-term debt | 854 | 620 | |||||
Total long-term debt | 9,495 | 6,706 | |||||
Less current maturities | (2,791 | ) | (2,597 | ) | |||
Long-term debt, less current maturities | $ | 6,704 | $ | 4,109 |
79
80
Fiscal 2012 | $ | 1,137 | ||
Fiscal 2013 | 1,089 | |||
Fiscal 2014 | 1,079 | |||
Fiscal 2015 | 759 | |||
Fiscal 2016 | 668 | |||
Thereafter | 630 | |||
$ | 5,362 | |||
Fiscal 2014 | $ | 2,597 | |
Fiscal 2015 | 2,397 | ||
Fiscal 2016 | 923 | ||
Fiscal 2017 | 255 | ||
Fiscal 2018 | 70 | ||
Thereafter | 464 | ||
$ | 6,706 |
Fiscal Year Ended March 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Current | $ | (48 | ) | $ | 520 | $ | (180 | ) | |||
Deferred | (1,194 | ) | (150 | ) | 4,253 | ||||||
$ | (1,242 | ) | $ | 370 | $ | 4,073 | |||||
2011 | 2012 | 2013 | |||||||||
Federal | $ | (1,294 | ) | $ | 292 | $ | 3,803 | ||||
State | 52 | 78 | 270 | ||||||||
$ | (1,242 | ) | $ | 370 | $ | 4,073 |
Fiscal Year Ended March 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
(As Restated) | ||||||||||||
Current | $ | 782 | $ | 109 | $ | 597 | ||||||
Deferred | 145 | (1,112 | ) | (840 | ) | |||||||
$ | 927 | $ | (1,003 | ) | $ | (243 | ) | |||||
2009 | 2010 | 2011 | ||||||||||
(As Restated) | ||||||||||||
Federal | $ | 824 | $ | (1,348 | ) | $ | (366 | ) | ||||
State | 103 | 345 | 123 | |||||||||
$ | 927 | $ | (1,003 | ) | $ | (243 | ) | |||||
Fiscal Year Ended March 31, | ||||||||||||||||||||
2009 | 2010 | 2011 | ||||||||||||||||||
(As Restated) | Fiscal Year Ended March 31, | |||||||||||||||||||
2011 | 2012 | 2013 | ||||||||||||||||||
Statutory federal tax rate | 34.0 | % | (34.0 | )% | 34.0 | % | (34.0 | )% | 34.0 | % | 34.0 | % | ||||||||
State taxes, net | 11.0 | % | 2.6 | % | 2.6 | % | 1.2 | % | 9.2 | % | 2.3 | % | ||||||||
Stock-based compensation expense | 21.2 | % | 5.0 | % | (45.1 | )% | (68.0 | )% | 0.0 | % | 0.0 | % | ||||||||
Federal tax credit | (2.7 | )% | (3.5 | )% | (15.1 | )% | (26.5 | )% | (11.6 | )% | 3.9 | % | ||||||||
State tax credit | (1.5 | )% | (0.4 | )% | (2.2 | )% | (3.2 | )% | (5.9 | )% | (0.5 | )% | ||||||||
Change in valuation reserve | 1.4 | % | 5.1 | % | 8.3 | % | 12.4 | % | 5.9 | % | (111.7 | )% | ||||||||
Permanent items | — | % | 0.1 | % | 5.7 | % | (19.7 | )% | 10.0 | % | �� | 2.3 | % | |||||||
Change in tax contingency reserve | 0.7 | % | — | % | — | % | 0.1 | % | 0.8 | % | 3.4 | % | ||||||||
Other, net | 0.4 | % | 2.7 | % | (6.1 | )% | (0.1 | )% | 0.9 | % | 1.9 | % | ||||||||
Effective income tax rate | 64.5 | % | (22.4 | )% | (17.9 | )% | (137.8 | )% | 43.3 | % | (64.4 | )% | ||||||||
81
March 31, | ||||||||
2010 | 2011 | |||||||
(As Restated) | ||||||||
Inventory, accruals and reserves | $ | 607 | $ | 705 | ||||
Other | 533 | 350 | ||||||
Deferred revenue | 104 | (108 | ) | |||||
Total net current deferred tax assets and liabilities | 1,244 | 947 | ||||||
Federal and state operating loss carryforwards | 1,199 | 1,191 | ||||||
Tax credit carryforwards | 848 | 1,201 | ||||||
Non qualified stock options | 603 | 1,540 | ||||||
Deferred revenue | — | 311 | ||||||
Fixed assets | (1,410 | ) | (1,753 | ) | ||||
Valuation allowance | (266 | ) | (378 | ) | ||||
Total net long-term deferred tax assets and liabilities | $ | 974 | $ | 2,112 | ||||
Total net deferred tax assets | $ | 2,218 | $ | 3,059 | ||||
March 31, | |||||||
2012 | 2013 | ||||||
Inventory, accruals and reserves | $ | 1,176 | $ | 2,090 | |||
Other | 105 | 136 | |||||
Deferred revenue | 268 | 338 | |||||
Valuation allowance | — | (2,564 | ) | ||||
Total net current deferred tax assets and liabilities | $ | 1,549 | $ | — | |||
Federal and state operating loss carryforwards | 1,404 | 2,691 | |||||
Tax credit carryforwards | 1,412 | 1,426 | |||||
Non-qualified stock options | 1,870 | 2,298 | |||||
Deferred revenue | 448 | 27 | |||||
Fixed assets | (2,097 | ) | (1,909 | ) | |||
Valuation allowance | (428 | ) | (4,533 | ) | |||
Total net long-term deferred tax assets and liabilities | $ | 2,609 | $ | — | |||
Total net deferred tax assets | $ | 4,158 | $ | — |
82
Fiscal Year Ended March 31, | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
Unrecognized tax benefits as of beginning of fiscal year | $ | 392 | $ | 397 | $ | 398 | ||||||
Decreases relating to settlements with tax authorities | (5 | ) | — | — | ||||||||
Additions based on tax positions related to the current period positions | 10 | 1 | 1 | |||||||||
Unrecognized tax benefits as of end of fiscal year | $ | 397 | $ | 398 | $ | 399 | ||||||
Fiscal Year Ended March 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Unrecognized tax benefits as of beginning of fiscal year | $ | 398 | $ | 399 | $ | 406 | |||||
Additions based on tax positions related to the current period positions | 1 | 7 | 16 | ||||||||
Reduction for tax positions of prior years | — | — | (1 | ) | |||||||
Reduction due to lapse of statute of limitations | — | — | (233 | ) | |||||||
Unrecognized tax benefits as of end of fiscal year | $ | 399 | $ | 406 | $ | 188 |
Fiscal 2014 | $ | 948 | |
Fiscal 2015 | 927 | ||
Fiscal 2016 | 898 | ||
Fiscal 2017 | 789 | ||
Fiscal 2018 | 778 | ||
Thereafter | 1,945 | ||
$ | 6,285 |
Fiscal 2012 | $ | 1,751 | ||
Fiscal 2013 | 1,368 | |||
Fiscal 2014 | 922 | |||
Fiscal 2015 | 911 | |||
Fiscal 2016 | 888 | |||
Thereafter | 3,496 | |||
$ | 9,336 | |||
83
84
As of March 31, 2011 | ||||||||||||||||||||
Shares | ||||||||||||||||||||
Issued | Shares Issued | |||||||||||||||||||
Under ESPP | Closing Market | Under Loan | Dollar Value of | Repayment of | ||||||||||||||||
Plan | Price | Program | Loans Issued | Loans | ||||||||||||||||
Quarter Ended September 30, 2010 | 40,560 | $ | 3.17 | 38,202 | $ | 121,100 | $ | — | ||||||||||||
Quarter Ended December 31, 2010 | 12,274 | 3.34 | 10,898 | 36,400 | 844 | |||||||||||||||
Quarter Ended March 31, 2011 | 12,942 | 4.04 | 9,555 | 38,600 | 1,841 | |||||||||||||||
Total | 65,776 | $ | 3.37 | 58,655 | $ | 196,100 | $ | 2,685 | ||||||||||||
As of March 31, 2012 | |||||||||||||||
Shares Issued Under ESPP Plan | Closing Market Price | Shares Issued Under Loan Program | Dollar Value of Loans Issued | Repayment of Loans | |||||||||||
Quarter Ended June 30, 2011 | 9,788 | $3.93 | 8,601 | $ | 33,800 | $ | 1,650 | ||||||||
Quarter Ended September 30, 2011 | 16,753 | $2.65 | 11,265 | 29,850 | 11,101 | ||||||||||
Quarter Ended December 31, 2011 | 3,756 | $2.95 | 2,543 | 7,500 | 34,650 | ||||||||||
Quarter Ended March 31, 2012 | 6,737 | $2.38 | 5,084 | 12,100 | 8,790 | ||||||||||
Total | 37,034 | $2.38 - 3.93 | 27,493 | $ | 83,250 | $ | 56,191 | ||||||||
As of March 31, 2013 | |||||||||||||||
Shares Issued Under ESPP Plan | Closing Market Price | Shares Issued Under Loan Program | Dollar Value of Loans Issued | Repayment of Loans | |||||||||||
Quarter Ended June 30, 2012 | 9,232 | $2.20 | 7,955 | $ | 17,500 | $ | 1,600 | ||||||||
Quarter Ended September 30, 2012 | 27,467 | $1.98 | 25,606 | 50,700 | 4,060 | ||||||||||
Quarter Ended December 31, 2012 | 9,846 | $1.66 | 8,434 | 14,000 | 1,075 | ||||||||||
Quarter Ended March 31, 2013 | 1,053 | $2.48 | — | — | 30,830 | ||||||||||
Total | 47,598 | $1.66 - 2.48 | 41,995 | $ | 82,200 | $ | 37,565 |
85
NOTE H — STOCK OPTIONS, RESTRICTED SHARES AND WARRANTS |
Fiscal Year Ended | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
Cost of product revenue | $ | 269 | $ | 222 | $ | 187 | ||||||
General and administrative | 676 | 539 | 560 | |||||||||
Sales and marketing | 587 | 691 | 523 | |||||||||
Research and development | 45 | 39 | 31 | |||||||||
$ | 1,577 | $ | 1,491 | $ | 1,301 | |||||||
86
Fiscal Year Ended March 31, | |||||||||||
2011 | 2012 | 2013 | |||||||||
Cost of product revenue | $ | 187 | $ | 189 | $ | 114 | |||||
General and administrative | 560 | 548 | 578 | ||||||||
Sales and marketing | 523 | 501 | 451 | ||||||||
Research and development | 31 | 29 | 21 | ||||||||
$ | 1,301 | $ | 1,267 | $ | 1,164 |
Available at March 31, 2010 | 569,690 | |||||
Amendment to Plan | 1,500,000 | |||||
Granted stock options | (744,077 | ) | ||||
Granted shares | (15,475 | ) | ||||
Forfeited | 267,538 | |||||
Available at March 31, 2011 | 1,577,676 | |||||
Granted stock options | (1,481,356 | ) | ||||
Granted shares | (29,308 | ) | ||||
Forfeited | 1,339,078 | |||||
Available at March 31, 2012 | 1,406,090 | |||||
Granted stock options | (1,054,876 | ) | ||||
Granted shares | (33,422 | ) | ||||
Restricted shares | (163,750 | ) | ||||
Forfeited restricted shares | 58,750 | |||||
Forfeited stock options | 1,419,986 | |||||
Available at March 31, 2013 | 1,632,778 |
Weighted | ||||||||||||||||
Average Fair | ||||||||||||||||
Weighted | Value of | |||||||||||||||
Number of | Average Exercise | Options | Aggregate Intrinsic | |||||||||||||
Shares | Price | Granted | Value | |||||||||||||
Outstanding at March 31, 2008 | 4,716,022 | 2.30 | $ | 3.03 | ||||||||||||
Granted | 731,879 | 7.58 | ||||||||||||||
Exercised | (1,429,554 | ) | 1.24 | |||||||||||||
Forfeited | (337,402 | ) | 6.26 | |||||||||||||
Outstanding at March 31, 2009 | 3,680,945 | 3.40 | $ | 4.25 | ||||||||||||
Granted | 888,018 | 3.92 | ||||||||||||||
Exercised | (624,749 | ) | 1.71 | |||||||||||||
Forfeited | (397,965 | ) | 4.89 | |||||||||||||
Outstanding at March 31, 2010 | 3,546,249 | 3.66 | $ | 2.23 | ||||||||||||
Granted | 744,077 | 3.57 | ||||||||||||||
Exercised | (364,020 | ) | 1.30 | |||||||||||||
Forfeited | (267,538 | ) | 4.33 | |||||||||||||
Outstanding at March 31, 2011 | 3,658,768 | 3.83 | $ | 2.04 | $ | 3,415,917 | ||||||||||
Exercisable at March 31, 2011 | 1,826,601 | $ | 2,284,748 | |||||||||||||
87
Number of Shares | Weighted Average Exercise Price | Weighted Average Fair Value of Options Granted | Aggregate Intrinsic Value | |||||||||
Outstanding at March 31, 2010 | 3,546,249 | $ | 3.66 | 2.23 | ||||||||
Granted | 744,077 | $ | 3.57 | |||||||||
Exercised | (364,020 | ) | $ | 1.30 | ||||||||
Forfeited | (267,538 | ) | $ | 4.33 | ||||||||
Outstanding at March 31, 2011 | 3,658,768 | $ | 3.83 | 2.04 | ||||||||
Granted | 1,481,356 | $ | 3.56 | |||||||||
Exercised | (103,413 | ) | $ | 1.45 | ||||||||
Forfeited | (1,339,078 | ) | $ | 4.18 | ||||||||
Outstanding at March 31, 2012 | 3,697,633 | $ | 3.76 | 1.95 | ||||||||
Granted | 1,054,876 | $ | 1.98 | |||||||||
Exercised | (20,000 | ) | $ | 2.25 | ||||||||
Forfeited | (1,419,986 | ) | $ | 3.26 | ||||||||
Outstanding at March 31, 2013 | 3,312,523 | $ | 3.42 | 1.23 | $ | 580,689 | ||||||
Exercisable at March 31, 2013 | 1,564,718 | $ | 141,635 |
March 31, 2011 | ||||||||||||||||||||
Weighted | ||||||||||||||||||||
Average | Weighted | |||||||||||||||||||
Remaining | Weighted | Average | ||||||||||||||||||
Contractual Life | Average | Exercise | ||||||||||||||||||
Outstanding | (Years) | Exercise Price | Vested | Price | ||||||||||||||||
$0.69 | 241,510 | 0.26 | $ | 0.69 | 241,510 | $ | 0.69 | |||||||||||||
0.75 — 0.94 | 10,000 | 4.01 | 0.75 | 10,000 | 0.75 | |||||||||||||||
1.5 | 25,000 | 2.71 | 1.50 | 25,000 | 1.50 | |||||||||||||||
2.20 — 2.25 | 883,746 | 5.47 | 2.21 | 583,346 | 2.21 | |||||||||||||||
2.50 — 2.75 | 107,167 | 4.89 | 2.51 | 107,167 | 2.51 | |||||||||||||||
2.86 — 4.32 | 1,216,141 | 8.88 | 3.45 | 196,604 | 3.30 | |||||||||||||||
4.48 — 4.76 | 474,832 | 5.30 | 4.54 | 367,432 | 4.51 | |||||||||||||||
5.34 — 6.05 | 414,420 | 7.92 | 5.42 | 134,590 | 5.42 | |||||||||||||||
9.00 — 10.04 | 112,750 | 6.58 | 9.46 | 66,150 | 9.31 | |||||||||||||||
10.14 — 11.61 | 173,202 | 6.82 | 11.01 | 94,802 | 10.95 | |||||||||||||||
3,658,768 | 6.60 | $ | 3.83 | 1,826,601 | $ | 3.53 | ||||||||||||||
March 31, 2013 | |||||||||||
Outstanding | Weighted Average Remaining Contractual Life (Years) | Weighted Average Exercise Price | Vested | Weighted Average Exercise Price | |||||||
$0.75 | 10,000 | 2.00 | $0.75 | 10,000 | $0.75 | ||||||
1.50 | 20,500 | 0.83 | 1.50 | 20,500 | 1.50 | ||||||
1.62 - 2.25 | 1,210,876 | 7.05 | 2.04 | 378,500 | 2.21 | ||||||
2.41 - 2.75 | 426,767 | 7.57 | 2.53 | 148,167 | 2.52 | ||||||
2.86 - 4.32 | 989,349 | 6.88 | 3.45 | 471,300 | 3.45 | ||||||
4.49 - 4.76 | 220,974 | 2.63 | 4.58 | 195,174 | 4.55 | ||||||
5.34 - 6.05 | 248,706 | 6.26 | 5.46 | 169,226 | 5.46 | ||||||
9.00 | 43,000 | 4.87 | 9.00 | 43,000 | 9.00 | ||||||
10.14 - 11.61 | 142,351 | 5.05 | 10.99 | 128,851 | 10.93 | ||||||
3,312,523 | 6.54 | $3.42 | 1,564,718 | $4.14 |
Fiscal 2012 | $ | 1,269 | ||
Fiscal 2013 | 1,058 | |||
Fiscal 2014 | 750 | |||
Fiscal 2015 | 470 | |||
Fiscal 2016 | 270 | |||
Thereafter | 172 | |||
$ | 3,989 | |||
Remaining weighted average expected term | 6.6 years |
Fiscal 2014 | $ | 977 | |
Fiscal 2015 | 728 | ||
Fiscal 2016 | 547 | ||
Fiscal 2017 | 348 | ||
Fiscal 2018 | 179 | ||
Thereafter | 5 | ||
$ | 2,784 | ||
Remaining weighted average expected term | 6.5 years |
Shares issued | 163,750 | ||
Shares forfeited | (58,750 | ) | |
Shares outstanding | 105,000 | ||
Per share price on grant date | $1.80-2.00 | ||
Compensation expense | $ | 32,771 |
88
Number of | Weighted Average | |||||||
Shares | Exercise Price | |||||||
Outstanding at March 31, 2008 | 578,788 | $ | 2.31 | |||||
Issued | — | — | ||||||
Exercised | (90,284 | ) | 2.32 | |||||
Cancelled | — | — | ||||||
Outstanding at March 31, 2009 | 488,504 | $ | 2.31 | |||||
Issued | — | — | ||||||
Exercised | (399,364 | ) | 2.30 | |||||
Cancelled | (12,900 | ) | — | |||||
Outstanding at March 31, 2010 | 76,240 | $ | 2.37 | |||||
Issued | — | — | ||||||
Exercised | (22,060 | ) | 2.50 | |||||
Cancelled | (15,200 | ) | 2.50 | |||||
Outstanding at March 31, 2011 | 38,980 | $ | 2.25 | |||||
Number of Shares | Weighted Average Exercise Price | |||||
Outstanding at March 31, 2010 | 76,240 | $ | 2.37 | |||
Issued | — | — | ||||
Exercised | (22,060 | ) | $ | 2.50 | ||
Cancelled | (15,200 | ) | $ | 2.50 | ||
Outstanding at March 31, 2011 | 38,980 | $ | 2.25 | |||
Issued | — | — | ||||
Exercised | — | — | ||||
Cancelled | — | — | ||||
Outstanding at March 31, 2012 | 38,980 | $ | 2.25 | |||
Issued | — | — | ||||
Exercised | — | — | ||||
Cancelled | — | — | ||||
Outstanding at March 31, 2013 | 38,980 | $ | 2.25 |
Exercise Price | Number of Warrants | Expiration | ||||||
2.25 | 38,980 | Fiscal 2015 |
Exercise Price | Number of Shares | Expiration | |
$2.25 | 38,980 | Fiscal 2015 |
Revenues | Operating (Loss) Profit | ||||||||||||||||||||||
For the year ended March 31, | For the year ended March 31, | ||||||||||||||||||||||
(dollars in thousands) | 2011 | 2012 | 2013 | 2011 | 2012 | 2013 | |||||||||||||||||
Segments: | |||||||||||||||||||||||
Energy Management | $ | 77,861 | $ | 72,097 | $ | 67,437 | $ | 6,460 | $ | 4,974 | $ | 245 | |||||||||||
Engineered Systems | 4,176 | 28,465 | 18,649 | (1,507 | ) | 569 | 671 | ||||||||||||||||
Corporate and Other | — | — | — | (5,007 | ) | (5,021 | ) | (7,520 | ) | ||||||||||||||
$ | 82,037 | $ | 100,562 | $ | 86,086 | $ | (54 | ) | $ | 522 | $ | (6,604 | ) | ||||||||||
Depreciation | Capital Expenditures | ||||||||||||||||||||||
For the year ended March 31, | For the year ended March 31, | ||||||||||||||||||||||
(dollars in thousands) | 2011 | 2012 | 2013 | 2011 | 2012 | 2013 | |||||||||||||||||
Segments: | |||||||||||||||||||||||
Energy Management | $ | 997 | $ | 1,448 | $ | 1,519 | $ | 699 | $ | 1,179 | $ | 993 | |||||||||||
Engineered Systems | 175 | 287 | 249 | 2,373 | 34 | 50 | |||||||||||||||||
Corporate and Other | 1,539 | 2,246 | 2,554 | 1,882 | 3,114 | 1,116 | |||||||||||||||||
$ | 2,711 | $ | 3,981 | $ | 4,322 | $ | 4,954 | $ | 4,327 | $ | 2,159 |
Revenues | Operating (Loss) Profit | |||||||||||||||
For the Year Ended March 31, | For the Year Ended March 31, | |||||||||||||||
2010 | 2011 | 2010 | 2011 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Segments: | ||||||||||||||||
Energy Management | $ | 59,649 | $ | 71,866 | $ | 1,203 | $ | 5,754 | ||||||||
Engineered Systems | 8,424 | 20,592 | (471 | ) | 1,371 | |||||||||||
Corporate and Other | — | — | (5,311 | ) | (4,921 | ) | ||||||||||
$ | 68,073 | $ | 92,458 | $ | (4,579 | ) | $ | 2,204 |
89
Depreciation | Capital Expenditures | |||||||||||||||
For the Year Ended March 31, | For the Year Ended March 31, | |||||||||||||||
2010 | 2011 | 2010 | 2011 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Segments: | ||||||||||||||||
Energy Management | $ | 1,929 | $ | 1,454 | $ | 1,325 | $ | 1,696 | ||||||||
Engineered Systems | 56 | 207 | 2,682 | 2,374 | ||||||||||||
Corporate and Other | 568 | 1,050 | 4,293 | 1,465 | ||||||||||||
$ | 2,553 | $ | 2,711 | $ | 8,300 | $ | 5,535 |
Total Assets | Deferred Revenue | |||||||||||||||
31-Mar-10 | 31-Mar-11 | 31-Mar-10 | 31-Mar-11 | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Segments: | ||||||||||||||||
Energy Management | $ | 58,332 | $ | 67,449 | $ | 390 | $ | 533 | ||||||||
Engineered Systems | 3,976 | 14,405 | 134 | 1,506 | ||||||||||||
Corporate and Other | 42,270 | 33,136 | — | — | ||||||||||||
$ | 104,578 | $ | 114,990 | $ | 524 | $ | 2,039 |
Total Assets | Deferred Revenue | ||||||||||||||
(dollars in thousands) | March 31, 2012 | March 31, 2013 | March 31, 2012 | March 31, 2013 | |||||||||||
Segments: | |||||||||||||||
Energy Management | $ | 61,873 | $ | 58,627 | $ | 734 | $ | 564 | |||||||
Engineered Systems | 13,424 | 9,339 | 4,928 | 3,640 | |||||||||||
Corporate and Other | 50,353 | 34,131 | — | — | |||||||||||
$ | 125,650 | $ | 102,097 | $ | 5,662 | $ | 4,204 |
NOTE J — SUBSEQUENT EVENTS |
Three Months Ended | |||||||||||||||||||
Jun 30, 2011 | Sep 30, 2011 | Dec 31, 2011 | Mar 31, 2012 | Total | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||
Total revenue | $ | 18,221 | $ | 33,475 | $ | 27,406 | $ | 21,460 | $ | 100,562 | |||||||||
Gross profit | $ | 6,007 | $ | 9,381 | $ | 7,514 | $ | 7,136 | $ | 30,038 | |||||||||
Net income (loss) | $ | (792 | ) | $ | 1,358 | $ | 74 | $ | (157 | ) | $ | 483 | |||||||
Basic net income per share | $ | (0.03 | ) | $ | 0.06 | $ | 0.00 | $ | (0.01 | ) | $ | 0.02 | |||||||
Shares used in basic per share calculation | 22,921 | 22,990 | 22,996 | 22,904 | 22,953 | ||||||||||||||
Diluted net income per share | $ | (0.03 | ) | $ | 0.06 | $ | 0.00 | $ | (0.01 | ) | $ | 0.02 | |||||||
Shares used in diluted per share calculation | 22,921 | 23,370 | 23,255 | 22,904 | 23,387 |
Three Months Ended | ||||||||||||||||||||
June 30, | Sept. 30, | Dec. 31, | Mar. 31, | |||||||||||||||||
2010 | 2010 | 2010 | 2011 | Total | ||||||||||||||||
(As Restated) | (As Restated) | (As Restated) | ||||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
Total revenue | $ | 16,977 | $ | 15,853 | $ | 30,056 | $ | 29,572 | $ | 92,458 | ||||||||||
Gross profit | 5,753 | 5,610 | 9,154 | 9,191 | 29,708 | |||||||||||||||
Net income (loss) | (536 | ) | 540 | 756 | 840 | 1,600 | ||||||||||||||
Basic net income per share | (0.02 | ) | 0.02 | 0.03 | 0.04 | 0.07 | ||||||||||||||
Shares used in basic per share calculation | 22,523 | 22,639 | 22,726 | 22,827 | 22,678 | |||||||||||||||
Diluted net income per share | (0.02 | ) | 0.02 | 0.03 | 0.04 | 0.07 | ||||||||||||||
Shares used in diluted per share calculation | 22,523 | 22,902 | 23,111 | 23,332 | 23,198 |
90
Three Months Ended | ||||||||||||||||||||
June 30, | Sept. 30, | Dec. 31, | Mar. 31, | |||||||||||||||||
2009 | 2009 | 2009 | 2010 | Total | ||||||||||||||||
(As Restated) | (As Restated) | (As Restated) | (As Restated) | (As Restated) | ||||||||||||||||
(In thousands, except per share amounts) | ||||||||||||||||||||
Total revenue | $ | 13,875 | $ | 16,075 | $ | 20,827 | $ | 17,296 | $ | 68,073 | ||||||||||
Gross profit | 3,872 | 5,321 | 7,399 | 6,152 | 22,744 | |||||||||||||||
Net income (loss) | (2,080 | ) | (932 | ) | 754 | (1,215 | ) | (3,473 | ) | |||||||||||
Basic net income per share | (0.10 | ) | (0.04 | ) | 0.03 | (0.05 | ) | (0.16 | ) | |||||||||||
Shares used in basic per share calculation | 21,588 | 21,707 | 21,792 | 22,255 | 21,844 | |||||||||||||||
Diluted net income per share | (0.10 | ) | (0.04 | ) | 0.03 | (0.05 | ) | (0.16 | ) | |||||||||||
Shares used in diluted per share calculation | 21,588 | 21,707 | 22,568 | 22,255 | 21,844 |
Three Months Ended | |||||||||||||||||||
Jun 30, 2012 | Sep 30, 2012 | Dec 31, 2012 | Mar 31, 2013 | Total | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||
Total revenue | $ | 15,310 | $ | 19,408 | $ | 29,087 | $ | 22,281 | $ | 86,086 | |||||||||
Gross profit | $ | 4,373 | $ | 5,805 | $ | 8,581 | $ | 7,971 | $ | 26,730 | |||||||||
Net income (loss) | $ | (1,940 | ) | $ | (9,659 | ) | $ | 651 | $ | 549 | $ | (10,399 | ) | ||||||
Basic net income per share | $ | (0.09 | ) | $ | (0.46 | ) | $ | 0.03 | $ | 0.03 | $ | (0.50 | ) | ||||||
Shares used in basic per share calculation | 22,561 | 21,076 | 20,192 | 20,157 | 20,997 | ||||||||||||||
Diluted net income per share | $ | (0.09 | ) | $ | (0.46 | ) | $ | 0.03 | $ | 0.03 | $ | (0.50 | ) | ||||||
Shares used in diluted per share calculation | 22,561 | 21,076 | 20,245 | 20,308 | 20,997 |
91
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorization of our management and directors: and • | ||
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
92
ITEM 9B. | OTHER INFORMATION |
93
94
95
96
ITEM 11. | EXECUTIVE COMPENSATION |
97
98
99
Name and Current Position | Base Salary ($) | |||
Neal R. Verfuerth | $ | 460,000 | ||
Chief Executive Officer | ||||
Michael J. Potts | 275,000 | |||
President and Chief Operating Officer(1) | ||||
John H. Scribante | 275,000 | |||
President of Orion Engineered Systems | ||||
Daniel J. Waibel | 225,000 | |||
President of Orion Asset Management Division | ||||
Scott R. Jensen(2) | 200,000 | |||
Chief Financial Officer and Treasurer |
100
Target | ||||
Fiscal 2011 Bonus | ||||
Name and Current Position | Amount | |||
Neal R. Verfuerth | $ | 88,627 | ||
Chief Executive Officer | ||||
Michael J. Potts | 18,916 | |||
President and Chief Operating Officer(1) | ||||
John H. Scribante | 43,350 | |||
President of Orion Engineered Systems | ||||
Daniel J. Waibel | 43,350 | |||
President of Orion Asset Management Division | ||||
Scott R. Jensen | 16,814 | |||
Chief Financial Officer and Treasurer |
101
102
103
104
105
106
107
Non-Equity | ||||||||||||||||||||||||||||
Option | Incentive Plan | All Other | ||||||||||||||||||||||||||
Fiscal | Salary | Bonus | Awards | Compensation | Compensation | Total | ||||||||||||||||||||||
Name and Current Principal Position | Year | ($) | ($) | ($)(1) | ($) | ($) | ($) | |||||||||||||||||||||
Neal R. Verfuerth | 2011 | $ | 460,000 | — | $ | 67,467 | — | $ | 68,655 | (2) | $ | 596,122 | ||||||||||||||||
Chief Executive Officer | 2010 | 460,000 | — | 75,991 | — | 59,943 | 595,934 | |||||||||||||||||||||
2009 | 460,000 | — | 340,041 | — | 101,028 | 901,069 | ||||||||||||||||||||||
Scott R. Jensen | 2011 | 200,000 | — | 20,372 | — | 144 | (4) | 220,516 | ||||||||||||||||||||
Chief Financial | 2010 | 173,750 | — | 336,464 | — | 144 | 510,358 | |||||||||||||||||||||
Officer and Treasurer(3) | 2009 | 150,417 | — | 51,522 | — | 144 | 202,083 | |||||||||||||||||||||
Michael J. Potts | 2011 | 260,016 | — | 22,918 | — | 16,530 | (6) | 299,465 | ||||||||||||||||||||
President and Chief | 2010 | 225,000 | — | 25,331 | — | 16,194 | 266,525 | |||||||||||||||||||||
Operating Officer(5) | ||||||||||||||||||||||||||||
John H. Scribante | 2011 | 254,437 | — | 32,999 | — | 7,673 | (7) | 295,109 | ||||||||||||||||||||
President of Orion | 2010 | 225,000 | — | 482,831 | — | — | 707,831 | |||||||||||||||||||||
Engineered Systems | 2009 | 225,000 | — | 66,977 | — | — | 291,977 | |||||||||||||||||||||
Daniel J. Waibel | 2011 | 225,000 | — | 32,999 | — | 13,392 | (8) | 271,391 | ||||||||||||||||||||
President of Orion Asset | 2010 | 225,000 | — | — | — | 12,960 | 237,960 | |||||||||||||||||||||
Management Division | 2009 | 225,000 | — | 37,222 | — | 13,055 | 275,277 |
108
All Other | ||||||||||||||||||||||||||||||||||||||||||||
Option | Grant | |||||||||||||||||||||||||||||||||||||||||||
Awards: | Date | |||||||||||||||||||||||||||||||||||||||||||
Estimated Future Payouts Under | Estimated Future Payouts | Number of | Exercise | Fair | ||||||||||||||||||||||||||||||||||||||||
Non-Equity Incentive Plan | Under Equity Incentive | Securities | Price of | Value of | ||||||||||||||||||||||||||||||||||||||||
Date of | Awards(1) | Plan Awards | Underlying | Option | Option | |||||||||||||||||||||||||||||||||||||||
Grant | Committee | Threshold | Target | Max | Threshold | Target | Max | Options | Awards | Awards | ||||||||||||||||||||||||||||||||||
Name | Date | Action | ($) | ($) | ($) | (#) | (#) | (#) | (#)(2) | ($/Sh)(3) | ($)(4) | |||||||||||||||||||||||||||||||||
Neal R. Verfuerth | 5/18/10 | 5/12/10 | — | 88,627 | 2,000,000 | 34,207 | 3.46 | 67,467 | ||||||||||||||||||||||||||||||||||||
Scott R. Jensen | 5/18/10 | 5/12/10 | — | 16,814 | 2,000,000 | 10,329 | 3.46 | 20,372 | ||||||||||||||||||||||||||||||||||||
Michael J. Potts | 5/18/10 | 5/12/10 | — | 18,916 | 2,000,000 | 11,620 | 3.46 | 22,918 | ||||||||||||||||||||||||||||||||||||
John H. Scribante | 5/18/10 | 5/12/10 | — | 43,350 | 2,000,000 | 16,731 | 3.46 | 32,999 | ||||||||||||||||||||||||||||||||||||
Daniel J. Waibel | 5/18/10 | 5/12/10 | — | 18,916 | 2,000,000 | 16,731 | 3.46 | 32,999 |
109
Option Awards | ||||||||||||||||
Number of | Number of | |||||||||||||||
Shares | Shares | |||||||||||||||
Underlying | Underlying | |||||||||||||||
Unexercised | Unexercised | Option | Option | |||||||||||||
Options (#) | Options (#) | Exercise | Expiration | |||||||||||||
Name | Exercisable | Unexercisable | Price ($) | Date | ||||||||||||
Neal R. Verfuerth | — | 34,207 | (1) | 3.46 | 05/18/2020 | |||||||||||
7,055 | 28,221 | (2) | 3.78 | 05/19/2019 | ||||||||||||
43,564 | 65,347 | (3) | 5.35 | 08/08/2018 | ||||||||||||
154,546 | 50,000 | (4) | 2.20 | 12/20/2016 | ||||||||||||
180,958 | — | 4.49 | 07/27/2011 | |||||||||||||
Scott R. Jensen | — | 10,329 | (5) | 3.46 | 05/18/2020 | |||||||||||
20,000 | 80,000 | (6) | 5.44 | 02/05/2020 | ||||||||||||
2,351 | 9,408 | (7) | 3.78 | 05/19/2019 | ||||||||||||
6,600 | 9,902 | (8) | 5.35 | 08/08/2018 | ||||||||||||
20,000 | 5,000 | (9) | 2.20 | 03/01/2017 | ||||||||||||
7,000 | — | 2.25 | 08/30/2014 | |||||||||||||
Michael J. Potts | — | 11,620 | (10) | 3.46 | 05/18/2020 | |||||||||||
2,351 | 9,408 | (11) | 3.78 | 05/19/2019 | ||||||||||||
8,580 | 12,872 | (12) | 5.35 | 08/08/2018 | ||||||||||||
30,000 | 15,000 | (13) | 2.20 | 12/20/2016 | ||||||||||||
John H. Scribante | — | 16,731 | (14) | 3.46 | 05/18/2020 | |||||||||||
100,000 | 150,000 | (15) | 3.01 | 09/01/2019 | ||||||||||||
2,351 | 9,408 | (16) | 3.78 | 05/19/2019 | ||||||||||||
8,580 | 12,872 | (17) | 5.35 | 08/08/2018 | ||||||||||||
40,000 | — | 2.50 | 06/02/2016 | |||||||||||||
25,000 | — | 2.25 | 07/31/2014 | |||||||||||||
Daniel J. Waibel | — | 16,731 | (18) | 3.46 | 05/18/2020 | |||||||||||
10,560 | 15,843 | (19) | 5.35 | 08/08/2018 | ||||||||||||
80,000 | 20,000 | (20) | 2.20 | 12/20/2016 |
110
111
Option Awards | ||||||||
Number of Shares | ||||||||
Acquired on | Value Realized | |||||||
Exercise | on Exercise | |||||||
Name | (#) | ($)(1) | ||||||
Neal R. Verfuerth | 20,000 | 19,200 | ||||||
Scott R. Jensen | 1,000 | 2,500 | ||||||
Michael J. Potts | 30,000 | 1,200 | ||||||
John H. Scribante | — | — | ||||||
Daniel J. Waibel | — | — |
112
113
114
Without | ||||||||||
Without | Cause or for | |||||||||
Cause or for Good | Good Reason in Connection | |||||||||
Name | Benefit | Reason ($) | With a Change of Control ($) | |||||||
Neal R. Verfuerth | Severance | 1,114,667 | 1,672,000 | |||||||
Pro Rata Target Bonus | 88,627 | 88,627 | ||||||||
Benefits | 13,908 | 13,908 | ||||||||
Acceleration of Options | — | 119,178 | ||||||||
Excise Tax Cut-Back | — | — | ||||||||
Total | 1,217,202 | 1,893,713 | ||||||||
Scott R. Jensen | Severance | 116,667 | 233,333 | |||||||
Pro Rata Target Bonus | 16,814 | 16,814 | ||||||||
Benefits | 21,251 | 21,251 | ||||||||
Acceleration of Options | — | 17,638 | ||||||||
Excise Tax Cut-Back | — | — | ||||||||
Total | 154,732 | 289,036 | ||||||||
Michael J. Potts | Severance | 296,667 | 593,333 | |||||||
Pro Rata Target Bonus | 18,916 | 18,916 | ||||||||
Benefits | 21,251 | 21,251 | ||||||||
Acceleration of Options | — | 36,788 | ||||||||
Excise Tax Cut-Back | — | — | ||||||||
Total | 336,834 | 670,288 | ||||||||
John H. Scribante | Severance | 147,500 | 295,000 | |||||||
Pro Rata Target Bonus | 43,350 | 43,350 | ||||||||
Benefits | — | — | ||||||||
Acceleration of Options | — | 166,653 | ||||||||
Excise Tax Cut-Back | — | — | ||||||||
Total | 190,850 | 505,000 | ||||||||
Daniel J. Waibel | Severance | — | — | |||||||
Pro Rata Target Bonus | — | — | ||||||||
Benefits | — | — | ||||||||
Acceleration of Options | — | 46,505 | ||||||||
Excise Tax Cut-Back | — | — | ||||||||
Total | — | 46,505 | ||||||||
Total | 1,899,616 | 3,404,544 |
Number of Unvested Option | ||||||||
Shares Accelerated and Cashed Out | ||||||||
Name | (#) | Value Realized ($) | ||||||
Neal R. Verfuerth | 177,775 | $ | 119,178 | |||||
Scott R. Jensen | 114,639 | 17,638 | ||||||
Michael J. Potts | 48,900 | 36,788 | ||||||
John H. Scribante | 176,139 | 166,653 | ||||||
Daniel J. Waibel | 52,574 | 46,505 |
115
116
117
Fees Earned | Option | |||||||||||||||
or Paid in | Awards | All Other | ||||||||||||||
Name | Cash ($)(1) | ($)(2)(3) | Compensation ($) | Total ($) | ||||||||||||
Michael W. Altschaefl | 55,000 | 32,361 | — | 87,361 | ||||||||||||
James R. Kackley(4) | 40,000 | 32,361 | — | 72,361 | ||||||||||||
Thomas A. Quadracci | 50,000 | 32,361 | — | 82,361 | ||||||||||||
Elizabeth Gamsky Rich(5) | 30,932 | 26,430 | — | 57,362 | ||||||||||||
Thomas N. Schueller(6) | 30,000 | 32,361 | — | 62,361 | ||||||||||||
Roland G. Stephenson(7) | 20,000 | 32,361 | — | 52,361 | ||||||||||||
Mark C. Williamson | 65,000 | 32,361 | — | 97,361 |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED SHAREHOLDER MATTERS |
118
Shares Beneficially Owned | ||||||||
Percentage of | ||||||||
Number | Outstanding | |||||||
Directors and executive officers | ||||||||
Neal R. Verfuerth(1) | 2,207,883 | 9.5 | % | |||||
Michael J. Potts(2) | 467,961 | 2.0 | % | |||||
John Scribante(3) | 220,447 | * | ||||||
Daniel J. Waibel(4) | 768,309 | 3.4 | % | |||||
Scott R. Jensen(5) | 72,371 | * | ||||||
James R. Kackley(6) | 316,521 | 1.4 | % | |||||
Michael W. Altschaefl(7) | 34,102 | * | ||||||
Tryg C. Jacobson | — | * | ||||||
Thomas A. Quadracci(8) | 125,121 | * | ||||||
Elizabeth G. Rich | 3,591 | * | ||||||
Thomas N. Schueller(9) | 12,138 | * | ||||||
Mark C. Williamson(10) | 23,694 | * | ||||||
All current directors and executive officers as a group (16 individuals)(11) | 4,271,523 | 18.0 | % | |||||
Principal shareholders | ||||||||
GE Capital Equity Investments, Inc.(12) | 1,570,990 | 6.9 | % |
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Fiscal 2011 | Fiscal 2010 | |||||||
Audit fees(1) | $ | 282,873 | $ | 292,844 | ||||
Audit-related fees(2) | 14,150 | 14,648 | ||||||
Tax fees(3) | 57,817 | 72,431 | ||||||
Total fees | $ | 354,840 | $ | 379,923 | ||||
(b) | Financial Statement Schedule |
SCHEDULE II | ||||||||||||||||||||
VALUATION and QUALIFYING ACCOUNTS | ||||||||||||||||||||
Balance at | Provisions | Balance at | ||||||||||||||||||
Beginning of | Charged to | Write offs | End of | |||||||||||||||||
Period | Expense | and Other | Period | |||||||||||||||||
(In thousands) | ||||||||||||||||||||
March 31, | ||||||||||||||||||||
2009 | Allowance for Doubtful Accounts | $ | 79 | 178 | 35 | $ | 222 | |||||||||||||
2010 | Allowance for Doubtful Accounts | 222 | 388 | 228 | 382 | |||||||||||||||
2011 | Allowance for Doubtful Accounts | 382 | 186 | 132 | 436 | |||||||||||||||
2009 | Inventory Obsolescence Reserve | $ | 530 | 149 | 11 | $ | 668 | |||||||||||||
2010 | Inventory Obsolescence Reserve | 668 | 105 | 17 | 756 | |||||||||||||||
2011 | Inventory Obsolescence Reserve | 756 | 57 | 2 | 811 |
SCHEDULE II VALUATION and QUALIFYING ACCOUNTS | ||||||||||||||||
Balance at beginning of period | Provisions charged to expense | Write offs and other | Balance at end of period | |||||||||||||
March 31, | (in Thousands) | |||||||||||||||
2011 | Allowance for Doubtful Accounts | $ | 382 | $ | 507 | $ | 132 | $ | 757 | |||||||
2012 | Allowance for Doubtful Accounts | 757 | 566 | 376 | 947 | |||||||||||
2013 | Allowance for Doubtful Accounts | 947 | 757 | 804 | 900 | |||||||||||
2011 | Inventory Obsolescence Reserve | $ | 756 | $ | 584 | $ | 2 | $ | 1,338 | |||||||
2012 | Inventory Obsolescence Reserve | 1,338 | 167 | 5 | 1,500 | |||||||||||
2013 | Inventory Obsolescence Reserve | 1,500 | 859 | 58 | 2,301 |
Number | Exhibit Title | |||
3 | .1 | Amended and Restated Articles of Incorporation of Orion Energy Systems, Inc., filed as Exhibit 3.3 to the Registrant’sForm S-1 filed August 20, 2007 (FileNo. 333-145569), is hereby incorporated by reference. | ||
3 | .2 | Amended and Restated Bylaws of Orion Energy Systems, Inc., filed as Exhibit 3.5 to the Registrant’sForm S-1 filed August 20, 2007 (FileNo. 333-145569), is hereby incorporated by reference. | ||
4 | .1 | Form of Warrant to purchase Common Stock of Orion Energy Systems, Inc., filed as Exhibit 4.3 to the Registrant’sForm S-1 filed August 20, 2007 (FileNo. 333-145569), is hereby incorporated by reference. | ||
4 | .2 | Form of Warrant to purchase Common Stock of Orion Energy Systems, Inc., filed as Exhibit 4.4 to the Registrant’sForm S-1 filed August 20, 2007 (FileNo. 333-145569), is hereby incorporated by reference. | ||
4 | .3 | Rights Agreement, dated as of January 7, 2009, between Orion Energy Systems, Inc. and Wells Fargo Bank, N.A., which includes as Exhibit A thereto the Form of Right Certificate and as Exhibit B thereto the Summary of Common Share Purchase Rights, filed as Exhibit 4.1 to the Registrant’sForm 8-A filed January 8, 2009 (FileNo. 001-33887), is hereby incorporated by reference. | ||
10 | .1 | Credit Agreement, dated June 30, 2010, by and among Orion Energy Systems, Inc., Orion Asset Management LLC, Clean Energy Solutions, LLC and JP Morgan Chase Bank, N.A., filed as Exhibit 10.1 to the Registrant’s Current Report onForm 8-K filed July 2, 2010 (FileNo. 001-33887), is hereby incorporated by reference. | ||
10 | .2 | Orion Energy Systems, Inc. 2003 Stock Option Plan, as amended, filed as Exhibit 10.6 to the Registrant’sForm S-1 filed August 20, 2007 (FileNo. 333-145569), is hereby incorporated by reference.* | ||
10 | .3 | Form of Stock Option Agreement under the Orion Energy Systems, Inc. 2003 Stock Option Plan, filed as Exhibit 10.7 to the Registrant’sForm S-1 filed August 20, 2007 (FileNo. 333-145569), is hereby incorporated by reference.* | ||
10 | .4 | Orion Energy Systems, Inc. 2004 Stock and Incentive Awards Plan, filed as Exhibit 10.9 to the Registrant’sForm S-1 filed August 20, 2007 (FileNo. 333-145569), is hereby incorporated by reference.* | ||
10 | .5 | Form of Stock Option Agreement under the Orion Energy Systems, Inc. 2004 Equity Incentive Plan, filed as Exhibit 10.10 to the Registrant’sForm S-1 filed August 20, 2007 (FileNo. 333-145569), is hereby incorporated by reference.* | ||
10 | .6 | Form of Stock Option Agreement under the Orion Energy Systems, Inc. 2004 Stock and Incentive Awards Plan, filed as Exhibit 10.11 to the Registrant’sForm S-1 filed August 20, 2007 (FileNo. 333-145569), is hereby incorporated by reference.* | ||
10 | .7 | Form of Accelerated Vesting Stock Option Agreement under the Orion Energy Systems, Inc. 2004 Stock and Incentive Awards Plan.*+ | ||
10 | .8 | Summary of Non-Employee Director Compensation.*+ | ||
10 | .9 | Executive Employment and Severance Agreement, dated February 21, 2008, by and between Orion Energy Systems, Inc. and Michael J. Potts, filed as Exhibit 10.2 to the Registrant’sForm 8-K filed February 22, 2008 (FileNo. 001-33887), is hereby incorporated by reference.* | ||
10 | .10 | Executive Employment and Severance Agreement, dated March 18, 2008, by and between Orion Energy Systems, Inc. and John H. Scribante, filed as Exhibit 10.3 to the Registrant’sForm 8-K filed March 21, 2008 (FileNo. 001-33887), is hereby incorporated by reference.* | ||
10 | .11 | Executive Employment and Severance Agreement, dated April 14, 2008, by and between Orion Energy Systems, Inc. and Neal R. Verfuerth, filed as Exhibit 10.1 to the Registrant’sForm 8-K filed April 18, 2008 (FileNo. 001-33887), is hereby incorporated by reference.* | ||
10 | .12 | Executive Employment and Severance Agreement, dated August 12, 2008, by and between Orion Energy Systems, Inc. and Scott R. Jensen, filed as Exhibit 10.1 to the Registrant’s Quarterly Report onForm 10-Q for the quarterly period ended June 30, 2008 (FileNo. 001-33887), is hereby incorporated by reference.* | ||
10 | .13 | Letter Agreement, dated as of August 27, 2009, between the Company and John H. Scribante, filed as Exhibit 10.1 to the Company’sForm 8-K filed on September 2, 2009, is hereby incorporated by reference.* |
123
Number | Exhibit Title | |||
10 | .14 | Executive Employment and Severance Agreement, dated September 8, 2009, by and between Stuart L. Ralsky and the Company, filed as Exhibit 10.2 to the Company’s Quarterly Report onForm 10-Q for the quarterly period ended September 30, 2009, is hereby incorporated by reference.* | ||
21 | .1 | Subsidiaries of Orion Energy Systems, Inc.+ | ||
23 | .1 | Consent of Independent Registered Public Accounting Firm.+ | ||
31 | .1 | Certification of Chief Executive Officer of Orion Energy Systems, Inc. pursuant toRule 13a-14(a) orRule 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended.+ | ||
31 | .2 | Certification of Chief Financial Officer of Orion Energy Systems, Inc. pursuant toRule 13a-14(a) orRule 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended.+ | ||
32 | .1 | Certification of Chief Executive Officer and Chief Financial Officer of Orion Energy Systems, Inc. pursuant toRule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.+ |
Number | Exhibit Title | ||
3.1 | Amended and Restated Articles of Incorporation of Orion Energy Systems, Inc., filed as Exhibit 3.3 to the Registrant’s Form S-1 filed August 20, 2007 (File No. 333-145569), is hereby incorporated by reference. | ||
3.2 | Amended and Restated Bylaws of Orion Energy Systems, Inc., filed as Exhibit 3.5 to the Registrant’s Form S-1 filed August 20, 2007 (File No. 333-145569), is hereby incorporated by reference. | ||
4.1 | Rights Agreement, dated as of January 7, 2009, between Orion Energy Systems, Inc. and Wells Fargo Bank, N.A., which includes as Exhibit A thereto the Form of Right Certificate and as Exhibit B thereto the Summary of Common Share Purchase Rights, filed as Exhibit 4.1 to the Registrant’s Form 8-A filed January 8, 2009 (File No. 001-33887), is hereby incorporated by reference. | ||
10.1 | Credit Agreement, dated June 30, 2010, by and among Orion Energy Systems, Inc., Orion Asset Management LLC, Clean Energy Solutions, LLC and JP Morgan Chase Bank, N.A., filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed July 2, 2010 (File No. 001-33887), is hereby incorporated by reference. | ||
10.1(a) | First Amendment to Credit Agreement dated September 30, 2011 by and among Orion Energy Systems, Inc., Orion Asset Management LLC, Clean Energy Solutions, LLC and JP Morgan Chase Bank, N.A., filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed October 5, 2011 (File No. 001-33887), is hereby incorporated by reference. | ||
10.1(b) | Second Amendment to Credit Agreement, dated June 25, 2012, by and among Orion Energy Systems, Inc., Orion Asset Management, LLC, Clean Energy Solutions, LLC, Great Lakes Energy Technologies, LLC and JPMorgan Chase Bank, N.A., filed as Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed June 26, 2012 (File No. 001-33887), is hereby incorporated by reference. | ||
10.1(c) | Third Amendment to Credit Agreement, dated February 5, 2013, by and among Orion Energy Systems, Inc., Orion Asset Management, LLC, Clean Energy Solutions, LLC, Great Lakes Energy Technologies, LLC and JPMorgan Chase Bank, N.A., filed as Exhibit 10.1 to the Registrant's Current Report on Form 10-Q filed February 8, 2013 (File No. 001-33887), is hereby incorporated by reference. | ||
10.2 | Credit Agreement, dated September 30, 2011, by and among Orion Energy Systems, Inc., Orion Asset Management LLC, Clean Energy Solutions, LLC and JP Morgan Chase Bank, N.A., filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed October 5, 2011 (File No. 001-33887), is hereby incorporated by reference. | ||
10.2(a) | First Amendment to Credit Agreement, dated February 5, 2013, by and among Orion Asset Management, LLC, Orion Energy Systems, Inc., Clean Energy Solutions, LLC, Great Lakes Energy Technologies, LLC and JP Morgan Chase Bank, N.A., filed as Exhibit 10.2 to the Registrant's Current Report on Form 10-Q filed February 8, 2013 (File No. 001-33887), is hereby incorporated by reference. | ||
10.3 | Orion Energy Systems, Inc. 2003 Stock Option Plan, as amended, filed as Exhibit 10.6 to the Registrant’s Form S-1 filed August 20, 2007 (File No. 333-145569), is hereby incorporated by reference.* | ||
10.4 | Form of Stock Option Agreement under the Orion Energy Systems, Inc. 2003 Stock Option Plan, filed as Exhibit 10.7 to the Registrant’s Form S-1 filed August 20, 2007 (File No. 333-145569), is hereby incorporated by reference.* | ||
10.5 | Orion Energy Systems, Inc. 2004 Stock and Incentive Awards Plan, filed as Exhibit 10.9 to the Registrant’s Form S-1 filed August 20, 2007 (File No. 333-145569), is hereby incorporated by reference.* | ||
10.5(a) | Amendment to Orion Energy Systems, Inc. 2004 Stock and Incentive Awards Plan, filed September 9, 2011 as Appendix A to the Registrant’s definitive proxy statement is hereby incorporated by reference.* | ||
10.6 | Form of Stock Option Agreement under the Orion Energy Systems, Inc. 2004 Equity Incentive Plan, filed as Exhibit 10.10 to the Registrant’s Form S-1 filed August 20, 2007 (File No. 333-145569), is hereby incorporated by reference.* | ||
10.7 | Form of Stock Option Agreement as of May 14, 2013 under the Orion Energy Systems, Inc. 2004 Stock and Incentive Awards Plan.* + | ||
10.8 | Form of Restricted Stock Award Agreement as of May 14, 2013 under the Orion Energy Systems, Inc. 2004 Stock and Incentive Awards Plan.* + | ||
10.9 | Summary of Non-Employee Director Compensation effective as of May 14, 2013.* + | ||
10.10 | Executive Employment and Severance Agreement, dated February 21, 2008, by and between Orion Energy Systems, Inc. and Michael J. Potts, filed as Exhibit 10.2 to the Registrant’s Form 8-K filed February 22, 2008 (File No. 001-33887), is hereby incorporated by reference.* |
10.11 | Executive Employment and Severance Agreement, dated as of September 27, 2012, by and between Orion Energy Systems, Inc. and John H. Scribante, filed as Exhibit 10.10 to the Registrant's Form 8-K filed September 28, 2012 (File No. 001-33887), is hereby incorporated by reference.* | ||
10.12 | Executive Employment and Severance Agreement, effective November 9, 2012 between the Company and Scott R. Jensen, filed as Exhibit 10.13 to the Registrant's Form 10-Q filed November 9, 2012 (File No. 001-33887), is hereby incorporated by reference.* | ||
10.13 | Letter Agreement effective December 1, 2012 between the Company and John H. Scribante, filed as Exhibit 10.15 to the Company's Form 8-K filed on December 6, 2012 (File No. 001-33887), is hereby incorporated by reference.* | ||
10.14 | Letter Agreement effective December 1, 2012 between the Company and Michael J. Potts, filed as Exhibit 10.16 to the Company's Form 8-K filed on December 6, 2012 (File No. 001-33887), is hereby incorporated by reference.* | ||
10.15 | Letter Agreement effective December 1, 2012 between the Company and Scott R. Jensen, filed as Exhibit 10.17 to the Company's Form 8-K filed on December 6, 2012 (File No. 001-33887), is hereby incorporated by reference.* | ||
21.1 | Subsidiaries of Orion Energy Systems, Inc.+ | ||
23.1 | Consent of Independent Registered Public Accounting Firm. + | ||
31.1 | Certification of Chief Executive Officer of Orion Energy Systems, Inc. pursuant to Rule 13a-14(a) or Rule 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended. + | ||
31.2 | Certification of Chief Financial Officer of Orion Energy Systems, Inc. pursuant to Rule 13a-14(a) or Rule 15d-14(a) promulgated under the Securities Exchange Act of 1934, as amended. + | ||
32.1 | Certification of Chief Executive Officer and Chief Financial Officer of Orion Energy Systems, Inc. pursuant to Rule 13a-14(b) promulgated under the Securities Exchange Act of 1934, as amended, and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. + | ||
101 | 101.INS XBRL Instance Document+ | ||
101.SCH Taxonomy extension schema document | |||
101.CAL Taxonomy extension calculation linkbase document | |||
101.LAB Taxonomy extension label linkbase document | |||
101.PRE Taxonomy extension presentation linkbase document |
* | Management contract or compensatory plan or arrangement required to be filed (and/or incorporated by reference) as an exhibit to this Annual Report onForm 10-K pursuant to Item 15(a)(3) ofForm 10-K. |
+ | Filed herewith |
ORION ENERGY SYSTEMS, INC. | ||
By: | /s/ JOHN H. SCRIBANTE | |
Chief Executive Officer |
Signature | |||||
Title | |||||
/s/ | Chief Executive Officer and Director | ||||
John H. Scribante | Executive Officer) | ||||
/s/ Scott R. Jensen | Chief Financial Officer, | ||||
Scott R. Jensen | Treasurer (Principal Financial Officer) | ||||
/s/ | |||||
James R. Kackley | Chairman of the Board | ||||
James R. Kackley | |||||
/s/ Michael W. Altschaefl | Director | ||||
Michael W. Altschaefl | |||||
/s/ Kenneth L. Goodson, Jr. | Director | ||||
Kenneth L. Goodson, Jr. | |||||
/s/ Tryg C. Jacobson | Director | ||||
Tryg C. Jacobson | |||||
/s/ James D. Leslie | Director | ||||
James D. Leslie | |||||
/s/ Michael J. Potts | Director | ||||
Michael J. Potts | |||||
/s/ Elizabeth Gamsky Rich | Director | ||||
Elizabeth Gamsky Rich | |||||
/s/ Thomas N. Schueller | Director | ||||
Thomas N. Schueller | |||||
/s/ Mark C. Williamson | Director | ||||
Mark C. Williamson | |||||
125