Orion Energy Systems (OESX) 10-Q 4 Aug 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Jun. 30, 2017	Jul. 28, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	ORION ENERGY SYSTEMS, INC.
Entity Central Index Key	1,409,375
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--03-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		28,763,663

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Assets
Cash and cash equivalents	$ 8,485	$ 17,307
Accounts receivable, net	7,040	9,171
Inventories, net	12,266	13,593
Deferred contract costs	1,704	935
Prepaid expenses and other current assets	3,093	2,877
Total current assets	32,588	43,883
Property and equipment, net	13,638	13,786
Other intangible assets, net	4,065	4,207
Other long-term assets	118	175
Total assets	50,409	62,051
Liabilities and Shareholders’ Equity
Accounts payable	9,608	11,635
Accrued expenses and other	5,128	5,988
Deferred revenue, current	823	621
Current maturities of long-term debt	110	152
Total current liabilities	15,669	18,396
Revolving credit facility	3,853	6,629
Long-term debt, less current maturities	164	190
Deferred revenue, long-term	945	944
Other long-term liabilities	560	442
Total liabilities	21,191	26,601
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value: Shares authorized: 30,000,000 at June 30, 2017 and March 31, 2017; no shares issued and outstanding at June 30, 2017 and March 31, 2017	0	0
Common stock, no par value: Shares authorized: 200,000,000 at June 30, 2017 and March 31, 2017; shares issued: 38,161,796 at June 30, 2017 and 37,747,227 at March 31, 2017; shares outstanding: 28,732,979 at June 30, 2017 and 28,317,490 at March 31, 2017	0	0
Additional paid-in capital	154,230	153,901
Treasury stock, common shares: 9,428,817 at June 30, 2017 and 9,429,737 at March 31, 2017	(36,082)	(36,081)
Shareholder notes receivable	0	(4)
Retained deficit	(88,930)	(82,366)
Total shareholders’ equity	29,218	35,450
Total liabilities and shareholders’ equity	$ 50,409	$ 62,051

UNAUDITED CONDENSED CONSOLIDAT3

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2017	Mar. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	30,000,000	30,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (usd per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	38,161,796	37,747,227
Common stock, shares outstanding (in shares)	28,732,979	28,317,490
Treasury stock (in shares)	9,428,817	9,429,737

UNAUDITED CONDENSED CONSOLIDAT4

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Product revenue	$ 11,781	$ 15,352
Service revenue	777	282
Total revenue	12,558	15,634
Cost of product revenue	8,813	11,419
Cost of service revenue	1,034	189
Total cost of revenue	9,847	11,608
Gross profit	2,711	4,026
Operating expenses:
General and administrative	5,335	3,901
Sales and marketing	3,354	2,895
Research and development	524	481
Total operating expenses	9,213	7,277
Loss from operations	(6,502)	(3,251)
Other income (expense):
Other income	0	100
Interest expense	(67)	(70)
Interest income	5	10
Total other (expense) income	(62)	40
Loss before income tax	(6,564)	(3,211)
Income tax benefit	0	(271)
Net loss	$ (6,564)	$ (2,940)
Basic net loss per share attributable to common shareholders (in dollars per share)	$ (0.23)	$ (0.11)
Weighted-average common shares outstanding (in shares)	28,455,434	27,885,588
Diluted net loss per share (in dollars per share)	$ (0.23)	$ (0.11)
Weighted-average common shares and share equivalents outstanding (in shares)	28,455,434	27,885,588

UNAUDITED CONDENSED CONSOLIDAT5

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating activities
Net loss	$ (6,564)	$ (2,940)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	353	389
Amortization	162	243
Stock-based compensation	320	329
Provision for inventory reserves	130	254
Provision for bad debts	33	(375)
Other	12	56
Changes in operating assets and liabilities:
Accounts receivable, current and long-term	2,103	(1,805)
Inventories	1,196	1,280
Deferred contract costs	(770)	(200)
Prepaid expenses and other assets	(163)	2,203
Accounts payable	(2,028)	(1,516)
Accrued expenses and other	(743)	(285)
Deferred revenue, current and long-term	204	52
Net cash used in operating activities	(5,755)	(2,315)
Investing activities
Purchase of property and equipment	(204)	(53)
Additions to patents and licenses	(20)	0
Proceeds from sales of property, plant and equipment	0	2,600
Net cash (used in) provided by investing activities	(224)	2,547
Financing activities
Payment of long-term debt and capital leases	(67)	(381)
Proceeds from revolving credit facility	16,307	16,658
Payment of revolving credit facility	(19,083)	(17,889)
Payments to settle employee tax withholdings on stock-based compensation		(4)
Net proceeds from employee equity exercises	0	2
Net cash used in financing activities	(2,843)	(1,614)
Net decrease in cash and cash equivalents	(8,822)	(1,382)
Cash and cash equivalents at beginning of period	17,307	15,542
Cash and cash equivalents at end of period	$ 8,485	$ 14,160

DESCRIPTION OF BUSINESS

DESCRIPTION OF BUSINESS	3 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
DESCRIPTION OF BUSINESS	DESCRIPTION OF BUSINESS Organization Orion includes Orion Energy Systems, Inc., a Wisconsin corporation, and all consolidated subsidiaries. Orion is a developer, manufacturer and seller of lighting and energy management systems to commercial and industrial businesses, and federal and local governments, predominantly in North America. Orion’s corporate offices and leased primary manufacturing operations are located in Manitowoc, Wisconsin. Orion leases office space in Jacksonville, Florida; Chicago, Illinois; and Houston, Texas. Orion also leases warehouse space in Manitowoc, Wisconsin and Augusta, Georgia.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The condensed consolidated financial statements include the accounts of Orion Energy Systems, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. Reclassifications Where appropriate, certain reclassifications have been made to prior years’ financial statements to conform to the current year presentation. Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Orion have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of results that may be expected for the year ending March 31, 2018 or other interim periods. The condensed consolidated balance sheet at March 31, 2017 has been derived from the audited consolidated financial statements at that date but does not include all of the information required by GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in Orion’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 filed with the Securities and Exchange Commission on June 13, 2017 . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during that reporting period. Areas that require the use of significant management estimates include revenue recognition, inventory obsolescence, allowance for doubtful accounts, accruals for warranty and loss contingencies, income taxes and certain equity transactions. Accordingly, actual results could differ from those estimates. Concentration of Credit Risk and Other Risks and Uncertainties Orion's cash is deposited with two financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. Orion has not experienced any losses in such accounts and believes that it is not exposed to any significant financial institution viability risk on these balances. Orion purchases components necessary for its lighting products, including ballasts, lamps and LED components, from multiple suppliers. For the three months ended June 30, 2017 and 2016, no supplier accounted for more than 10% of total cost of revenue. For the three months ended June 30, 2017, one customer accounted for 16.2% of total revenue. For the three months ended June 30, 2016, no customer accounted for more than 10% of revenue. As of June 30, 2017 , no customer accounted for more than 10% of accounts receivable. As of March 31, 2017, one customer accounted for 11.6% of accounts receivable. Recent Accounting Pronouncements Issued: Not Yet Adopted In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, "Classification of Certain Cash Receipts and Cash Payments," which provides clarification and additional guidance as to the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The ASU provides guidance, as to the classification of a number of transactions including: contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The new standard will be effective for Orion in the first quarter of fiscal 2019 and will be applied through retrospective adjustment to all periods presented. Orion does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Subtopic 842)." This ASU requires that lessees recognize right-of-use assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and disclose additional quantitative and qualitative information about leasing arrangements. Under this ASU, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. Similarly, lessors will be required to classify leases as sales-type, finance or operating leases, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through the lease contract. This ASU also provides guidance on the presentation of the effects of leases in the income statement and statement of cash flows. This guidance will be effective for Orion on April 1, 2019. Early adoption of the standard is permitted and a modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has not yet completed its review of the full provisions of this standard against its outstanding lease arrangements and is in the process of quantifying the lease liability and related right of use asset which will be recorded to its consolidated balance sheets upon adoption of the standard. In addition, management continues to assess the impact of adoption of this standard on its consolidated statements of operations, cash flows, and the related footnote disclosures. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In addition, the ASU requires enhanced and expanded financial statement disclosures. Since the issuance of this ASU, the FASB has issued further ASU’s to provide additional guidance and clarification as to the application of ASU 2014-09 and delaying its original effective date. The ASU allows companies to elect either a full retrospective or modified retrospective approach to adoption. Orion will adopt ASU 2014-09 and the related updates with their effective date on April 1, 2018. Orion has begun the process of implementing this standard, including performing a review of its revenue streams to identify any differences in the timing, measurement, or presentation of revenue recognition. The Company continues to review the provisions of these standards against its customer contracts, including evaluating and identifying distinct performance obligations and variable consideration in the form of customer rebates. The Company has selected a representative sample of customer contracts from each of its major revenue streams and is in the process of evaluating these contracts against the standards to determine any impact on the timing and presentation of revenue. In addition, the Company has identified necessary changes in its ongoing process for the review of new customer contracts and the identification of key terms impacting revenue recognition. The Company is also evaluating the necessary changes to its systems, revenue related processes and controls as a result of the new standard, including the related footnote disclosures. Under ASU 2014-09 incremental contract costs, including sales commissions, may be required to be capitalized and expensed over the period these costs are recovered. Although Orion incurs commission costs, its contracts are typically completed within one year. As such, the Company will elect to apply the practical expedient for contract costs recovered within one year and will continue to recognize commissions as cost of sales immediately rather than capitalizing and expensing these costs over the contract period. Orion currently plans to elect the modified retrospective adoption method but continues to evaluate both of the available transition methods. In May 2017, the FASB issued ASU 2017-09, “Compensation-Stock Compensation: Scope of Modification Accounting” which provides guidance about which changes to the terms or conditions of a share-based payment award would require an entity to apply modification accounting. The provisions of this standard are effective for Orion beginning on April 1, 2018. The adoption of this standard is not expected to have a material impact on Orion’s consolidated condensed financial statements. Recently Adopted Standards In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred taxes. The amendments in this update require that deferred tax assets and liabilities be classified as non-current on the balance sheet. This ASU is effective for Orion's annual reporting period, and interim periods therein, as of April 1, 2017. The adoption of this standard had no impact on Orion’s condensed consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value for entities that measure inventory using first-in, first-out ("FIFO") or average cost. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Orion adopted this standard as of April 1, 2017. The adoption of this standard had no impact on its condensed consolidated financial statements as the previous measurement and validation of the carrying value of its inventory incorporated market values consistent with the net realizable value measurements of the standard. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. Orion adopted this ASU as of April 1, 2017. As a result of adopting the income tax accounting provisions of this standard, Orion realized an increase in both its deferred tax assets related to stock-based compensation awards and the related valuation allowance. As the Company carries a full valuation allowance against its deferred tax assets, there was no net impact to its condensed consolidated balance sheets or statements of operations. In accordance with the provisions of this standard, the Company elected to prospectively adopt an accounting policy to recognize forfeitures as they occur in lieu of estimating forfeitures. The cashflow presentation provisions of the standard had no impact on Orion’s condensed consolidated financial statements. Finally, due to the Company’s net loss, the modifications to the calculation of diluted earnings per share as a result of adopting this standard did not impact its diluted earnings per share.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	3 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
ACCOUNTS RECEIVABLE	ACCOUNTS RECEIVABLE Orion's accounts receivable and allowance for doubtful accounts balances were as follows (dollars in thousands): June 30, 2017 March 31, 2017 Accounts receivable, gross $ 7,216 $ 9,315 Allowance for doubtful accounts (176 ) (144 ) Accounts receivable, net $ 7,040 $ 9,171

INVENTORIES

INVENTORIES	3 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES As of June 30, 2017 and March 31, 2017 , Orion's inventory balances were as follows (dollars in thousands): Cost Reserve Net As of June 30, 2017 Raw materials and components $ 8,008 $ (1,677 ) $ 6,331 Work in process 1,693 (348 ) 1,345 Finished goods 5,981 (1,391 ) 4,590 Total $ 15,682 $ (3,416 ) $ 12,266 As of March 31, 2017 Raw materials and components $ 8,104 $ (1,807 ) $ 6,297 Work in process 1,918 (329 ) 1,589 Finished goods 7,044 (1,337 ) 5,707 Total $ 17,066 $ (3,473 ) $ 13,593

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	3 Months Ended
	Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID EXPENSES AND OTHER CURRENT ASSETS	PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets include the following (dollars in thousands): June 30, 2017 March 31, 2017 Unbilled accounts receivable $ 2,467 $ 2,226 Other prepaid expenses 626 651 Total $ 3,093 $ 2,877

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	PROPERTY AND EQUIPMENT Property and equipment were comprised of the following (dollars in thousands): June 30, 2017 March 31, 2017 Land and land improvements $ 424 $ 424 Buildings and building improvements 9,245 9,245 Furniture, fixtures and office equipment 7,050 7,056 Leasehold improvements 324 324 Equipment leased to customers 4,997 4,997 Plant equipment 11,633 11,627 Construction in progress 224 61 33,897 33,734 Less: accumulated depreciation and amortization (20,259 ) (19,948 ) Property and equipment, net $ 13,638 $ 13,786 During the three months ended June 30, 2017, the Company began pursuing the potential sale and leaseback of its Tech Center building located in Manitowoc, Wisconsin. The Tech Center building houses Orion's corporate offices. Due to the expected leaseback of more than a minor portion of the facility, it does not meet the criteria to be classified as held for sale as of June 30, 2017. As a result of this action, Orion assessed the facility for impairment as of June 30, 2017 by performing a probability weighted cashflow analysis (a Level 3 fair value measure). As a result of this analysis, and based on the assumptions used, including management’s best estimate of the potential sales price, future rent expense, sublease income, and the probability of various scenarios under consideration, the Company concluded that the asset is not impaired as of June 30, 2017. Equipment included above under capital leases was as follows (dollars in thousands): June 30, 2017 March 31, 2017 Equipment $ 581 $ 581 Less: accumulated depreciation and amortization (237 ) (202 ) Equipment, net $ 344 $ 379 Orion recorded depreciation expense of $0.4 million for the three months ended June 30, 2017 and 2016.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
INTANIGBLE ASSETS	INTANGIBLE ASSETS The components of, and changes in, the carrying amount of other intangible assets were as follows (dollars in thousands): June 30, 2017 March 31, 2017 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents $ 2,678 $ (1,251 ) $ 1,427 $ 2,658 $ (1,211 ) $ 1,447 Licenses 58 (58 ) — 58 (58 ) — Trade name and trademarks 1,715 — 1,715 1,715 — 1,715 Customer relationships 3,600 (3,131 ) 469 3,600 (3,054 ) 546 Developed technology 900 (466 ) 434 900 (426 ) 474 Non-competition agreements 100 (80 ) 20 100 (75 ) 25 Total $ 9,051 $ (4,986 ) $ 4,065 $ 9,031 $ (4,824 ) $ 4,207 Amortization expense on intangible assets was $0.2 million for the three months ended June 30, 2017 and 2016. As of June 30, 2017 , the weighted average useful life of intangible assets was 5.90 years. The estimated amortization expense for the next five years and beyond is shown below (dollars in thousands): Fiscal 2018 $ 461 Fiscal 2019 447 Fiscal 2020 361 Fiscal 2021 287 Fiscal 2022 190 Fiscal 2023 166 Thereafter 438 Total $ 2,350

OTHER LONG-TERM ASSETS

OTHER LONG-TERM ASSETS	3 Months Ended
	Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER LONG-TERM ASSETS	OTHER LONG-TERM ASSETS Other long-term assets include the following (dollars in thousands): June 30, 2017 March 31, 2017 Security deposits $ 66 $ 117 Other 52 58 Total $ 118 $ 175

ACCRUED EXPENSES AND OTHER LONG

ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES	3 Months Ended
	Jun. 30, 2017
Other Liabilities Disclosure [Abstract]
ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES	ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES Accrued expenses and other include the following (dollars in thousands): June 30, 2017 March 31, 2017 Compensation and benefits $ 1,802 $ 2,431 Sales tax 94 213 Contract costs 248 223 Legal and professional fees 2,116 2,262 Warranty 471 449 Other accruals 397 410 Total $ 5,128 $ 5,988 Other long term liabilities includes the following (dollars in thousands): June 30, 2017 March 31, 2017 Warranty $ 310 $ 310 Medical benefits 137 — Unrecognized tax benefits 113 113 Other — 19 Total $ 560 $ 442 Orion generally offers a limited warranty of one to ten years on its lighting products in addition to those standard warranties offered by major original equipment component manufacturers. The manufacturers’ warranties cover lamps and ballasts, which are significant components in Orion's lighting products. Changes in Orion’s warranty accrual (both current and long-term) were as follows (dollars in thousands): Three Months Ended June 30, 2017 2016 Beginning of period $ 759 $ 864 Provision to product cost of revenue 24 175 Charges (2 ) (1 ) End of period $ 781 $ 1,038

NET LOSS PER COMMON SHARE

NET LOSS PER COMMON SHARE	3 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
NET LOSS PER COMMON SHARE	NET LOSS PER COMMON SHARE Basic net loss per common share is computed by dividing net loss attributable to common shareholders by the weighted-average number of common shares outstanding for the period and does not consider common stock equivalents. For the three months ended June 30, 2017 and 2016, Orion was in a net loss position; therefore, the basic and diluted weighted average shares outstanding are equal because any increase to the basic shares would be anti-dilutive. Net loss per common share is calculated based upon the following: Three Months Ended June 30, 2017 2016 Numerator: Net loss (in thousands) $ (6,564 ) $ (2,940 ) Denominator: Weighted-average common shares outstanding 28,455,434 27,885,588 Weighted-average common shares and common share equivalents outstanding 28,455,434 27,885,588 Net loss per common share: Basic $ (0.23 ) $ (0.11 ) Diluted $ (0.23 ) $ (0.11 ) The following table indicates the number of potentially dilutive securities excluded from the calculation of diluted net loss per common share because their inclusion would have been anti-dilutive. The number of shares are as of the end of each period: June 30, 2017 June 30, 2016 Common stock options 1,442,153 1,949,846 Restricted shares 1,706,445 1,482,208 Total 3,148,598 3,432,054

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	RELATED PARTY TRANSACTIONS During the three months ended June 30, 2017 , Orion did not have any related party transactions. During the three months ended June 30, 2016 , Orion purchased goods and services from an entity in the amount of approximately two thousand dollars, at which time a director of Orion served as a minority owner and as the president and chairman of the board of directors.

LONG-TERM DEBT

LONG-TERM DEBT	3 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
LONG-TERM DEBT	LONG-TERM DEBT Long-term debt consisted of the following (dollars in thousands): June 30, 2017 March 31, 2017 Revolving credit facility $ 3,853 $ 6,629 Equipment lease obligations 268 321 Customer equipment finance notes payable 6 7 Other long-term debt — 14 Total long-term debt 4,127 6,971 Less current maturities (110 ) (152 ) Long-term debt, less current maturities $ 4,017 $ 6,819 Revolving Credit Agreement Orion has an amended credit agreement ("Credit Agreement") that provides for a revolving credit facility ("Credit Facility") subject to a borrowing base requirement based on eligible receivables and inventory. As of June 30, 2017 Orion's borrowing base was approximately $4.1 million. The Credit Facility has a maturity date of February 6, 2019 and includes a $2.0 million sublimit for the issuance of letters of credit. As of June 30, 2017 , Orion had no outstanding letters of credit. Borrowings outstanding as of June 30, 2017, amounted to approximately $3.9 million and are included in non-current liabilities in the accompanying condensed consolidated balance sheet. Orion estimates that as of June 30, 2017, it was eligible to borrow an additional $0.2 million under the Credit Facility based upon current levels of eligible inventory and accounts receivable. Subject in each case to Orion's applicable borrowing base limitations, the Credit Agreement otherwise provides for a $15.0 million Credit Facility. This limit may increase to $20.0 million based on a borrowing base requirement, if Orion satisfies certain conditions. Orion did not meet the requirements to increase the borrowing limit to $20.0 million as of July 31, 2017, the most recent measurement date. From and after any increase in the Credit Facility limit from $15.0 million to $20.0 million, the Credit Agreement requires that Orion maintain, as of the end of each month, a minimum ratio for the trailing twelve-month period of (i) earnings before interest, taxes, depreciation and amortization, subject to certain adjustments, to (ii) the sum of cash interest expense, certain principal payments on indebtedness and certain dividends, distributions and stock redemptions, equal to at least 1.10 to 1.00. The Credit Agreement contains additional customary covenants, including certain restrictions on Orion’s ability to incur additional indebtedness, consolidate or merge, enter into acquisitions, guarantee obligations of third parties, make loans or advances, declare or pay any dividend or distribution on Orion’s stock, redeem or repurchase shares of Orion’s stock, or pledge or dispose of assets. Orion was in compliance with its covenants in the Credit Agreement as of June 30, 2017 . Each subsidiary of Orion is a joint and several co-borrower or guarantor under the Credit Agreement, and the Credit Agreement is secured by a security interest in substantially all of Orion’s and each subsidiary’s personal property (excluding various assets relating to customer OTAs) and a mortgage on certain real property. Borrowings under the Credit Agreement bear interest at the daily three-month LIBOR plus 3.0% per annum, with a minimum interest charge for each year or portion of a year during the term of the Credit Agreement of $0.1 million, regardless of usage. As of June 30, 2017, the interest rate was 4.30% . Orion must pay an unused line fee of 0.25% per annum of the daily average unused amount of the Credit Facility and a letter of credit fee at the rate of 3.0% per annum on the undrawn amount of letters of credit outstanding from time to time under the Credit Facility. Harris Seller's Note On July 1, 2013, Orion issued an unsecured and subordinated promissory note in the principal amount of $3.1 million to partially fund the acquisition of Harris Manufacturing, Inc. and Harris LED, LLC (collectively, "Harris"). The note's interest rate was 4% per annum. Principal and interest were payable quarterly. The note matured in July 2016 and was paid in full upon maturity. Equipment Lease Obligation In March 2016 and June 2015, Orion entered into lease agreements with a financing company in the principal amount of nineteen thousand dollars and $0.4 million, respectively, to fund certain equipment. The leases are secured by the related equipment. The leases bear interest at a rate of 5.9% and 3.6% , respectively, and mature in February 2018 and June 2020. Both leases contain a one dollar buyout option. Customer Equipment Finance Notes Payable In December 2014, Orion entered into a secured borrowing agreement with a financing company in the principal amount of $0.4 million to fund completed customer contracts under its OTA finance program that were previously funded under a different OTA credit agreement. The loan amount is secured by the OTA-related equipment and the expected future monthly payments under the supporting 25 individual OTA customer contracts. The borrowing agreement bears interest at a rate of 8.36% and matures in April 2018. In June 2011, Orion entered into a note agreement with a financial institution that provided Orion with $2.8 million to fund completed customer contracts under Orion’s OTA finance program. The note bore interest at 7.85% . The note matured in April 2016 and was paid in full upon maturity. Other Long-Term Debt In September 2010, Orion entered into a note agreement with the Wisconsin Department of Commerce that provided Orion with $0.3 million to fund Orion’s rooftop solar project at its Manitowoc facility. This note is included in the table above as other long-term debt. The note is collateralized by the related solar equipment. The note allowed for two years without interest accruing or principal payments due. Beginning in July 2012, the note bears interest at 2% and requires monthly payments of four thousand six hundred . The note matured in June 2017 and was paid in full upon maturity.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The income tax provision for the three months ended June 30, 2017 was determined by applying an estimated annual effective tax rate of 0.0% to loss before income tax. The estimated effective tax rate for the three month period ended June 30, 2016 was (0.3)% . The estimated effective income tax rate was determined by applying statutory tax rates to pretax loss adjusted for certain permanent book to tax differences and tax credits. Orion is eligible for tax benefits associated with the excess of the tax deduction available for exercises of non-qualified stock options (NQSOs) over the amount recorded at grant. The amount of the benefit is based upon the ultimate deduction reflected in the applicable income tax return. As of June 30, 2017 , Orion had federal net operating loss carryforwards of approximately $75.7 million. Orion also has state net operating loss carryforwards of approximately $65.2 million. Orion also had federal tax credit carryforwards of approximately $1.4 million and state tax credits of $0.7 million. Orion's net operating loss and tax credit carryforwards will begin to expire in varying amounts between 2020 and 2036. As of June 30, 2017 , Orion had recorded a valuation allowance of $34.0 million equaling the net deferred tax asset due to the uncertainty of its realization value in the future. Orion considers future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance. In the event that Orion determines that the deferred tax assets are able to be realized, an adjustment to the deferred tax asset would increase income in the period such determination is made. Uncertain Tax Positions As of June 30, 2017 , the balance of gross unrecognized tax benefits was approximately $0.1 million, all of which would reduce Orion’s effective tax rate if recognized. Orion has classified the amounts recorded for uncertain tax benefits in the balance sheet as other liabilities (non-current) to the extent that payment is not anticipated within one year. Orion recognizes penalties and interest related to uncertain tax liabilities in income tax expense. Penalties and interest are immaterial and are included in the unrecognized tax benefits.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Operating Leases Orion leases office space and equipment under operating leases expiring at various dates through 2020. Rent expense under operating leases was $0.2 million and $0.1 million for the three months ended June 30, 2017 and 2016 , respectively. On April 28, 2017, Orion renewed the lease for its Jacksonville, Florida office space for an additional three -year term with annual rent expense of approximately $ 0.1 million . On March 31, 2016, Orion entered into a purchase and sale agreement ("Agreement") with a third party to sell and leaseback Orion's manufacturing and distribution facility for a gross cash proceeds of $2.6 million. The transaction closed on June 30, 2016. Litigation Orion is subject to various claims and legal proceedings arising in the ordinary course of business. As of the date of this report, Orion is unable to currently assess whether the final resolution of any of such claims or legal proceedings may have a material adverse effect on our future results of operations. In addition to ordinary-course litigation, Orion is a party to the proceedings described below. On March 27, 2014, Orion was named as a defendant in a civil lawsuit filed by Neal R. Verfuerth, a Former Chief Executive Officer who was terminated for cause in November 2012, in the United States District Court for the Eastern District of Wisconsin (Green Bay Division). The plaintiff alleged, among other things, that Orion breached certain agreements entered into with the plaintiff, including the plaintiff’s employment agreement, and violated certain laws. The complaint sought, among other relief, unspecified pecuniary and compensatory damages, fees and such other relief as the court may deem just and proper. On November 4, 2014, the court granted Orion's motion to dismiss six of the plaintiff's claims. On January 9, 2015, the plaintiff filed an amended complaint re-alleging claims that were dismissed by the court, including, among other things, a retaliation claim and certain claims with respect to prior management agreements and certain intellectual property rights. On January 22, 2015, Orion filed a motion to dismiss and a motion to strike certain of the claims made in the amended complaint. On May 18, 2015, the court dismissed the intellectual property claims re-alleged in the January 9, 2015 amended complaint. At the court's direction, the parties attempted to mediate the matter in May 2016, but were unsuccessful in resolving the matter. On August 25, 2016, the Chief Judge of the United States District Court for the Eastern District of Wisconsin (Green Bay Division) dismissed all claims against Orion brought by the plaintiff, including his claims that Orion had allegedly breached the plaintiff’s employment agreement and had allegedly violated the plaintiff's whistleblower rights. On September 22, 2016, the plaintiff filed an appeal to the United States Court of Appeals challenging the judgment rendered on August 25, 2016. After the court-mandated mediation was unsuccessful, the plaintiff moved forward with his appeal focusing only on the District Court's dismissal of his whistleblower claims. Orion intends to continue to defend against the claims vigorously. Orion believes it has substantial legal and factual defenses to the claims and allegations remaining in the case and that Orion will prevail in this proceeding. Based upon the current status of the lawsuit, Orion does not believe that it is reasonably possible that the lawsuit will have a material adverse impact on its future continuing results of operations. State Tax Assessment Orion negotiated a settlement with the Wisconsin Department of Revenue with respect to an assessment regarding the proper classification of its products for tax purposes under Wisconsin law. Orion resolved this matter with the Wisconsin Department of Revenue in June 2016 for $0.5 million.

SHAREHOLDERS_ EQUITY

SHAREHOLDERS’ EQUITY	3 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY	SHAREHOLDERS’ EQUITY Employee Stock Purchase Plan In August 2010, Orion’s board of directors approved a non-compensatory employee stock purchase plan, or ESPP. As of June 30, 2017, Orion issued 2,150 shares under the ESPP plan at a closing market price of $1.28 . In prior years, Orion issued loans to non-executive employees to purchase shares of its stock. The loan program has been discontinued and new loans are no longer issued. As of March 31, 2017, four thousand dollars of such loans remained outstanding and were reflected on Orion’s balance sheet as a contra-equity account. During the quarter ended June 30, 2017, Orion entered into agreements with the counterparties to these loans. In exchange for the forgiveness of their outstanding loan balance, the employees returned their shares to Orion. As a result of this transaction, 1,230 shares were recorded within treasury stock and the loan balances have been eliminated.

STOCK OPTIONS AND RESTRICTED SH

STOCK OPTIONS AND RESTRICTED SHARES	3 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS AND RESTRICTED SHARES	STOCK OPTIONS AND RESTRICTED SHARES At Orion's 2016 Annual Meeting of Shareholders held on August 3, 2016, Orion's shareholders approved the Orion Energy Systems, Inc. 2016 Omnibus Incentive Plan (the "Plan"). The Plan authorizes grants of equity-based and incentive cash awards to eligible participants designated by the Plan's administrator. Awards under the Plan may consist of stock options, stock appreciation rights, performance shares, performance units, shares of Orion's common stock ("Common Stock"), restricted stock, restricted stock units, incentive awards or dividend equivalent units. Prior to shareholder approval of the Plan, the Company maintained its 2004 Stock and Incentive Awards Plan, as amended, which authorized the grant of cash and equity awards to employees (the “Former Plan”). No new awards are being granted under the Former Plan, however, all awards granted under the Former Plan that were outstanding as of August 3, 2016 will continue to be governed by the Former Plan. Certain non-employee directors have elected to receive stock awards in lieu of cash compensation pursuant to elections made under Orion’s non-employee director compensation program. The plans also permit accelerated vesting in the event of certain changes of control of Orion as well as under other special circumstances. The following amounts of stock-based compensation were recorded (dollars in thousands): Three Months Ended June 30, 2017 2016 Cost of product revenue $ 6 $ 14 General and administrative 267 267 Sales and marketing 41 31 Research and development 6 17 Total $ 320 $ 329 During the first three months of fiscal 2018 , Orion had the following activity related to its stock based compensation: Restricted Shares Stock Options Balance at March 31, 2017 1,704,543 1,520,953 Awards granted 659,272 — Awards vested (414,569 ) — Awards forfeited (242,801 ) (78,800 ) Awards outstanding at June 30, 2017 1,706,445 1,442,153 Per share price on grant date $1.38 - $1.95 — As of June 30, 2017 , the amount of deferred stock-based compensation expense to be recognized, over a remaining period of 2.3 years, was approximately $2.2 million.

SEGMENTS

SEGMENTS	3 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
SEGMENTS	SEGMENTS Orion has the following business segments: Orion U.S. Markets Division ("USM"), Orion Engineered Services Division ("OES") and Orion Distribution Services Division ("ODS"). The accounting policies are the same for each business segment as they are on a consolidated basis. Orion U.S. Markets Division ("USM") The USM segment sells commercial lighting systems and energy management systems to the wholesale contractor markets. USM customers include ESCOs and electrical contractors. A significant portion of the historic sales of this division migrated to distribution channel sales as a result of the implementation of Orion’s distribution sales strategy. The migrated sales are included in Orion's ODS Division. This migration is expected to continue during fiscal 2018. Orion Engineered Systems Division ("OES") The OES segment develops and sells lighting products and provides construction and engineering services for Orion's commercial lighting and energy management systems. OES provides turnkey solutions for large national accounts, governments, municipalities and schools. Orion Distribution Services Division ("ODS") The ODS segment focuses on selling lighting products through manufacturer representative agencies and a network of broadline North American distributors. This segment expanded in fiscal 2018 as a result of the expansion of sales through distributors after the implementation of our distribution sales strategy. This expansion included the migration of customers from direct sales previously included in our USM division. Corporate and Other Corporate and Other is comprised of operating expenses not directly allocated to Orion’s segments and adjustments to reconcile to consolidated results (dollars in thousands). Revenues Operating Income (Loss) For the Three Months Ended June 30, For the Three Months Ended June 30, 2017 2016 2017 2016 Segments: Orion U.S. Markets $ 1,390 $ 5,901 $ (1,532 ) $ (57 ) Orion Engineered Systems 5,408 6,800 (1,891 ) (769 ) Orion Distribution Services 5,760 2,933 (741 ) (728 ) Corporate and Other — — (2,338 ) (1,697 ) $ 12,558 $ 15,634 $ (6,502 ) $ (3,251 )

REORGANIZATION OF BUSINESS

REORGANIZATION OF BUSINESS	3 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
REORGANIZATION OF BUSINESS	REORGANIZATION OF BUSINESS During the three months ended June 30, 2017, Orion implemented a reorganization and targeted cost savings plan. As a result, the Company entered into separation agreements with 17 employees and recognized $1.9 million of restructuring expense consisting of severance, outplacement services, and continued medical benefits for terminated employees for a limited post-employment period. The restructuring expense for the three months ended June 30, 2017 is reflected within Orion’s condensed statement of operations as follows (dollars in thousands): Three Months Ended June 30, 2017 Cost of product revenue $ 40 General and administrative 1,767 Sales and marketing 97 Total $ 1,904 Total restructuring expense by segment was recorded as follows (dollars in thousands): Three Months Ended June 30, 2017 Orion U.S. Markets $ — Orion Engineered Systems — Orion Distribution Systems 75 Corporate and Other 1,829 Total $ 1,904 The following table displays a rollforward of the reorganization of business accruals established for employee separation costs from March 31, 2017 to June 30, 2017 (dollars in thousands): March 31, 2017 Additions Amounts Used June 30, 2017 Employee separation costs $ — $ 1,763 $ (1,304 ) $ 459 Post-employment medical benefits (1) — 141 — 141 Total $ — $ 1,904 $ (1,304 ) $ 600 (1) The severance agreement with one executive included a long-term post-employment medical benefit which will be paid over a period of approximately twelve years . The Company recorded a liability for the net present value of this obligation based on the current cost of premiums for this individual’s medical coverage increased by an estimated health care cost trend of 6.8% decreasing to 5% in nine years . This benefit is reflected in Orion’s condensed consolidated balance sheet within accrued expenses and other and other long-term liabilities. The remaining accrual of $0.5 million for employee separation costs is expected to be paid within the next twelve months .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were issued and noted no subsequent event requiring accrual or disclosure.

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements include the accounts of Orion Energy Systems, Inc. and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.
Reclassifications	Reclassifications Where appropriate, certain reclassifications have been made to prior years’ financial statements to conform to the current year presentation.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Orion have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation have been included. Interim results are not necessarily indicative of results that may be expected for the year ending March 31, 2018 or other interim periods. The condensed consolidated balance sheet at March 31, 2017 has been derived from the audited consolidated financial statements at that date but does not include all of the information required by GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in Orion’s Annual Report on Form 10-K for the fiscal year ended March 31, 2017 filed with the Securities and Exchange Commission on June 13, 2017 .
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during that reporting period. Areas that require the use of significant management estimates include revenue recognition, inventory obsolescence, allowance for doubtful accounts, accruals for warranty and loss contingencies, income taxes and certain equity transactions. Accordingly, actual results could differ from those estimates.
Concentration of Credit Risk and Other Risks and Uncertainties	Concentration of Credit Risk and Other Risks and Uncertainties Orion's cash is deposited with two financial institutions. At times, deposits in these institutions exceed the amount of insurance provided on such deposits. Orion has not experienced any losses in such accounts and believes that it is not exposed to any significant financial institution viability risk on these balances. Orion purchases components necessary for its lighting products, including ballasts, lamps and LED components, from multiple suppliers.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Issued: Not Yet Adopted In August 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-15, "Classification of Certain Cash Receipts and Cash Payments," which provides clarification and additional guidance as to the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The ASU provides guidance, as to the classification of a number of transactions including: contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, and distributions received from equity method investees. The new standard will be effective for Orion in the first quarter of fiscal 2019 and will be applied through retrospective adjustment to all periods presented. Orion does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Subtopic 842)." This ASU requires that lessees recognize right-of-use assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and disclose additional quantitative and qualitative information about leasing arrangements. Under this ASU, leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition. Similarly, lessors will be required to classify leases as sales-type, finance or operating leases, with classification affecting the pattern of income recognition. Classification for both lessees and lessors will be based on an assessment of whether risks and rewards as well as substantive control have been transferred through the lease contract. This ASU also provides guidance on the presentation of the effects of leases in the income statement and statement of cash flows. This guidance will be effective for Orion on April 1, 2019. Early adoption of the standard is permitted and a modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has not yet completed its review of the full provisions of this standard against its outstanding lease arrangements and is in the process of quantifying the lease liability and related right of use asset which will be recorded to its consolidated balance sheets upon adoption of the standard. In addition, management continues to assess the impact of adoption of this standard on its consolidated statements of operations, cash flows, and the related footnote disclosures. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." This ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In addition, the ASU requires enhanced and expanded financial statement disclosures. Since the issuance of this ASU, the FASB has issued further ASU’s to provide additional guidance and clarification as to the application of ASU 2014-09 and delaying its original effective date. The ASU allows companies to elect either a full retrospective or modified retrospective approach to adoption. Orion will adopt ASU 2014-09 and the related updates with their effective date on April 1, 2018. Orion has begun the process of implementing this standard, including performing a review of its revenue streams to identify any differences in the timing, measurement, or presentation of revenue recognition. The Company continues to review the provisions of these standards against its customer contracts, including evaluating and identifying distinct performance obligations and variable consideration in the form of customer rebates. The Company has selected a representative sample of customer contracts from each of its major revenue streams and is in the process of evaluating these contracts against the standards to determine any impact on the timing and presentation of revenue. In addition, the Company has identified necessary changes in its ongoing process for the review of new customer contracts and the identification of key terms impacting revenue recognition. The Company is also evaluating the necessary changes to its systems, revenue related processes and controls as a result of the new standard, including the related footnote disclosures. Under ASU 2014-09 incremental contract costs, including sales commissions, may be required to be capitalized and expensed over the period these costs are recovered. Although Orion incurs commission costs, its contracts are typically completed within one year. As such, the Company will elect to apply the practical expedient for contract costs recovered within one year and will continue to recognize commissions as cost of sales immediately rather than capitalizing and expensing these costs over the contract period. Orion currently plans to elect the modified retrospective adoption method but continues to evaluate both of the available transition methods. In May 2017, the FASB issued ASU 2017-09, “Compensation-Stock Compensation: Scope of Modification Accounting” which provides guidance about which changes to the terms or conditions of a share-based payment award would require an entity to apply modification accounting. The provisions of this standard are effective for Orion beginning on April 1, 2018. The adoption of this standard is not expected to have a material impact on Orion’s consolidated condensed financial statements. Recently Adopted Standards In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes,” to simplify the presentation of deferred taxes. The amendments in this update require that deferred tax assets and liabilities be classified as non-current on the balance sheet. This ASU is effective for Orion's annual reporting period, and interim periods therein, as of April 1, 2017. The adoption of this standard had no impact on Orion’s condensed consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory,” which changes the measurement principle for inventory from the lower of cost or market to the lower of cost or net realizable value for entities that measure inventory using first-in, first-out ("FIFO") or average cost. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Orion adopted this standard as of April 1, 2017. The adoption of this standard had no impact on its condensed consolidated financial statements as the previous measurement and validation of the carrying value of its inventory incorporated market values consistent with the net realizable value measurements of the standard. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as the classification of related matters in the statement of cash flows. Orion adopted this ASU as of April 1, 2017. As a result of adopting the income tax accounting provisions of this standard, Orion realized an increase in both its deferred tax assets related to stock-based compensation awards and the related valuation allowance. As the Company carries a full valuation allowance against its deferred tax assets, there was no net impact to its condensed consolidated balance sheets or statements of operations. In accordance with the provisions of this standard, the Company elected to prospectively adopt an accounting policy to recognize forfeitures as they occur in lieu of estimating forfeitures. The cashflow presentation provisions of the standard had no impact on Orion’s condensed consolidated financial statements. Finally, due to the Company’s net loss, the modifications to the calculation of diluted earnings per share as a result of adopting this standard did not impact its diluted earnings per share.

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	3 Months Ended
	Jun. 30, 2017
Receivables [Abstract]
Accounts receivable and allowance for doubtful accounts balances	Orion's accounts receivable and allowance for doubtful accounts balances were as follows (dollars in thousands): June 30, 2017 March 31, 2017 Accounts receivable, gross $ 7,216 $ 9,315 Allowance for doubtful accounts (176 ) (144 ) Accounts receivable, net $ 7,040 $ 9,171

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	As of June 30, 2017 and March 31, 2017 , Orion's inventory balances were as follows (dollars in thousands): Cost Reserve Net As of June 30, 2017 Raw materials and components $ 8,008 $ (1,677 ) $ 6,331 Work in process 1,693 (348 ) 1,345 Finished goods 5,981 (1,391 ) 4,590 Total $ 15,682 $ (3,416 ) $ 12,266 As of March 31, 2017 Raw materials and components $ 8,104 $ (1,807 ) $ 6,297 Work in process 1,918 (329 ) 1,589 Finished goods 7,044 (1,337 ) 5,707 Total $ 17,066 $ (3,473 ) $ 13,593

PREPAID EXPENSES AND OTHER CU28

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	3 Months Ended
	Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses and other current assets	Prepaid expenses and other current assets include the following (dollars in thousands): June 30, 2017 March 31, 2017 Unbilled accounts receivable $ 2,467 $ 2,226 Other prepaid expenses 626 651 Total $ 3,093 $ 2,877

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Jun. 30, 2017
Property, Plant and Equipment [Abstract]
Property and equipment	Property and equipment were comprised of the following (dollars in thousands): June 30, 2017 March 31, 2017 Land and land improvements $ 424 $ 424 Buildings and building improvements 9,245 9,245 Furniture, fixtures and office equipment 7,050 7,056 Leasehold improvements 324 324 Equipment leased to customers 4,997 4,997 Plant equipment 11,633 11,627 Construction in progress 224 61 33,897 33,734 Less: accumulated depreciation and amortization (20,259 ) (19,948 ) Property and equipment, net $ 13,638 $ 13,786
Schedule of equipment under capital leases	Equipment included above under capital leases was as follows (dollars in thousands): June 30, 2017 March 31, 2017 Equipment $ 581 $ 581 Less: accumulated depreciation and amortization (237 ) (202 ) Equipment, net $ 344 $ 379

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of other intangible assets	The components of, and changes in, the carrying amount of other intangible assets were as follows (dollars in thousands): June 30, 2017 March 31, 2017 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Patents $ 2,678 $ (1,251 ) $ 1,427 $ 2,658 $ (1,211 ) $ 1,447 Licenses 58 (58 ) — 58 (58 ) — Trade name and trademarks 1,715 — 1,715 1,715 — 1,715 Customer relationships 3,600 (3,131 ) 469 3,600 (3,054 ) 546 Developed technology 900 (466 ) 434 900 (426 ) 474 Non-competition agreements 100 (80 ) 20 100 (75 ) 25 Total $ 9,051 $ (4,986 ) $ 4,065 $ 9,031 $ (4,824 ) $ 4,207
Estimated amortization expense for each of the next five years	The estimated amortization expense for the next five years and beyond is shown below (dollars in thousands): Fiscal 2018 $ 461 Fiscal 2019 447 Fiscal 2020 361 Fiscal 2021 287 Fiscal 2022 190 Fiscal 2023 166 Thereafter 438 Total $ 2,350

OTHER LONG-TERM ASSETS (Tables)

OTHER LONG-TERM ASSETS (Tables)	3 Months Ended
	Jun. 30, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of other long-term assets	Other long-term assets include the following (dollars in thousands): June 30, 2017 March 31, 2017 Security deposits $ 66 $ 117 Other 52 58 Total $ 118 $ 175

ACCRUED EXPENSES AND OTHER LO32

ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES (Tables)	3 Months Ended
	Jun. 30, 2017
Other Liabilities Disclosure [Abstract]
Schedule of accrued expenses and other	Accrued expenses and other include the following (dollars in thousands): June 30, 2017 March 31, 2017 Compensation and benefits $ 1,802 $ 2,431 Sales tax 94 213 Contract costs 248 223 Legal and professional fees 2,116 2,262 Warranty 471 449 Other accruals 397 410 Total $ 5,128 $ 5,988
Other long term liabilities	Other long term liabilities includes the following (dollars in thousands): June 30, 2017 March 31, 2017 Warranty $ 310 $ 310 Medical benefits 137 — Unrecognized tax benefits 113 113 Other — 19 Total $ 560 $ 442
Changes in warranty accrual	Changes in Orion’s warranty accrual (both current and long-term) were as follows (dollars in thousands): Three Months Ended June 30, 2017 2016 Beginning of period $ 759 $ 864 Provision to product cost of revenue 24 175 Charges (2 ) (1 ) End of period $ 781 $ 1,038

NET LOSS PER COMMON SHARE (Tabl

NET LOSS PER COMMON SHARE (Tables)	3 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Summary of the effect of net income per common share	For the three months ended June 30, 2017 and 2016, Orion was in a net loss position; therefore, the basic and diluted weighted average shares outstanding are equal because any increase to the basic shares would be anti-dilutive. Net loss per common share is calculated based upon the following: Three Months Ended June 30, 2017 2016 Numerator: Net loss (in thousands) $ (6,564 ) $ (2,940 ) Denominator: Weighted-average common shares outstanding 28,455,434 27,885,588 Weighted-average common shares and common share equivalents outstanding 28,455,434 27,885,588 Net loss per common share: Basic $ (0.23 ) $ (0.11 ) Diluted $ (0.23 ) $ (0.11 )
Number of potentially dilutive securities	The following table indicates the number of potentially dilutive securities excluded from the calculation of diluted net loss per common share because their inclusion would have been anti-dilutive. The number of shares are as of the end of each period: June 30, 2017 June 30, 2016 Common stock options 1,442,153 1,949,846 Restricted shares 1,706,445 1,482,208 Total 3,148,598 3,432,054

LONG-TERM DEBT (Tables)

LONG-TERM DEBT (Tables)	3 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Long-term debt	Long-term debt consisted of the following (dollars in thousands): June 30, 2017 March 31, 2017 Revolving credit facility $ 3,853 $ 6,629 Equipment lease obligations 268 321 Customer equipment finance notes payable 6 7 Other long-term debt — 14 Total long-term debt 4,127 6,971 Less current maturities (110 ) (152 ) Long-term debt, less current maturities $ 4,017 $ 6,819

STOCK OPTIONS AND RESTRICTED 35

STOCK OPTIONS AND RESTRICTED SHARES (Tables)	3 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation	The following amounts of stock-based compensation were recorded (dollars in thousands): Three Months Ended June 30, 2017 2016 Cost of product revenue $ 6 $ 14 General and administrative 267 267 Sales and marketing 41 31 Research and development 6 17 Total $ 320 $ 329
Summary of outstanding non-vested stock options	During the first three months of fiscal 2018 , Orion had the following activity related to its stock based compensation: Restricted Shares Stock Options Balance at March 31, 2017 1,704,543 1,520,953 Awards granted 659,272 — Awards vested (414,569 ) — Awards forfeited (242,801 ) (78,800 ) Awards outstanding at June 30, 2017 1,706,445 1,442,153 Per share price on grant date $1.38 - $1.95 —
Summary of restricted shares granted	During the first three months of fiscal 2018 , Orion had the following activity related to its stock based compensation: Restricted Shares Stock Options Balance at March 31, 2017 1,704,543 1,520,953 Awards granted 659,272 — Awards vested (414,569 ) — Awards forfeited (242,801 ) (78,800 ) Awards outstanding at June 30, 2017 1,706,445 1,442,153 Per share price on grant date $1.38 - $1.95 —

SEGMENTS (Tables)

SEGMENTS (Tables)	3 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segment reporting information	Revenues Operating Income (Loss) For the Three Months Ended June 30, For the Three Months Ended June 30, 2017 2016 2017 2016 Segments: Orion U.S. Markets $ 1,390 $ 5,901 $ (1,532 ) $ (57 ) Orion Engineered Systems 5,408 6,800 (1,891 ) (769 ) Orion Distribution Services 5,760 2,933 (741 ) (728 ) Corporate and Other — — (2,338 ) (1,697 ) $ 12,558 $ 15,634 $ (6,502 ) $ (3,251 )

REORGANIZATION OF BUSINESS (Tab

REORGANIZATION OF BUSINESS (Tables)	3 Months Ended
	Jun. 30, 2017
Restructuring and Related Activities [Abstract]
Restructuring Costs	The restructuring expense for the three months ended June 30, 2017 is reflected within Orion’s condensed statement of operations as follows (dollars in thousands): Three Months Ended June 30, 2017 Cost of product revenue $ 40 General and administrative 1,767 Sales and marketing 97 Total $ 1,904 Total restructuring expense by segment was recorded as follows (dollars in thousands): Three Months Ended June 30, 2017 Orion U.S. Markets $ — Orion Engineered Systems — Orion Distribution Systems 75 Corporate and Other 1,829 Total $ 1,904
Change in Restructuring Reserve	The following table displays a rollforward of the reorganization of business accruals established for employee separation costs from March 31, 2017 to June 30, 2017 (dollars in thousands): March 31, 2017 Additions Amounts Used June 30, 2017 Employee separation costs $ — $ 1,763 $ (1,304 ) $ 459 Post-employment medical benefits (1) — 141 — 141 Total $ — $ 1,904 $ (1,304 ) $ 600 (1) The severance agreement with one executive included a long-term post-employment medical benefit which will be paid over a period of approximately twelve years . The Company recorded a liability for the net present value of this obligation based on the current cost of premiums for this individual’s medical coverage increased by an estimated health care cost trend of 6.8% decreasing to 5% in nine years . This benefit is reflected in Orion’s condensed consolidated balance sheet within accrued expenses and other and other long-term liabilities.

SUMMARY OF SIGNIFICANT ACCOUN38

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - financial_instituion	3 Months Ended	12 Months Ended
	Jun. 30, 2017	Mar. 31, 2017
Concentration of Credit Risk and Other Risks and Uncertainties
Number of financial institutions	2
Revenue | Customer Concentration Risk | Customer One
Concentration of Credit Risk and Other Risks and Uncertainties
Concentration risk, percentage	16.20%
Accounts Receivable | Customer Concentration Risk | Customer One
Concentration of Credit Risk and Other Risks and Uncertainties
Concentration risk, percentage		11.60%

ACCOUNTS RECEIVABLE (Details)

ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Receivables [Abstract]
Accounts receivable, gross	$ 7,216	$ 9,315
Allowance for doubtful accounts	(176)	(144)
Accounts receivable, net	$ 7,040	$ 9,171

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Cost
Raw materials and components	$ 8,008	$ 8,104
Work in process	1,693	1,918
Finished goods	5,981	7,044
Total	15,682	17,066
Reserve
Raw materials and components	(1,677)	(1,807)
Work in process	(348)	(329)
Finished goods	(1,391)	(1,337)
Total	(3,416)	(3,473)
Net
Raw materials and components	6,331	6,297
Work in process	1,345	1,589
Finished goods	4,590	5,707
Total	$ 12,266	$ 13,593

PREPAID EXPENSES AND OTHER CU41

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Unbilled accounts receivable	$ 2,467	$ 2,226
Other prepaid expenses	626	651
Total	$ 3,093	$ 2,877

PROPERTY AND EQUIPMENT (Summary

PROPERTY AND EQUIPMENT (Summary of Property and Equipment) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Property and equipment
Gross property and equipment	$ 33,897	$ 33,734
Less: accumulated depreciation and amortization	(20,259)	(19,948)
Property and equipment, net	13,638	13,786
Land and land improvements
Property and equipment
Gross property and equipment	424	424
Buildings and building improvements
Property and equipment
Gross property and equipment	9,245	9,245
Furniture, fixtures and office equipment
Property and equipment
Gross property and equipment	7,050	7,056
Leasehold improvements
Property and equipment
Gross property and equipment	324	324
Equipment leased to customers
Property and equipment
Gross property and equipment	4,997	4,997
Plant equipment
Property and equipment
Gross property and equipment	11,633	11,627
Construction in progress
Property and equipment
Gross property and equipment	$ 224	$ 61

PROPERTY AND EQUIPMENT (Equipme

PROPERTY AND EQUIPMENT (Equipment under Capital Leases) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Capital Leased Assets [Line Items]
Equipment	$ 33,897	$ 33,734
Less: accumulated depreciation and amortization	(20,259)	(19,948)
Property and equipment, net	13,638	13,786
Assets Held under Capital Leases
Capital Leased Assets [Line Items]
Equipment	581	581
Less: accumulated depreciation and amortization	(237)	(202)
Property and equipment, net	$ 344	$ 379

PROPERTY AND EQUIPMENT (Narrati

PROPERTY AND EQUIPMENT (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Depreciation	$ 353	$ 389

INTANGIBLE ASSETS (Components a

INTANGIBLE ASSETS (Components and Changes in Other Intangible Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 9,051	$ 9,031
Accumulated Amortization	(4,986)	(4,824)
Net	4,065	4,207
Patents
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,678	2,658
Accumulated Amortization	(1,251)	(1,211)
Net	1,427	1,447
Licenses
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	58	58
Accumulated Amortization	(58)	(58)
Net	0	0
Trade name and trademarks
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	1,715	1,715
Accumulated Amortization	0	0
Net	1,715	1,715
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	3,600	3,600
Accumulated Amortization	(3,131)	(3,054)
Net	469	546
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	900	900
Accumulated Amortization	(466)	(426)
Net	434	474
Non-competition agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	100	100
Accumulated Amortization	(80)	(75)
Net	$ 20	$ 25

INTANGIBLE ASSETS (Narrative) (

INTANGIBLE ASSETS (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 0.2	$ 0.2
Weighted Average
Segment Reporting Information [Line Items]
Intangible assets, estimated economic useful life	5 years 10 months 24 days

INTANGIBLE ASSETS (Future Amort

INTANGIBLE ASSETS (Future Amortization by Fiscal Year) (Details) $ in Thousands	Jun. 30, 2017USD ($)
Finite-Lived Intangible Assets, Estimated Amortization Expense
Fiscal 2,018	$ 461
Fiscal 2,019	447
Fiscal 2,020	361
Fiscal 2,021	287
Fiscal 2,022	190
Fiscal 2,023	166
Thereafter	438
Total	$ 2,350

OTHER LONG-TERM ASSETS (Summary

OTHER LONG-TERM ASSETS (Summary of Other Long-Term Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Security deposits	$ 66	$ 117
Other	52	58
Total	$ 118	$ 175

ACCRUED EXPENSES AND OTHER LO49

ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES (Accrued Expenses and Other) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Other Liabilities Disclosure [Abstract]
Compensation and benefits	$ 1,802	$ 2,431
Sales tax	94	213
Contract costs	248	223
Legal and professional fees	2,116	2,262
Warranty	471	449
Other accruals	397	410
Total	$ 5,128	$ 5,988

ACCRUED EXPENSES AND OTHER LO50

ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES (Other Long Term Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Other Liabilities Disclosure [Abstract]
Warranty	$ 310	$ 310
Medical benefits	137	0
Unrecognized tax benefits	113	113
Other	0	19
Total	$ 560	$ 442

ACCRUED EXPENSES AND OTHER LO51

ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES (Narrative) (Details)	3 Months Ended
	Jun. 30, 2017
Minimum
Segment Reporting Information [Line Items]
Limited warranty term	1 year
Maximum
Segment Reporting Information [Line Items]
Limited warranty term	10 years

ACCRUED EXPENSES AND OTHER LO52

ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES (Warranty Accrual) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Movement in Standard Product Warranty Accrual
Beginning of period	$ 759	$ 864
Provision to product cost of revenue	24	175
Charges	(2)	(1)
End of period	$ 781	$ 1,038

NET LOSS PER COMMON SHARE (Earn

NET LOSS PER COMMON SHARE (Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Numerator:
Net loss	$ (6,564)	$ (2,940)
Denominator:
Weighted-average common shares outstanding (in shares)	28,455,434	27,885,588
Weighted-average common shares and common share equivalents outstanding (in shares)	28,455,434	27,885,588
Net loss per common share:
Basic (usd per share)	$ (0.23)	$ (0.11)
Diluted (usd per share)	$ (0.23)	$ (0.11)

NET LOSS PER COMMON SHARE (Pote

NET LOSS PER COMMON SHARE (Potentially Dilutive Securities) (Details) - shares	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Number of potentially dilutive securities
Potentially dilutive securities outstanding (in shares)	3,148,598	3,432,054
Common stock options
Number of potentially dilutive securities
Potentially dilutive securities outstanding (in shares)	1,442,153	1,949,846
Restricted shares
Number of potentially dilutive securities
Potentially dilutive securities outstanding (in shares)	1,706,445	1,482,208

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2016USD ($)
Entity that Current Director Owns Minority Interest and Serves as Board of Directors Chairman
Related Party Transaction [Line Items]
Purchases from related party	$ 2

LONG-TERM DEBT (Summary of Long

LONG-TERM DEBT (Summary of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017
Long-term debt
Total long-term debt	$ 4,127	$ 6,971
Less current maturities	(110)	(152)
Long-term debt, less current maturities	4,017	6,819
Customer equipment finance notes payable
Long-term debt
Total long-term debt	6	7
Other long-term debt
Long-term debt
Total long-term debt	0	14
Revolving credit facility
Long-term debt
Total long-term debt	3,853	6,629
Equipment lease obligations
Long-term debt
Total long-term debt	$ 268	$ 321

LONG-TERM DEBT (Narrative) (Det

LONG-TERM DEBT (Narrative) (Details)	1 Months Ended		3 Months Ended
	Jul. 31, 2012USD ($)	Sep. 30, 2010USD ($)	Jun. 30, 2017USD ($)	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)	Mar. 31, 2016USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)contract	Jul. 01, 2013USD ($)	Jun. 30, 2011USD ($)
Line of Credit Facility [Line Items]
Revolving credit facility			$ 3,853,000	$ 6,629,000
Equipment lease obligations
Line of Credit Facility [Line Items]
Lease interest rate						5.90%	3.60%
Lease agreement, principal amount						$ 19,000	$ 400,000
Net equipment lease obligation buyout option						$ 1	$ 1
Harris seller's note
Line of Credit Facility [Line Items]
Face amount of debt									$ 3,100,000
Lease interest rate									4.00%
June 2011 OTA Finance Program
Line of Credit Facility [Line Items]
Face amount of debt										$ 2,800,000
Lease interest rate										7.85%
Agreement with Wisconsin Department of Commerce
Line of Credit Facility [Line Items]
Face amount of debt		$ 300,000
Lease interest rate	2.00%
Period of time without interest accruing or principal payments due		2 years
Periodic payment	$ 4,600
Credit Agreement | Revolving credit facility | Wells Fargo Bank, National Association
Line of Credit Facility [Line Items]
Credit facility current limit			4,100,000
Credit facility, maximum limit			15,000,000
Revolving credit facility					$ 3,900,000
Potential maximum borrowing			$ 20,000,000
Credit facility, minimum indebtedness ratio			1.10
Interest payment			$ 100,000
Interest rate			4.30%
Unused commitment fee			0.25%
Credit facility, additional borrowing capacity			$ 200,000
Credit Agreement | Revolving credit facility | Wells Fargo Bank, National Association | London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Basis spread on variable rate			3.00%
Credit Agreement | Letter of Credit | Wells Fargo Bank, National Association
Line of Credit Facility [Line Items]
Credit facility, maximum limit			$ 2,000,000
Unused commitment fee			3.00%
December 2014 OTA Finance Program | De Lage Landen Financial Services, Inc. | Secured Debt
Line of Credit Facility [Line Items]
Lease interest rate								8.36%
Principal amount of secured debt								$ 400,000
Number of contracts for collateral (contract) | contract								25

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Income Taxes
Estimated effective income tax rate	0.00%	(0.30%)
Valuation allowance	$ 34
Unrecognized tax benefits	0.1
Federal
Income Taxes
Operating loss carryforwards	75.7
Tax credit carryforwards	1.4
State
Income Taxes
Operating loss carryforwards	65.2
Tax credit carryforwards	$ 0.7

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Apr. 28, 2017USD ($)	Jun. 30, 2016USD ($)	Nov. 04, 2014claim	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Rent expense under operating leases				$ 0.2	$ 0.1
Term of operating lease	3 years
Annual rent expense	$ 0.1
Long-term Purchase Commitment [Line Items]
Number of plaintiff's claims dismissed (claim) | claim			6
State | Wisconsin Department of Revenue
Long-term Purchase Commitment [Line Items]
Amount of settlement		$ 0.5			$ 0.5
Manitowoc Manufacturing and Distribution Facility
Long-term Purchase Commitment [Line Items]
Gross cash proceeds from sale leaseback agreement		$ 2.6

SHAREHOLDERS_ EQUITY (Details)

SHAREHOLDERS’ EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	83 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing Market Price (usd per share)	$ 1.28	$ 1.28
Loans issued to non-executive employees outstanding	$ 0	$ 0	$ 4
Treasury stock acquired (shares)	1,230
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Issued Under ESPP Plan (shares)		2,150

STOCK OPTIONS AND RESTRICTED 61

STOCK OPTIONS AND RESTRICTED SHARES (Stock-based Compensation) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Stock-based compensation
Total	$ 320	$ 329
Cost of product revenue
Stock-based compensation
Total	6	14
General and administrative
Stock-based compensation
Total	267	267
Sales and marketing
Stock-based compensation
Total	41	31
Research and development
Stock-based compensation
Total	$ 6	$ 17

STOCK OPTIONS AND RESTRICTED 62

STOCK OPTIONS AND RESTRICTED SHARES (Restricted Shares and Stock Options) (Details)	3 Months Ended
	Jun. 30, 2017$ / sharesshares
Stock Options
Non-vested, beginning balance (shares)	1,520,953
Awards granted (shares)	0
Awards vested (shares)	0
Awards forfeited (shares)	(78,800)
Non-vested, ending balance (shares)	1,442,153
Per share price on grant date (usd per share) | $ / shares	$ 0
Restricted shares
Restricted Shares
Beginning balance (shares)	1,704,543
Awards granted (shares)	659,272
Awards vested (shares)	(414,569)
Awards forfeited (shares)	(242,801)
Ending balance (shares)	1,706,445
Restricted shares | Minimum
Restricted Shares
Per share price on grant date (usd per share) | $ / shares	$ 1.38
Restricted shares | Maximum
Restricted Shares
Per share price on grant date (usd per share) | $ / shares	$ 1.98

STOCK OPTIONS AND RESTRICTED 63

STOCK OPTIONS AND RESTRICTED SHARES (Narrative) (Details) $ in Millions	3 Months Ended
	Jun. 30, 2017USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Deferred stock-based compensation related to grants of restricted shares, period of recognition	2 years 3 months 18 days
Deferred stock-based compensation related to grants of restricted shares	$ 2.2

SEGMENTS (Details)

SEGMENTS (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Corporate and Other
Revenues	$ 12,558	$ 15,634
Operating Income (Loss)	(6,502)	(3,251)
Operating Segments | Orion U.S. Markets
Corporate and Other
Revenues	1,390	5,901
Operating Income (Loss)	(1,532)	(57)
Operating Segments | Orion Engineered Systems
Corporate and Other
Revenues	5,408	6,800
Operating Income (Loss)	(1,891)	(769)
Operating Segments | Orion Distribution Services
Corporate and Other
Revenues	5,760	2,933
Operating Income (Loss)	(741)	(728)
Corporate and Other
Corporate and Other
Revenues	0	0
Operating Income (Loss)	$ (2,338)	$ (1,697)

REORGANIZATION OF BUSINESS (Nar

REORGANIZATION OF BUSINESS (Narrative) (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2017USD ($)position
Restructuring and Related Activities [Abstract]
Number of positions eliminated (in position) | position	17
Total restructuring charges	$ 1,904
Remaining restructuring costs	$ 500

REORGANIZATION OF BUSINESS (Res

REORGANIZATION OF BUSINESS (Restructuring by Statement of Operations Location) (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2017USD ($)
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 1,904
Cost of product revenue
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	40
General and administrative
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	1,767
Sales and marketing
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 97

REORGANIZATION OF BUSINESS (R67

REORGANIZATION OF BUSINESS (Restructuring by Segment) (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2017USD ($)
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 1,904
Operating Segments | Orion U.S. Markets
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	0
Operating Segments | Orion Engineered Systems
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	0
Operating Segments | Orion Distribution Services
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	75
Corporate and Other
Restructuring Cost and Reserve [Line Items]
Total restructuring charges	$ 1,829

REORGANIZATION OF BUSINESS (Cha

REORGANIZATION OF BUSINESS (Change in Reserve) (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2017USD ($)
Restructuring Reserve
Beginning balance	$ 0
Additions	1,904
Amounts Used	(1,304)
Ending balance	600
Employee separation costs
Restructuring Reserve
Beginning balance	0
Additions	1,763
Amounts Used	(1,304)
Ending balance	459
Post-employment medical benefits
Restructuring Reserve
Beginning balance	0
Additions	141
Amounts Used	0
Ending balance	$ 141
Medical benefit period	12 years
Estimated health care cost trend	6.80%
Ultimate estimated health care cost trend	5.00%
Period for change in health care cost trend to reach ultimate trend rate	9 years