OESX - Earnings call transcript Q2 2020 | Orion Energy Systems, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to the Orion Energy's Fiscal 2020 Second Quarter Conference Call. [Operator Instructions].

As a reminder, today's conference is being recorded.

I would now like to turn the call over to David Collins. Sir, you may begin.

David Collins

morning. good and you, Thank the Orion's CEO, highlights, business call some goals open and Altschaefl, by a will for financial followed Orion's company's review today's fiscal discussion year. a with of Mike full of strategy the then Bill to financial call items, some CFO, questions. we Orion's review open then will additional will Hull, the your and

November corporate that its forward-looking Litigation cause later statements materially include, These X, matters statements to risks that forward-looking also of the among any statements describe statements. release similar could results including future forward-looking place company the Investor Relations these include the described company in Commission. the of archived anticipate, these of as Act replay in company as Securities and press are with plans, are be in update Such described risks taking subject goals issued Exchange that follow believes that this Except An than forward-looking Securities of Remarks and this is within of expect anticipated. XXXX. in call Private website. Orion's such the or actual filings, and to Likewise, forward-looking others, its generally obligation today on has questions, words will to to filings words disclaims call morning objectives that the statements. import. different be the XXXX, will statements Wednesday, be available meaning Reform believe, to This section answers or

I'll call With turn to Mike. the that, over

Michael Altschaefl

today. you our morning Good thank and call David. joining Thanks, for

has it of today. getting by key Orion in differentiation focusing business and our areas team I'm record our very proud of Orion Orion the delivered the would I business their for entire organization quarter the First, contributions that to competitive results very happy accomplished and QX. around another advantage. thank to is where like

in $XX over profitability in growth the achieved flow. first Notably, to over cash margin line of over held the gross half, In XX%. in of XXXX, operating significant XXX% million we fiscal half of with improvements and we first of despite growth revenue yielded a the and pace expenses

fiscal half loss million million per or in achieving $XX.X share a $X.X $X.XX months. rose per share XXXX to First net net a income $XX.X of last or X $X.XX versus for million year, income turnaround the of

bottom the leverage enabling financial demonstrate incremental even our an results model, having Our our revenue business line. in greater impact to on

and million a activity through installation with are is planning, design accounts and XXX% and driven for As a offer for starts other manner progresses one across state-of-the-art single all over and nationwide replicate for controls, you a to our $XXX our of with accounts. proven, the on-site more LED to custom may during manufacturing installation America lighting its fiscal but that are of customized, large integrated manufacturing unique and retrofit size, is XXXX. our notable in for creates for contract us it controls contract our strength know, even customers in by potential due principally being to results capability This turnkey to national assessments, channel to with of national in a able on-site What of solutions solution fully North LED design turnkey accountability. point delivery lighting we clearly

to large at and or in logistics national controls would approach installation is have retrofits purchase We and fixtures lighting quantities accounts are and work then the delivery the complications LED system alternatively turnkey appealing of for finding locations across hundreds that thousands who our lighting surrounding country. major very through to the to

call Internet create involve exist of proportion did IoT, the growing ceiling ago. systems several grid. network LED or lighting and in connected that aspect is changing of ceiling not Today, controls years we solutions our lighting industry projects Another or a Things, smart today, our a that valuable

savings In to drive analyzed also facility, business addition movement data array applications. in many communications a serve can the data can and data support as of of capabilities, growing connected energy or applications used has environments. store collect a network valuable retail a illumination warehouse, a These range and manage activity and collect This to other support productivity that and cost energy decision-making. to today's or manufacturing IoT and ceiling been management management solutions that

this with investment such a larger achievable included from seeing and applications. customer in appreciation these the by from IoT revenues and systems this of trend projects, area systems believe and is portion our substantial continue, are more We driven more being Growth awareness of in we becoming will on projects. return

introduce has proposition for Orion's as solutions. LED to potential process, our compelling these IoT retrofit capabilities discussions. in we approach very this our lighting Orion a solutions creates turnkey business in role system wrapped able a are Bringing in

and trusted that Our competitors our vendors, strategy unlike the lighting on IoT is controls to range in-house types of offer options with remain respect that are of agnostic achieve objectives. have of their to some and yet not provide sensors, with various those a brought work or a certain systems we solutions, able brands capabilities. to of portfolio providers, standardized we Because to do such customers with

smarter data usage consumption, offer and requirements analysis. analysis energy and asset Full facility to maintenance about utilization, make control decisions solutions tracking, facility overall collection help

control environmental facility. analyze, your drive to and data in automate, can efficiency You report

from this And processes. related greater In substantial recognize LED deployed further facility. major costs utilizing material The of a controls and the in energy savings to the long-standing track captured case from of efficiencies movement ROI system in was and LED reduction even were to IoT Orion meaningful system, program in their addition the deliver retrofit. sensors to improve of lighting connected a improve the designed system manufacturing their forklifts the to total the lighting a able they were handling to they to that data efficiency customer,

annual growth of lighting as LED revenue value integral may share as This retrofit the into component business. the Orion connected in an will ceiling, area Given opportunity believe the the an increasingly mix. license provided for potential for role by an projects and securing IoT an our from when recurring we provides area IoT play ongoing increasing providers, well fees this efficiency of system capabilities we driver important the also as tapping revenue be

are electrical to recognize be then to going first revenue developing our their to -- We of business. maintenance deliver We our see committed recurring meaningful revenue electrical turnkey ability facilities. for streams to installations potential component as services to and other provide during strengthen forward customers our maintenance the services and our and a

that construction point the of local also coordination and lead subcontractor including our management beyond installations. onetime country, Orion. fully to on-site maintenance contact, could one project customer business expertise currently teams. and management We services, projects of manage itself lighting This lighting turnkey traditional electrical lighting This across model with project go opportunities provides lend leveraging electrical our

interest in beginning are meaningful see to model. broader this We service

our within than of X/X compares XX% principally turnkey just in year. services More our services retrofit of related came half installation first programs. last the half of This revenue the provided in of to XXXX fiscal first from to revenue over

the bring sales To lighting account focus leadership relationships our knowledge. X the Given sales in offering, traction customer in national developed, are months, professionals our executives. is retrofits sales channel. industry our who strong building our success marketing and and turnkey in have and experienced and very reach, large-scale expand energy-efficient smart the few replicating we on These past we our customer senior have hired integrated

sales with reach our capabilities eager Importantly, to resonate to the this model capabilities. talent turnkey expanding and and because were how some sales these these productive, new products, is individuals join and investing believe fully for our Though Orion be in takes accounts. we right they large time solutions Orion it commitment to for become customer time and believe national

continue fiscal fiscal and believe our agent-driven energy agent are traction. of fixtures channel better to service this price-driven channel. more channel first support XXXX declined caters additional compared market, agent-driven the we company, of serve half our distribution will for a also XXXX. developing We ESCO, in base. in the distribution -- to of half our will first we Revenue the to or gain The that channel lower-cost solid differentiation And customer to growth

Lumen set higher-power decisions to lumen or to distributors, down that and road greater option new also the packages IoT for believe the but our contractors developed on Select We the continue optionality will fixtures compelling make upgradable and LED feature lumen a be monitoring efficiency of include upgrading a the packages controls and a fixture a who We've capabilities. flexibility of today customers. providing range are prefer products their have the price to to need down be field, can for in that New road. line customers with to to fixtures of upgrade

to approach of in fiscal we this changes XXXX, sales QX our implemented During channel.

these confident us will the to allow successful are in We be changes future.

believe ESCO of the months X achieved in improved improvement the channel solid period. strategy ESCO our first revenue the We our relationships. strong performance from our benefits this engage of to fully For historically reflects XXXX, fiscal year-ago

ESCOs methodology, in What savings is if efficiency. differentiates lighting terms deploy their This realize motivates actual of performance sometimes that the the to channels they contracting to solutions from ESCOs which linked their customers. performance-based is other for performance base their dictates orientation in compensation -- business strongest directly energy deliver their energy

to features goal needs support controls and our and efficiency, project developing solutions specific lighting designed functionality. partners by LED Our ESCO their is to respect for with energy

new and account the we new as provide in growth customers, opportunities, historically are finalize stages to areas scope potential strong We as with are including and projects future of dialogue working of those for that existing various for exposure. also well

logistics; markets the While with some our it develop certain we sector; having potential size care electrical about to big-box include projects. opportunities, or retail pharma; customer and services. meaningful projects, win as well where maintenance public and see to stores, awards early as are expect the and retail we that of confident are opportunities into winning will distribution Current or are is the automotive; retailers likelihood, timing centers; of including too be dialogue potential dialogues and and health

particularly sales advance confident beyond. account to we feel and with opportunities, time outlook fiscal our for increasingly complex dialogues, takes it Though XXXX more national large, sales in

during account don't disclosed, operations half holiday December period the previously XXXX we disrupt the in be based large the November slower customers season on fiscal normal expected well and national As stronger to installation of to second as the other as project, first some the half likely of want as schedule factors. than a planned expect

fiscal revenue of $XXX maintaining $XXX million We are goal range to million. our XXXX

we half record that it development, first revenue range. our sales is and our pipeline possible will exceed this Given

in plans current least are achieving we also and EPS Based expect this on going our for and well year. at and capital to net XXXX XX% flows, the sheet on we EBITDA an liquidity our believe Based positive of available margin execute positioned goal, growth and fiscal anticipated achieve to forward. Orion balance income would and cash with

With on results. me Bill the Hull for turn call financial that, additional Bill? over and year-to-date to let quarter perspective the

William Hull

to to installation to Thank national and Orion's revenue increased and QX account compared due for you, primarily services LED customer. Mike. controls XXXX XXX% $XX.X major second in of million $XX.X to related increased quarter product sales lighting a million turnkey

rose revenue million. product revenue quarter increased $XX.X to million, Second and to $XX.X services

For to fiscal months $XX.X the period the to million rose compared turnkey X in also million of $XX.X revenue by account year increase first activities. XXXX, due prior national to the

quarter Second in QX quarter the and margin first XX.X% this compared to XX.X% year. of improved of to XX.X% gross in XXXX

higher gross benefited from revenue second fixed quarter margin levels covering costs. Our

the to to quarter was efforts benefit as primarily improvement manufacturing quarter first due as margin gross second versus well ongoing of improved efficiencies. the enhance services margins The

revenue, Operating or million commissions XXXX and investments principally XXXX with in of in expenses sales the marketing. $X.X share inherent leverage net or in quarter. to to income $X.X QX the of Orion's in million well due QX higher year million quarter million to increase sales of $X.XX with our as per share $X.X higher as per cost higher second loss versus compared ago the and profit gross $X.X Reflecting net increased in diluted fixed structure, rose a $X.XX

share $X.XX net in first the million the income loss period. or comparable to or $X.X versus X XXXX $X.XX XXXX, improved per $XX.X per share a million fiscal diluted of months For of

X an to loss compared year prior Likewise, in period, Orion $X.X of $XX.X generated the the of million. months first improvement EBITDA an million of million EBITDA in $XX.X

million fiscal the as net offset fiscal to second needs Likewise, months $X.X our activities operating generated partially use metrics first a had only $X.X XXXX, X activity. capital was has from million able half XXXX At increased up equivalents, from cash in March our Also, first increased Orion quarter versus credit cash of the year-end. in to $XX at reduce also facility our cash million. million, capital at versus working shareholders' higher of Year-to-date, to business income end, and million sheet $X.X and XXXX. we by $X.X XXXX. $XX.X increased fiscal March $X.X by and under year-end improved XX, million and balance $XX support quarter million million of equity of $XX.X borrowings million to to approximately $XX.X We since net in XX, million capital working were revolving from

As September capacity, our additional had facility. with fund we expected $XX.X flow, combined and borrowing capacity credit our our of XX, million this borrowing going business believe on unused resources cash provides sufficient financial of forward. to We future cash resources

open to call the Operator? And with questions. that, let's

Operator

Instructions]. [Operator

question first Craig Irwin from Roth Capital comes Partners. of Our

Craig Irwin

very saying quarter. Depot, Congratulations retail on guess, your strong That it's the I partner. strong execution I'm was with Home a right?

Michael Altschaefl

Craig. Good you, morning. Thank

William Hull

Thanks, Craig.

Craig Irwin

the handled So your language in contracts. pretty careful about way prepared in you cautious remarks other you were and the

a now? Anheuser-Busch, you have down history out right right? obviously, the before grass there always, be elephants a But can maybe There I do what be Lauren. project the toss of more million calendar with working in But end like of landed. think that for the big narrow chunky have the are the anything you booked year? do opportunity Ralph is names with can than that Coca-Cola, you projects be would that could more, us you could Now $XX out

Michael Altschaefl

won't at the wanted in we're Craig, that. in We question. be remarks currently. get probably with looking our to We were specific as for line you're year the thanks to looking answer how the as for --

in we both fiscal as of XXXX the very improve feel to mentioned, done XXXX. into going our improve optimistic keep rest future, potential our to fiscal well growing as as about several the the and have continue opportunities things And future. We to

some perhaps more X calendar particularly with therefore, a find as is will year, be what calendar 'XX customers impacts get over And well 'XX. as in of to year do they're doing the their our information decisions accounts, later customers, make we to tend particularly that expect What what capital some next during of national the we if larger company. our weeks of fiscal our they calendar

what accounts we we as get well feel the those contractual and those. discussions opportunities we we as customers opportunities having existing as or generating in So only of the as well-known ESCO say of letters are But I our well related with some make to not optimistic new relationships may disclosures into become can intent, are but large some through that channel. with of relationships national the as is

Craig Irwin

yourself and your the question Has did comment years restore position So been number make maybe and with the my on. to follow-up whether you're these a is helped the, you've win multiyear market process? this these bit working contracts huge Orion It's along you Are of than competitors finding lot smaller to it large group that of maybe executed I lighting finding do between a some ago. capture large the of of very referenceability Home Depot a were better over many or quarters? lull a unnamed in improve project credibility little not the in really a after next to customer that customers? potential you you guess, further Can you

Michael Altschaefl

Yes. No, specific. but say, be to yes, I'd generally your question. a great more little let question, me

company of all, projects the of fairly years, significant quite a of many often we that size outsized for history at. First are over have had doing we

to used We able with are that certainly to accounts industry exposure we this one manage large the to being lighting has winning So think in additional elephant-type provided successfully. our landing opportunity capabilities. and respect them

becoming turnkey services to the fact from these the in field, way do find what a their to through them. commissioning do effective and of the manufacturing that tying rather are to logistics auditing designing that in facilities fixture handling construction controls way needs a to has the we are, so to customized the the that installation, turnkey customer a all for product, manage unique these that managing all the that the capabilities, be project the capabilities then the have aspects controls to What we is

other that significant all Craig, have From think a one customer. our for of any that manufacturers are there we knowledge, roof under don't

expanded point X customers the having way a we X, go a sometimes the LED So opportunities giving installation our and them through of nationwide controls and see suppliers us of down what all is X, the who single to accountability is process from believe take to on one advantage major project.

of growth company think we we are projects our some that And to think we that's a where we compete to we as competitors. have why given substantial continue give larger and And as for move forward. our against unique, believe can are us size, will that's opportunities able we we

Operator

comes Stine of Our Eric question from Craig-Hallum. next

Aaron Spychalla

talked on you It's and the the Aaron maturing can quarter. agents just little of Eric. then those are agent kind to when are those Congrats of little bit Spychalla little see products. a going you talk channel, more maybe on getting on kind about and you to for me, the detail the up in just on there. a kind more new just But And can bit speed? for Maybe a of first you where process launch of traction

Michael Altschaefl

Absolutely.

happening a somewhat industry price-competitive the might see we if be the And to people what been that with channel some few somewhat competitors, track area. has is agent in are the side times, keeping of still our of ability as could that of the area. aware, it But I've As mentioned be compete you challenging. and a

support can feel and do. jumped are leads the and with have them and whatever with channel. agencies into the and that are we now we very We it sales that and We continue that company closely, working within We to XXXX. in we newer support about to work we training positive

quarter, prepared as in get to agencies us just made be helping activities I in particular, our and We some our to to successful. a to this that more Those allow are successful, we remarks. mentioned that closer are during to I my deeper end have are taking sales user various changes help the going think approach in be dialogue

States. is the great that control product which to different a It's On fixture back was very you it the in a I the United on on product manufacturing really is of lumen the select packages where product feature X side, one a fixture. simple mentioned We're great recently, the that design. X allows launched

or in broad a so product very with lumen fixture. can modify And a particular them stream one packages that have the distributor to allows contractor. a It

So we're to our rolling that it's that, successful it think will in force. about really very out be we excited and And just channel. that agency sales

We excited about some over have that product team generation, sales for new our we existing also very of as the map -- product and upgrade months bring next also X our we our next to a I'm road to sell. product

map, road between making sales great approach distribution and that we a So in changes in product convinced to find will I'm continue be to channel. some a having way agent-driven successful our that

Aaron Spychalla

maybe then maybe And maybe expectations you opportunity couple that for for years. growth ESCO size just big year. second just And business us? of how can this about your next talk over can become And on channel, the the that

Michael Altschaefl

ESCO -- to at has group or accounting for If the is segment reasons call of that Sure. that U.S. markets we USM. that look it reporting one way in the business most

seeing we our million-plus now segment, $XX fell in and A look few Ks resources the ESCO again growth market. the to the prior years figured and was So out, where to We at in our realigned at one our see past. somewhat ESCO able business model. back, agent-driven off were it we that that Qs would back we're that when distribution and be to strategies, in and transitioned

get of least so has to at think And kind future. those the it the potential ranges back in that into we

Operator

comes question Amit Wainwright. of from next H.C. Our Dayal

Amit Dayal

to trying at trying this see relation you we color get services in idea opportunities point? create to Just recurring maintenance to Is an more any this revenue electrical more and highlighted. business? some on this Could to play on the coming contracts you're than the side

Michael Altschaefl

that lighting and that build more and have the companies on have we at And as the maintenance an that idea activities matters. and facilities across our the to can we great States, electrical continued need solutions. have contractors to as electrical type as both work for United is closely across they happen group recognize this manage for point, turnkey have we expand We well lighting who multiple It services than country day-to-day control of LED someone many this systems and with.

it than an So more is idea.

respond really have and certainly possibly We some are things this in beginning perhaps it impact when those in we may predict together. to us can't area of come think for look one to But could at RFPs RFPs XXXX and sooner. and

Amit Dayal

on or margin you margin of you this. expecting Understood. are what And a Can you profile like do what give any us business sense would perspective? a line from do -- -- the are targeting what guys

Michael Altschaefl

We've business. from were able improve earlier that those continue business, our to on to Yes. service commented of I margins our quarter the business service and our side margins this side the good. been of of XX% was over our

big a services. our processes capabilities systems have don't maintenance, believe as separation and services our should see and to with into between services. around And we our able be services we margins we management healthy that we expand and electrical products and So

have that we repeating orientated a project customers certainly, just have think provides business to somewhat us do is The certain that for business, of thing tend are it other year-over-year. we we significant although

might will so give business going And revenues us out us And have. the repeating I can these business grow some versus for is But recurring maintenance be that just we're even finding locations some with would contracts given that particular maybe what and more recurring number of revenues. the quite call substantial, our companies opportunity visibility of to forward. things

Amit Dayal

to for sort be, just of on Or to Does you and you said, providers the include then map solutions? relying IoT comments going IoT you product moving made. any And road agnostic outside the features? Understood. on these like are

Michael Altschaefl

time. have the this From that a product solutions we for road in at feel customers really map point are we needed standpoint, our

solutions sophistication healthy of control different smart that from on might basic company up the to controls group controls types a very of We IoT of need, and to depending controls. a have

suite feel we so the available. And we have

developed looking We control as and add are customer desired our are other become by to always systems base. to suite that

Our new real existing compete they a often we construction. in solution although can well say in control often or consistent. But keep has may been and we customer of primarily the the an platform some very want type space, obviously have retrofit of solutions, to strategy are space, in retrofit IoT to that basic

the take through fact And our work their so that fixtures versus we found power existing control customer to appealing is the have various that somebody that them having and with engineering capability we into not the supply have switch them to else. good systems, is in solution integrated tie them them have to and very and have convince a

So own we envision continue to externally. which work control to our don't your is developing with currently answer basic various providers question, solutions, to

not the for develop them better being it's of -- as Although it's base. in customer see possible stronger marketplace we we our with might them some relationships

Operator

question from of next Our comes Riley. Marc Wiesenberger B.

Marc Wiesenberger

follow on And to wanted national customization large you this did has you the status a the far, on I correct, I satisfaction? customer question, first believe gone work thus additionally, if provide up the us maybe rollout then I'm for My some update how client. accounts. Could

be unlikely based displaced factors of it additional those got with make factors? up intellectual on some this there. increasingly capital you've proceed So all if these likely to customer not was probably retrofits Do that you that would built

Michael Altschaefl

question, the morning. Mark. for Thanks Good

gone well. feel confident with execution country. We certainly a has project stay close across of contact all, in extremely customer. of the this this that the First It is rollout very massive we

status satisfaction and to for very We have in as us. point provide a positive updates well from does to customer it all measurements systems extensive that standpoint, place being as the as

a on level, customer, delivering locations, would and the and they're some continues schedule exceeding expected I on in On not cases say energy some in of savings expectations. energy that to savings be ahead the were budget at and, the the a for project higher least just if schedule, bit

when so with position put considered locations. those by they far rest should being of of customer favorably the all factors us think we continue a their decide So this in success as of to

many year, earlier, their decisions near particularly calendar if mentioned companies larger capital I Like that's in make many the -- the later year-end.

we'd X confident from so that some additional it. weeks this about next X customer. expect We're to on And over the information

To answer the this in some efficient them for that embedded some light modules was are IoT then second had well solution. controls a locations solution developed fixture very question, existing but solution in efficient part their retained of retrofit then of as -- your that customized as their installed this

that we provides us great have fixtures We standpoint, related on be with they savings which greater one some would So a at solution. given a pace have do going think to customer very, a with than in forward intellectual certain customer that be position well. designed, very our And strategy protection. would satisfied IP, you property from great that than have expected what with to those execute that expected we feedback a faster they

I an North America. market them companies' across many say that we in existing just locations is fixture is addition, developed for indicates to our it expand installed would is other retrofitting a In that solution from solution that, that, research,

So significant different with developed, these the with to and this particular could we we that have existing the there benefits table fixture, in that targeting them fixtures. to designs are locations retrofit those companies discuss those were X put country we solutions in taking across that work the have

in areas So that opportunities also. for addition, customer with we their expand we other see where we are in And to initially seeing that some did the other traction we beyond ability of fixture. business what have more to customers both

Marc Wiesenberger

was That very helpful.

what to If pass you on at you're could to talk about seeing all? maybe you're and some pricing of able customers, that dynamics the if

Michael Altschaefl

able some standpoint. found months, that last been more and to better if comment because confident do. that the tariff price we has prices anything, and, have positioned been we to more we've situations held chain to have longer in competitors we due able -- our where believe issues. have XX And to increases I'll with we're have minute, We In feel many our of we from to significant pricing had not over the much cases, market believe area, had have increases go a particularly which at supply in a than

in design like we very business, particularly national United and sale well our the through compete a management of account can a States. -- area, to facilities and we in demonstrate the that rebate In payback cetera. of to believe continue it's product are et process, we But value in the manufacturing sourcing some long you sectors when need fixtures, and and in

little existing supplier us a been of: bit a where place. We've tariffs. Your position some comment impact been but taken non-tariff have to taken in We've has had we situations do recover countries. on supplier situations the a to maybe their from had impact to where modest. production we've by of the changed where situations links impacted to any that is has we've allow are kind that in of the the which where able contractual tariffs We combination our to move are have the the to relationships tariffs, eliminate significant similar some We actions have we us past product tariff been situation, the

modules supplies electronics our so So it and of really company, has been far out -- an LED a of and from are countries. pretty modest do Substantially, all in chips come our nontariff standpoint. power on particular, impact

deal product great the a a helps of significant that so that's pretty And because part cost.

Operator

Gaspar, next comes Our a Private from George Investor. question

George Gaspar

Congratulations great quarter. on a

the on you IoT that? give you the IoT, have at in to many on gauge you How applied Just time? a us this individual facilities a if little Can mind. wouldn't point more bit

Michael Altschaefl

exact have George. don't an number, I

But way X,XXX Let -- I we broad pretty for be me IoT now solutions currently can try sophisticated to maybe locations. perhaps a concept, of at IoT probably more be fiscal this during secondarily, installing in and controls least hundreds thousands that of you. controls probably have this IoT I'd would And will current basic controls. solutions answer very year, say we on from fixtures it say them. have

have with a controls that are it's fixtures out of that substantial the IoT So very embedded number field. we now in produced

the customer. software as of ourselves commissioned, to our that people it year the on information our have of parts we it we one the which is team that I commissioning is in activity easy best field, don't being companies getting and it but in able the feeding where IoT of seem They taken installed one to of the software, how And we the of additional more aspect area the volume properly current XX big more and upfront. to may increased, getting fantastic has is found to feet is, believe, with working on, do often fully turned capabilities IoT have not the that so systems addition, it field, In the all as this as we package a do get our challenging operational into is it the providing that of that always that and are have the may is more information advantage meaning final always added because knowing actual job. overlying an

of greatly additional these our IoT year current -- the project this well field the installed respect with controls. controls being we to capabilities most increased as volume So IoT large IoT has volume the of as our has our in fixtures have on of controls in

George Gaspar

further this. Okay. And little a then on bit

install system, the IoT lighting your of the but of you of mechanics on all? patent done -- of application componentry, terms the there looked any -- terms you Not necessarily equipment? is making that the in to at have of any at that In have filings

Michael Altschaefl

with have controls. to installation or the application not of recent filings any do respect the We

determine company smart some Our that to are and intellectual ways with to and respect continue that IP have to if back evaluate protect to does existing controls that we property years, there goes that IP. monetize

Operator

[Operator Instructions].

Marc Wiesenberger a from B. We follow-up Riley. of have question

Marc Wiesenberger

recently draft of you if new DesignLights I in standards have impact competitive would the about talk what for the Can LED lighting. position market, standards at out on commercial put your revised the performance a believe Consortium all?

Michael Altschaefl

Yes.

mind We our We aware from companies in that. those in will appropriate with to develop which product keep out. we the provide we our that road respect make that's are as will ratings map, of fully deal new industry draft to to fixtures sure I due good new shortly, about standards. our are the feel with we believe comments on currently come position those the And have some. we

meet an design the on feel across ability we those from we and our for perhaps sets utilities requirements and keep And DLC eligible fixtures those for that revisions be them. make certain some America. DLC possible confident about to sure to call, engineering to eye that the the things, requirements to capabilities So for on North rebates

to requirements your for those achieve rebates, important which customers it's meet fixtures So to to allow your improve ROIs. certainly the

about feel confident position. our we So

Operator

Our from Gaspar, private investor. next a George comes question

George Gaspar

the building you possibility what's lighting to -- be mechanics capacity, And additional install, be would this seem when the XG into me indication have have of come some even IoT to on an on would a perspective? directed it opportunity componentry allow Is brings XG. street effort. feet. that from systems kind speed that to connected, the there's more to a And expand would of to you Just X,XXX forward it that coming the every mind XG installed IoT. and of that your your going here on And

Michael Altschaefl

George, is the the going on systems to the IoT Well, -- you these Where ability data. have really building, base to that challenges the controls. manage IoT and one to just on power currently collect that advantage, an I XG have for for of is inside industry certainly think particularly systems, see we the an data impact impact and need the is of

can system some through management and to that fixture of captured, system sensor have it the place. then type installed. it, be to the or feed And You It's pick back in power energy it's It picking to wirelessly the it that is and is information. beauty is lighting the put capture transmitted a information that has to manager to up the has power sensor information. of to power the available have Once it routers it's up there. that

tied layer And house are sensors companies. the often to with place so capability will for information the these reason XG is of into these the respect controls to solutions. for IoT very speed the it's a capturing provide system and that another lighting natural

it have I'm yes, will So sure some impact.

Operator

That over to concludes for the Q&A Mike session. I will now remarks. Altschaefl any turn call closing the

Michael Altschaefl

performance the would thank on the including I shareholders I again Maine. and In you, have to in to in supported our hard work closing, Orion years, would who strong business. our team their like also this you call. Thank dedication us thank today's those entire achieving over of for like

presenting the of to in Orion In the we XX increase Angeles. on will XX awareness Tuesday, Micro Wednesday, in and the investment at Event Los LD at November be December effort on Main Craig-Hallum our story, York New Alpha Select Conference

Minneapolis We targeting contact and Investor fiscal Please of information call. during QX are planning Relations on a release. team to Milwaukee. Their investor XXXX meetings is also meeting our today's Chicago, a Midwest schedule or contact

our good to look Thank today. you you on day. Have updating again for on business our QX a call. forward joining progress us We

Operator

you for The today's conference presentation. is now Thank attending concluded.

lines. your disconnect now may You

Orion Energy Systems (OESX) 6 Nov 192020 Q2 Earnings call transcript