OESX - Earnings call 3 2024 | Orion Energy Systems, Inc.

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Operator

Good morning, everyone, and welcome to Orion Energy Systems Fiscal 2024 Third Quarter Conference Call. At this time, all participant are in a listen-only mode. I would now like to turn the call over to Mr. Bill Jones, Investor Relations

William Jones

Thank you, operator. thank joining and call. everyone, morning, you today's for Good then Orion's and review financial Mike the and CEO; questions. Brodin, to position will CFO, investor call outlook results, Jenkins, Orion's quarter Per will open third the and we company's recorded, is of posted section a replay website, orionlighting.com. Today's on being will Investor the conference and call Relations Orion's be

XXXX. Private statements within the forward-looking to and Securities Reform Remarks Litigation are follow answers that to Act of of questions the include meaning

that anticipate, issued believe, objectives results its materially cause Forward-looking project to include the Securities morning These or this statements various such than as could has differ statements risks Commission. Exchange forward-looking future generally words. risks similar described describe outlook Such the well filings press with any to expected. its and expect, in as other and Also, are in forward-looking. words or plans subject release actual currently statements company that are that as also matters, include, among goals,

Except Reconciliations release. therein, are the today's in are press forward-looking provided of update now made will Mr. financial as any statements, date. disclaims as also obligation call the certain to GAAP over which non-GAAP today's metrics measures Jenkins. described turn to Mike I of to company

Michael Jenkins

Thank you, for all Bill. call. Good morning. joining today's Thank you

is projects largest growth new activity Orion's which services month, projects QX also energy third through and contract lighting electrical largest last in benefiting large customer. on with X-year reflecting ESCO from government agreement secured our maintenance in quarter or Orion's acceleration LED sector, previewed in an our As revenue rose saw a service business, anticipated customer. XX%, with partners projects company the

variability charging with on timing ago revenue and solutions and the of principally basis, a Our down year due projects. larger flat to EV Voltrek a sequential period was

EV longer-term and of charging project We customers to progress we the EV their new with seeing address existing our are, very encouraging engage build-out in as requirements. charging however, pipeline

Our million 'XX. in prospects us about fiscal and next that several optimistic to the the of European million growth external from other our lighting customer business makes LED $X U.S. annual underway over remaining growth the years our the we In our in projects with Department across have quarters. include revenue for development and These in as are Defense, retrofit to as project largest retrofit contribute the should business X lighting, progress them. quarter few for well several larger next several potential projects support revenue for

a 'XX. we fiscal and global of which we dollar multimillion to business, we a continued our annum large range retrofits expect years and million $X expect technology half and expansion through global who in as from some our on lighting for lighting focus including partners as commitment components, of end strike high-efficiency to budget balance line TritonPro bay our industry-leading channel Harris and energy continue ESCO fixtures fixtures, value-oriented between limitations products. These our high-quality project to which the next customer, a products new our the Ongoing see for high customers. first for our efficiency large to $X logistics begin and LED of exterior a LED products per design retrofit warehouse the lighting few to customer, million well In our

within These ESCO channels. total the and market addressable new distribution expand products our

the their retailer are next to and needs. ESCO As project implementing using specialty months. TritonPro. project Orion generate TritonPro was an for customer product a the XX revenue to a million through national the of meet for $X an to This appropriate partner example, we million recently should won $X Due specifications, over

value channel and to their the pricing to our partners, right work proposition to on meet electrical products by continue contractor increase needs. We our adding

launched the our we and quoting excellent exterior channel lines. Harris pipeline in TritonPro We seen and have build since this

That LED the high of earlier the These Buy line fixtures strips in a LED ROI funding. important third Reflecting sustainability products that to mandates LED and their least stipulates of BABA XX% our states, when come to lighting Orion compliant U.S. but full us American lighting Act. energy-efficient in and unlocks leader quarter, opportunities benefits requirements the possible support facility municipalities significantly of federal released both a Wisconsin, content America it from be material bays, industry, in America, and can customers manufacturing schools which new compliant manufacturing Certainly, Buy Manitowoc, U.S. their in of with here act the it's exceed that use strategic sources. goals. the new order troffers. to in the BABA the BABA or fixtures at America These funding the Act for include and LED increase also Act federal BABA receive Build

Small the Texas compliant Conference In our Federal Business in products. November, we attended to showcase BABA

area is additional for We One should noted and states customers $X that over and and already are have growing. fixtures over received now use million industrial fluorescent next is there the interest banning are pipeline years. commercial great our be that quoted X from which several

California, Our replacement new from as fluorescent including well these sold being that will tubes. understanding prohibit fixtures prohibit fluorescent as is states,

into are projects We on months. XX timings that accelerate next them several retrofit to have to motivating heard requirements from the customers XX these their

business. Turning to charging our solutions EV

geographic progress large in and team to good reach building needs customers. out national We its the the Voltrek meet made of have

from million of to which year and pipeline, which are growth now prior a excess our in customers quarter with are matched $X.X broader of project $XX X opportunities, Quarter million. now base in of contributing is slightly of We engaged revenue down larger timing expect be performance due segment was of what we do national quarter-over-quarter and but will this in We projects. variability to last anticipate timing. some the project regional to quarter due X,

XX% by XX% recent dealers XXXX. the as EV probably reaching the or companies auto rental growth of forecast As on vehicle by reporting the of you EV some fleet questions there car pushback as know, by been potential space has and new in well about XXXX

or charging projections EV newcomers compelling our are safe, the enterprises impressive experience area. it charging deployments track to bit serve and record continuing bullish EVs. very prove significant charging current of of the well and capabilities required or many needed are much a the this infrastructure industry compared with experience to be extremely no experience behind is some plan, of Voltrek's clear more solutions. and earlier to deployment reliable EV needs successful in station might positioned are While to even years support and XX little building deploy technical EV to customers when EV with Voltrek communities out in that is future rate its the and shipments at over a of and

turning nationwide. attributable largest X,XXX year-over-year maintenance margin a quarter. achieved improvement the and Now customers in solid agreement improvement was services to X-year which new our to third locations for of preventative contribution approximate The to business, provide our retail lighting revenue services the growth maintenance sequential

Our performance with reflects also effort to increases of our the secure benefit price key customers.

Given pricing overall the margin past a of profit to were over contracts In of quarters, to older with significant business. range more have response profitable. no several inflationary bring higher our pressures longer line these raised our our in we many costs,

converted have worked X have periods. pricing contracted to reprice Over and the we legacy structure new few past successfully our customers of within to quarters, our X contracts

additional prepared focus committed so secure our margins. are to 'XX relationships Maintenance in adequate in have unable to business we profitability. on period, maintenance to segment continue X-year believe maintenance of and some our where RFP exit value processes this Stay-Lite X with Many to solid we we our quarter move we customers to Because we Orion do as are and pricing headwinds services that recurring are we key returning revenue we provides profile, as accounts expect into their offers fiscal a revenue. Overall, current legacy margin

our active business business new fiscal could the that development have first to in are pipeline half our We in 'XX. come our fruition in we and believe efforts of

product and the want Having touched each reiterate levels on focus customer efficiency highest of to energy offerings. Orion's customers and highest our to of on with delivering I the value quality, service. service our

allow along a to unique approaches with market. and broad us go-to-market complementary overall of in partners, participate segment working Our distribution our turnkey the of with solutions ESCOs

to and starts planning, turnkey project the design, then and manufacture can approach site custom each and Our utility We visits and progresses rebates. project fixtures configuration with government LED including product to delivery, with just All EV from accountability. or partners hardware the commissioning sites. industry-leading and point contact charging and installation at of manage of permitting, and procure X even thousands or hundreds

customers. the to new Our meaningful X initiatives to years and from the both past are business diversify make over existing our to starting growth contributions

with to across We customer our is of opportunities, potential coming each quarters cross-selling account combined base. in with priority operation. X customers see areas particularly to of long-standing large of market our A capabilities needs continue effectively each across significant our national

years 'XX our expanded expect growth a these to come. to result meaningful fiscal of of we the long-term in support initiatives, As array solutions and

in I'll Now to outlook to Per Brodin the more financial call turn detail. and our discuss financials

John Brodin

Thank you, Mike.

in noted today's that release, of and maintenance to began larger noted We the revenue XX% XX% In $XX second from of this QX Driven million QX. As press year-over-year benefit LED half. several by meaningfully 'XX lighting calls, year. QX strength from we and ramp in services. sequentially in grew in ramp anticipated prior our that we expected projects to

$X on we is projects million Europe, QX to more project and have could fiscal 'XX. roll year. to $X.X that and which $X.X amount expected Defense we fiscal QX think favorably Maintenance QX in of compared of over million those 'XX complete this contract of this million or $X in 'XX, million the approximately point, One this revenue early million which million remaining had in services Department in At to rose into $X.X 'XX. $X.X approximately

X-year portion lighting from for roughly our our retail preventative services of X,XXX growth locations customers, this largest significant nationwide. for came A maintenance agreement

growth the the were those quarter. So in drivers

improved QX impact from fixed 'XX terms and of on services to due margin of percentage the rebounded profit 'XX achievement 'XX higher Gross QX QX volume or sales 'XX. in in XX In in XX.X% sales points negative XX.X% QX XX.X% gross more on favorable our to margin products, on increased from basis of cost in margin services. and XX.X% of to mix a slightly sharply absorption the in QX profitability, gross

We of expect benefits pricing on new further impact in the margin continued by contracts driven coming quarters. renewing

period. as the our basis from XX.X% in sales The as taken steps products margin $X.X our year points benefit due in maintenance in Reflecting to for the blended volumes is QX gross a occurred prior current of overall, in The quarter. versus margins Gross product million $X.X and variance Operating primarily improved 'XX expect year-over-year absorption. last expectations business QX QX. remain on that QX new well in quarter on 'XX the accrual to million the in expenses acquisition 'XX the million and and year XXX fixed XX.X% earnout attributable increase to $X.X in to higher strong lower we is expenses to cost declined to business a approximately ago. Orion

million as the generated of per million was at accounts QX bottom loss a million current $X.X share receivable a line, reflecting defined of to $XX.X Looking or cash was net compared we Cash million a we or from as changes. operating was per $X financial assets $X.XX $XX.X On in working net working 'XX $X.XX QX cash adjustment. loss reported improved included of the $XX.X which tax to excluding deferred a share revolver investments $X.XX positive million net and 'XX, which net availability or our December and XX% per have $XX.X results 'XX. $X million, approximately basis, XX, capital of capital on share, $XX.X and a shared $X.X would inventory million, assets approximately allowance and noncash operations tax in $XX had loss Net QX liquidity, million record year's million. included million. of charge valuation last On been of comparable

As operations such, a we fund believe goals we to good moving position are growth and in forward. our

for range ask reminder, I'll outlook begin for XX%. year XX% and this when fiscal June. report operator million, will with the are a in our a in fiscal $XX growth 'XX, to to $XX we of the XX% month, last updated targeting a million we expectations preliminary our update to of of full On range the And revenue representing we growth to to As we Q&A session. XXXX results that, basis, XX%

Operator

H.C. from [Operator Instructions]. Amit And first our Dayal question comes from Wainwright.

Amit Dayal

some the factors any segment? little of EV drop a variance there driving that sequentially. quarterly side, the seasonality? are it a bit On other from Or of Was

Michael Jenkins

It question. projects laid Project the was really timing quarter. good how the in Yes, overall. out just

to or I as lines. our any now $XX really anything pipeline see, referenced project out continue EV to concerns overall those market. about We along pipeline. the pushouts in comments, build million of to substantial north And anything in the haven't due continues or broader we seen the

Amit Dayal

Or U.S. is $XX Northeast? it million The mentioned, across Okay. pipeline spread all the is you this

Michael Jenkins

No, it's Northeast. of the across It's out the spread U.S.

begun our country. and we're beginning with we're existing in states our multiple -- around the work gaining So customers, we've lighting cross-selling traction

Amit Dayal

Okay. higher larger shift impact And much can a in lower higher-margin then margin number by this small -- revenues your margin comments of around the How that Or revenues. sort and that strategy? very sort amount impacted focusing of it projections. could is it model not make should Is is an customers of we the on meaningful? on be

Michael Jenkins

we was were acquired maintenance referring to legacy the Specifically, business, which the with maintenance Stay-Lite. business,

now, -- working We're RFPs focus. through working we're in the And this that's so right those quarter.

maintenance really what look to don't in business terms really that with it's in side. isolated acquired the have the any specifics we of but we So that could like, Stay-Lite

Amit Dayal

for last just Maybe Understood. me. Okay. one

mix we and between looking for. maintenance of For lighting, be revenue fiscal what should 'XX, EV kind

Michael Jenkins

XX% the growth XX% Well, we terms in year. projected for guided to of

continued maintenance going growth and play with in performance stronger the how certainly, see process. growth couple But and the lighting business in in EV. And expecting these customers out in growth are through RFP to strong things we'll lighting EV. We are of

Operator

from question Eric Craig-Hallum. next comes our from And Stine

Eric Stine

clearly your side. that I the curious, all large they of to interested I your I it you've who very maintenance know retrofit the So with are you is, now? know large EV beyond on customer, footprint the mean the customer, know expanded

business guess, beyond that -- the if your where I core legacy other starting your curious accounts that see to you LED national Just are of retrofit. seeing it's mean, you're with dynamic I expansion just

Michael Jenkins

electrifying guests, Great in broad large A to and, Eric. I of our with on lot mean certainly electrification there's a we employees forward are the customers. that those interest EV public our Yes. Yes, are. think their all And fleet. of strategy some question, their moving front customers. considering -- support I cases, swath particularly their their of

conversations we with So of them. group are broad having a

have Some particularly our maintenance customers where their retail to, of That's don't who them, in strongest. is the apply really probably proposition maintenance services locations. might staffs value

well. And as so there are conversations there happening

see all pillars X forward we from work standpoint. these cross-selling So a moving of continuing to

Eric Stine

fiscal then initial here coming Got to outlook the it. back just 'XX. And for

it are not and that DoD renewal So fourth quarter midpoint dig that, the to you're say implied basically, into project. your And you customer I you fourth that. be so better with it's down the mean, that I pricing expect maintenance to done, annualizing if mean, at the But done the is fair with on largely you assuming side?

Michael Jenkins

substantially agree certainly We with project. projections our Yes. that are that the be complete we'll DoD

feel into like On the we forecast. considerations maintenance we've taken the side, reasonable

Eric Stine

'XX project whether are well, maybe that there get talk something you more about that as Okay. And there that as you correct as I'm know still go pipeline long-term into replace things could the qualified. it's kind me project? out about of RFP mean, through you think wrong, the outlook. but but that the I are process, to then if or we completed DoD about you've just I that have

Michael Jenkins

the to well pipeline cases, now, lighting on and over We EV Sure. is working a do and direct The like are built as both on in been that's years acceleratingly as the space be the that partners front, on both has right some basis. one and DoD we with in a situation side to interest federal have significant continues keen us. Yes. of that's Absolutely. built the

Eric Stine

form mean I partners about it. to most Got way were... is what's there think the a typical

Michael Jenkins

are in we're and Typically, And specialists we're who a would often manage the the kind basically fashion. turnkey an elements. including working project manage ESCO and who that, through other entire we that working of HVAC lighting partner it. do Yes, typically, through we

Eric Stine

into do certain you're your there? of what's to it's where suspect with I and there. what would view kind working out is something of a out visibility of Does I partners kind have Okay. you potential think anything that would the

Michael Jenkins

the Yes. projects, with have partners. that's We built long-term and significant pipeline view a up core we

Operator

And our Cook Singular next BJ Research. from comes question from

Unknown Attendee

to here touch. things of couple want a Just I

second. On the EV just segment for a

simply mentioned some just the next to of short move you projects, kind projects of that expect some timing of or here your You do larger the those the to of quarter? in all term

Michael Jenkins

Yes.

that it's little think I any term, rental marketplace, them been bit. broad stress of to point. not that. the about kind want would of at quarter I normal the in push reaction after car way moved kind any the the the or seen I next have we've That's anything both of like we're maybe describe Again, that that, headlines is this project quarter some a seeing these things and just companies the near of This out out.

John Brodin

permitting for these that and are things, A can for can't that. and timing without of impact customers as grant they waiting BJ, sometimes of Yes. waiting forward approvals couple move they're final some

that of So part push it projects over quarter. there's a just cross can gatekeepers are will of couple to of up it things just things month, a but kind certain a

those are So with. the we're dealing dynamics kind of

Unknown Attendee

about Appreciate I'm also it. of internally? I if a might and some bill? million plus further road the be that's guess what that maybe kind I wondering Got infrastructure pipeline the comes in of guys that. impressive. down EV pretty in you are you there that's benefit guess $XX talked doing to addition from Or

Michael Jenkins

from pipeline opportunities business, customer. from that build it's Yes. with share cross-selling from question. our equipment format with or there. opportunities providers organic partnership and that a We're Voltrek kind of coming work seeing rather, is strategic build Good product we the partners It's that coming also true like coming lighting and

back, was built several rapidly $XX that approximately million. we've quarters So it from pipeline

seen is driving nice execution. through the focused And and wins we've So those very to to those converting on again, build on team that.

Unknown Attendee

Just quick one. X more

unprofitable Can of legacy what might basis. business. a the renegotiating give off us maintenance margins are that. guys running on like segment at least normalized appreciate of glimpse look you You chatted about a and some I

John Brodin

Yes.

too. rate. our lot it awfully say A but will things a expect we at hard think to depends of sales I normalized that's be time volumes, over on fairly that

Operator

And Management. Bill comes our Dezellem Tieton from from Capital next question

William Dezellem

in that January, EV process and the that I existing the stations. government $XXX in to if in involved Was believe charging Back middle something awarded the million not, of repair like month, why? Voltrek

Michael Jenkins

Bill, seen government quite to at we from of time. its point work to take nice not in time as through now ago, hear No, this funding months about the A to flow through. The federal were [ to some you. lot does that money example, the have way street. beginning the of kind just approved ] and going funds hit XX the an states Navy as funding from XX to XX is probably that

So from we benefited in at time. that funding have point this not

William Dezellem

My impression, place. Mike, awards announcement? Did was these that I taken the were actual had misread

Michael Jenkins

know the would and have on specifics don't I I Bill, the announcement. go of that. back to check

William Dezellem

Okay.

me The X compare $XX year referenced, that down pipeline how you does EV ago? that Let path. the continue to of million

Michael Jenkins

less, Yes. around ago, We probably, $XX maybe yes. were I would a million little a Actually year less. say,

it's built substantially. So

William Dezellem

thinking each that the weighted? the that Congratulations. your really anticipating you remarks quarter roughly And growth general be the in and on What's is read up then XX%. of trajectory What XX% XX% you to going as release front-end anticipated as rate it Is much that? you referenced how back-end in to currently are change, do year. year of to weighted, early your XX% see opening and looks next

Michael Jenkins

tends of It's timing Bill. this prior, the more Yes. of some the capital Typically, to the as Good the work of to out. back-end projects a we company. and the kind loaded tend year question, way cycle years be and

see on I bit think that any loaded. year, growth quarter-over-quarter probably but going at would specifics haven't and be out time, really back-end a given rate the in lay growth this quarters the still be say, the the would we applied, point way But throughout we're this. to I will let's

William Dezellem

rate make change there you're the XX% just that similar to Mike, of I of So understand is what saying XX% the to each quarters. probably is sure that for

the in to just we and an back-end to sense, this XX% the math the absolute year up XX% how loaded However, was will be dollar that's quarters. year each of it get be like

Michael Jenkins

Absolutely. Bill. Yes. Good summary,

William Dezellem

X then And please. Okay. question, additional

bit including You've would more business interest new insights existing to customers and referenced of any wanting in you what all appreciated. large degree Talk be versus a do would, and bundle is about accounts that, a customers please. are if you this share primarily that And can little all additional the to segments. their X X

Michael Jenkins

X customer a large installation examples right Sure. I is EV One of very did for. use could that customers now. we a

past Our them that aware has team, customer products, as the new new this of ones lighting worked which exterior this Harris with year. they've are our made available, we launched

And $X.XX We process. in project them. project million the for -- lighting so we're quoted

an an to that's working lighting. example standpoint, So EV of from cross-selling,

and other sites which multiple a customer manufacturing their of now fleet strategy ours, through -- the the as On long-standing public to engaging throughout electrification, helping their include for have on we them U.S. them we're to hope And move side, that then will obviously, forward They're terms them. company, getting actively in move requirements with and execution. engaging they of layouts design

So are those of X the cross-selling. examples of some

William Dezellem

or And you versus do coming that EV? that you described primarily to to are existing, all that business, any doing aspects finding maintenance of new relative of lighting, is X gates, to out customers new you're you what right the about wanting your and talk existing, the have are customers

Michael Jenkins

and one way comes That's we think that the it typically us into cross-sell that the customer from to works. the areas the ecosystem, once need about in reality pressing I X the new typically come of let's a say, customers there. is

Operator

And Management. our Capital from from comes next Shapiro Andrew Lawndale question

Andrew Shapiro

been You than have to lower price your prices at service the X when? of level. have mentioned up rather side the Is quarter runs script on This customers or customer's it converted off sometime thereafter? the in contracts guess, maintenance I current legacy it last during fourth their contract, X, market money-losing

John Brodin

The end of April.

Andrew Shapiro

there a revenues at Or contract generated at fixed this margin? like you forward recognized in remaining contract, defense a price margins there from loss the have here? Or estimated are just or loss And April. loss of end the at Okay, X going this? some is in embedded

John Brodin

the based losses nature contract. on loss. not embedded a reserve an contract do No, on of for there that future We is that have

losses at we current additional netting of the anticipate through the maintenance. the the within least completion would contract, we against there's contract, as other work results as So

Andrew Shapiro

improvement. already no, No, the Yes. Right. seen

provide And the just you the you asked range sort. to were numerical of had someone hesitant question maybe and

asked didn't provide question was burns that from money-losing or to you know, you able range contract the just that and rather something what reason normalized are you segment a would Someone that this whatever comfortable not off provides? are the competitive margins the on be once I you'd for or

John Brodin

transparency, I hear quite Full before. didn't question full the

So we anticipate XX% margin in range. that operating business the

Andrew Shapiro

smaller in And customers then off this rate with money burn these any segment are of smaller there that that you is loss? have other of kind have to that that are also fixed with Or amounts terms it?

Michael Jenkins

big We've all and addressed be the to the margin small, need standpoint. are that have Yes. all of a or addressed addressing situation we from situations,

Operator

And question Rudd comes from our Blackwall. next Steve from

Unknown Attendee

to your statement that last you've focus I addressed. on just want

all addressing the clarification appreciate on are You callers issues. or I prior the the And questioners margin customer. fourth

the contracts accepting better with on done. be them no off that -- are margins. to yet other there pricing fourth will margins. these those been better prospectively there's negative that in Or X that now April that with want negative contracts I said, the to fully contracts, with fully new the margins? new and you margin -- simply not is understand the with have of negative are they're is, On the contracts work done, just them it like been loss that our have contracts Is have customers, converted model still customers margins, X but X there's there What contract that to customers more -- it have

Michael Jenkins

good clarification. and ask question Good Yes. for

periods the -- So gone have we have and be repriced within contract customers X. we have we to out to successfully of clear, these X

these comments say, in is As indicated season, the the let's majority for of RFP my this also earlier, accounts.

of place now taking our RFPs quarter in the So are the X. majority

And so some have. RFPs we may because profitability suggested, concerns not we -- of that as the are we renew therefore, of these

John Brodin

to way did about while the extend not X it, of mid-contract, the open X those contracts. the we think Another contract

went regular RFP So they to back cycle. the

Unknown Attendee

X the to customers. guys or X Okay. you implication me reached success there here, these interesting, of the X. X no longer with all, to -- existing these think to first And glad unprofitable? what you and I out X, Is was clarify X of with is willingness reprice contracts of or I'm that their that the are it's longer no to interesting implication want contracts but What's What's the And this the that, I to unprofitable. correct had contracts. them existing are those

Michael Jenkins

have that been ones profitable. repriced are The Correct.

Unknown Attendee

then half a contract. the But I don't forward, And know don't you need resolve? reprice I follow we mean. conflict the customers' Yes, going I an implication in reprice. to going need what forward. X don't And answer I what them, your we outcome with the a lines existing reprice up. that is doing probably to with more second don't that's I those line of But really that is and we a much to yes, to understand the know be -- -- of more our willingness see just kind we there's hear model I'm of see much don't we number those doing see how won't really business. that contracts, that up, ourselves no, strange We where, Do we you how trying but

Michael Jenkins

understood I it's our say inflationary Sure. situation. Sure. that therefore, the understand. a periods. an competitive contract would you way RFP into we I environment, and get negotiated Anytime to within they pricing situation,

long What is its of not situations, of if end therefore, unknowable. some shedding the term. there's to that know not we which of because is that us take nature in on and revenue a of And lot up profitable. especially unprofitable the so one business these going do we for benefit And we're will

Unknown Attendee

the that that other do squeezed though. margins like on the the business, we cetera. And reduce got everybody in we massive you forward -- risk obviously exogenous want floating that possibility and one ask it to right. a that's itself on that a get thing, I again. cost-plus on marketplace cost-plus which around to lend events, the you because did our et our Okay. bottlenecks, model me the to particular are yet you us so ability wack to during have in pandemic way go. But All or any pricing either your model seems we do or go think, wrong to might I Have

position there is [ So for cost ] your plus?

Michael Jenkins

not that's works. way Unfortunately, the industry the

all so and the X methodology. the price customers basically fixed And are same a it's use year,

So that business them. if to we're with end subscribe going doing to up have to we

wins. in So we unknowable, some gotten We've take going RFPs, again, feel but some not and through the been the unprofitable on except right are that which have we're do now, feel good of which midst we're won which which business. contracts like about. to pricing have some we we we've for And had that fact we've some had

So committed that's to, okay? what we've

John Brodin

Pretty want deep have to a reach a if the IR you could you some out we and weeds, separate could time call to conversation into that. for maybe schedule the group, detailed

Operator

I'll for concluding And that now the back session. turn remarks. concludes Jenkins Q&A the Mr. conference to

Michael Jenkins

when Thank for report our joining look 'XX. results we today. you call to our all progress you forward updating We fiscal through as we year full and

in speak the information XX, with contact April New Investor contact investor meeting. call Emerging We City, Leaders Thank Value X including today's person meet release. or to webinar events, a The our team you or Micro or LD schedule with to York X. in again. February in team's with also management Invitational and Research, Relations IR any at Please questions is Singular and hope to press Growth at upcoming you on you

Operator

today's concludes This call. you. Thank

Orion Energy Systems (OESX) 7 Feb 242024 Q3 Earnings call transcript