$10 million, adds to prior plan

Hold - Price: $5.94 on July 16
by Singular Research

Orion Energy Systems [which makes energy-saving lighting and other systems] issued a negative earnings pre-announcement that was well below both our estimates and the Street consensus. Q1:09 revenues are expected to be in the $16.1 million-$16.3 million range, versus our $25 million estimate. FY:09 revenues are now expected to grow 25%-28%, to $101 million-$103 million. This is also well below our prior estimate of $121.5 million. The reduced guidance is attributed to both economic conditions and a focus on the build-out of OESX's sales organization. Risks: Despite the cost-savings proposition offered by OESX, many potential customers remain hesitant [to buy] due to economic conditions. OESX is exposed to rising raw-material costs... which may impact its margins. And efficient lighting management is a relatively new business, which may not gain full market acceptance.

GE: Compact fluorescents and lighting are booming.
This company recently came public and like the new compact fluorescent lighting movement is concerned with using less energy to using innovative lighting products.