MANITOWOC, WI - Today, Orion Energy Systems, Inc. (NASDAQ:OESX), a manufacturer in the electric lighting and wiring equipment industry, announced it has regained compliance with Nasdaq's minimum bid price requirement. The company received formal notification from the Listing Qualifications Department of The NASDAQ Stock Market LLC on June 18, 2024.
Orion Energy Systems was previously notified on April 5, 2024, that it did not meet the Nasdaq Listing Rule 5550(a)(2), also known as the Bid Price Rule, which requires the company's common stock to maintain a minimum bid price of $1.00 per share for 30 consecutive business days. To address this issue, the company's stock needed to meet or exceed the $1.00 minimum threshold for a set period.
According to the press release statement, the closing bid price of Orion Energy Systems' common stock achieved the necessary rebound, maintaining at or above the $1.00 minimum for ten consecutive business days from June 3 to June 17, 2024. This recovery has brought the company back into compliance with Nasdaq's requirements.
The information reported is based on the company's latest 8-K filing with the Securities and Exchange Commission.
In other recent news, Orion Energy Systems has reported strong financial results for the fourth quarter and the entire fiscal year of 2024, meeting its revenue guidance with a significant rise from the previous year. The company's confidence in its growth trajectory for fiscal year 2025 is demonstrated by its expectation of a 10% to 15% revenue increase, driven by expansion in the LED Lighting solutions and the Voltrek EV Charging segment. The latter is projected to grow by over 50%.
Orion Energy Systems achieved a 17% revenue increase year-over-year, with the fourth quarter being the most robust. The LED Lighting segment and Voltrek EV Charging both experienced substantial growth, contributing to the overall positive financial performance. The company's gross profit percentage improved in Q4 2024, and operating expenses declined due to an earnout adjustment.
Orion anticipates a 10% to 15% revenue increase for fiscal year 2025, with a more substantial revenue growth expected in the second half of the year. The company's growth is expected to be supported by federal funding under the Build America, Buy America Act. Despite recording a noncash impairment charge for intangible assets and incurring restructuring costs, the EV business grew by 96% and the Maintenance Services by 18%, indicating potential for future growth.
InvestingPro Insights
Orion Energy Systems' recent compliance with Nasdaq's minimum bid price requirement marks a crucial turnaround for the company, reflecting positively on its stock performance metrics. According to InvestingPro data, the company has observed a significant 1 Month Price Total Return of 24.2% and a 3 Month Price Total Return of 31.11%, aligning with the positive trend required by Nasdaq. Additionally, the company's Market Cap stands at a modest 38.43M USD, which may appeal to investors looking for smaller-cap opportunities.
While the company's P/E Ratio is currently negative at -3.28, indicating that it is not profitable as of the last twelve months ending Q4 2024, the strong price performance over recent months could suggest investor confidence in the company's future prospects. Notably, InvestingPro Tips highlight that Orion Energy Systems is not expected to pay dividends and analysts have concerns about profitability in the near term. However, with liquid assets exceeding short-term obligations, the company appears to maintain a solid liquidity position.
For investors seeking a more in-depth analysis, there are additional InvestingPro Tips available, providing valuable insights into Orion Energy Systems' financial health and market performance. To access these tips and gain a comprehensive understanding of OESX's investment potential, consider using the promo code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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