Profile: Orion Energy Systems, Inc. (OESX.O)

Orion Energy Systems, Inc. (Orion), incorporated in April 1996, designs, manufactures, markets and implements energy management systems consisting primarily of high-performance, energy efficient lighting systems, controls and related services. Its energy management systems deliver energy savings and efficiency gains to its commercial and industrial customers without compromising their quantity or quality of light. The core of its energy management system is its high intensity fluorescent (HIF), lighting system that the Company estimate cuts its customers’ lighting-related electricity costs by approximately 50%, while increasing their quantity of light by approximately 50% and improving lighting quality when replacing traditional high intensity discharge (HID), fixtures. The Company had sold and installed its HIF fixtures in over 4,500 facilities across North America, representing over 756 million square feet of commercial and industrial building space, including for 115 Fortune 500 companies, such as Coca-Cola Enterprises Inc., General Electric Co., Kraft Foods Inc., Newell Rubbermaid Inc., OfficeMax, Inc., and SYSCO Corp.

Energy management system is comprised of: HIF lighting system; InteLite wireless lighting controls; Apollo Solar Light Pipe, which collects and focuses renewable daylight and consumes no electricity, and integrated energy management services. As of March 31, 2009, the Company installed over 1,476,000 HIF lighting systems for its commercial and industrial customers. The Company is focused on leveraging this installed base to expand its customer relationships from single-site implementations of its HIF lighting systems to enterprise-wide roll-outs of its complete energy management system. The Company has focused on selling retrofit projects whereby the Company replace inefficient HID, fluorescent or incandescent systems. The Company generates approximately 60% of its revenue through direct sales relationships with end users. Approximately, 40% of its revenues are generated from such indirect sales. The Company provides a variety of products and services that together comprise its energy management system. The core of its energy management system is its HIF lighting platform, which the Company primarily sell under the Compact Modular brand name.

The Compact Modular

Orion’s primary product is its line of HIF lighting systems, the Compact Modular, which includes a variety of fixture configurations to meet customer specifications. The Compact Modular generally operates at 224 watts per six-lamp fixture, compared to approximately 465 watts for the HID fixtures that it typically replaces. The Company’s Compact Modular has a thermally efficient design that allows it to operate at significantly lower temperatures than HID fixtures and other legacy lighting fixtures typically found in commercial and industrial facilities. The Compact Modular product line also includes its modular power pack, which enables Orion’s to customize its customers’ lighting systems.

InteLite Motion Control and Ambient Light Sensors

InteLite wireless control products allow customers to communicate with and give commands to individual light fixtures and other peripheral devices through Web-based software, and allow the customer to configure and easily change the control parameters of each fixture based on a number of inputs and conditions, including motion and ambient light levels. Its InteLite products can be added to its HIF lighting systems at or after installation on a plug and play basis by coupling the wireless transceivers directly to the modular power pack.

Apollo Solar Light Pipe

Apollo Solar Light Pipe is a lens-based device that collects and focuses renewable daylight, bringing natural light indoors without consuming electricity. Its Apollo Solar Light Pipe is designed and manufactured to maximize light collection during times of low sun angles, such as those that occur during early morning and late afternoon. The Apollo Solar Light Pipe produces maximum lighting power in peak summer months and during peak daylight hours.

Other Products

The Company also offers its customers a variety of other HIF fixtures to address their lighting and energy management needs, including fixtures designed for agribusinesses, parking lots, roadways, outdoor applications and private label resale.

The Company competes with Cooper Industries, Ltd., Ruud Lighting, Inc., Acuity Brands, Inc., Graybar Electric Company, Gexpro, W.W. Grainger, Inc., Johnson Controls, Inc., Honeywell International, Comverge, Inc. and EnerNOC, Inc.