Orion Energy Systems, Inc. (OESX): Business Model Canvas [11-2024 Updated]
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Orion Energy Systems, Inc. (OESX) Bundle
In today's rapidly evolving energy landscape, Orion Energy Systems, Inc. (OESX) stands out with its innovative approach to sustainability and efficiency. This blog post delves into the company's Business Model Canvas, highlighting essential aspects such as
- key partnerships
- value propositions
- customer segments
Orion Energy Systems, Inc. (OESX) - Business Model: Key Partnerships
Collaborations with manufacturers of LED lighting products
Orion Energy Systems collaborates with various manufacturers to source high-quality LED lighting products. The company’s lighting segment generated revenues of $23,591,000 for the six months ended September 30, 2024, down from $26,194,000 for the same period in 2023, indicating a 9.9% decrease. This collaboration is crucial for maintaining product quality and innovation in a competitive market.
Partnerships with electric vehicle charging station suppliers
Orion has established partnerships with electric vehicle charging station suppliers, contributing to its Electric Vehicle Charging Segment, which reported revenues of $8,556,000 for the six months ended September 30, 2024, compared to $4,617,000 in the same period of 2023, representing an 85.5% increase. This growth highlights the importance of partnerships in expanding Orion's market presence in the rapidly growing EV sector.
Relationships with energy service companies and contractors
Orion maintains strong relationships with energy service companies (ESCOs) and contractors, facilitating the delivery of maintenance services and lighting solutions. The maintenance segment generated $7,120,000 in revenue for the six months ending September 30, 2024, slightly decreasing from $7,388,000 in 2023. These relationships are vital for Orion to enhance service delivery and ensure customer satisfaction.
Alliances with governmental and municipal entities
Orion Energy Systems has formed alliances with governmental and municipal entities, which are significant customers for its lighting solutions. The company’s ability to secure contracts with such entities supports its revenue streams and enhances its reputation in the public sector. Orion reported total revenues of $39,267,000 for the six months ended September 30, 2024, reflecting a slight increase from $38,199,000 in the previous year.
| Partnership Type | Revenue Contribution (6 months ended Sep 30, 2024) | Revenue Contribution (6 months ended Sep 30, 2023) | Percentage Change |
|---|---|---|---|
| LED Lighting Manufacturers | $23,591,000 | $26,194,000 | -9.9% |
| EV Charging Station Suppliers | $8,556,000 | $4,617,000 | +85.5% |
| Energy Service Companies | $7,120,000 | $7,388,000 | -3.6% |
| Governmental and Municipal Entities | $39,267,000 | $38,199,000 | +2.8% |
Orion Energy Systems, Inc. (OESX) - Business Model: Key Activities
Manufacturing and sourcing of lighting fixtures
The manufacturing segment of Orion Energy Systems, Inc. involves producing LED lighting products and energy management systems. As of September 30, 2024, the total revenue from product sales was $12,367,000, which represents a decrease of 20.7% from $15,588,000 during the same period in 2023. The cost of product revenue for the same period was $8,888,000, leading to a gross profit of $4,472,000. Orion sources components from multiple suppliers, ensuring a diversified supply chain without any single supplier accounting for over 10% of total costs.
Installation of lighting and EV charging systems
Orion provides installation services for both lighting systems and electric vehicle (EV) charging stations. For the three months ended September 30, 2024, the revenue from installation services, including EV charging, was reported at $4,725,000, up from $3,379,000 in the prior year. The installation services segment has been crucial for driving revenue growth, particularly as the demand for EV infrastructure increases. The company also offers turnkey solutions, which encompass the entire process from installation to ongoing support.
Providing maintenance and repair services
The maintenance segment generated revenue of $7,120,000 for the six months ended September 30, 2024, compared to $7,388,000 during the same period in 2023. The maintenance services focus on repair and replacement for lighting and electrical components, supporting clients such as retailers and distributors. This segment saw operating income losses of $1,328,000 for the first half of fiscal 2025, compared to a larger loss of $3,600,000 in the previous year. The company's maintenance offerings are critical for customer retention and ensuring long-term operational efficiency for their clients.
Engaging in product development and R&D for new technologies
Research and development (R&D) is a vital component of Orion's strategy to innovate and adapt to market demands. For the three months ended September 30, 2024, R&D expenses amounted to $328,000, reflecting a decrease of 14.1% from $382,000 in the same quarter of the previous year. The company invests in new technologies, particularly in the field of energy-efficient lighting and EV charging solutions, to maintain a competitive edge in the market. As of September 30, 2024, total assets were reported at $56,272,000, indicating the financial capacity to support ongoing R&D initiatives.
| Key Activity | Revenue (Q2 FY2025) | Cost of Revenue (Q2 FY2025) | Gross Profit (Q2 FY2025) | Operating Loss (Q2 FY2025) |
|---|---|---|---|---|
| Manufacturing and Sourcing | $12,367,000 | $8,888,000 | $4,472,000 | N/A |
| Installation Services | $4,725,000 | N/A | N/A | N/A |
| Maintenance Services | $7,120,000 | N/A | N/A | ($1,328,000) |
| R&D Expenditures | N/A | N/A | N/A | $328,000 |
Orion Energy Systems, Inc. (OESX) - Business Model: Key Resources
Skilled workforce with expertise in lighting and energy management
Orion Energy Systems, Inc. employs a skilled workforce with extensive expertise in lighting and energy management. As of September 30, 2024, the company had approximately 200 employees, many of whom are engineers and technical specialists in energy-efficient lighting solutions. This specialized knowledge is crucial for the design, development, and implementation of advanced lighting systems tailored to client needs.
Manufacturing facilities for LED products
Orion operates manufacturing facilities dedicated to the production of LED lighting products. The company’s facilities are located in Wisconsin, where it has invested in modern machinery to enhance production efficiency. The total assets related to property, plant, and equipment were valued at approximately $21.7 million as of September 30, 2024.
| Facility Location | Type of Products | Asset Value (in millions) |
|---|---|---|
| Wisconsin | LED Lighting Products | $21.7 |
Established supply chain for sourcing components
Orion has developed a robust supply chain network to source components essential for LED manufacturing. The company maintains relationships with multiple suppliers to ensure the availability of high-quality materials. As of September 30, 2024, Orion's net working capital was $13.1 million, which includes $40 million in current assets, ensuring that the supply chain can support production needs.
Intellectual property related to lighting technology and designs
Orion holds significant intellectual property assets, including patents for innovative lighting technologies. As of September 30, 2024, the company had a total of $2.963 million in amortized intangible assets, which includes patents, licenses, and trade names. This intellectual property is vital for maintaining competitive advantages in the energy-efficient lighting market.
| Type of Intellectual Property | Value (in millions) |
|---|---|
| Patents | $0.451 |
| Licenses | $0.0 |
| Trade Names and Trademarks | $0.181 |
| Customer Relationships | $0.471 |
| Vendor Relationships | $1.860 |
Orion Energy Systems, Inc. (OESX) - Business Model: Value Propositions
Energy-efficient LED lighting solutions
Orion Energy Systems, Inc. offers a range of energy-efficient LED lighting products designed to reduce energy consumption and maintenance costs for businesses. The company reported revenues of $23.591 million in the lighting segment for the six months ended September 30, 2024, down from $26.194 million during the same period in the previous year, reflecting a decrease of 9.9%. This segment is crucial for Orion as it forms a significant part of their product offerings, targeting commercial and government sectors.
| Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Lighting Segment Revenue | $23.591 million | $26.194 million | (9.9) |
| Operating Loss | $(2.487 million) | $(2.728 million) | (8.8) |
| Operating Margin | (10.5)% | (10.4)% | 1.0 |
Comprehensive installation and maintenance services
The company provides extensive installation services for its lighting products, as well as maintenance services that ensure optimal performance over time. For the six months ended September 30, 2024, maintenance segment revenues were reported at $7.120 million, compared to $7.388 million in the previous year, indicating a slight decrease of 3.6%. This segment also focuses on servicing lighting and related electrical components, enhancing customer satisfaction through reliable support.
| Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Maintenance Segment Revenue | $7.120 million | $7.388 million | (3.6) |
| Operating Loss | $(1.328 million) | $(3.600 million) | (63.3) |
| Operating Margin | (18.6)% | (48.8)% | 62.0 |
Expertise in electric vehicle charging infrastructure
Orion is actively expanding its presence in the electric vehicle (EV) charging infrastructure market. The company reported revenues of $8.556 million in the EV segment for the six months ended September 30, 2024, a significant increase from $4.617 million in the same period of the previous year, representing a growth of 85.3%. This growth underscores Orion's commitment to supporting the transition to electric mobility.
| Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| EV Segment Revenue | $8.556 million | $4.617 million | 85.3 |
| Operating Loss | $(0.835 million) | $(2.963 million) | (71.8) |
| Operating Margin | (9.8)% | (64.2)% | 84.7 |
Customizable energy management systems for various sectors
Orion Energy Systems also provides customizable energy management systems tailored to meet the needs of various sectors, including commercial, industrial, and municipal clients. The integration of these systems with their lighting and maintenance services offers a comprehensive solution that enhances energy efficiency. The total revenue for all segments was $39.267 million for the six months ended September 30, 2024, compared to $38.199 million in the previous year, reflecting a modest increase of 2.8%.
| Metric | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $39.267 million | $38.199 million | 2.8 |
| Gross Profit | $8.771 million | $7.740 million | 13.3 |
| Gross Margin | 22.3% | 20.3% | 10.0 |
Orion Energy Systems, Inc. (OESX) - Business Model: Customer Relationships
Direct sales approach for large contracts
Orion Energy Systems primarily utilizes a direct sales approach to secure large contracts, particularly in the commercial lighting and energy management sectors. In the fiscal year 2024, product revenue from the lighting segment amounted to $23.6 million, reflecting a decline of 14.1% compared to the previous year. This decrease was attributed to variability in project timing and completion of significant contracts, such as those with the U.S. Department of Defense.
Ongoing support and maintenance services
The company offers ongoing support and maintenance services to its customers. For the six months ended September 30, 2024, service revenue increased by 58.1%, totaling $14.1 million, compared to $8.9 million in the same period of the previous year. This growth highlights the company's commitment to customer retention through reliable maintenance services.
Multi-year contracts for maintenance and repair
Orion Energy Systems engages clients through multi-year maintenance contracts, which provide a stable revenue stream. The maintenance segment reported revenue of $7.1 million for the six months ended September 30, 2024, a slight decrease from $7.4 million in the previous year. However, the operating loss in this segment improved significantly, decreasing from $3.6 million to $1.3 million.
Engagement through educational resources and consultations
Orion also invests in customer engagement through educational resources and consultations. The company conducts training sessions and provides informational materials that enhance customer understanding of their energy management systems. This proactive approach aids in building long-term relationships and fostering customer loyalty, which is critical given the competitive landscape of the energy solutions market.
| Aspect | FY 2024 Revenue | FY 2023 Revenue | % Change |
|---|---|---|---|
| Product Revenue (Lighting Segment) | $23.6 million | $27.5 million | -14.1% |
| Service Revenue (Total) | $14.1 million | $8.9 million | +58.1% |
| Maintenance Revenue | $7.1 million | $7.4 million | -4.1% |
| Operating Loss (Maintenance Segment) | $(1.3 million) | $(3.6 million) | Improvement |
Orion Energy Systems, Inc. (OESX) - Business Model: Channels
Direct sales to commercial and government clients
Orion Energy Systems, Inc. (OESX) primarily engages in direct sales to commercial and government clients, focusing on energy-efficient lighting and electric vehicle (EV) charging solutions. For the six months ended September 30, 2024, total revenues were reported at $39.3 million, with a significant contribution from service revenue which increased by 39.9% year-over-year, totaling $14.1 million.
Partnerships with electrical contractors and distributors
Orion leverages partnerships with electrical contractors and distributors to expand its market reach. This includes collaborating with energy service companies (ESCOs) and utilizing manufacturer representative agencies. The lighting segment revenue has seen variations, with a noted decline of 20.1% in the second quarter of fiscal 2025, reflecting a total of $10.8 million compared to $13.6 million in the previous year.
Online platforms for product information and inquiries
Orion maintains an online presence that serves as a platform for product information and customer inquiries. This digital channel is crucial for generating leads and facilitating sales, especially in the growing EV segment. The company recorded $8.6 million in EV charging segment revenues for the six months ended September 30, 2024, marking a significant increase from prior periods.
Trade shows and industry events for visibility
Participation in trade shows and industry events is a key strategy for Orion to enhance visibility and showcase its product offerings. This approach allows the company to connect with potential clients and partners, reinforcing its market position. The company’s total revenue for the lighting segment was $23.6 million for the first six months of fiscal 2025, despite the challenges faced.
| Channel | Type | Revenue Contribution (FY 2025) | Growth Rate |
|---|---|---|---|
| Direct Sales | Commercial and Government | $39.3 million | 39.9% (Service Revenue) |
| Partnerships | Electrical Contractors and Distributors | $10.8 million (Lighting Segment) | (20.1%) |
| Online Platforms | Product Information and Inquiries | $8.6 million (EV Charging Segment) | Growth not explicitly stated |
| Trade Shows | Industry Events | Part of $23.6 million (Lighting Segment) | Not specified |
Orion Energy Systems, Inc. (OESX) - Business Model: Customer Segments
Government agencies and municipalities
Orion Energy Systems, Inc. serves various government agencies and municipalities as key customers. The company provides energy-efficient lighting solutions and maintenance services tailored for public sector needs. In the fiscal year 2024, revenue from government contracts was approximately $8.5 million, reflecting a significant portion of their total sales.
Commercial and industrial clients
Orion's commercial and industrial clients include a diverse range of businesses that require energy-efficient lighting and maintenance services. The company generated about $15 million in revenue from commercial accounts during the first half of fiscal 2025, which represents a 10% increase compared to the previous year. Key industries served include manufacturing, warehousing, and logistics.
Retailers needing lighting maintenance
In the retail sector, Orion provides maintenance services for lighting systems deployed in various retail environments. For the six months ended September 30, 2024, Orion reported $7.1 million in revenue from maintenance services, which shows a slight decrease from the previous year. Retailers benefit from Orion's expertise in energy management and efficient lighting solutions.
Electric vehicle fleet operators
With the rising demand for electric vehicles, Orion has positioned itself to serve electric vehicle fleet operators. The Electric Vehicle Charging Segment reported revenues of $8.6 million for the six months ended September 30, 2024, which is a significant increase of 39.8% compared to the same period in the prior year. This segment focuses on providing charging infrastructure and maintenance services tailored for fleet operators.
| Customer Segment | Revenue (FY 2024) | Percentage Change | Key Services |
|---|---|---|---|
| Government agencies and municipalities | $8.5 million | N/A | Energy-efficient lighting solutions |
| Commercial and industrial clients | $15 million | +10% | Lighting and maintenance services |
| Retailers needing lighting maintenance | $7.1 million | -3.8% | Maintenance for retail lighting systems |
| Electric vehicle fleet operators | $8.6 million | +39.8% | Charging infrastructure and support |
Orion Energy Systems, Inc. (OESX) - Business Model: Cost Structure
Manufacturing and sourcing costs for products
The cost of product revenue for Orion Energy Systems, Inc. was reported at $17.429 million for the six months ended September 30, 2024, compared to $20.956 million for the same period in 2023, indicating a decrease of 16.8% year-over-year.
Labor costs for installation and maintenance services
For the same period, the cost of service revenue was $13.067 million, up from $9.503 million in the prior year, reflecting a 37.5% increase.
General and administrative expenses
General and administrative expenses decreased to $9.098 million for the six months ended September 30, 2024, from $10.779 million during the same period in 2023, representing a decline of 15.6%.
Marketing and sales expenses
Sales and marketing expenses were $5.785 million for the six months ended September 30, 2024, compared to $6.608 million in the same period of 2023, marking a decrease of 12.5%.
| Cost Category | Six Months Ended September 30, 2024 (in millions) | Six Months Ended September 30, 2023 (in millions) | Percentage Change |
|---|---|---|---|
| Cost of Product Revenue | $17.429 | $20.956 | -16.8% |
| Cost of Service Revenue | $13.067 | $9.503 | +37.5% |
| General and Administrative Expenses | $9.098 | $10.779 | -15.6% |
| Sales and Marketing Expenses | $5.785 | $6.608 | -12.5% |
Orion Energy Systems, Inc. (OESX) - Business Model: Revenue Streams
Sales of lighting products and installation services
Orion Energy Systems generates revenue through the sale of lighting products and installation services. For the six months ended September 30, 2024, the total revenue from lighting product and installation services was approximately $23.3 million, a decline from $26.2 million in the same period of 2023. Specifically, lighting product revenue accounted for $19.3 million while installation services contributed $3.9 million.
| Revenue Type | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Lighting Product Revenue | $19.3 million | $23.7 million | -18.6% |
| Installation Services Revenue | $3.9 million | $2.4 million | +62.5% |
| Total Lighting Revenue | $23.3 million | $26.2 million | -11.1% |
Maintenance service contracts
The Maintenance Segment provides maintenance, repair, and replacement services for lighting and electrical components. For the first half of fiscal 2025, Orion reported maintenance service revenue of $7.1 million, slightly down from $7.4 million in the prior year, reflecting a -3.6% decrease.
| Revenue Type | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Maintenance Services Revenue | $7.1 million | $7.4 million | -3.6% |
Revenue from electric vehicle charging stations and software subscriptions
Orion has expanded its revenue streams through electric vehicle (EV) charging stations and related software subscriptions. For the six months ended September 30, 2024, this segment generated approximately $8.6 million, a significant increase from $4.6 million in the prior year, marking a growth of 86.3%.
| Revenue Type | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| EV Charging Revenue | $8.6 million | $4.6 million | +86.3% |
Project-based sales for customized solutions
Orion also engages in project-based sales for customized lighting and energy management solutions. This revenue is typically recognized based on project completion and can vary significantly based on the size and scope of contracts. For the six months ended September 30, 2024, project-based sales contributed to a total revenue of $19.4 million from various segments.
| Revenue Type | Six Months Ended September 30, 2024 | Six Months Ended September 30, 2023 | % Change |
|---|---|---|---|
| Project-Based Sales | $19.4 million | Data not specified | Data not specified |
Updated on 16 Nov 2024
Resources:
- Orion Energy Systems, Inc. (OESX) Financial Statements – Access the full quarterly financial statements for Q2 2024 to get an in-depth view of Orion Energy Systems, Inc. (OESX)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Orion Energy Systems, Inc. (OESX)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.