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ENERGY FOCUS, INC/DE

ENERGY FOCUS, INC/DE Q4 FY2021 earnings call

March 17, 2022 · fiscal period ended 2021-12

EPS · actual vs est

$-3.50 / $-1.40Miss -150.0%

Revenue · actual vs est

$2.4M / $3.0MMiss -21.1%
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Summary

Generated 2022-03-17

Management highlights

  • Steven Socolof became interim CEO, focusing on supporting the team, executing initiatives, ensuring disciplines, and cash management. - Reorganized the team, realigned business functions. - Recruited new board members Jeff Parker and Brian Lagarto. - Greg Galluccio discussed new products: next-gen red cap emergency lighting, focused power line control technology (won top product award), and nUVo UVC disinfection solutions (traveler and tower products launched).
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Segment performance

For the fourth quarter of 2021, net sales were $2.4 million, down 35.8% from Q4 2020. Commercial products sales were $1.2 million (48.6% of total net sales) flat compared to Q4 2020. Military products sales decreased due to government funding delays. For the full year 2021, net sales were $9.9 million. Commercial products net sales were $4.7 million (47.5% of total), military and maritime products were $5.2 million (52.5% of total). Gross profit in Q4 2021 was $0.2 million (7.9% margin), down from $1.4 million (38.3% margin) in Q4 2020. Full year 2021 gross profit was $1.7 million (17.2% of net sales).

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Guidance

  • Expect to grow revenue and see results in next few quarters. - Anticipate meaningful contribution in the second half of 2021. - If quarterly sales levels exceed $4 million, overall gross margins expected to be in mid-twenties, approaching high twenties with new products and initiatives.
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Risks

  • Market challenges and slow development of new product portfolio in prior years. - Supply chain issues impacting product launch and go-to-market plans. - Impact of COVID-19 on commercial projects' timing and pace. - Delays in military funding availability affecting military product sales.
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Q&A highlights

Q: What's different in accelerating commercial efforts?

A: Restructured organization, realigned engineering/operations, changed supply base work; launching new red cap emergency lighting and in focus power line control products. Greg added pull-through on standard lighting products with improved product management.

Q: Status of ABR UV product?

A: Shelved as first samples didn't meet expectations; prioritizing other products like nUVo traveler and tower.

Q: Status of military contracts?

A: Military business is made-to-order; not seen orders released yet, but continue to bid on future opportunities

View in transcript ↓

Key numbers

Reported versus consensus

Earnings calendar feed

MetricReportedConsensusDeltaPrior year
EPS$-3.50$-1.40-150.0%$0.07
Revenue$2.4M$3.0M-21.1%$3.7M

Transcript

March 17, 2022

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