Q2 2025 Orion Energy Systems Inc Earnings Call
and Bill Jones.
Speaker Change: Good morning everyone and welcome to Orion Energy Systems fiscal 2025 Second Quarter of Conference Call. At this time, all participants are an illicit only mode.
After the speaker's presentation, there'll be a question and answer session.
to ask a question during the session, you'll need to press star 1, 1 on your telephone. You'll then hear an automated message advising that your hand is raised.
Speaker Change: to withdraw your question, please press star one more again. Please be advised that today's conference is being recorded. On now turn the call over to Bill Jones, invest the relations to begin.
Bill Jones: Thank you, Kathy and good morning to everyone and thank you for joining this call. Orion reported its fiscal 2025 second quarter results this morning.
and Mike Jenkins, the company's CEO, and Per Brodin, Orion's CFO, will review its Q2 results, Financial Position and Fiscal 2025 Outlook. Following their prepared remarks, we will open the call to investor questions.
Today's conference call is being recorded and a replay will be posted in the investor section of Orion's corporate website, orionlighting.com.
As a reminder, remarks and answers to questions that follow include statements which are forward looking under the Private Securities Litigation Reform Act of 1995.
Forward-looking statements typically include words such as anticipate, believe, expect, project, or similar words. Also, any statements describing future objectives and goals
company plans, or its outlook are also forward-looking. These forward-looking statements are subject to various risks that could cause actual results to differ materially from current expectations.
Risks include, among other matters, those that Orion has described in its press release issued this morning, as well as in its filings with the SEC.
Except as described therein, Orion disclaims any obligation to update or revise
Bill Jones: Such forward-looking statements which are made only as of today.
Bill Jones: Reconciliations of certain non-GAAP financial metrics to their closest GAAP measures are also provided in today's press release. And now I'll turn the call over to Orion CEO, Mr. Mike Jenkins.
Mike Jenkins: Thanks, Bill, and thank you all for joining us today.
Mike Jenkins: Our Q2 results reflect continued strength in our Voltrek EV charging station business and a rebound in our maintenance services business.
However, our LED lighting segment was impacted by customer delays as several projects slipped and are now expected to start in the second half of our fiscal year.
Mike Jenkins: Distribution channels, including energy service companies or ESCOs and electrical contractors, were also impacted with some timing delays as well as some softness in new construction markets.
Mike Jenkins: Year-over-year comparables for the second quarter were influenced by the completion of a large European retrofit project for a global superesco in quarter 1.25, which commenced in quarter 1.24 and benefited the year-ago period, but not this quarter.
Mike Jenkins: Despite customer delays in the start of new retrofit projects, overall we are seeing robust quoting activity in our LED lighting project business coming from both new and existing customers.
Mike Jenkins: We recently received POs that will start a new and expected multi-year relationship for a products distributor with over 500 locations.
Mike Jenkins: Orion will be providing LED lighting products and retrofit turnkey project management services and we anticipate the total program value to be in excess of ten million dollars.
This project will be spread over several years and expected to begin this quarter.
Mike Jenkins: The multi-year full program contract is in the final stages, and once complete, we plan to make further announcements.
Mike Jenkins: Last month, we secured a five-year, $25 million contract to supply LED lighting fixtures for new store construction projects for our largest customer, a major national retailer.
Mike Jenkins: This contract extends our existing relationship with this customer, who expects to increase the number of new stores over the next five years.
Mike Jenkins: We are also seeing a nice rebound in automotive OEM activity this year and expect other projects to commence in this sector in coming quarters.
Mike Jenkins: Despite some recent slowness in our LED lighting distribution channels, we are encouraged by progress of our value-oriented LED lighting product lines, such as Triton Pro and our new exterior products, which were introduced in Quarter 2 of last year.
Mike Jenkins: Building on the success of these new offerings, we are investing in the expansion of our value-priced Triton Pro offerings, including recent product launches of round high bays or UFOs, strip lights, and troffers.
Mike Jenkins: Triton Pro and our new exterior products released in quarter two of last year have generated over four million dollars in revenue in fiscal 25 with an open pipeline of over 18 million dollars.
Mike Jenkins: We anticipate continued strength and acceleration in this category moving forward, which opens a new era of opportunity for Orion to build our brand and broaden our customer base.
Mike Jenkins: We are also building sales opportunities related to the growing number of states that are banning the sale of fluorescent fixtures and replacement tubes.
Mike Jenkins: These bands are intended to eliminate the waste and pollution created from the disposal of fluorescent tubes, while also conserving energy through accelerating the conversion to more energy efficient LED lighting technologies.
Mike Jenkins: Ten states, including California, now have either passed regulations or have proposed legislation for such bans, several of which go into effect beginning of 2025, and many states are expected to follow this trend.
Mike Jenkins: We have been in discussions with a number of significant existing and potential customers about their plans for compliance and have identified some meaningful opportunities that we expect to commence in the second half of our fiscal 25.
Mike Jenkins: For a list of all state bans, current and proposed, please see our website at OrionLighting.com.
Mike Jenkins: Turning to our electric vehicle charging station business, we continue to be pleased with our progress in this segment and anticipate continued momentum in the business for the second half of fiscal 25 and the foreseeable future.
Mike Jenkins: Voltrex Quarter 2 performance benefited from construction contracts for Eversource Energy customers pursuant to Eversource's EV Make Ready program.
Mike Jenkins: Our quarter two performance also benefited from additional work for Boston Public Schools building on an earlier school bus pilot project.
Mike Jenkins: We are seeing a growing array of both public and private sector organizations are developing strategies and plans for implementing EV charging programs to support the expanding population of EV electric vehicles across the U.S.
Mike Jenkins: We believe Voltrek, with its national reach and pioneering leadership in the EV charging station business, is well positioned to meet the needs of large customers nationwide.
Mike Jenkins: Importantly, we are also beginning to realize some of the cross-selling synergies we had envisioned when we acquired Voltrek, with EV projects being sourced within our LED lighting customer base, as well as lighting projects being developed with EV charging customers.
Mike Jenkins: WOLTRAC's overall pipeline of project opportunities remain steady at $45 to $50 million.
Mike Jenkins: Meaningful federal stimulus has been appropriated
Mike Jenkins: This program is targeted at states, municipalities, and other local entities to help accelerate charging infrastructure.
Mike Jenkins: Turning to our maintenance services business, I am happy to report that this business delivered a better-than-expected revenue performance in Quarter 2.
Mike Jenkins: Second quarter performance also benefited from pricing discipline which returned the maintenance business to solid gross margin profitability from a negative margin in the year ago period.
Mike Jenkins: of our strategic decision to not seek the renewal of several legacy contracts from our Stalite acquisition, which had become unprofitable due to inflationary impacts.
Mike Jenkins: Entering fiscal 25, we had expected maintenance segment revenue to decrease four to five million dollars principally due to the non-renewal of these unprofitable contracts.
Mike Jenkins: Given our recent progress in developing additional maintenance revenue from existing customers, we now expect our fiscal 25 decline to be lower than this range.
Mike Jenkins: Importantly, our pricing discipline has enabled us to return this business to profitability with a 2300 basis point improvement.
Mike Jenkins: With our smaller but more profitable go-forward maintenance business, we executed a restructuring of costs by reducing staffing and related items, and vacated a leased facility, resulting in roughly $300,000 in restructuring and severance costs in Q2.
Mike Jenkins: Moving forward our plan is to selectively build this business with customers that offers the greatest potential synergies with our lighting and EV segments.
Mike Jenkins: From a macro perspective, we are encouraged by factors that we believe provide tailwinds for Orion over the next five years.
Mike Jenkins: Number one, energy prices.
Mike Jenkins: While they move up and down, we see more energy needs moving forward than capacity increases that will result in increased focus on energy conservation, such as LED lighting.
Mike Jenkins: Number two, climate and ESG.
Mike Jenkins: While politicized in some circles, we see many companies, especially public entities, continue with their sea-level commitments to reduce carbon. Orion's industry-leading LED lights reduce energy consumption by up to 60% versus fluorescent lighting and will help our customers achieve these goals.
Mike Jenkins: Number three, transportation electrification. Passenger and commercial electrification is a generational change and what is required to enable full potential is charging infrastructure and this is where Orion plays.
Mike Jenkins: Number four.
Mike Jenkins: State-led fluorescent lighting bands. This is a very exciting and never-before-seen accelerator for the LED lighting industry, which will play out over the next five years.
Mike Jenkins: And lastly, BAA and BABA. Orion is uniquely positioned to capitalize on the increasing focus of Buy American initiatives at the federal and state levels due to our domestic manufacturing capabilities.
Mike Jenkins: We also see the potential for decreasing interest rates to act as a catalyst to accelerate customers' LED and EV charging projects.
Mike Jenkins: While the Fed's recent 50-basis point cut in the federal funds rate was a welcome reversal, we expect it will take time before their planned easing of rates becomes a more meaningful factor in our customers' decision-making, particularly with those customers who are now waiting on further rate reductions.
Mike Jenkins: Certainly, a lower rate environment further enhances the business case for our suite of solutions.
Mike Jenkins: We remain excited about our long-term prospects and our revenue growth outlook for Fiscal 25 and moving into next year.
Mike Jenkins: Our confidence is based on our competitive strength of our diversified platform of product and services that we have developed to help our customers meet their business, environmental, and sustainability goals.
Mike Jenkins: As we previewed last week, we have revised our Fiscal 25 Revenue Growth Outlook.
Mike Jenkins: to an increase of approximately 10% over fiscal 24 from a prior outlook of 10 to 15% growth.
Mike Jenkins: As we have outlined, this revision is principally due to the delay of certain
Mike Jenkins: LED Lighting Projects into the second half of Fiscal 25.
Mike Jenkins: And as a result, we currently expect the balance of our revenue to be weighted more towards our fiscal 25 fourth quarter, and we expect to generate positive adjusted EBITDA in the second half of fiscal 25 and neutral for the full year.
Speaker Change: Let me now turn to Peer Brodin, our CFO, for some further details and perspective on our financial performance.
Peer Brodin: Thank you, Mike.
Peer Brodin: Q2'25 revenue was $19.4 million versus $20.6 million in Q2'24, principally reflecting the delay of some anticipated LED lighting projects in the recent period
Mike Jenkins: which we now expect to start later this fiscal year.
Mike Jenkins: Additionally, the year-over-year lighting segment revenue comparison was impacted by a large DoD retrofit project in Europe that benefited the year-ago results but was completed in the first quarter of the current fiscal year.
Mike Jenkins: In contrast, our EV charging station segment revenue grew 40% to $4.7 million in Q2'25 from $3.4 million in Q2'24.
Mike Jenkins: The Q225 performance benefited from construction contracts for customers of Eversource Energy's EV Make Ready program, as well as follow-on orders from a large Boston Public Schools pilot school bus project.
Mike Jenkins: Our maintenance services segment also grew to $3.8 million in Q2'25 versus $3.6 million in Q2'24.
Mike Jenkins: As new opportunities more than offset the impact of the last legacy stalight lighting contracts.
Mike Jenkins: Looking at the first six months of Fiscal 25.
Mike Jenkins: Revenue rose 2.8% to $39.3 million from $38.2 million in the prior year period, also driven by EV segment growth.
Mike Jenkins: Overall, our gross profit percentage, or gross margin, increased by 1.5% over the past year.
Mike Jenkins: 90 basis points to 23.1 percent.
Mike Jenkins: in Q2'25 versus 22.2% in Q2'24 driven principally by maintenance segment profitability improvements as a result of Orion's pricing discipline.
Mike Jenkins: Gross margin on Orion's maintenance services improved 2,300 basis points compared to the prior year quarter.
Mike Jenkins: Reflecting the turnaround in the maintenance segment margins and our overall growth outlook, we expect Orion's blended gross margin to remain strong in the remainder of fiscal 25.
Mike Jenkins: Operating expenses declined to $7.7 million in Q2'25 from $8.7 million in Q2'24, principally due to fixed costs and other compensation-related reductions and the $500,000 reduction in the Voltrec earn-out expense accrual versus Q2'24.
Mike Jenkins: Q2 25 included $300,000 of combined severance and restructuring expense in the maintenance segment, reflecting actions to right-size this business following the roll-off of unprofitable legacy accounts.
Mike Jenkins: In total, we have incurred severance and restructuring costs of $700,000 in the first six months of Fiscal 25.
Mike Jenkins: We believe our maintenance services restructuring activity is now substantially complete.
Mike Jenkins: I do want to highlight that outside of our actions in the maintenance business, we have continued to pursue other efficiency and productivity improvements that have contributed to margin and cost benefits in our LED manufacturing and corporate overhead.
Mike Jenkins: The improvement in gross profit percentage and lower operating expenses led to Orion's Q2'25 net loss improvement to $3.6 million, or $0.11 per share, from $4.4 million, or $0.14 per share, in Q2'24.
Mike Jenkins: Cash used in operations was $2.5 million through the first six months ended September 30, 2024. Doa Ryan generated positive cash flow from operations in Q2-25.
Mike Jenkins: The year-to-date use of cash is primarily due to our net loss adjusted for non-cash expenses and working capital requirements.
Mike Jenkins: Orion paid down $1 million on its revolving credit facility in Q2'25, and cash increased to $5.4 million at September 30 versus $5.2 million at year-end, which includes the benefit of proceeds from a bank mortgage facility secured in Q1'25.
Mike Jenkins: Also effective October 30th, we extended the maturity of our revolving credit facility with Bank of America from December 2025 to June 2027.
Mike Jenkins: Current assets less current liabilities, or net working capital, was $13.1 million at the close of Q2'25 versus $16.8 million at March 31, 2024.
Mike Jenkins: Ryan's financial liquidity was $13.1 million at September 30, 2024, as compared to $15.3 million at March 31, 2024.
Mike Jenkins: Considering our growth outlook and financial liquidity, we believe we are in good position to fund our business and growth goals for fiscal 2025.
Mike Jenkins: Before I turn the call over to the operator,
Mike Jenkins: I want to announce that we have two remaining investor conferences this calendar year, and we welcome your participation.
Mike Jenkins: We will participate in the Virtual Investor Summit on Thursday, November 21st.
Mike Jenkins: In addition, we plan to present in person at Singular Research's 19th annual Best of the Uncovered Conference in San Francisco on Thursday, December 12th.
Mike Jenkins: Details for these events will be announced separately and posted to our investor relations page.
Speaker Change: and my dad.
Speaker Change: Let's please start the Q&A session.
Speaker Change: Thank you. At this time we'll conduct the question and answer session. As a reminder to ask a question you'll need to press star 1 1 on your telephone and wait for your name to be announced. To withdraw your question please press star 1 1 again.
Mike Jenkins: Please stand by while we compile the Q&A roster.
Speaker Change: Our first question comes from the line of Eric Stein with Craig Callum Capital Group. Your line is now open. Hi, Mike, I'm here.
Mike Jenkins: Eric
Eric Stein: Hi, good morning. So maybe, so you talked about the 10% year-over-year revenue growth expectation.
Eric Stein: Can you just talk through a little bit, you know, how you see that playing out between the various segments? I mean, obviously EV charging up
Eric Stein: I think you tempered your expectation for maintenance. Is this something where you expect, even with the project pushouts, that LED, that the lighting is flat, up, down, how should we think about that?
Speaker Change: Yeah, we do expect our LED lighting business to...
Speaker Change: to recover in the second half of the year and accelerate, especially into our quarter four.
Mike Jenkins: We do expect our EV business to maintain a similar pace.
Mike Jenkins: or even slightly above as we head into the second half.
Mike Jenkins: several unprofitable contracts and so we do think that the maintenance business now will come in slightly under the range that we announced as we went into the year of being down four to five million dollars obviously though much more profitable business in contributing to our bottom line
Speaker Change: mm-hmm got it and you did just touch on this but maybe a little more on it is this and maybe you said it in the in the prepared remarks and I missed it but is this something we should think about results being more skewed to 4q versus 3q in light of what you just said
Speaker Change: Absolutely. Yep. Okay. Yeah, we do expect a stronger Q4.
Speaker Change: Got it, and then...
Speaker Change: I mean I can appreciate, and I know that these are all really customer directed project push outs, but is there any way that you internally are looking at this and saying how can we better anticipate this?
Speaker Change: inner outlook or, you know, just in the overall business going forward. Because, you know, I mean, this is a it's been kind of a frequent issue you've had with some of your customers.
Speaker Change: Yeah, it is a it's a very challenging thing Eric. I mean obviously we talked about that quite a bit
Speaker Change: It's difficult to anticipate when individual customers may push things out because it's related to other projects that they may have as a company, et cetera. The best thing that we can do as a company, because we don't necessarily control that, is to continue to build our pipeline so that we have more projects and more contingency around that. So when those things do occur, we have enough other pipeline that can overcome it. So that's really our focus, and as I referenced in my remarks.
Speaker Change: We're pleased to see the growth in our pipeline with some very exciting new projects in the works.
Speaker Change: Okay, thank you.
Speaker Change: Thank you.
Speaker Change: Operator, can you hear me? Are you there?
Speaker Change: Oh yes, excuse me. Our next question comes to the line of Amit Dayal with H.C. Wainwright. Your line is now open.
Amit Dayal: Thank you. Good morning, everyone.
Amit Dayal: At a macro level, guys, you know, with respect to...
Amit Dayal: Any impact or exposure to, you know, the discussed sort of tariff...
Amit Dayal: changes that may be implemented.
Speaker Change: Yeah, I mean that's an interesting point if there were to be further
Speaker Change: So, you know, if that would be put in place, I would say that in general should be favorable for Orion, particularly in the lighting business relative to our competitors.
Speaker Change: Understood. And then along those lines, right, I mean, you know, we've seen a lot of manufacturing build-out happening here in the U.S.
Speaker Change: How are you positioned to, you know, participate in some of those opportunities? It looks like from the commentary that you may already be involved in at least bidding on some of this on-shoring related infrastructure build-out. Can you give us any clarity on, you know, what...
Speaker Change: from there is in the pipeline you know that you are trying to participate in.
Speaker Change: I'm going to repeat the question back to make sure I have it correctly on it. So basically it's about some of the on-shoring investments in terms of new...
Speaker Change: capacity and buildings and those types of things as a result of on-shoring and... Manufacturing buildings that are coming up.
Speaker Change: warehouses are coming up, you know, to support all of this on-shoring activity.
Speaker Change: Thank you very much.
Speaker Change: Yeah
Speaker Change: Okay, I understand now. Thank you. Absolutely, we do. We that's new builds is a is a significant part of our distribution business and really our focus there and that's still a project business through our distribution channel.
Speaker Change: So, that...
Speaker Change: That market in general for new builds has been a little soft for everyone due to cost of capital reasons and those types of things. So the on-shoring is a counter to some of those trends from cost of capital, but we are very active in that space. And as I referenced in my remarks,
Speaker Change: Triton Pro, which is our new product line launched last year, is doing quite well and is very well positioned for that new build market as well as retrofits.
Speaker Change: Thank you.
Speaker Change: Yeah, that's all I had, guys. I'll take all the questions offline. Thank you so much.
Speaker Change: Thank you, Alan.
Speaker Change: Thank you.
Speaker Change: Thank you. As a reminder, to ask a question you'll need to press star 11 on your telephone and then you'll hear an automated message advising that your hand is raised.
Speaker Change: Your next question comes to the line of Bill DeZellem with Titan Capital Management. Your line is now open, Bill.
Bill Dezellem: Thank you. Good morning. A group of questions here. Let me start, if I may, with the restructuring that you did. Would you please walk through in a bit more detail what it was that you did?
Speaker Change: Good morning, Bill. I'd say that...
Speaker Change: There were a couple primary components within the maintenance division.
Bill Dezellem: as part of the
Speaker Change: of the contracts that did not achieve the kind of pricing levels that we had hoped.
Speaker Change: We scaled back on the level of our self-performed technician force, so we, you know, within, that would have been within COGS, we took out personnel that were self-performing within our maintenance division.
Speaker Change: a component of COGS, so that that's what that severance related to. There were some GNA costs also taken out, the largest of which was the lease facility that they operated out of, which the
Speaker Change: The $300,000 charge that we incurred in Q2, about half of that was a lease breakage fee to get out of that lease.
Speaker Change: Great. Thank you. And then, you had, oh, I'm sorry, Bear, go ahead.
Speaker Change: Yeah, I was going to clarify one thing. For the Q2 cost of $300,000, all those costs would have been, I'll say, charged to G&A, just if you're considering that from what line those hit.
Speaker Change: Great, thank you. And then, relative to the comments that you expect a larger weighting of LED in the second half, does that imply that the EV charging is going to be more challenging either because projects are finishing or for some other reason?
Mike Jenkins: Hi Bill, it's Mike.
Speaker Change: No, that was not what I meant to imply at all. What my comments were meant to say is that we plan to see LED lights grow in the second half. The EV business, we were up 40% in the quarter. We continue to see that level of growth plus.
Mike Jenkins: in the second half of the year. So LED will continue to be our strongest growth component, but we do expect lighting to grow significantly in the second half as well.
Speaker Change: Okay, great. That's helpful.
Speaker Change: I'd love your perspective. As you think about these lighting projects that were delayed, why were they not forecasted? And I recognize almost inherently in the question, a delay would imply not forecastable.
Speaker Change: I guess I'm going to toss that out and try to understand your perspective, please.
Speaker Change: Thanks.
Speaker Change: You know, I give you an example, you know, we were working with a large technology company. The projects have been in the works for several years.
Speaker Change: And, you know, they had given us indications as to what their schedule was and when these projects would start.
Speaker Change: and so we try and be as conservative as we can and so we take a portion of that but obviously we have to recognize when customers say the projects are going to be active so we want to be realistic but conservative at the same time and the reality was that due to some of the internal workings of that company they were they were pushed off as a project.
Speaker Change: And so those are things which are difficult for us to forecast exactly when we can initiate with a company because obviously this is one of several CapEx projects they have in the works.
Speaker Change: and has to tie in with, you know, the rest of the company's financial performance, those types of things. So we certainly do our best and try and be conservative, but realistic at the same time. And, and that was the nature of it.
Speaker Change: That's an example.
Speaker Change: Thank you.
Speaker Change: Thank you. Thank you.
Speaker Change: Our next question comes from the line of Gauti Saree. Your line is now open with Singular Research. Thank you.
Gauti Saree: Good morning. Can you hear me?
Speaker Change: Yes, we can. Good morning, Yoshi.
Gauti Saree: Good morning.
Gauti Saree: Just on the project delays, going back to, is that a broader market trend or is that particularly sector-focused affecting those projects? And how will that, the cadence,
Gauti Saree: for the revenue, when those delays do come back. Is that primarily a fiscal 25 event or is that a flow through into fiscal 26 as well?
Speaker Change: Yeah, so it
Speaker Change: circumstances, you know, I think there certainly has been some level of macro uncertainty, you know, now that we've gotten through the elections and those types of things and we see interest rates falling. As I referenced earlier in my comments, we are incredibly
Speaker Change: about the quoting activity that's going on right now.
Speaker Change: had a very strong October in terms of orders, in fact the strongest month of the year from an order standpoint and on or above kind of what our projections would be to realize our current annual projection.
Speaker Change: So, these delays that occurred, they occurred for a variety of reasons. Some of them will activate in Quarter 3, some will activate in Quarter 4, and then some of them will carry over into Fiscal 26.
Gauti Saree: Okay.
Speaker Change: Okay, and on the EB pipeline, I know I think you guys mentioned it and then updated it to 45 to 50 million. I know last quarter you mentioned you had a target of around 18 million for the year, and the highlight would be 11 million for the Eversource contract.
Speaker Change: I just want to get, of that $18 million, is there a potential for exceeding that target and on the Eversource contract, how much of that $11 million has been recognized as revenue to date?
Speaker Change: target for EV, we said our budget was 18 and that we thought we could exceed that and that's still our projection is that we will exceed the 18 million.
Speaker Change: Okay.
Speaker Change: On the Triton Pro product line, I think you gave it some color. What was the feedback that you received from customers? And I know you probably was part of that, was taking some market share. What are the numbers compared to your expectations?
Speaker Change: The numbers are strong as I indicated you know four million dollars year-to-date over an 18 million dollar pipeline for that product line so I would say we're exceeding our expectations and we believe we will for this year.
Speaker Change: Customer feedback across the board is when we launched this this product line. We believe that we were missing a band of the market From a project standpoint. We certainly see that that there are opportunities that we could not get had we not had this offering and so some of those customers
Speaker Change: We end up selling Triton Pro 2, which is great, we're happy to do that. Others, ultimately, that's a starting point and we can trade up to higher performing products that are, you know, in Orion's offering. So, overall, very happy with Triton Pro.
Speaker Change: Okay, awesome. And on the DOD project in Europe, I think if I understand you correctly, that has no further impact on the numbers. And I think you've mentioned that there was a $10 million project that might commence soon. When will that start impacting the revenue line?
Speaker Change: So you are correct on the DoD project that we referenced that we did in Germany last year there was no revenue in the quarter for that.
Speaker Change: And relative to this new opportunity, yes, we do expect, we have received BOs, we expect that.
Speaker Change: to start doing more.
Speaker Change: performing work for them yet this quarter.
Speaker Change: And again, that is a turnkey lighting project. We're providing both light products.
Speaker Change: as well as turnkey management services to this client. We are in the final stages of working through an extended multi-year contract for the entire project, which we expect to be completed shortly. And once that's done, we will make further announcements.
Speaker Change: Awesome. Thank you guys. Congratulations and thank you for taking my questions.
Speaker Change: Thank you, Yoshi.
Speaker Change: This concludes our Q&A session. I'll now turn the call back to Mike Jenkins for concluding remarks.
Mike Jenkins: Thank you all for joining us today. We look forward to updating investors as we progress through the balance of fiscal 25 and hope to see or speak with you at upcoming investor conferences.
Mike Jenkins: Please contact our investor relations team for details of upcoming events with any questions regarding today's call or to schedule a meeting.
Speaker Change: Their contact information is in today's press release.
Speaker Change: Thanks again.
Speaker Change: Thank you. This concludes today's conference call.