building conditions, which may mean working with an electrical system that is decades old. Orion provides custom labeling, packaging and kitting, along with logistical services, factory assemblies, returnable recycling containers, and custom mounting and bracket kits to address these complicated facilities. Moreover, Orion prepares and stages orders for customers so they are labeled for the area where they will be installed, allowing contractors to move only the product needed into the space where they are working. This improves install times, increases contractor profits, reduces waste and limits facility disruption. These services are rarely found with other lighting companies who manufacture overseas. Second, Orion ships orders in less than ten days when its competitors are quoting months, delivering products with thousands of options with a 97% or better on-time reliability and allowing customers to realize the benefits sooner. Executive VP Marc Meade notes, “Our operation is committed to delivering on-time, with high quality and service flexibility, to meet the dynamic needs of our product development team and our customer base.” Third, innovation leads to pricing power. Orion delivers a higher ROI than any other product for the same price. Since the primary focus for retrofit is ROI, Orion benefits from its performance advantage. Lastly, Orion typically develops its new products in a four-month cycle from concept to delivery, as compared with 15-18 months for most LED manufacturers. Quickly identifying market needs and developing products to meet them gives Orion a key time to
market advantage over its competition.
explosive growtH iN tHe leD marKet Focus on shareholder value. There is a renaissance at Orion. The company has developed the best products for customers with different budgets and different needs. The price and performance of products lead the industry in virtually all categories where the company competes. Moreover, one of the most flexible business models of any lighting company allows it to flourish in the most dynamic market segment - commercial and industrial LED retrofit lighting. Orion’s financial performance is back on the rise. Gross margins are showing mean-
ingful increases, cash flow generation is strong, and GAAP profitability is within reach. Mr. Scribante says, “Capital allocation and cash flow generation are the primary management priorities.” Financial excellence is a process and the company is well underway. It should be clear - Orion has a bright future. The next time you go to the grocery store or the mall, look around. LED is everywhere, but you’ll notice there is still a long way to go and Orion is a great way to get exposure to the next generation of intelligent lighting systems. n The company paid consideration to SNN or its affiliates for this article.
Orion’s financial performance is back on the rise. Gross margins are showing meaningful increases, cash flow generation is strong, and GAAP profitability is within reach. www.stocknewsnow.com
MicroCap Review Magazine
21