Energy Focus (EFOI) Reports, Sees Upside From Stones River Purchase

Energy Focus (EFOI) reported results after the bell today that were so so, but the guidance may give the stock a boost going forward as its recent acquisition of Stones River Companies begins contributing to the bottom line.  The company reported a loss of .17/share on revenues of 3.6 million which is about inline with what they have been reporting for the past few years.  This is a company that has never been profitable, but the Stones acquisition just may get this company headed in the right direction toward profitability.

The company sees revenues jumping to $7.5 million next quarter with 60% of that coming from the new SRC unit.  They anticipate sales of around $35 million for the year.  For a company that did just over $12 million in sales in 2009, that’s a nice bump in revenue.  EFOI isn’t a high quality lighting led/lighting efficiency play like a CREE or RBCN (soon), but a company worth keeping an eye on. 

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CEO Joe Kaveski commented on the quarter:  “I’m absolutely delighted that the company was able to complete the purchase of SRC at the end of the year.  It was the right thing to do at the right time. I am extremely grateful for the broad support from our investors who made the purchase possible. With $16.5 million in lighting contracts already secured for business we expect to complete in 2010 and more than $7.5 million in sales already recorded for the quarter, Energy Focus has a great start to the year. I’m also pleased to report that cash coming from these sales, coupled with our aggressive cost reductions of $2.1 million year over year in SG&A from continued operations have cut cash usage dramatically. Providing energy efficient lighting solutions has already proven to be the foundation of the Company’s success in 2010 and beyond.”

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