Orion Energy Systems Inc (OESX) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Orion Energy Systems Fiscal 2023 Second Quarter Conference Call. (Operator Instructions).

早上好，歡迎來到 Orion Energy Systems 2023 財年第二季度電話會議。 （操作員說明）。

I would now like to turn the call over to Bill Jones, Investor Relations.

我現在想把電話轉給投資者關係部的 Bill Jones。

Thank you, and good morning. Mike Altschaefl, Orion CEO, will open today's call followed by Chief Executive (inaudible) 0:00:30. Here our CFO, will then review the Company's Q2 and year-to-date results, financial position and financial outlook, and then we will open the call to investor questions.

謝謝，早上好。 Orion 首席執行官 Mike Altschaefl 將主持今天的電話會議，然後是首席執行官（聽不清）0:00:30。在這裡，我們的首席財務官將審查公司的第二季度和年初至今的業績、財務狀況和財務前景，然後我們將開始向投資者提問。

An archived replay of this call will be posted to the Investor Relations section of Orion's web page at www.orionlighting.com. Remarks that follow and answers to questions may include statements that may be forward-looking within the meaning of the Private Securities Litigation Reform Act of 1990. These forward-looking statements generally include words such as anticipate, believe, expect or similar words.

此電話會議的存檔重播將發佈到 Orion 網頁 www.orionlighting.com 的投資者關係部分。隨後的評論和問題的回答可能包括 1990 年《私人證券訴訟改革法案》含義內的前瞻性陳述。這些前瞻性陳述通常包括預期、相信、預期或類似詞語。

Additionally, any statements that describe future plans, objectives, goals, and the business outlook are also forward-looking. These forward-looking statements are subject to various risks that could cause actual results to be materially different than expected. Such risks include, among others, matters that the company has described in its press release issued this morning and in its filings with the Securities and Exchange Commission. Except as described therein, the company disclaims any obligation to update forward-looking statements that are made as of today's date.

此外，任何描述未來計劃、目的、目標和業務前景的陳述也都是前瞻性的。這些前瞻性陳述存在各種風險，可能導致實際結果與預期存在重大差異。此類風險包括公司在今天上午發布的新聞稿和向美國證券交易委員會提交的文件中描述的事項。除文中所述外，公司不承擔任何更新截至今日作出的前瞻性陳述的義務。

Reconciliations of certain non-GAAP financial metrics to their corresponding GAAP measures are also provided in today's press release available in the Investor Relations section of Orion's website. Now I will turn the call over to Mike Altschaefl.

Orion 網站投資者關係部分今天的新聞稿中還提供了某些非 GAAP 財務指標與其相應的 GAAP 措施的對賬。現在我將把電話轉給 Mike Altschaefl。

Thanks, Bill. Good morning, and thank you for joining today's call. This morning, we reported our second quarter results and reiterated our full year revenue outlook. Our second quarter results reflect the impact of some continued customer delays in the initiation of several large LED lighting projects, which has pushed these opportunities into future periods. Almost all of our larger project opportunities remain in place. We did see one customer halt their new projects in response to changes in their near-term facility needs.

謝謝，比爾。早上好，感謝您參加今天的電話會議。今天早上，我們報告了第二季度業績並重申了我們的全年收入預期。我們第二季度的業績反映了一些客戶在幾個大型 LED 照明項目的啟動中持續延遲的影響，這將這些機會推向了未來時期。我們幾乎所有較大的項目機會都保留了下來。我們確實看到一位客戶為了應對近期設施需求的變化而暫停了他們的新項目。

The good news is that we expect most of these projects we have been talking about for a few quarters to commence in our third or fourth fiscal quarters, providing momentum as we head into our next fiscal year. Among these opportunities are significant projects with logistics, industrial, automotive and public sector customers. Additionally, our pipeline of project opportunities is expanding, driven by a steady increase in new project quoting activity with existing customers and some significant new prospects.

好消息是，我們預計幾個季度以來我們一直在討論的大部分項目將在第三或第四財季開始，為我們進入下一財年提供動力。這些機會包括物流、工業、汽車和公共部門客戶的重大項目。此外，在與現有客戶和一些重要的新潛在客戶的新項目報價活動穩步增加的推動下，我們的項目機會渠道正在擴大。

While the timing and pace of business activity remains hard to predict, stepping back, we do see strengthening interest in Orion's mission of delivering high-quality, innovative, industry-leading products and our growing range of services to meet customer goals for energy efficiency, workplace safety, cost reductions, environmental and other business goals.

雖然業務活動的時間和步伐仍然難以預測，但退一步說，我們確實看到人們對 Orion 的使命越來越感興趣，即提供高質量、創新、行業領先的產品和我們不斷擴大的服務範圍，以滿足客戶的能源效率目標，工作場所安全、成本降低、環境和其他業務目標。

Further, our unique and proven ability to provide turnkey solutions to design, produce, install and maintain increasingly complex LED lighting and control systems and now EV charging solutions addresses a growing need for organizations with large national or regional footprints with hundreds and sometimes thousands of locations.

此外，我們獨特且經過驗證的能力可以提供交鑰匙解決方案來設計、生產、安裝和維護日益複雜的 LED 照明和控制系統，現在 EV 充電解決方案可以滿足在全國或地區擁有數百甚至數千個地點的大型組織日益增長的需求.

Last month, we entered the electric vehicle charging market through the acquisition of Voltrek a top-tier commercial EV charging solutions provider. We are very excited about this expansion of our portfolio of solutions for our existing and future customers and believe this business has the potential to become a significant revenue opportunity for us over the next 3 to 5 years.

上個月，我們通過收購頂級商用電動汽車充電解決方案提供商 Voltrek 進入電動汽車充電市場。我們對我們現有和未來客戶解決方案組合的擴展感到非常興奮，並相信這項業務有可能在未來 3 到 5 年內成為我們重要的收入機會。

Let me now turn the call over to Mike Jenkins for some additional commentary and insights on our business. Mike?

現在讓我將電話轉給 Mike Jenkins，請他對我們的業務進行一些額外的評論和見解。麥克風？

Thank you, Mike. To start off, like a lot of people right now, I am fighting a cold, so please forgive any coughing or if I pause to take a drink.

謝謝你，邁克。首先，就像現在很多人一樣，我正在感冒，所以請原諒我咳嗽或停下來喝一杯。

Fundamentally, Orion is built around a core focus on high-quality products and industry-leading customer service for all of the markets we serve, along with proven capability of turnkey solutions for large national accounts with multiple locations. We believe our model of manufacturing turnkey capabilities and strong ESCO distribution partners are unique in the industry and gives us access to an increasing amount of the market.

從根本上說，Orion 的核心是為我們服務的所有市場提供高質量的產品和行業領先的客戶服務，以及為具有多個地點的大型國民客戶提供經過驗證的交鑰匙解決方案的能力。我們相信我們的製造交鑰匙能力模式和強大的 ESCO 分銷合作夥伴在行業中是獨一無二的，使我們能夠進入越來越多的市場。

While our history has been in lighting, we have been expanding our reach and capabilities into complementary areas, including lighting and electrical maintenance services and recently in the commercial electric vehicle charging solutions. Recognizing the opportunity to broaden our product and service offering to our current and future customer base, we have centered ourselves on a customer-for-life philosophy in which we focus on providing technical solutions delivered through several models that help customers achieve their goals.

雖然我們的歷史一直在照明領域，但我們一直在將我們的影響力和能力擴展到互補領域，包括照明和電氣維護服務以及最近的商用電動汽車充電解決方案。認識到有機會擴大我們為當前和未來客戶群提供的產品和服務，我們以客戶為生命的理念為中心，我們專注於提供通過多種模型交付的技術解決方案，幫助客戶實現他們的目標。

Orion has 3 primary go-to-market models, ESCO Partners, Distribution Partners and our own turnkey model. Our turnkey services leverage our ability to help large national customers assess their site requirements and then design solutions, produce custom products, integrate controls and manage the installation and commissioning of these systems to meet each customer-specific requirements.

Orion 有 3 種主要的上市模式、ESCO 合作夥伴、分銷合作夥伴和我們自己的統包模式。我們的交鑰匙服務利用我們的能力幫助大型國家客戶評估他們的場地要求，然後設計解決方案、生產定制產品、集成控制並管理這些系統的安裝和調試，以滿足每個客戶的特定要求。

Our ESCO business is built with a strong network of partners who are typically providing turnkey solutions where Orion provides product and potentially other services as support. Orion's distribution business is primarily focused on new build and agricultural markets in local geographic areas. Finally, we are building the capability to provide ongoing maintenance services, not just for lighting, but also for our new EV charging business.

我們的 ESCO 業務建立在一個強大的合作夥伴網絡之上，這些合作夥伴通常提供交鑰匙解決方案，而 Orion 提供產品和可能的其他服務作為支持。 Orion 的分銷業務主要集中在當地地理區域的新建和農業市場。最後，我們正在建設提供持續維護服務的能力，不僅針對照明，還針對我們新的 EV 充電業務。

We are also working to educate customers on the total cost of ownership of lighting and other systems so that they can see the long-term advantage of using highly energy-efficient products that are built to last under demanding applications.

我們還致力於讓客戶了解照明和其他系統的總擁有成本，以便他們可以看到使用經久耐用的高能效產品的長期優勢。

What is clear is that investing a bit more on the front end in the higher-quality energy-efficient solutions that Orion provides will deliver a substantially higher long-term return on investment while also providing substantial reductions in CO2 emissions.

顯而易見的是，在 Orion 提供的更高質量的節能解決方案的前端進行更多投資，將帶來更高的長期投資回報，同時還能大幅減少二氧化碳排放量。

Our model is resonating with a growing customer base. We are working to build on our success to both expand our customer -- our base of customers as well as our breadth of products and services. Ongoing customer dialogues demonstrate that there is a growing appreciation of the value Orion can provide directly or through partners and that the value only increases in proportion with the size of the customer, the number of locations and the complexity of their needs.

我們的模式與不斷增長的客戶群產生共鳴。我們正在努力鞏固我們的成功，以擴大我們的客戶——我們的客戶群以及我們的產品和服務的廣度。持續的客戶對話表明，人們越來越認識到 Orion 可以直接或通過合作夥伴提供的價值，並且價值只會隨著客戶規模、地點數量和需求的複雜性而增加。

Unfortunately, these larger engagements take longer to develop. And as we have seen, the project timing can be impacted by factors outside our control. But as we build the business, we expect the impact of such factors will diminish by our growing scale.

不幸的是，這些更大的參與需要更長的時間來發展。正如我們所見，項目時間可能會受到我們無法控制的因素的影響。但隨著我們建立業務，我們預計這些因素的影響會隨著我們規模的擴大而減弱。

Recapping what I said on our last call, working from our core focus on energy-efficient LED lighting solutions with turnkey capabilities, we have also been building our sales into the energy service company or ESCO market and through our electrical contractor relationships. The ESCO market, in particular, is a perfect match for our focus on high quality and energy efficiency as the ESCO model is built around delivering energy savings to their customers.

回顧一下我在上次電話會議上所說的話，從我們專注於具有交鑰匙能力的節能 LED 照明解決方案的核心出發，我們還一直在通過我們的電氣承包商關係將我們的銷售打入能源服務公司或 ESCO 市場。尤其是 ESCO 市場，與我們對高質量和能源效率的關注完美匹配，因為 ESCO 模型是圍繞為客戶提供節能而建立的。

While this market experienced a negative comparable to prior year in Q2, we expect year-end growth to be positive by adding to the number of partners we work with and several major end customer projects delivered through our ESCO partners starting in Q4.

雖然這個市場在第二季度經歷了與去年同期相比的負增長，但我們預計通過增加與我們合作的合作夥伴的數量以及從第四季度開始通過我們的 ESCO 合作夥伴交付的幾個主要最終客戶項目，年終增長將是積極的。

From our success serving large national accounts, we saw the opportunity to expand our value into the lighting and light electrical maintenance areas. We formed the Orion Maintenance Services division to provide lighting and electrical maintenance services to meet the needs of customers. Electrical maintenance services are a perfect complement to our lighting solutions and extend our ability to deliver on our customer for life mission.

從我們為大型國民客戶服務的成功中，我們看到了將我們的價值擴展到照明和輕型電氣維護領域的機會。我們成立了 Orion 維護服務部門，提供照明和電氣維護服務，以滿足客戶的需求。電氣維護服務是對我們照明解決方案的完美補充，並擴展了我們履行客戶終身使命的能力。

The acquisition of Stay-Lite in January greatly accelerated our capabilities to support customer and partner needs. We plan to leverage this platform to support our direct lighting end customers to support our ESCO partners in our recently acquired EV charging business, Voltrek.

一月份收購 Stay-Lite 大大加快了我們支持客戶和合作夥伴需求的能力。我們計劃利用這個平台來支持我們的直接照明終端客戶，以支持我們的 ESCO 合作夥伴參與我們最近收購的 EV 充電業務 Voltrek。

Speaking of Stay-Lite, integration continues, and we are investing in the areas of systems and training processes as well as adding additional personnel and other resources required to scale this business while maintaining the service quality and reliability that is essential to our success.

說到 Stay-Lite，集成仍在繼續，我們正在系統和培訓流程領域進行投資，並增加了擴展此業務所需的額外人員和其他資源，同時保持對我們成功至關重要的服務質量和可靠性。

We have purposely kept our focus on serving our existing maintenance customers to ensure a solid transition to arrive. We are focused on growing this business by expanding current maintenance relationships and through cross-selling with current end customers and ESCO partners.

我們有意將重點放在為現有維護客戶提供服務上，以確保實現穩固的過渡。我們專注於通過擴大當前的維護關係以及通過與當前最終客戶和 ESCO 合作夥伴的交叉銷售來發展這項業務。

We believe that there is substantial long-term growth potential for this business, which is an ideal complement to other businesses, both because it provides a growing base of recurring revenue for Orion and because of the cross-selling synergies it provides between our LED lighting and controls and our new EV charging solutions.

我們相信該業務具有巨大的長期增長潛力，是對其他業務的理想補充，既因為它為 Orion 提供了不斷增長的經常性收入基礎，也因為它在我們的 LED 照明之間提供了交叉銷售協同效應和控制以及我們新的 EV 充電解決方案。

We recently established a dialogue with a major new customer prospect for the maintenance service business. This is one of several opportunities, which we're working on today. The opportunity which was sourced through our ESCO partner is with a retail organization of approximately 1,400 locations, primarily in the West and Southeast, and we expect progress on this opportunity to be announced in Q4.

我們最近與維護服務業務的主要新客戶建立了對話。這是我們今天正在努力的幾個機會之一。通過我們的 ESCO 合作夥伴獲得的機會涉及大約 1,400 個地點的零售組織，主要位於西部和東南部，我們預計這一機會的進展將在第四季度公佈。

Continuing to build on our customers for life strategy, we recently expanded our business into the commercial electric vehicle charging station market through the acquisition of Voltrek. This strategic acquisition was the result of several quarters of research and due diligence on the EV charging market and potential partners. Importantly, this move was in response to growing customer requests for assistance with their EV charging needs across our retail, industrial, commercial and public sector clients.

繼續以客戶為生命的戰略，我們最近通過收購 Voltrek 將業務擴展到商用電動汽車充電站市場。此次戰略收購是對電動汽車充電市場和潛在合作夥伴進行數個季度的研究和盡職調查的結果。重要的是，此舉是為了響應我們零售、工業、商業和公共部門客戶不斷增長的電動汽車充電需求協助請求。

After our comprehensive process, we were fortunate to find Voltrek and its prior owner Kathleen Connors, who shares very similar cultures, business strategy and ethics, a strong long-term customer commitment, and we both seek to differentiate ourselves through comprehensive solutions.

經過我們全面的流程，我們很幸運地找到了 Voltrek 及其前任所有者 Kathleen Connors，他們有著非常相似的文化、業務戰略和道德規範，以及對客戶的長期堅定承諾，我們都尋求通過全面的解決方案來脫穎而出。

Kathleen is an EV industry pioneer with over 13 years experience in installing charging systems with a vast and diversified portfolio of commercial, industrial and municipal customers. Kathleen will continue with Orion as the head of our EV charging/ Voltrek business.

Kathleen 是電動汽車行業的先驅，在安裝充電系統方面擁有超過 13 年的經驗，服務於眾多商業、工業和市政客戶。 Kathleen 將繼續在 Orion 擔任我們的 EV 充電/ Voltrek 業務的負責人。

EV sales are expected to triple from 2021 through 2025, becoming nearly 1/4 of new vehicle sales and the market is expected to continue to expand at a similar rate through this decade. To address this growing base of vehicles, stores, businesses, schools, offices, housing complex, tourists and entertainment destinations, manufacturing facilities, hospitals, health care, et cetera, a charging infrastructure will need to be put in place to sufficiently support this dramatic shift towards EV. EV charging will be an increasingly important component of a high-quality customer experience as well as an important amenity to attract and retain employees and visitors at various facilities.

從 2021 年到 2025 年，電動汽車銷量預計將增長兩倍，佔新車銷量的近 1/4，並且預計該市場將在本十年內繼續以類似的速度增長。為了解決這個不斷增長的車輛、商店、企業、學校、辦公室、住宅區、旅遊和娛樂目的地、製造設施、醫院、醫療保健等基礎設施，需要建立充電基礎設施來充分支持這一戲劇性的發展轉向電動汽車。 EV 充電將成為高質量客戶體驗中越來越重要的組成部分，也是吸引和留住各種設施的員工和訪客的重要便利設施。

California is already mandating the inclusion of charging stations for new construction products and $5 billion in federal and state funding has been authorized to support EV adoption in the building of charging infrastructure over the next 5 years nationwide.

加利福尼亞州已經強制要求為新的建築產品安裝充電站，並且已授權聯邦和州政府在未來 5 年內為支持電動汽車在全國范圍內建設充電基礎設施提供 50 億美元資金。

Voltrek team is well versed in advising customers on how to qualify for and utilize these incentives. Voltrek focus has been primarily in New England, and we see the opportunity to significantly expand their footprint and growth potential through our national customer base and electrical maintenance services network as well as through our ESCO and distribution partners.

Voltrek 團隊精通為客戶提供有關如何獲得和利用這些獎勵的建議。 Voltrek 的重點主要放在新英格蘭，我們看到有機會通過我們的全國客戶群和電氣維護服務網絡以及我們的 ESCO 和分銷合作夥伴顯著擴大他們的足跡和增長潛力。

We have already begun a range of efforts to introduce Voltrek solutions and capabilities to the Orion sales and service team. It will take time to get everyone up to speed, but the Orion and Voltrek teams are excited by the new opportunities, expanded value proposition and extended customer reach.

我們已經開始一系列努力，向 Orion 銷售和服務團隊介紹 Voltrek 解決方案和功能。讓每個人都跟上速度需要時間，但 Orion 和 Voltrek 團隊對新機遇、擴大的價值主張和擴大的客戶範圍感到興奮。

Turning to sales and marketing briefly. We have been ramping up our outreach efforts via industry conferences, participating in 2 major events during the second quarter. Both events generated meaningful new conversations with customers and channel partners, which we will work to convert into future business.

簡要談談銷售和市場營銷。我們一直在通過行業會議加強我們的外展工作，在第二季度參加了 2 場大型活動。這兩個事件都與客戶和渠道合作夥伴產生了有意義的新對話，我們將努力將其轉化為未來的業務。

We are also far along in the website overhaul project to enhance the value and ease of use for customers and partners. We believe the updated site is on the cutting edge of what is being done in our industry, and we're targeting its launch by the end of calendar 2022.

我們還在網站大修項目中走得很遠，以提高客戶和合作夥伴的價值和易用性。我們相信更新後的網站處於我們行業正在做的事情的最前沿，我們的目標是在 2022 年年底推出。

As far as the overall industry environment, as Mike mentioned, we are seeing positive signs of customers refocusing on LED lighting projects that have been delayed. Several reengaged us in the past several weeks to discuss moving forward. Similarly, some of the supply chain and other challenges that have been slowing customer decision-making are gradually receding, which we also view as a positive sign.

就整體行業環境而言，正如邁克所提到的，我們看到客戶重新關注被推遲的 LED 照明項目的積極跡象。在過去的幾周里，有幾個人與我們重新接觸，討論下一步的進展。同樣，一些一直拖慢客戶決策速度的供應鍊和其他挑戰正在逐漸消退，我們也將其視為一個積極信號。

As for our own supply chain position, the environment seems on a gradual trend of improvement, and we remain in a strong position. Proactive management has allowed us to meet almost all of our demands within our normal delivery time line of approximately 2 weeks or less.

至於我們自己的供應鏈地位，環境似乎有逐漸改善的趨勢，我們仍然處於強勢地位。主動管理使我們能夠在大約 2 週或更短的正常交貨時間內滿足幾乎所有需求。

Again, our U.S.-based LED lighting manufacturing capabilities continue to support our industry-leading delivery time lines. As for inflation, we've worked hard to offset these impacts through proactive sourcing efforts and offsetting price adjustments, efforts that help benefit our Q2 gross profit percentage performance.

同樣，我們位於美國的 LED 照明製造能力繼續支持我們行業領先的交貨時間線。至於通貨膨脹，我們一直在努力通過積極的採購努力和抵消價格調整來抵消這些影響，這些努力有助於提高我們第二季度毛利率的表現。

A few call-outs on our Q2 performance before I turn it over to Per. As we have discussed before, the major retrofit project at our #1 account has largely been completed, and we see the impact in our revenue decline in Q2 year-over-year. The decline of this customer in Q2 was $18.7 million out of our total decline of $18.9 million. The global online retailer that we also discussed in prior calls declined $900,000 compared to the same period prior year as they abruptly stopped new warehouse construction in Q1 of this year. Without the impact from these 2 accounts, the business grew approximately 5%.

在我將其交給 Per 之前，先對我們第二季度的表現進行一些討論。正如我們之前所討論的，我們#1 客戶的主要改造項目已經基本完成，我們看到了第二季度收入同比下降的影響。在我們 1890 萬美元的總降幅中，該客戶在第二季度的降幅為 1870 萬美元。我們在之前的電話會議中也討論過的全球在線零售商與去年同期相比下降了 900,000 美元，因為他們在今年第一季度突然停止了新倉庫建設。沒有這兩個賬戶的影響，業務增長了大約 5%。

In Q2, we saw positive growth in our government sector where we have a very significant pipeline of projects. We expect to begin in Q1 of fiscal year '24. Our new distribution business -- sorry, our distribution business also increased as our strategy of expanding geographic coverage and improving the strength of partnerships is paying off.

在第二季度，我們看到了政府部門的積極增長，我們擁有非常重要的項目管道。我們預計從 24 財年的第一季度開始。我們新的分銷業務——抱歉，隨著我們擴大地理覆蓋範圍和提高合作夥伴關係實力的戰略取得成效，我們的分銷業務也有所增加。

Our ESCO business, as mentioned earlier, took a step back in Q2 as a result of some large projects taking longer than anticipated. All of these projects are still moving along, and we look forward to announcing some exciting news in this area in Q4 and Q1.

如前所述，我們的 ESCO 業務在第二季度退步，原因是一些大型項目的時間比預期的要長。所有這些項目仍在進行中，我們期待在第四季度和第一季度宣布這方面的一些激動人心的消息。

Our turnkey business was primarily impacted by the decline of our #1 customer. We likewise have a significant pipeline of opportunities that will begin in Q4 and Q1. Lastly, we are making great strides in our maintenance business, and I am excited about the cross-selling to come in both lighting and our new EV business platform.

我們的交鑰匙業務主要受到第一大客戶數量減少的影響。我們同樣有大量機會將從第四季度和第一季度開始。最後，我們在維護業務方面取得了長足進步，我對照明和我們新的 EV 業務平台的交叉銷售感到興奮。

Finally, Per Brodin and I look forward to meeting with some of you in person at the Craig-Hallum Alpha Select Investment Conference in New York on November 17 or an investor events next year.

最後，Per Brodin 和我期待在 11 月 17 日紐約的 Craig-Hallum Alpha Select 投資會議或明年的投資者活動上與你們中的一些人見面。

In the interim, if you have questions or would like to schedule a call with management, please contact our IR team, whose information is included on today's press release. Otherwise, I look forward to speaking with investors on our next quarterly call in February.

在此期間，如果您有任何疑問或想安排與管理層的通話，請聯繫我們的 IR 團隊，他們的信息包含在今天的新聞稿中。否則，我期待在 2 月份的下一個季度電話會議上與投資者交談。

Now I will pass the call to Per Brodin to discuss our financial results, balance sheet and our outlook for the balance of fiscal 2023. Per?

現在我將把電話轉給 Per Brodin，討論我們的財務業績、資產負債表和我們對 2023 財年餘額的展望。Per？

Thank you, Mike. Fiscal '23 second quarter revenue was $17.6 million versus $36.5 million in Q2 '22 and Fiscal '23 first half revenue was $35.5 million versus $71.6 million last year. Current year periods were impacted by project delays, as we have outlined earlier on the call. Revenue for both the second quarter and year-to-date periods increased when revenue from our largest customer and the large global online retailer are excluded, reflecting the strength of our core business.

謝謝你，邁克。 23 財年第二季度收入為 1760 萬美元，而 22 財年第二季度為 3650 萬美元，23 財年上半年收入為 3550 萬美元，而去年為 7160 萬美元。正如我們早些時候在電話會議上概述的那樣，本年度受到項目延誤的影響。當我們最大客戶和大型全球在線零售商的收入被排除在外時，第二季度和年初至今的收入均有所增加，這反映了我們核心業務的實力。

Our gross profit percentage improved sequentially to 25.3% in Q2 '23 as compared to 19.8% in Fiscal Q1 '23, but declined versus our 29.5% performance in Q2 '22. Year-over-year decrease was principally due to lower fixed cost absorption due to lower revenues. Conversely, our expectations for higher revenues in the second half of this fiscal year should have a positive impact on our realized gross profit percentage.

我們的毛利率在 23 年第二季度連續上升至 25.3%，而 23 年第一季度為 19.8%，但與 22 年第二季度的 29.5% 相比有所下降。同比下降主要是由於收入減少導致固定成本吸收減少。相反，我們對本財年下半年收入增加的預期應該會對我們實現的毛利率產生積極影響。

The sequential improvement in gross profit in Q2 '23 versus Q1 '23, reflected a higher margin revenue mix of projects, ongoing supply chain and cost management efforts and the benefit of prior price increases offsetting higher input costs.

與 23 年第一季度相比，23 年第二季度的毛利潤環比有所改善，反映出更高的項目利潤率收入組合、持續的供應鍊和成本管理工作以及先前價格上漲的好處抵消了更高的投入成本。

Fiscal Q2 '23 product gross margin would have increased compared to 2022 or not for the unabsorbed plant costs. Second quarter fiscal '23 operating expenses were $7.4 million versus $5.8 million a year ago, principally due to higher general and administrative expenses related to the January 2022 acquisition of Stay-Lite, the year-ago benefit from an employee retention payroll tax credit, which reduced operating expenses by $0.8 million and a noncash equity-based compensation charge.

對於未吸收的工廠成本，與 2022 年相比，23 財年第二季度的產品毛利率是否有所增加。 23 財年第二季度運營費用為 740 萬美元，而一年前為 580 萬美元，這主要是由於與 2022 年 1 月收購 Stay-Lite 相關的一般和行政費用增加，一年前受益於員工保留工資稅抵免，這減少了 80 萬美元的運營費用和非現金股權補償費用。

Operating expenses increased $200,000 sequentially from Q1 '23, primarily due to integration initiatives in our maintenance services business plus noncash equity-based compensation costs related to our CEO's retirement.

運營費用從 23 年第一季度開始連續增加 200,000 美元，這主要是由於我們維護服務業務的整合舉措以及與我們 CEO 退休相關的非現金股權補償成本。

Orion reported a net loss of $2.3 million or $0.08 per share in Q2 '23 as compared to net income of $3.7 million or $0.12 per share in Q2 '22 and a slight improvement over our Q1 23 net loss of $2.9 million or $0.09 per share.

Orion 報告稱，23 年第二季度的淨虧損為 230 萬美元或每股 0.08 美元，而 22 年第二季度的淨收入為 370 萬美元或每股 0.12 美元，與 23 年第一季度的淨虧損 290 萬美元或每股 0.09 美元相比略有改善。

As of quarter end, net working capital improved to $32.5 million from $29.5 million at the close of Q1 '23 and compared to $32.9 million at the close of Q4 '22. Our working capital includes $16.8 million of inventory investments intended to position Orion to execute on our expected increases in volume.

截至季度末，淨營運資本從 23 年第一季度末的 2950 萬美元增至 3250 萬美元，而 22 年第四季度末的淨營運資本為 3290 萬美元。我們的營運資金包括 1680 萬美元的庫存投資，旨在使 Orion 能夠執行我們預期的銷量增長。

Orion remains in a strong financial position with approximately $23.7 million of liquidity that includes cash and cash equivalents of $12.5 million and over $11 million of availability in our credit facility. In addition, last week, we amended our credit facility to include the assets of our 2 recent acquisitions, which increased our asset borrowing base and credit availability. In September, we drew $5 million on our revolving debt facility to strengthen our working capital position and in anticipation of the Voltrek acquisition.

Orion 的財務狀況仍然強勁，流動資金約為 2370 萬美元，其中包括 1250 萬美元的現金和現金等價物以及超過 1100 萬美元的可用信貸額度。此外，上週，我們修改了信貸額度以包括我們最近 2 次收購的資產，這增加了我們的資產借貸基礎和信貸可用性。 9 月，我們從循環債務融資中提取了 500 萬美元，以加強我們的營運資金狀況和對 Voltrek 收購的預期。

In today's press release, we reiterated our fiscal 2023 revenue outlook of between $90 million and $110 million. This range reflects potential variability in the timing of several large customer projects and other factors outlined in today's release. The midpoint of this range would represent strong double-digit revenue growth, excluding our expectations for our larger customer and the large online retailer, reflecting continued progress in diversifying our revenue sources.

在今天的新聞稿中，我們重申了 2023 財年的收入預期在 9000 萬至 1.1 億美元之間。該範圍反映了幾個大型客戶項目時間安排的潛在可變性以及今天發布的其他因素。這一範圍的中點將代表強勁的兩位數收入增長，不包括我們對更大客戶和大型在線零售商的預期，反映出我們在收入來源多元化方面的持續進展。

Based on our revenue outlook, we expect to be cash flow positive in the second half of this fiscal year. Accordingly, we expect our cash and liquidity position to improve through the balance of the fiscal year. This should keep us in a strong position to support our growth initiatives across the business.

根據我們的收入前景，我們預計本財年下半年現金流為正。因此，我們預計我們的現金和流動性狀況將在本財政年度的餘額中得到改善。這應該使我們處於有利地位，以支持我們在整個業務中的增長計劃。

For M&A, while we continue to develop our pipeline of future opportunities, our near-term focus is on integrating our recent acquisitions to ensure their success as well as investing in organic growth initiatives.

對於併購，在我們繼續開發未來機會渠道的同時，我們近期的重點是整合我們最近的收購以確保它們的成功以及投資於有機增長計劃。

And with that, let's turn the call back over to the operator for Q&A.

有了這個，讓我們把電話轉回給接線員進行問答。

(Operator Instructions). And our first question coming from the line of Sameer Joshi with H.C. Wainwright. Your line is open.

（操作員說明）。我們的第一個問題來自 Sameer Joshi 和 H.C.溫賴特。你的線路是開放的。

On the Voltrek front, you mentioned and, which it is well known that there is this $5 billion that is distributed through the state, whereas Voltrek is focused primarily in the Northeast. Are there plans to expand that team so that they can avail and we position themselves to capitalize on all or most states plans that will come through in the first quarter of next year?

在 Voltrek 方面，你提到了，眾所周知，這 50 億美元是通過該州分配的，而 Voltrek 主要集中在東北部。是否有計劃擴大該團隊，以便他們可以利用，我們將自己定位為利用明年第一季度將通過的所有或大多數州計劃？

Sure. Samir, it's Mike Jenkins. To answer your question, yes, we are expanding the team. We're adding resources to it right now. We see a lot of growth opportunity with the current -- under the current platform and the current location. So we want to continue to drive very strong growth that Kathleen has experienced in the Northeast.

當然。薩米爾，我是邁克詹金斯。回答你的問題，是的，我們正在擴大團隊。我們現在正在為其添加資源。我們在當前平台和當前位置下看到了當前的很多增長機會。因此，我們希望繼續推動凱瑟琳在東北部經歷的強勁增長。

In addition to that, we want to leverage the rest of our turnkey resources to help expand this platform on a national basis. And so there are discussions underway right now about exactly how to do that. As I mentioned under my remarks, there is very strong interest from existing customers about how Ryan could help in this space moving forward.

除此之外，我們希望利用我們其餘的交鑰匙資源來幫助在全國范圍內擴展該平台。因此，目前正在討論具體如何做到這一點。正如我在發言中提到的那樣，現有客戶對 Ryan 如何幫助這個領域向前發展非常感興趣。

And then just a follow-up on that. I think in the press release announcing the transaction, there was a $4.8 million number during 2021 as a top line number for Voltrek. Is it tracking similarly for this year, and given that the earn-outs are like significant in the $1 million to $2 million to $3 million range over the next 2, 3 years. What level of revenues are you expecting from this, say in the next -– say in fiscal '24 and '25?

然後只是跟進。我認為在宣布交易的新聞稿中，2021 年有 480 萬美元的數字作為 Voltrek 的最高數字。它今年的跟踪情況是否類似，並且考慮到未來 2、3 年的收益在 100 萬至 200 萬至 300 萬美元之間相當可觀。你期望從中獲得什麼水平的收入，比如在下一個 - 比如說'24和'25財年？

Sameer, it's Per. We did disclose on the initial call announcing the Voltrek transaction that their revenues were $4.8 million in 2021 and that we expect between $3 million and $5 million of revenue associated with that business in the second half here of fiscal '23.

Sameer，是 Per。我們確實在宣布 Voltrek 交易的最初電話會議上披露了他們在 2021 年的收入為 480 萬美元，我們預計在 23 財年下半年與該業務相關的收入將在 300 萬至 500 萬美元之間。

Given that we recently acquired the entity, we're still in the process of determining what we think the opportunity is, specifically for fiscal '24 and hope to be in a position to discuss that in more detail on the February call. But I think as we iterate or as we mentioned on the call a month ago, we see significant opportunity for this business, and that's the reason that we went down this path.

鑑於我們最近收購了該實體，我們仍在確定我們認為的機會是什麼，特別是 24 財年的機會，並希望能夠在 2 月的電話會議上更詳細地討論這個問題。但我認為，正如我們迭代或一個月前在電話會議上提到的那樣，我們看到了這項業務的重大機遇，這就是我們走這條路的原因。

And just one last one for me. Gross margins have improved significantly sequentially. Are we -- and given that the second half revenue is expected to be much higher than the first half revenue, should we expect to return to that 28% to 30% blended gross margin in the next 2 quarters or how (inaudible) 0:27:21?

最後一張給我。毛利率環比顯著改善。我們是否 - 鑑於下半年收入預計將遠高於上半年收入，我們是否應該期望在接下來的兩個季度內恢復到 28% 至 30% 的混合毛利率，或者如何（聽不清）0： 27:21？

I think the best way to think about it is we obviously achieved 25.3% in the current quarter, and we're doing everything we can to maintain or improve on that. We expect our revenues to be higher in the third quarter of fiscal '23, which should improve our absorption. We've been managing the costs as carefully as we can. So we would expect to be able to improve on the 25.3% depend -- I would expect it to slide to a better amount as those revenues continue to.

我認為最好的思考方式是我們在本季度顯然實現了 25.3%，我們正在盡一切努力保持或改進這一點。我們預計 23 財年第三季度的收入會更高，這應該會提高我們的吸收率。我們一直在盡可能謹慎地管理成本。因此，我們預計能夠提高 25.3% 的依賴性——我預計隨著這些收入的持續增長，它會下滑到更好的水平。

One moment for our next question. And our next question coming from the line of Eric Stine with Craig-Hallum. Your line is open.

稍等一下我們的下一個問題。我們的下一個問題來自 Eric Stine 和 Craig-Hallum 的對話。你的線路是開放的。

It's Aaron Spychalla on for Eric. Maybe first, good to see several customers reengaging and confidence in starting projects in the second half and into next fiscal year. Can you just kind of elaborate a little bit more on the confidence there, any gating items that might be required? And then just on the customer that kind of halted any more color that you can share there, magnitude. It sounds like it obviously wasn't related to you just more customer specific, but any color would be helpful?

艾倫·斯皮查拉替埃里克發言。也許首先，很高興看到一些客戶重新參與並有信心在下半年和下一財年啟動項目。您能否稍微詳細說明那裡的信心，可能需要的任何門控項目？然後就在客戶身上，你可以在那里分享更多的顏色，幅度。聽起來它顯然與您無關，只是更具體的客戶，但任何顏色都會有幫助嗎？

Sure. Great questions there, and thank you. I'm going to go in reverse order. First, on our comments about our global online retailer who pulled back in their project business. We first started talking about that back, I think in January or February, where initially they pulled back because they were at these were new construction sites, and they were having issues on their supply chain of getting equipment and other mechanical and steel for the facilities.

當然。那裡有很好的問題，謝謝。我要按相反的順序進行。首先，關於我們對退出項目業務的全球在線零售商的評論。我們第一次開始談論這個問題，我想是在一月或二月，最初他們撤回是因為他們在這些是新的建築工地，他們在為設施獲取設備和其他機械和鋼材的供應鏈上遇到問題.

And then shortly thereafter, they announced publicly in a number of places that they felt they had overbuilt to a certain extent for a period of time and decided to take a time out from doing these new construction facilities where we were providing the overhead lighting in the PIC modules.

然後不久之後，他們在許多地方公開宣布，他們認為他們在一段時間內在一定程度上過度建設，並決定抽出一些時間來建造這些我們提供高架照明的新建築設施。 PIC模塊。

So it was something, frankly, out of our hands. We had expected a fair amount of that business for us. It was $5 million to $7 million of business last year, and it kind of stopped very quickly. So that's the one project we are mentioning in our comments this morning about a project that is not going forward.

坦率地說，這是我們無法控制的事情。我們曾為我們期望相當數量的業務。去年是 500 萬到 700 萬美元的業務，很快就停止了。這就是我們今天早上在評論中提到的一個項目，該項目沒有進展。

On the positive side, we realized we've talked about several really positive projects for a few quarters. And what we're excited about is that we are seeing them coming to conclusion in terms of getting ready to kick off. So one example, we've talked about working hard on a project for a very large logistics company with many facilities across the United States.

從積極的方面來看，我們意識到幾個季度以來我們已經討論了幾個非常積極的項目。我們感到興奮的是，我們看到他們在準備開始方面得出結論。舉個例子，我們談到了為一家在美國擁有許多設施的超大型物流公司努力開展一個項目。

And we've been doing some modest amount of business with that customer for the last couple of years as they've gone through planning for a much larger project, and we now have a material supply agreement in place with that customer, and we expect to play a very significant role as they go forward with their retrofitting of LED lighting in their facilities across the United States.

在過去的幾年裡，我們一直在與該客戶開展一些業務，因為他們已經規劃了一個更大的項目，我們現在與該客戶簽訂了材料供應協議，我們預計在他們繼續在美國各地的設施中改造 LED 照明時發揮非常重要的作用。

And we expect that business to kick off for us during our fourth quarter of fiscal '23 and then accelerate as we go forward. And it's a very nice opportunity, and we're very pleased to have the contract in place, which spells out the specific pricing. And now it's all about them getting sites ready, getting those sites audited and kicking them off and then having us provide product for those locations that we're very excited about that one.

我們預計該業務將在 23 財年第四季度為我們啟動，然後隨著我們的前進而加速。這是一個非常好的機會，我們很高興能簽訂合同，其中規定了具體的定價。現在一切都是關於他們準備好站點，對這些站點進行審核並啟動它們，然後讓我們為那些我們對此感到非常興奮的位置提供產品。

The second one I would mention is that we've talked about a really nice large public sector project where we are going to be the Tier 2 contractor to the prime contractor with the federal government and the contractual relationship between that prime contractor and the government took much longer than expected. We are now in the very final stages of getting that all ironed out, and we expect to be able to talk about that in the near future and that project will also be kicking off at the beginning of the calendar year, our fourth quarter of fiscal '23.

我要提到的第二個是我們已經討論了一個非常好的大型公共部門項目，我們將成為聯邦政府總承包商的二級承包商，並且該總承包商與政府之間的合同關係採取了比預期的要長得多。我們現在正處於解決所有問題的最後階段，我們希望能夠在不久的將來討論這個問題，該項目也將在日曆年開始，即我們財政年度的第四季度'23。

And then beyond that, we have several very nice sized projects that have been in the works for a number of quarters that we also see kicking off during the third and fourth quarter of our fiscal year. So those big handful of large opportunities is what really gives us optimism as we enter into the second half and momentum going into fiscal '24.

除此之外，我們還有幾個規模非常大的項目，這些項目已經進行了多個季度，我們也看到它們在本財年的第三和第四季度啟動。因此，當我們進入下半年和進入 24 財年的勢頭時，這些大量的大機會真正讓我們感到樂觀。

And then I would just add on top of that, our other business, both in distribution and ESCO has some very nice activity that is giving us a positive feeling going into the second half of the year.

然後我只想補充一點，我們的其他業務，包括分銷和 ESCO 都有一些非常好的活動，讓我們對今年下半年有積極的感覺。

And yes, I missed kind of that it was the global online retailer. On that ESCO, you did talk about a few of those large opportunities kind of coming later this fiscal year. Can you just kind of talk again about just what's kind of unleashing those and kind of optimism there as we look to next year from that business?

是的，我有點想念它是全球在線零售商。在那個 ESCO 上，你確實談到了本財年晚些時候出現的一些重大機遇。當我們從該業務展望明年時，您能否再談一談釋放這些情緒和樂觀情緒的是什麼？

Sure. Yes, we've really, as we talked about on prior calls, we've seen a lot of growth opportunities through our ESCO channel and partners. We put a fair amount of resources and work into building those partnerships and really exploring growth opportunities. We've got some excellent partners who are bringing forth some very significant opportunities and a number of different verticals for us right now.

當然。是的，正如我們在之前的電話中談到的那樣，我們確實通過我們的 ESCO 渠道和合作夥伴看到了很多增長機會。我們投入了大量資源並致力於建立這些合作夥伴關係並真正探索增長機會。我們有一些優秀的合作夥伴，他們正在為我們帶來一些非常重要的機會和許多不同的垂直領域。

I think that the pipeline for ESCO is probably as significant as it's been in maybe ever, but quite some time. And a number of these really we're looking at a strategic partners that they can then help us get into new verticals. And quite frankly, we haven't been in before. So I think it's a real win-win kind of partnership.

我認為 ESCO 的管道可能和以往一樣重要，但已經有一段時間了。其中一些確實是我們正在尋找的戰略合作夥伴，他們可以幫助我們進入新的垂直領域。坦率地說，我們以前沒有去過。所以我認為這是一種真正雙贏的伙伴關係。

(Operator Instructions). And our next question coming from the line of Alex Rygiel with B. Riley.

（操作員說明）。我們的下一個問題來自 Alex Rygiel 與 B. Riley 的對話。

Could you give us an update on the PUREMOTION products in any details as it related to the first project that was started last quarter?

您能否詳細介紹一下 PUREMOTION 產品的最新情況，因為它與上個季度啟動的第一個項目有關？

Sure. We continue to work diligently on that product with the PUREMOTION, in particular, the PUREMOTION product that has the UBC application in it, which can deactivate and kill viruses and mold and mildew. Alex, it's been a slower process than we expected. We continue to have some very nice opportunities of size that we are working with people on, and those have continued. We've talked about those in the past, and they're continuing.

當然。我們繼續努力在PUREMOTION那個產品上，特別是PUREMOTION產品裡面有UBC的應用，可以滅活殺滅病毒和黴菌。亞歷克斯，這個過程比我們預期的要慢。我們繼續有一些非常好的機會，我們正在與人們合作，而且這些機會還在繼續。我們過去曾討論過這些，現在仍在繼續。

And we also see potential for the -- let's call it, the base product, which is the air movement product, which is available to put into a ceiling trougher type product that helps move air and circulate air within a particular room, which can have some very significant energy savings with respect to the HVAC systems.

而且我們還看到了 - 讓我們稱之為基礎產品的潛力，它是空氣流動產品，可以放入天花板槽型產品中，幫助在特定房間內移動空氣和循環空氣，它可以有與 HVAC 系統相關的一些非常顯著的能源節約。

So we continue to believe we have a very strong product. We have had a significant investment in marketing activities during the year, and we're still optimistic that we're going to land a couple of nice sized projects in the future on that product. But it has gone a little slower than expected.

所以我們繼續相信我們有一個非常強大的產品。我們在這一年中對營銷活動進行了大量投資，我們仍然樂觀地認為我們將來會在該產品上開展幾個規模不錯的項目。但它比預期的要慢一些。

And then on Voltrek, could you acquire any backlog. And how is that backlog compare to maybe a year ago to help us to sort of understand what the revenue growth rate of that business could be over the next year or 2?

然後在 Voltrek 上，你能收到任何積壓的訂單嗎？與一年前相比，積壓情況如何，以幫助我們了解該業務在明年或兩年內的收入增長率是多少？

I think I'd start and then we're just going back over the numbers that we talked about earlier of $4.8 million during calendar '21 for their business. And now we now expect to have revenue of $3 million to $5 million in the second half of our fiscal year. So obviously, roughly doubling in size from a year ago of where they have been. So very nice growth that they've had.

我想我會開始，然後我們就回顧一下我們之前談到的 21 年日曆期間 480 萬美元的數字。現在我們預計本財年下半年的收入將達到 300 萬至 500 萬美元。很明顯，與一年前相比，他們的規模大約翻了一番。他們的成長非常好。

Yes, they had backlog as we acquired the business and very nice activity. And so we are able to hit the ground running and why we feel there will be nice significant revenues during the second half of the fiscal year. There is a lot of planning that goes into place for EV charging solution projects.

是的，當我們獲得業務和非常好的活動時，他們有積壓。因此，我們能夠開始運作，以及為什麼我們認為本財年下半年會有可觀的可觀收入。 EV 充電解決方案項目有很多規劃。

And so it's similar to our other business where there are site visits and engineering work that's done and approval processes and then the supply chain for EV also has some challenges to it, so things do kind of build up from a backlog standpoint. So we feel good about the backlog they have. And as Mike mentioned earlier, we're making significant investments to expand that business across the United States.

因此，它類似於我們的其他業務，其中有實地考察和完成的工程工作以及批准流程，然後 EV 的供應鏈也面臨一些挑戰，因此從積壓的角度來看，事情確實有所增加。所以我們對他們的積壓感到滿意。正如 Mike 之前提到的，我們正在進行大量投資，以在美國擴展該業務。

Our next question coming from the line of Bill Dezellem with Tieton Capital.

我們的下一個問題來自 Tieton Capital 的 Bill Dezellem。

Congratulations on having customers reengaging with you, but I'd actually like to dive into that in a bit more detail. Why do you sense that they are reengaging, given the economic uncertainty that actually seems counter to what I would have otherwise anticipated. I would love to hear insights on that split?

祝賀您讓客戶重新與您互動，但實際上我想更詳細地探討一下。鑑於經濟不確定性實際上似乎與我原本預期的相反，您為什麼會感覺到他們正在重新參與。我很想听聽關於分裂的見解？

Bill, I'm going to have to ask you just repeat it one more time. You're coming through very low on volumes. So if you could please ask a question one more time?

比爾，我將不得不請你再重複一遍。你的銷量非常低。所以，如果你能再問一個問題好嗎？

So congratulations on customers reengaging with you. But the timing to me, is a surprise. It seems with the increased economic uncertainty that would lead to less reengagement and yet you've talked about having more reengagement. So the question is why, why do you think they're reengaging now?

因此，恭喜客戶再次與您互動。但時機對我來說，是一個驚喜。經濟不確定性的增加似乎會導致重新參與度降低，但您已經談到了更多的重新參與度。所以問題是為什麼，為什麼你認為他們現在重新參與？

Yes. That's an excellent question. And my view on it is that while we use the words reengage, I also think is mostly linked with we have seen the decision-making process for larger projects move a little bit more slowly than in the past.

是的。這是一個很好的問題。我對此的看法是，雖然我們使用重新參與這個詞，但我也認為這主要與我們看到大型項目的決策過程比過去慢了一點有關。

And we've commented on this previously. So part of the reason why we think we're seeing the -- and speaking positively about the second half of the year and going into next year is that these projects that have moved slowly through the customer approval process, we can see are getting very close to the end.

我們之前已經對此發表過評論。因此，我們認為我們正在看到 - 並積極談論今年下半年和進入明年的部分原因是這些在客戶批准過程中進展緩慢的項目，我們可以看到它們變得非常接近尾聲。

And the reason we think they're going to continue is that most of them have very significant savings related to them from an energy standpoint. We often comment that most projects have 50% or greater energy cost reductions. And so we have seen in the past that even if the economy might slow down, it provides an opportunity for companies to reduce expenses going forward. So certainly, we will and remain cautious about the economy as everybody is.

我們認為他們會繼續下去的原因是，從能源的角度來看，他們中的大多數人都有非常可觀的儲蓄。我們經常評論說大多數項目的能源成本降低了 50% 或更多。因此，我們過去已經看到，即使經濟可能放緩，它也為公司提供了一個減少未來開支的機會。因此，我們肯定會像每個人一樣對經濟保持謹慎。

At this point, we haven't seen it slow down the project activity that has been going through the process with our larger customers.

在這一點上，我們還沒有看到它減慢了與我們的大客戶一起經歷的項目活動。

And then relative to pricing. Could you talk a bit about how much you believe that you still need to raise prices further? And to what degree you are finding willingness or tolerance by your customers for you to raise prices?

然後相對於定價。你能談談你認為你仍然需要進一步提高價格的程度嗎？您發現客戶在多大程度上願意或容忍您提價？

So Bill, this is Mike Jenkins. We -- as you're aware, probably we've talked about on prior calls, we have done a fair amount of price adjustments as we've seen inflation move up over the last 18 to 24 months. I would say that in general, in our industry, we're not seeing nearly the same rate of inflation in terms of input costs. Transport costs are starting to decline from ocean freight, lead times are also getting better, those types of things.

比爾，這是邁克詹金斯。我們 - 如您所知，我們可能已經在之前的電話會議上談到過，我們已經進行了大量的價格調整，因為我們已經看到過去 18 到 24 個月的通貨膨脹率上升。我想說的是，總的來說，在我們的行業中，就投入成本而言，我們沒有看到幾乎相同的通貨膨脹率。海運的運輸成本開始下降，交貨時間也越來越短，諸如此類。

So the inflation kind of curve that we saw before has definitely flattened and we're obviously very vigilant on looking at it and making any price adjustments that we need, but it is moderating to a large degree. And we feel like we've kept up with it thus far.

所以我們之前看到的通貨膨脹曲線肯定已經變平了，我們顯然非常警惕地觀察它並做出我們需要的任何價格調整，但它在很大程度上正在緩和。我們覺得到目前為止我們已經跟上了它。

And then finally, your service margin gross margin increased to something in the neighborhood of 850 basis points versus the first quarter. Is that increased service gross margin a function of having Stay-Lite in the mix and some of their expertise or is there something else going on? So maybe a bit of why such success with gross service gross margin increasing sequentially?

最後，與第一季度相比，您的服務利潤毛利率增加到 850 個基點左右。增加的服務毛利率是因為 Stay-Lite 的加入和他們的一些專業知識，還是有其他原因？那麼也許有點為什麼總服務毛利率連續增長如此成功？

Bill, it's Per. I guess I'd say that the margin within service can fluctuate a fair amount. I'd say it's not -- I wouldn't attribute it to the expertise that Stay-Lite brought to the table with their base business. That service margin, just as a reminder to everyone, includes installation services. So it is not just maintenance services, and that's where mix, I would say, could be one of the bigger impacts on that rate from a quarter-to-quarter basis.

比爾，是佩爾。我想我會說服務的利潤率可能會波動很大。我會說這不是——我不會將其歸因於 Stay-Lite 通過其基礎業務帶來的專業知識。這個服務利潤率，只是提醒大家，包括安裝服務。因此，這不僅僅是維護服務，我想說的是，從一個季度到另一個季度，混合可能是對該比率產生更大影響的地方之一。

Our next question coming from the line of Jeffrey Campbell with Alliance Global.

我們的下一個問題來自 Alliance Global 的 Jeffrey Campbell。

I just wanted to ask a question with regard to kind of the structure of the Voltrek business. Is this primarily an EPC business, are you actually going out and procuring real estate or leasing real estate to develop these facilities? And is there going to -- do you envision any change in the way the business works now versus what you see for it as you expand into different parts of the country?

我只是想問一個關於 Voltrek 業務結構的問題。這主要是 EPC 業務嗎，您實際上是出去採購房地產還是租賃房地產來開發這些設施？並且會 - 您是否設想業務現在的運作方式與您擴展到該國不同地區時所看到的有什麼變化？

Sure. This is Mike Jenkins. The business itself is a design and installation business. We go out and guide our customers through the process and then manage in a turnkey fashion in the installation.

當然。這是邁克詹金斯。業務本身是設計和安裝業務。我們出去指導我們的客戶完成整個過程，然後在安裝過程中以交鑰匙方式進行管理。

We also do sell some of the products to other channels and to other partners as well, but we do not enter into the management of the real estate or leasing products or any of those kind of structures, which are available today. As far as the future, those things are really not in our current thinking, but always we'll be looking at how the industry evolves over time.

我們也確實將一些產品出售給其他渠道和其他合作夥伴，但我們不參與房地產或租賃產品或任何目前可用的此類結構的管理。就未來而言，這些事情確實不在我們當前的考慮範圍內，但我們將始終關注行業如何隨著時間的推移而發展。

I also would add and highlight what we've talked about in the past that we are -- we have the ability with Voltrek to use multiple suppliers for hardware. So we want to be in the business of providing the product for these EV charging solution projects, and we already have access to both ChargePoint and ABB from a supply -- very strong supplier relationship, but we also have others that can supply product.

我還要補充並強調我們過去討論過的內容——我們有能力與 Voltrek 一起使用多個硬件供應商。因此，我們希望從事為這些 EV 充電解決方案項目提供產品的業務，並且我們已經可以通過供應訪問 ChargePoint 和 ABB——非常強大的供應商關係，但我們也有其他人可以提供產品。

So our goal is to have the ability to bring various products, solutions to the customers, have the turnkey solution like we've done at Orion and Voltrek done in the past of the installation. Then obtain the ongoing maintenance service contracts and also have ability for additional recurring revenues when there might be other kind of subscription revenues with respect to certain products being sold. So that's kind of the business model that we see. We currently, as Mike said, don't see ourselves being an EPC of owning the actual stations.

所以我們的目標是有能力為客戶帶來各種產品和解決方案，擁有交鑰匙解決方案，就像我們在 Orion 和 Voltrek 過去安裝時所做的那樣。然後獲得持續的維護服務合同，並且當某些銷售的產品可能有其他類型的訂閱收入時，也有能力獲得額外的經常性收入。這就是我們看到的商業模式。正如邁克所說，我們目前並不認為自己是擁有實際車站的 EPC。

And our next question coming from the line of Andrew Shapiro with Lawndale Capital.

我們的下一個問題來自 Lawndale Capital 的 Andrew Shapiro。

A few questions, if you could. Your acquisition of the service business, I guess it was 3, maybe 3 quarters maybe a year ago now. On a prior call, I had asked about your thoughts on expansion to different geographies. And you thought that, that might be via acquisitions, maybe more than organic growth.

幾個問題，如果可以的話。你對服務業務的收購，我猜是 3 個，也許是 3 個季度，也許是一年前。在之前的電話中，我曾詢問過您對擴展到不同地區的想法。你認為，這可能是通過收購，而不是有機增長。

Then the Voltrek acquisition occurred. And I didn't know if the types of business that Voltrek is and the service business -- and service and maintenance business that you kind of acquired to expand, what synergies, if any, they exist and if they are achieving some of that geographic expansion since Voltrek so strong in the Northeast.

然後發生了 Voltrek 收購。而且我不知道 Voltrek 的業務類型和服務業務 - 以及您收購以擴展的服務和維護業務，它們存在什麼協同效應（如果有的話）以及它們是否正在實現某些地理區域自 Voltrek 在東北擴張以來如此強大。

Sure. High level, yes, we see synergies between both of these acquisitions, both with each of those companies as well as with our existing Orion business.

當然。高層，是的，我們看到了這兩項收購之間的協同效應，包括與這些公司中的每一家以及我們現有的 Orion 業務。

So to kind of go back and talk through a little bit, we felt a strong opportunity to enter the maintenance business and write it at the beginning of this calendar year we -- is when we closed the acquisition of Stay-Lite. And Stay-Lite has a nationwide footprint of being able to deliver maintenance services for lighting and miscellaneous electrical services as well as having 15 states where they can actually self-perform those services generally in the upper Midwest out to the East Coast and the Southeast a little bit.

因此，回顧一下，我們覺得有一個很好的機會進入維護業務，並在本日曆年年初寫下它——也就是我們完成對 Stay-Lite 的收購時。 Stay-Lite 的足跡遍及全國，能夠提供照明和雜項電氣服務的維護服務，並且在 15 個州實際上可以在中西部上游到東海岸和東南部實際自行執行這些服務一點。

We plan to expand our ability to provide those maintenance services through additional self-performing but also great partnerships with other service providers and continue to have that nationwide network. Mike mentioned earlier today, we have our first larger new opportunity for that maintenance business with an entity that has a number of locations in the southwest, primarily in the West.

我們計劃通過額外的自我執行以及與其他服務提供商的良好合作夥伴關係來擴大我們提供這些維護服務的能力，並繼續擁有該全國性網絡。邁克今天早些時候提到，我們有一個更大的維護業務的新機會，該實體在西南部（主要是西部）有多個地點。

So our feeling today is that while initially, we had thought maybe we would do additional acquisitions on the maintenance side of the business. As we did our additional research and felt that EV charging solutions was a great place for us to move to, we turned our M&A attention towards that area. And it's also a factor that we think we probably can organically grow the existing maintenance business currently as opposed to look at multiple acquisitions at this point in time.

所以我們今天的感覺是，雖然最初，我們認為我們可能會在業務的維護方面進行額外的收購。當我們進行額外的研究並認為 EV 充電解決方案是我們遷移的好地方時，我們將併購注意力轉向了該領域。這也是一個因素，我們認為我們目前可能可以有機地發展現有的維護業務，而不是在這個時間點考慮多次收購。

We think the Voltrek acquisition was the right move. And the synergies between them is that the maintenance services that are needed for lighting maintenance, we think are synergistic with the maintenance services needed for the EV charging solution projects.

我們認為收購 Voltrek 是正確的舉措。它們之間的協同作用是照明維護所需的維護服務，我們認為與 EV 充電解決方案項目所需的維護服務具有協同作用。

So over time, we could see having our technicians who are providing these services in the field service both the lighting customers as well as the EV charging stations. And as you build additional density in different areas of the country, it becomes a very positive business model to have our own people doing that work. And then finally, I would simply say -- I'm sorry, go ahead.

因此，隨著時間的推移，我們可以看到我們的技術人員在現場為照明客戶和電動汽車充電站提供這些服務。當你在全國不同地區建立額外的密度時，讓我們自己的人做這項工作成為一個非常積極的商業模式。最後，我只想說——對不起，請繼續。

No, no, go ahead. I have a follow-up anyway. Go head.

不，不，繼續。無論如何，我有一個後續行動。去頭。

Yes. So I think now we've made these 2 acquisitions during the calendar year. It's time for us to make sure we integrate those very confidently and smartly. And then we'll continue to sit back and say, how do we move forward to grow those -- both businesses, both organically and through additional acquisitions.

是的。所以我認為現在我們已經在日曆年內進行了這兩次收購。現在是我們確保我們非常自信和巧妙地整合這些的時候了。然後我們將繼續坐下來說，我們如何繼續發展這些業務——既包括有機業務，也包括通過額外的收購。

That's good. Because I was a little concerned about getting another service maintenance acquisition and just trying to integrate so many things when you guys are trying to -- need to execute on the business at hand.

那挺好的。因為我有點擔心獲得另一項服務維護收購，並且只是在你們試圖整合這麼多東西時 - 需要執行手頭的業務。

Now with respect to Voltrek, which is primarily in the Northeast, what is the, I guess, the timing and the plans for rolling out its business model and its business services beyond its geographic strength. Is that going to be organic, how does that -- how do you envision that occurring. And -- or is that going to be something after -- that will wait until after integration and then they'll need to be an acquisition?

現在關於主要位於東北部的 Voltrek，我想，推出其業務模型和業務服務超出其地理優勢的時間和計劃是什麼。這會是有機的嗎，那是如何發生的——你如何設想這種情況的發生。並且 - 或者這將是之後的事情 - 將等到整合之後，然後他們需要進行收購？

This is Mike Jenkins. I think we've already started with some customer engagements outside of that core area. We feel like we can leverage some of the resources and partnerships that we already have today on the turnkey side of our business to do some of the execution for that model outside of its core area, but it's going to be largely an organic build for us.

這是邁克詹金斯。我認為我們已經開始在該核心領域之外進行一些客戶參與。我們覺得我們可以利用我們今天在業務交鑰匙方面已經擁有的一些資源和合作夥伴關係，在其核心區域之外對該模型進行一些執行，但這對我們來說主要是有機構建.

And then last but not least, can you quantify and describe the timing for which you will or have already recognized the acquisition costs, I would assume either in the SG&A or potentially broken out as a separate line item for the recent Voltrek acquisition, which doesn't start generating, I guess, revenues and cash flow generation for the company until this current quarter ended, I guess, December?

最後但並非最不重要的是，你能否量化和描述你將或已經確認收購成本的時間，我會假設要么在 SG&A 中，要么可能作為最近 Voltrek 收購的一個單獨的項目分解，這不會我猜，在本季度結束之前，我猜，開始為公司創造收入和現金流量，我猜是 12 月？

Sure, I'll take that. We did see in the P&L in today's press release some acquisition-related costs that were recognized in the most recent quarter, in the second quarter. That was the tune of about $300,000. There was some acquisition-related costs associated with that for both Voltrek and still a little bit for Stay-Lite.

當然，我會接受的。我們確實在今天的新聞稿中的損益表中看到了一些與收購相關的成本，這些成本是在最近一個季度，即第二季度確認的。那是大約 300,000 美元的曲調。 Voltrek 和 Stay-Lite 都有一些與收購相關的成本。

As we move forward, there will be -- I'll say, some transaction-related costs that still come through here in the third quarter. And then there will be some integration-related costs that will come through.

隨著我們向前邁進，我會說，一些與交易相關的成本仍然會在第三季度出現。然後會產生一些與集成相關的成本。

The more significant component that I want to make sure everyone understands and you mentioned on the call announcing the Voltrek transaction is that the earn-out payments that are associated with the transaction for Voltrek will be recognized through the P&L.

我想確保每個人都理解並且你在宣布 Voltrek 交易的電話中提到的更重要的組成部分是與 Voltrek 交易相關的盈利支付將通過損益表確認。

So there's an earnout opportunity for fiscal year '23, fiscal '24 and fiscal '25, those costs from a GAAP standpoint will come through the P&L as we assess that they're being earned. And then they would be paid in a subsequent period after we've finalized the measurement of the progress against those earn-outs.

因此，23 財年、24 財年和 25 財年都有賺取利潤的機會，從 GAAP 的角度來看，這些成本將在我們評估它們正在賺取時通過損益表計算出來。然後，在我們完成對這些收入的進展衡量之後，他們將在隨後的時期內獲得報酬。

And so you are not --

所以你不是——

So there's (inaudible) 0:53:02.

所以有（聽不清）0:53:02。

Yes. Is the earnout metric then revenue based or will it be -- hopefully, more cash flow emphasized?

是的。盈利指標是基於收入還是——希望更多的現金流被強調？

It's EBITDA based.

它是基於 EBITDA 的。

And that concludes the Q&A session. I will now turn the call back over to Mike Altschaefl for any closing remarks.

問答環節到此結束。我現在將把電話轉回 Mike Altschaefl 以聽取任何結束語。

Thank you, operator. As some of you may know, this is my final earnings call as Mike Jenkins will become our next CEO after our quarterly board meeting on Thursday. I will continue to serve Orion as a Director. I'm confident that Mike has an excellent combination of experience, leadership capabilities and proven business success to lead Orion to a bright future.

謝謝你，運營商。正如你們中的一些人所知，這是我的最後一次財報電話會議，因為邁克詹金斯將在周四的季度董事會會議後成為我們的下一任首席執行官。我將繼續擔任 Orion 的董事。我相信 Mike 擁有豐富的經驗、領導能力和久經考驗的商業成功，能夠帶領 Orion 走向光明的未來。

I would also like to thank the entire Orion team for the privilege of working with you, all of you as CEO over the past 5.5 years. I'm very proud of the talent and commitment of the team that has allowed us to put the business on an exciting path for the future. I'm truly grateful to have had the opportunity to lead Orion.

我還要感謝整個 Orion 團隊有幸與你們一起工作，在過去的 5.5 年裡，你們所有人都擔任 CEO。我為團隊的才華和承諾感到非常自豪，他們使我們能夠將業務推向未來的激動人心的道路。我真的很感激有機會領導 Orion。

I would also like to thank our investors and other stakeholders, including our customers, partners and suppliers who have believed in and supported Orion over the years. So thanks everybody, for joining today's call. And the team looks forward to talking with you after our next quarter. Thanks a lot.

我還要感謝我們的投資者和其他利益相關者，包括多年來信任和支持 Orion 的客戶、合作夥伴和供應商。感謝大家參加今天的電話會議。團隊期待在下個季度後與您交談。非常感謝。

Today's conference call has now concluded. Thank you for your participation. You may now disconnect.

今天的電話會議現已結束。感謝您的參與。您現在可以斷開連接。