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Green Light for Energy Focus
10/12/2015 7:00 am EST
Our latest small-cap recommendation designs, develops, manufactures, and installs energy-efficient lighting systems and solutions, explains Jim Oberweis, Jr., money manager and editor of The Oberweis Report.
Energy Focus (EFOI) provides military, commercial, and industrial clients with energy-efficient LED lighting. It also offers turnkey energy efficient lighting alternatives to the public-sector building market.
The company’s goal is to become a LED lighting retrofit leader by bringing affordable, high performance tubular light emitting diode (TLED) products to the global marketplace.
Their products replace fluorescent lamps in fixtures. According to industry forecasts, the global penetration rate for TLEDs in 2012 was 3.2% and is expected to grow to 22.3% in 2016.
Military sales represent a significant opportunity and sales to a distributor for the US Navy accounted for 50% of sales in 2014.
On September 11, 2015, the company completed an offering of 1.5 million shares (plus 1.5 million shares from selling shareholders) at a price of $17 per share.
The proceeds are being used to upgrade manufacturing facilities and for general working capital.
In the company’s latest reported second quarter, sales increased approximately 148% to $16.6 million from $6.7 million in the second quarter of last year.
Energy Focus reported earnings per share of $0.21 in the latest reported second quarter versus a loss in the same quarter of last year.
Clients of Oberweis Asset Management own approximately 30,700 shares. These shares may be appropriate for risk-oriented investors.
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