Good day ladies and gentlemen and welcome to Orion Energy Second Quarter 2013 Conference Call. [Operator Instructions] I would now like to turn the call over to Scott Jensen, CFO.

Thank you, Operator. Good afternoon everyone. And thank you for joining us today for the Orion Energy Systems Second Quarter Fiscal 2013 Conference Call. Once again my name is Scott Jensen, Chief Financial Officer of Orion. With me on the call today is John Scribante, Chief Executive Officer. As a reminder the earnings press release issued today once again includes a section that briefly discusses the supplemental information document that was posted to the company’s website. This supplemental information document provides additional details and analysis on Orion’s financial performance for the second quarter and year-to-date periods ended September 30, 2012. I will now read the safe harbor statement. Our remarks that follow including answers to your questions include statements that we believe to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are generally identified as such because the context of such statements will include words such as believe, anticipate, expect, or words of similar import. Similarly, statements that describe future plans, objectives or goals are also forward-looking statements. These forward-looking statements are subject to risks that could cause actual results to be materially different. Those risks include, among others, matters that we have described in our press release issued this afternoon and in our filings with the Securities and Exchange Commission. Except as described in these filings, we disclaim any obligation to update these forward-looking statements, which may not be updated until our next quarterly conference call if at all. And now I’d like to turn the call over to John Scribante, Chief Executive Officer of Orion Energy Systems.

Thank you, Scott, and good evening and thank you all for joining us today. And given that I haven’t had a chance to meet many of you yet, I’d like to start by briefing introducing myself. I hope to meet many of you in the months ahead. Over my last 8 years with Orion, I played a significant role in both sales and business operations. And early in my tenure with Orion, I worked to build our installed base of Fortune 500 companies establishing longstanding relationships with companies like Coca Cola, Anheuser-Busch among many others. More recently I launched and grew Orion Engineered Systems into a meaningful contributor to Orion’s financial results. This division focuses on integrating a number of technologies to help our customers further improve their energy usage. For example, incorporating solar technologies into our product portfolio was one of the direct results of my efforts. With my new role at Orion, I have a great opportunity and the right team in place to move this company on a path to profitable growth. Today I would like to spend my time focusing on a few key areas. First, I will provide a brief overview of our results for the quarter. Second, I will give my thoughts on Orion’s business and review some steps I have already taken to enhance our position in the marketplace. And finally, I will outline my longer-term priorities for which I plan to provide updates around the coming quarters and months ahead. Turning to our results for the fiscal second quarter of 2013, total revenues were $19.4 million versus $33.5 million in the prior year period. For the quarter the decrease in revenues year-over-year was primarily attributed to the unusually high level of solar projects coming together in the second quarter of last year…

Thank you, John. Consistent with our prior earnings announcements we’ve provided a fair amount of content within the supplemental information document which was posted to our website earlier this afternoon, covering our second quarter and year-to-date fiscal 2013 performance. Accordingly, I will not be walking you down the P&L on a line-by-line basis, but I will address some of the key areas. John has already touched on our revenue and net loss for the quarter. So I'd like to focus my commentary on the nonrecurring charges that were incurred during the period. First, we recorded cost reduction and reorganization-related expenses of $2.1 million or $0.10 per share in the second quarter. These charges included $1.7 million to general and administrative expenses and $400,000 to selling and marketing expenses. Additionally during the second quarter, we recorded a non-cash charge of $5.6 million or roughly $0.27 per share of income tax expense related to a valuation reserve for our deferred tax assets. GAAP accounting prescribes a conservative approach to accounting for deferred tax assets. In evaluating these assets significant consideration in establishing this reserve was given to our accumulative 3-year net loss position and our limited visibility into the future. To be perfectly clear, these tax assets are not lost to us. In the future, as we deliver consistent taxable income over a consecutive period of 6 to 8 quarters, we will reevaluate these tax assets. Until we've reached this level of consistency in operating income, we will not record any income tax expense or income tax benefits in the near term. During the quarter we continued to maintain the recent improvements in our solar gross margins, and looking at our solar project backlog for orders that we expect to be completed during the remainder of fiscal 2013, we expect gross margins…

[Operator Instructions] The first question is from Phillip Shen of Roth Capital Partners.

Matt for Phil. Just a couple higher level questions for you. I just want to start with you, John. You talked about shareholder value in your prepared remarks. Just wanted to see if you’ve got a little more color on how you plan on aligning incentives throughout the organization to focus on shareholder value, maybe take a few key examples.

Sure, thank you. In terms of aligning the incentives, I guess that would fall into a couple of different categories. Certainly part of shareholder value of giving a good return on the investment would involve 2 parts. Obviously on a sales perspective, we need to have a more robust compensation plan for our sales organization that will drive quarter-over-quarter performance and at the same time recognize the top achievers, the high-performance people, and to the extent that there are low performers take swift action to correct that. On the other side is I think a little more mechanical in that to reduce costs, which will also drive profits, is to just have spending controls, having the -- share the culture of cost containments, sharing the overall just vision of where we’re going of bringing shareholder value, people within the organization in the plants all need to be focused on that. So I think the incentives are a little more driven on the revenue side and just better controls and better discipline on the cost side. Also in addition to that, good training. We historically have had some more centralized organization, and I think training people at all levels in the organization what shareholder value is and what it means to them and how they can impact it. I think that's a key part of it.

Then as far as your sales strategy, so much of your business has sort of leveraged to the capital spending environment. Are you guys examining ways to drive sales without relying so much on customer capital budgeting?

Yes, I think we are looking at some new product developments that are not as reliant on large capital expenditures but products that could be sold in smaller environments which could be more of an expense item. I think financing can also be a method to address the CapEx issue, although it's not perfect for everybody. I think if we have new markets, which I'm anticipating through some new products that we’re working on, that that will provide us a more balanced opportunity when capital spending is limited to go with more expense-related replacement items.

The next question is from Shawn Severson of JMP Securities.

Just trying to get an idea of obviously some of the issues internally going on at the company. But how are you feeling about kind of broader macro environment and customer response deferrals, just a sense of how the business climate is for you guys especially any changes over the last month or 2?

I guess also in regards to having the election behind us, I think that at least gives our customers whether they -- depending on which direction they fall on that election, it does provide at least a 4-year window as to what they can expect. And with that, while President Obama is very friendly to energy efficiency and renewable energy, until business in general and particularly small business gains a real foothold and the broader economic conditions improve, I think that, that’s the other side of that coin. So in general I am very optimistic. I think with streamlining our business operations with our great products that we offer, with more discipline within the organization on selling those products, staying focused on the products that are sellable, we put a lot more discipline in our product development cycle so that our people are just much more concentrated on selling the things that we’ve got in the warehouse, selling the things that we’re already building. And even in spite of some headwinds on the economy, there’s still a tremendous opportunity out there. We’re very well-positioned in the marketplace relative to the markets we serve, with the customers that we have, we’ve just continued to build the product.

Have you see many -- I guess in the last few weeks toward the quarter end, I’ve talked with companies, things definitely weakened towards the end of the quarter and then the first part of the fourth from a fundamental basis. And so it kind of sounds like you guys are seeing some similar movement in terms of business and demand; is that fair to say or not?

Actually, Shawn, this is Scott. Not necessarily seeing that. Typically this is the time of the year where we are busier as a capital goods provider. I would say that we were busier toward the end of the prior quarter. And then we don't comment intra-quarter, obviously. But I think right now what we’re seeing is really what we would've expected and anticipated heading into this quarter.

And then just in terms of the information you need to kind of take some of the steps that you want at the company, do you feel that all the IT and the knowledge is there to execute on this or are the things you need to do in terms of gathering more information to make the changes that you feel are necessary at the company?

Absolutely. We are in a good position for that. Some of it is just pulling it all together. But we hold all the information and we have good access to it. So it’s really a matter of getting it in the right dashboard, getting it in the right format to distribute it throughout the leadership team, throughout management and down to the floor where the impact can be made.

At this time, I would like to turn the call back over to management for closing remarks.

Well, thank you. This is a great opportunity that we have ahead of us. I truly appreciate all of your support and just generally want to thank everybody for their time today.

Ladies and gentlemen, this concludes today’s program. You may now disconnect. Good day.