Good day, ladies and gentlemen, and welcome to the Orion Energy’s Third Quarter Fiscal 2014 Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. (Operator Instructions). As a reminder, this conference call is being recorded. I would now like to introduce your host for today’s conference, Chris Witty. Mr. Witty, you may proceed.

Thank you and welcome to Orion Energy’s fiscal third quarter conference call. With me today is John Scribante, Chief Executive Office and Scott Jensen, Chief Financial Officer. As a reminder, the earnings Press Release issued today once again includes a section that briefly describes the supplemental information document that was posted to the company’s website. This supplemental information provides further details and analyses on Orion’s financial performance for the fiscal third quarter ended December 31, 2013. I will now read the Safe Harbor statement. Remarks that follow, including answers to 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. I’d now like to turn the call over to John Scribante, Chief Executive Officer of Orion Energy. Please go ahead, John.

Great. Thanks, Chris, and good afternoon, everybody and thank you for joining our call today. Let us start by going over our results for the quarter beginning with the revenue. Sales were down slightly year-over-year at $27.7 million reflecting a number of factors. First as we stated in the past, we’re not investing time or money into growing our solar business. And consequently as progress continued with our Brick Township project, revenue fell both sequentially and in comparison to the 2013 third quarter. Total solar revenue was $6.8 million for this year’s fiscal third quarter versus $9.1 million in the second quarter and $9.6 million in the third quarter last year. This trend will continue sequentially given that the project is scheduled to be completed during the first half of fiscal ‘15 or in the middle of this calendar year and will not be replaced with additional solar work. I won’t believe at this point, but I just wanted to mention again that we don’t believe that the solar market is one in which we should be investing or participating. It hinders our dedicated focus towards growing our LED business which is where we see the greatest opportunity for Orion. So either while solar margins were actually up this quarter due to some higher service revenue components, as Scott will review in a moment, this nevertheless is not an attractive growth area for the company and we’re not seeking new business here. Beyond the impact of declining solar revenue on the quarter, we also reported about $2 million less in sales than anticipated due to the government shutdown and some mere end-order delays. For the most part, these shipments have been pushed into future periods. As is our continued strategy, we maintain our focus on bottom line operating performance resulting…

Thank you, John, and good day everyone. After the market closed today, we reported results for the third quarter of fiscal 2014. Consistent with prior earnings announcements, we’ve provided additional content within a supplemental information document which was posted to our website earlier this afternoon covering our fiscal third quarter and year-to-date performance. Accordingly, I will not walk down the P&L on a line by line basis, but I will address some of the key areas. While we continue to grow profits and generated cash during the fiscal 2014 third quarter, a revenue of $27.7 million was down 4.8% versus our fiscal 2013 third quarter. Revenue from solar projects was $6.8 million in the quarter or approximately 24.5% of total revenue and Harris contributed $2.7 million of revenue during the period. John has already discussed the factors that impacted our national account sales and the Harris government projects. Wholesale revenue was 62% of total third quarter efficiency revenue and 64% of our fiscal 2014 year-to-date efficiency revenue. For the fiscal 2014 year-to-date period, revenue of $76 million was 19% ahead of the same period last year. Revenue from our solar projects of $20.8 million for the first nine months of fiscal 2014 was predominantly due to the Brick Township landfill project and accounted for 27% of total revenue. Year-to-date revenues for lighting projects amounted to $55.2 million, 13% ahead of last year’s lighting revenue, driven by the acquisition of Harris and growth within our wholesale channel. Our backlog at the end of December was $4.1 million which included $2.2 million of solar projects. The decline in backlog was due to continuing construction on our solar landfill project. Turning to growth margins, during the third quarter, we saw lower expenses on our solar landfill project and the completion of some higher…

Thanks, Scott. Before opening the call for questions, let me reiterate that while Orion has made great strides over the past year, growing revenue 19% year-to-date and growing earnings 124% year-to-date, our sales efforts are just beginning to scratch the surface of what remains to be a huge market for the LED retrofit sales both here and abroad. We’re winning new national accounts every quarter. And our brand is clearly known as a leader in the space. At the same time, we had further momentum going forward and demand and order trends accelerating on a sequential basis. And we’re responding to this need as a cohesive organization with a great sales staff and highly trained people. We need to continue investing in our people and our products to bring the best unique offerings to the market and stay ahead of the competition while delivering the most value to our customers. We will also continue looking for strategic acquisitions that can broaden our product line, bringing us new customers and provide superior shareholder returns to better asset utilization and economies of scale. I’m personally excited about the future of Orion as we have great deal of potential due to our technology, our position in the market, and most of all, our people. We remain well-positioned and we’ll continue to evolve in a way that best serves our customers and our shareholders. With that operator, we will now open the call up for questions.

(Operator instructions). Our first question will come from the line of Steve Shaw from Sidoti. Your line is open, and you may proceed. Steve Shaw – Sidoti & Company: Hi guys, how are you doing?

Hi, Steve.

Hi, Steve. Steve Shaw – Sidoti & Company: Can you guys just provide some color on stepping away from the solar business? I know you guys are working on the big project in Brick. Is it a process that happens rather quickly over a quarter or two or is it going to be a slow phase out?

Sure. In terms of the infrastructure and the back office part of that business, it’s very scalable. The resources we have deployed for solar for the most part came out of our lighting business, and so redeploying them is pretty seamless activity for us. In terms of burning to [ph] pipeline, we do have – do a couple of open projects that we’re winding down. And that might take the next three quarters or so, but revenue becomes significantly lower. So it is not a difficult process for us to do that. Steve Shaw – Sidoti & Company: Okay. Thank you.

I don’t know. Did that answer your question? Steve Shaw – Sidoti & Company: Yes.

Okay.

Thank you. And our next question comes from the line of Carter Driscoll from Ascendiant Capital. Your line is open, and you may proceed. Carter Driscoll – Ascendiant Capital: Ascendiant. Thanks. Hi there, guys. I want to talk about some of the order push outs, maybe to characterize, I’m sure you want to identify the need of the customers. But maybe some of the end markets and whether this is kind of interpretation on global growth and people may be pushing out some of the cap expectations or whether it was a specific end market or specific customer that you could – any characterization I think would be helpful, and then a couple of follow ups.

Sure. So what we’ve been experiencing is our customers, our industrial customers, so that’s our more legacy factory and warehouse facilities that today they’re looking at LED as an option versus linear fluorescence. And the linear fluorescence is still very economical. LED is getting to the point where we’re making sales into that space, but we’re experiencing some longer lead times just due to the vacillating back and forth as to do I wait a little while and get a better pricing after the New Year or a few months on the LED versus on fluorescence? Am I investing in a technology that I may need to replace in a few years down the road? So it just is adding more layers of questions into the sales process. That’s on the industrial side. On the commercial side on really the front office in retail, which is really a newer market segment for us that came with our LED fixture, that actually is we’re seeing the opposite and that’s a much faster option, much faster growth in that segment. But because it’s a smaller portion of our total sales, it’s having less of an impact. So I’m seeing the LDR segment, the commercial office, the retail store, retail restaurant, retail banking, drugstore, all of the commercial space that the LDR is very well-positioned for is a very fast-acting space right now. So industrial on the inside, in the factory and warehouse, just a little longer lead times. And then some of the specific pushbacks – one was government shutdown which impacted a fair amount of business and even though the shutdown was only for whatever that was, four or five weeks, the impact was that we are just now getting back on to those job sites. You can’t just walk back in through the gates after a shutdown. There’s a lot of other impacts. So there’s that. And then we also experienced some large customers that went through acquisitions, just getting through – some late end – some December acquisitions that put a hold on a whole lot of business for us to do this. Carter Driscoll – Ascendiant Capital: Okay. What we’re trying to characterize is that on the commercial side because typically the opportunity or the size of the facility is smaller relative to the industrial customer that it’s quicker and therefore it might be midyear capital decision, it might be a smaller total dollar layout versus the industrial customer and therefore smaller sales cycle versus the industrial customer.

I think there’s two – you can split the commercial really into two segments. One is that small local buyer that’s picking up smaller orders. But more significantly, the large high rise office buildings that are controlled by property managers and so you really got both ends of that spectrum to where you put the big finances [ph] that those guys are very open to discussing this topic, the property managers are – we had a lot of discussions around that. There’s some adoption rate, we’re seeing orders that are coming in on that, mostly pilot orders right now, but with tremendous amount of upside. So I think you can really split commercial into two and the small Laundromat grocery store type business, all the way up to the serious hour [ph]. Carter Driscoll – Ascendiant Capital: And can you remind us again the kind of the rest split between industrial and commercial and then maybe how you expect that to evolve say over the next several quarters in terms of contribution to sales?

Carter, you’re asking industrial versus commercial? Carter Driscoll – Ascendiant Capital: Correct. Correct. Correct. And then how you expect potentially to change [indiscernible]?

Got it. Got it. Yes. So a small portion of our revenue right now is on the commercial side. John talked about pilot orders. So predominantly, our revenue on the lighting side has been either in exterior, parking garages, automotive dealerships or in a commercial industrial application. Carter Driscoll – Ascendiant Capital: But it does have the greatest potential to grow on the upside.

The commercial side. Carter Driscoll – Ascendiant Capital: The commercial.

Yes, so moving forward, we could easily see that split moving more towards a balanced 50-50 ratio in commercial even outgrowing our existing commercial industrial business. Carter Driscoll – Ascendiant Capital: You’re again – that payback could potentially happen over the next several quarters or do you that will take a multiple year process?

I think it’s longer into the calendar 2014. A lot of this is seeding the clouds, getting pilots out there, the owners being able to evaluate the performance and the energy savings of the fixture and then deploying capital again to John’s comments, at a smaller level, that decision is quicker. At a corporate level, that may take a little longer time for them to deploy the capital. I will tell you, two to three quarters out is our expectation before it’s meaningful. Carter Driscoll – Ascendiant Capital: Okay. Thank you. That’s helpful. Shifting gears a little bit. The Harris contribution is down, well, at least on a percentage basis fairly substantially. Q2 obviously largely impacted by the government side. Is that your typical type of government impact looking from what they did last quarter, this quarter and – or was there any other weakness in Harris business outside of the government side?

No, the government business has been roughly a third historically and that’s been pretty consistent to their run rate. And that’s about what it was impacted in the quarter. Carter Driscoll – Ascendiant Capital: But essentially, you just want to weigh in the quarter. Is that fair?

Yes, just the deferrals. Carter Driscoll – Ascendiant Capital: Yes, okay, okay. Of the push outs you characterized, winning – I’m assuming a significant majority of this back in later quarters, would you care to put a rough percentage around what was pushed out and what you think you have a good chance of recovering say over the next several quarters?

I think we have a great chance of recovering all of the business. I can’t tell you specifically on the timing. The most difficult one is obviously the customer of ours who was acquired. Actually both the acquirer and the acquired business have been customers of Orion. So they know us. But they have to work through their own evaluation of facilities and allocating capital. The other push outs really were timing issues around deciding to defer allocated budget dollars into calendar ‘14. So those are still on the table and we would expect to be able to win that business hopefully in the first half, but again customer decision. Carter Driscoll – Ascendiant Capital: Okay, all right. I’ll step back in the queue. Thanks, gentlemen.

Thanks, Carter.

Thank you. Our next question comes from the line of Tom Kerr from Singular Research. Your line is open and you may proceed. Tom Kerr – Singular Research: Hi, guys.

Hi, Tom.

Hi, Tom. Tom Kerr – Singular Research: Hi. Going back to the de-infrastructure with solar projects, just to clarify, is that pretty much everything that’s in engineered system segment or are there other material things in there? Or is that pretty much the whole segment that’s going to be in like a run-off mode?

Yes. That’s been – the engineered systems segment has been predominantly solar. We are looking at moving that into complex projects, so incorporating any complex lighting system, third-party technology. So that will evolve going forward. But from a historical standpoint, that has been solar.

We’ll sustain itself, it’s just – [indiscernible] thing are not the national account complex lighting projects. And so our traditional business is more of the wholesale and end market and engineering systems. We’ll pick up the national accounts in a more complex stuff. So it’s changing its character a little bit going forward. So you’re still seeing numbers flow through there, but it will be more lighting than solar. Tom Kerr – Singular Research: Has that come out of the energy management segment that requires a restatement or will it be a new type of business?

No, going forward. Tom Kerr – Singular Research: Okay, so those segments will remain the same just not of any [ph] solar and the engineered system’s part.

Correct. Tom Kerr – Singular Research: Right, that’s all I have. All the questions have been answered. Thanks.

Good.

Thank you.

(Operator Instructions). Our next question will come from the line of George Gasper with the Private Investor. George Gasper – Private Investor: Yes, thank you. Good afternoon, there. A couple of questions, first John, could you make some comments on your recent announcements on staff additions or your management additions, changes, how do you see this all coming together now? And what do you anticipate from these changes as far as what your objectives are near and longer term.

Sure. Nice to talk to you, George. We’ve been, over the last year, a year and a half, constantly been seeking out and looking for and identifying talented individuals and people that can help us build and grow the business. We’ve made a lot of internal advancements and positioning as staff within the company to better serve our customer. We’ve identified a lot of talent within the organization that has moved into roles that they may have been overlooked in the past. So we’re on a tremendous amount of success in just identifying internal opportunities to better the business, stay lean, stay focus on customers and building out a better business. In terms of the recent announcements one was Mark Meade who we had elevated to Executive Vice President. Mark and I have worked hand in hand building out our solar division. He was very instrumental in a lot of the project finance structures and the operations of the business, a very talented individual, has a tremendous amount of insight and ability to look forward into the business and help prepare us. So he’s very strategic. And then Omar Rivera who we recently announced last week joined us from General Electric, GE. He was a product manager for their LED lighting business. Been with the company for six years or so and had some prior businesses before that, in lighting distribution, in lighting. So he comes with us with a tremendous amount of experience. He’s helping us build out our channel and make sure that we’re structuring as we’re expanding and bringing on more retail business and more distribution business. He’s really guiding through that and bringing vast amount of knowledge to the table. So those are the two more recent announcements that internally we’re positioning people to better serve the customer. And we focus all of our efforts around the customer value streams. George Gasper – Private Investor: Okay, thank you. And now I got a question on power class shift that could really be very dimensional in the United States coming forward here within six months. I’ve spent a lot of time analyzing energy cost structures. And this natural gas price shift that has been experienced recently obviously is due to cold weather in many parts of the United States. And historically I’d measure that there is a league of about six months and power generators are getting to the customer. And as they purchase their forward advancements of natural gas for example for power generation, are you sensing anything or maybe it’s early, but I think United States is in for a reassessment that’s of companies, of manufacturers, users of electricity are going to be shocked at what they could possibly see as natural gas shifts upward in such a demonstrative number to energy power markets. Do you – what do you think about that?

Well it kills me, but if electricity prices go up, that benefits Orion. It provides more reason for our customers to take action, take measures to reduce cost. And I think the infrastructure that we have in this country and what the constraints and the inherent aids to the systems is all putting pressure on electricity cost. And I think we will benefit. I think the bigger driver for us though is the solid state lighting. And even though electricity cost will have its ups and downs, the massive market, regardless of electricity cost, the massive solid state lighting market is probably more significant to us. George Gasper – Private Investor: Okay, thank you.

Thanks, George.

Thanks, George.

Thank you. And I’m not showing any further questions at this time. I would like to turn the call back over to John Scribante for any closing remarks.

Well great. We look forward to spending some time once again next quarter and updating you on our progress. So I appreciate you taking the time today. And we look forward to another great quarter. Thanks.

Ladies and gentlemen, thank you for participating in today’s conference. This does conclude the program and you may all disconnect. Everyone have a great day.