Good day, ladies and gentlemen, and welcome to Orion Energy Systems’s Second Quarter Fiscal 2016 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 follow at that time. [Operator Instructions] As a reminder, this conference is being recorded. I would like to introduce your host for today’s conference, Ms. Victoria Sivrais, Investor Relations. Ma'am, you may begin.

Thank you. Good afternoon everyone and thank you for joining Orion Energy Systems’ second quarter fiscal 2016 earnings conference call. Participating in today’s call will be John Scribante, our Chief Executive Officer; Bill Hull, our new Chief Financial Officer and Scott Jensen, our Vice President and Controller who will be available during the Q&A session. John will open today’s call by providing comments related to our quarterly results and business outlook. Bill will then discuss our financial results for the second quarter in greater detail. John will then make some closing remarks and will open it up for questions. The Company has made an accompanying slide presentation available on its website at www.orionlighting.com in the Investor Relations section. Additionally, for anyone who is not able to listen to today’s entire call, an archived version of this call will be available later this evening. Please visit the Investor Relations section of Orion’s corporate website to access the replay. Before John begins his commentary, I would like to review Orion’s Safe Harbor statement. This call is taking place on November 03, 2015. Remarks that follow, including answers to questions, include statements that the company believes to be forward-looking 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 the company has described in its press release issued this afternoon and in its filings with the Securities and Exchange Commission. Except as described in these filings, the company disclaims any obligation to update these forward-looking statements, which may not be updated until the company’s next quarterly conference call, if at all. With that, I’ll now turn the call over to John. John?

Yes, good afternoon everybody. Today we reported another growth quarter with fiscal 2016 second quarter total revenues growing 17% year-over-year to $15.7 million and gross margins expanding 678 basis points year-over-year to 18.5%. Our LED lighting product sales increased 104% to $10.6 million for the second quarter and LED products have reached a record 72% of total lighting product revenue reflecting sequential LED unit growth and clearly validating that our business transformation is working. Our second quarter sales were driven primarily by customers within the education, retail and government space, particularly universities and school districts that took advantage of the downtime during the summer months to complete their maintenance projects and retailers who are rolling out store renovations. In fact, our sales in these verticals exceeded our original expectations. We now have agreements with two of the three largest school districts in the nation to supply LED products and we just received another significant federal contract which should begin shipping late in fiscal 2016 complimenting our more historic verticals like retail which now include three of the nation's largest retailers. The trade off with these newer verticals however is that this business is heavily comprised of our LDR trough or retrofit fixtures which are currently our lower priced, lower margin products. As a result, the higher LDR mix we experienced in the fiscal second quarter directed impacted our margin as well as our topline revenue due to the lower average selling prices. Our industrial sales particularly the high-bay fixtures in the quarter was impacted by the slowdown in the U.S. industrial production which was reflected in weaker than expected GDP numbers reported last week noting a slower annual growth rate to 1.5% in the quarter versus 3.9% the previous quarter. While we remain confident in the opportunity ahead of us,…

Thanks, John. As John noted we established a new record for LED revenue as a percentage of lighting products sales during the quarter. Our total revenue grew 17% to $15.7 million which compares to $13.4 million in the second quarter of fiscal 2015. Product revenue increased 18.5% year-over-year to $15 million which compares to $12.6 million in the second quarter of fiscal 2015. LED sales grew 104% to $10.6 million and comprised 72% of total lighting product revenue. This compares to LED sales of $5.2 million or 41% of total lighting product revenue in the comparable period. Service revenue was essentially flat at $700,000 in the second quarter of fiscal 2016. Total gross margin was 18.5% for the second quarter of fiscal 2016 reflecting a nearly 700 basis point improvement over the adjusted 11.8% gross margin reported in the second quarter of fiscal 2015. This reflects our margin expansion initiatives that were implemented over the past several quarters. Our gross margin improved on a year-over-year basis and increased in each LED product segment. It declined sequentially from 22.7% in the fiscal 2016 first quarter as a result of the mix shift in orders John discussed, including a sizable drop in fluorescent sales. We expect continued year-over-year gross margin expansion in the second half of the year as the shift in our margin mix moderates. Total operating expenses increased – decreased 16.7% year-over-year to $6.5 million reflecting an improvement of nearly 1700 basis points as a percentage of revenue to 41.2% compared to 58.1% in the year ago period. Year-to-date total operating expenses increased 6.1% or nearly 1400 basis points as a percentage of revenue to 43%. The improvement reflects reductions in discretionary expenses resulting from our February 2015 business improvement initiatives as well as lower legal and consulting expenses. We reported a net loss of $3.6 million or $0.13 per share in the second quarter of fiscal 2016 compared to a net loss of $18.3 million or $0.84 in the prior year period. On an adjusted basis, the company reported a net loss in the prior period of $6.2 million or $0.28 per share. Now moving to the balance sheet, we ended the quarter with $13.4 million in cash which compares to $17.9 million as of June 30, 2015. We have working capital of $32 million which compares to working capital of $25.2 million at September 30, 2014. Our cash flow used in operations was $3.2 million during the fiscal 2016 second quarter which compares to a use of $3.8 million during the prior year period. The reduction in accounts payable reflecting the timing of various payments offset most of the improvement in our net loss. Our inventory turns have continued to improve during the first half of fiscal 2016 and we expect this trend to continue even as we deliver new LED products to the marketplace. With that, let me turn the call back over to John.

Great, thank you. We are very pleased with our second quarter results. Our pipeline build and product offerings leading into the back half of the year when we historically realized about two thirds of our revenue. We are really reiterating the majority of our fiscal 2016 guidance to include generating significant year-over-year revenue growth, significant gross and operating margin expansion and positive EBITDA and GAAP EPS in the second half of fiscal 2016. However due to the shift in product [Audio Gap] products during the second quarter which reduced overall gross margin percentage for that quarter. And the economic headwind and the industrial production we experienced, we now expect to generate 12 month trailing positive EBITDA by the end of our fiscal first quarter – fiscal 2017 first quarter ending June 30. Furthermore, given revenue and related accounts receivable build that we currently expect for the back half of fiscal 2016 related to our pipeline build, we now expect to generate 12 months trailing positive operating cash flow by the end of our fiscal 2017 first quarter ending June 30 as well. Longer term our outlook [Audio Gap] we are the cusp of the major inflexion in the secular shift from fluorescent lighting to LED and while this is a messy industry playing field at the moment, we are one of the true innovators in the space and fully expect to capture the potential from the many opportunities that are in front of us. We thank you for your patience and your continued support. So with that, I will be happy to take your questions.

[Operator Instructions] Our first question comes from Steve Dyer of Craig Hallum. Your line is now open.

Thanks. Good afternoon guys. I’m trying to just make heads or tails of the sort of the new commentary around guidance if you will and seasonality, it sounds like some Ford business slipped from September into now anticipated in March is that right?

Yes, there was, I think the mix had a little more of a dramatic impact on the quarter. There was some Ford business that did move to the March period due to getting access to the site. As you know and have likely heard Steve, in the past our Ford business turns to move around a lot just due to getting access. So to rely on that business in particular, we got to be very, very careful. So clearly to build the revenue without regard to Ford is very important to us, not to Ford it is not important business for us, it is just in terms of us predicting our future. We put a high risk on that business.

Yes, I guess I’m just trying to figure out, I mean you mentioned seasonality historically the December quarter is far and away your biggest and it sounds like maybe March and even June will be a little bit more balanced. Can you, I know you don’t want to get sort of pinned down on the quarters, but how you sort of think that will look in terms of the relative size of each quarter?

Yes, I think you’ll see continued strength in our December quarter as well as our March quarter. June is quite a ways out for us to predict although with what we’re seeing, what we saw this year in the adoption rate of our schools and the institutional side of our business, I suspect that June is going to come in strong as well, but we still feel very confident about our December and March quarters.

Okay.

And even with the business of Ford shifting, all that will do is just boost our March quarter.

Okay. I'll hop back in queue, thanks.

Thanks Steve.

And at this time, I’m showing no participants in the queue. I would like to turn the call over to management for any closing remarks.

Okay, great, thank you very much. Thank you for joining us. We look forward to speaking with you again when we report our next quarter in three months. Thank you and have a good day.

Ladies and gentlemen, thank you for your participation on today’s conference. This concludes the program. You may now disconnect. Everyone, have a great day.