New ETF Book by Larry Connors - Click here to read more
Orion, which went public in December, is a Plymouth-based maker of energy-saving lighting systems used in warehouses and factories. The company has a large client base among companies on the Fortune 500, including Coca-Cola Enterprises Inc., Kraft Foods Inc., OfficeMax Inc. and Toyota Motor Corp.
But the company's decision to invest heavily in recruiting a large sales force for long-term growth ended up hurting sales in the company's first fiscal quarter, company executives said in a conference call Wednesday.
Orion saw its sales delayed as some potential customers announced plant closings tied to weakness in the U.S. economy, said Scott Jensen, the company's new chief financial officer.
The company warned late Tuesday that its sales this year would grow 25% to 28% to $101 million to $103 million, instead the 50% growth rate announced in May.
"This is conservative guidance which reflects the business realities that we see in front of us," he said.
Orion shares closed Wednesday at $5.94, down $2.66. More than 5.4 million shares were traded, compared with a typical day's volume of 250,000 shares. The shares are down 68% so far this year.
Wednesday marked the second time in less than three quarters as a public company that investors came away disappointed with the company's financial performance or outlook. Analysts at Thomas Weisel Partners and Northland Securities reduced their ratings on the stock after the company's Tuesday announcement.
Orion also took the step of announcing Jensen's appointment as well as naming a new chief operating officer and new chief financial officer.
Jensen said the company expects to report a profit of less than 1 cent per share when results are announced on Aug. 5.
Sales in the first quarter were lower than expected in part because of the economy and in part because of time invested in the quarter in recruiting and training new salespeople rather than generating sales, said Neal Verfuerth, Orion chief executive.
Sales were particularly weak in April and May before rebounding in June to help put the company in the black, he said.
Orion said Erik Birkerts, the new COO, will be focused on budgeting, planning and forecasting, allowing Verfuerth more time to focus on meeting with customers and working closely with the sales force.
To see more of the Milwaukee Journal Sentinel, or to subscribe to the newspaper, go to http://www.jsonline.com. Copyright (c) 2008, Milwaukee Journal Sentinel Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
