As we communicated in April, the difficult operating environment created by the global recession led our fourth quarter and 2009 fiscal year-end financial results to be weaker than anticipated. Our commercial and industrial customer end markets continued to be soft, with declining capital expenditure budgets, lengthening sales cycles, accelerated plant closures and job losses of key contacts at our existing customers, stated Neal Verfuerth, chief executive officer of Orion Energy. While our fourth quarter is traditionally strong, this fiscal year we experienced delays with several of our sizable national account opportunities that primarily drove our lower results. However, we believe that these opportunities were not lost as we have already received fifteen purchase orders for over $1.5 million of business from these customers since the end of the quarter and we expect this trend to continue.

Despite the extremely challenging economy, the value proposition our products offer our customers has not changed — our products continue to allow companies to realize significant energy cost savings that, in turn, carry through to their bottom lines, added Verfuerth. Moving into our fiscal 2010, we plan to take advantage of our financial strength to position ourselves well for the ultimate recovery of the economy. The current energy situation in the United States presents an enormous opportunity for Orion, and as a result, we continue to invest our time and efforts into further strengthening existing customer relationships, expanding our partner network and building our sales pipeline so that we are well prepared to strike when the economy begins to improve.

Fiscal 2009 Fourth Quarter Results:

Revenue: Total revenue for the quarter was $15.4 million compared to $22.3 million for the fiscal 2008 fourth quarter, representing a decrease of 31%.

Gross Profit: Gross profit for the quarter was $4.6 million compared to $8.0 million for the fiscal 2008 fourth quarter, representing a decrease of 43%.

Operating Expenses: Total operating expenses for the quarter were $6.4 million compared to $6.5 million for the fiscal 2008 fourth quarter, representing a 2% improvement.

Loss from Operations: Loss from operations for the quarter was $1.8 million, representing a $3.4 million decline from $1.6 million of operating income in the fiscal 2008 fourth quarter.

Net Loss: Net loss for the quarter was $1.1 million compared to net income of $1.5 million for the fiscal 2008 fourth quarter, representing a decline of $2.6 million. Losses per share were $0.05 for the quarter compared to earnings per diluted share of $0.05 for the fiscal 2008 fourth quarter.

Fiscal 2009 Year-End Results:

Gross Profit: Gross profit for fiscal 2009 was $23.6 million compared to $28.2 million for fiscal 2008, representing a decrease of 16%.

Operating Expenses: Total operating expenses for fiscal 2009 were $23.7 million compared to $20.9 million for fiscal 2008, an increase of 13%.

Loss from Operations: Loss from operations for fiscal 2009 was $56 thousand compared to operating income of $7.4 million for fiscal 2008, a decline of $7.5 million.

Cash Flow & Liquidity: Cash flow from operations was $3.2 million for fiscal 2009 compared to a cash outflow of $1.4 million in fiscal 2008. Orion Energy maintains strong financial strength and liquidity with $42.7 million in cash and short-term investments as of March 31, 2009, along with modest debt.

Business Highlights:

Deployed energy management systems in 194 facilities in the fourth quarter of fiscal 2009, representing over 31 million square feet retrofitted, and bringing Orion Energy’ installed base to 4,581 facilities. During fiscal 2009, Orion Energy deployed its systems in over 1,100 facilities, representing over 170 million square feet.

Secured ten new Orion Energy Virtual Power Plant negawatt supply agreements during the fourth quarter, representing gross income streams of $0.6 million. As of March 31, 2009, Orion Energy had 35.5 million kWh of negawatts under 20 supply agreements, representing about $1.5 million of gross income streams.

Witnessed continued contribution by Orion Energy’s VAR partner network. Sales to VAR partners for fiscal 2009 exceeded fiscal 2008 sales by 30%.

Added 75 new contractor partners during the fourth quarter, bringing the total network of contractor partners who have conducted business on a recurring basis with Orion Energy to over 445 as of March 31, 2009. Sales to contractor partners for fiscal 2009 exceeded fiscal 2008 sales by 49%.

Repurchased over 1.7 million shares of outstanding common stock during the fourth quarter as part of the $30 million share repurchase program originally approved by Orion Energy’s board of directors on July 17, 2008 and supplemented with additional repurchase authorization on December 15, 2008. Orion Energy has repurchased a total of 6.9 million shares at an average price of $4.21 as of March 31, 2009 and has effectively completed its share repurchase program.

Recent Developments:

Orion Energy announced on April 30, 2009, the appointment of Mark Williamson to the company’s board of directors. Williamson brings executive-level utility and energy industry experience to the position. Williamson joins Thomas Quadracci, James Kackley, Russell Flaum and Roland Stephenson as an independent, outside director on Orion Energy’s seven-member board.

Orion Energy officially opened its 70,000 square foot technology center on April 22, 2009. The state-of-the art energy efficient building located adjacent to its Manitowoc manufacturing plant will serve as the company’s headquarters, operations center, training facility and technology demonstration site.

Fiscal 2010 Outlook:

Given the weak and unpredictable macroeconomic environment, and the associated challenges with forecasting results, Orion Energy will suspend annual revenue and earnings per share guidance. The company will continue to provide revenue and earnings per share guidance on a quarter to quarter basis. As such, first quarter fiscal 2010 revenues are anticipated to be between $12.0 million and $13.2 million. Losses per share for the first quarter of fiscal 2010 are estimated to be between $0.10 and $0.08.