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Energy Focus, Inc. (EFOI) Shining a Light on the Growing LED Lighting Industry
Energy Focus, Inc. (NASDAQ: EFOI) is a leading provider of energy efficient LED lighting products in the United States and abroad. The company’s current customer base includes national, state and local government agencies, Fortune 500 companies and a host of commercial and industrial clients. In addition, EFOI’s long-standing relationship with the U.S. government enables it to provide lighting products to the U.S. Navy and the Military Sealift Command fleets.
The global market for LED lighting products has expanded rapidly in recent years. According to a report by LEDs Magazine, increased demand is expected to drive a compound annual growth rate of 34 percent through 2016. As a result, the LED lighting marketing is expected to account for approximately $94 billion by 2020, representing nearly 60 percent of the total lighting market.
“The massive and lightning speed of LED lighting adoption… is indicative of what we could accomplish in the verticals we focus on expanding into such as military bases, hospitals and schools,” James Tu, executive chairman and chief executive officer of EFOI, stated in a news release.
In recent months, the company has made major strides toward capitalizing on this market growth. In the first quarter of 2015, EFOI recorded net sales of $13.1 million, realizing a 167 percent year-over-year increase. Additionally, the company’s income from operations improved by over $2 million, as compared to the first quarter of 2014.
“The first quarter of 2015 marked yet another exciting milestone from both operational and financial standpoints as we continued to grow at a rapid clip and were profitable from operations for the first time since our restructuring in the second half of 2013,” continued Tu. “Following improvements in our financial performance throughout 2014, we have now reported our fifth consecutive quarter of revenue growth led by strong shipments of our military Intellitube® for the U.S. Navy and continuing acceleration of our commercial product sales.”
On the commercial front, EFOI is in a strong position to continue building on the early success of its commercial Intellitube product, which was officially launched in April. This ‘one-tube-fits-all’ solution is a commercial version of the company’s proven military product, for which EFOI recently received an additional $6 million order from the U.S. Navy. By providing customers with the unique flexibility to either eliminate or postpone the upfront labor costs involved with removing existing ballasts, the commercial Intellitube is an innovative, economical option that could accelerate the adoption of LED tube lighting.
For prospective investors, the global shift toward LED lighting solutions makes EFOI an intriguing opportunity to realize sustainable returns moving forward. The company’s established presence in government and military markets and expanding impact on the commercial lighting industry should combine to drive continued financial growth in the months to come.
For more information, visit www.energyfocusinc.com
