Energy Focus Stock Plummets After 37% Decline In Q2 Sales

Energy Focus Inc EFOI reported a second-quarter FY21 sales decline of 37.8% year-on-year, to $2.10 million, missing the analyst consensus of $3.75 million.
Gross profit declined 70% Y/Y to $0.4 million, and the margin was 18.9%, versus 40.3% last year.
Operating expenses increased by 16% Y/Y to $2.6 million. The operating loss widened to $(2.2) million.
The company held $1.3 million in cash and equivalents as of June 30, 2021.
Adjusted EBITDA loss increased to $(1.99) million. Loss per share was $(0.59).
"Our second-quarter results were impacted by the military market that experienced funding delays and from the continued weakness in our commercial lighting retrofit market, although we have already seen a few orders so far in the third quarter that we believe represent opportunities delayed from the first half of 2021," said Chairman and CEO James Tu.
Energy Focus anticipates the military market to improve in the second half of the year as funding becomes available.
Price Action: EFOI shares traded lower by 16.4% at $3.01 on the last check Thursday.

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