Energy Focus, Inc. (NASDAQ:EFOI) Q2 2019 Earnings Conference Call - Final Transcript
Sep 13, 2019 • 11:00 am ET
also all the stakeholders involved, bet it our customers, channel partners, suppliers or communities we operate in. We'll also make sure we communicate our strategy and status in the most transparent and straightforward way as possible.
For this call, I'll focus mainly on the key goals we have established in transforming the Company into a LED lighting industry leader we aspire to be, and I'll progress towards those goals. I'll also share with you briefly our growth plan and our near-term outlook. Then Tod Nestor, our President and CFO, will review our financial results. We'll then open up the call for questions.
As you are all well aware of, every aspect of Energy Focus's financial and operating performances has been in steady and accelerating decline since I left in early 2017. Due to my disagreement with the Board at that time our global market strategy. In the two years I was away, the Company deviated from its customer-centric culture that has contributed to our impactful innovations and rapid growth over the preceding years. They had built an agency network in which no effective effort was made to educate or nurture our agencies, while LED alienating our most loyal and supportive customers.
They also made no technological breakthrough or launched impactful new product, all the while spending millions of dollars in inventory that we could not sell. The result is that during the two-year period, the Company itself dropped more than 50%. The Company lost cumulative $20 million and the stock lost 85% of its market value. This scenario, combined with my experience of growing the Company's sales from $2 million in 2013 to $64 million in 2016, and my belief what Energy Focus can and should be is why I returned to the Company.
And led a 13D investor group, which invested $1.7 million in convertible debenture to replace the leadership that include senior executives and most Board Directors. Needless to say, it will be a waste of time to explain and discuss everything that went wrong or assign blame for the misfortune the Company has experienced over the past two years. The key is what can be done going forward so that we can improve performance and achieve the best potential in enterprise LED Lighting,, which Energy Focus has been leading the technological evolution of previously.
In addition, after nearly a decade of commercialization, the adoption of LED lighting by public and private enterprises has just surpassed the 10% level and is right on the cusp of rapid ascension. Meanwhile, over the past two years, large incumbent lighting companies such as GE, Philips and OSRAM have been sounding dramatic retreat from the market that seems to have in commoditized and focusing primarily on prices.
Energy Focus has the potential to become an industry leader with superior technology and product capabilities. In 2007, Energy Focus was providing high-quality LED lighting to leading institutions with mission critical facilities, such as the US Navy, National Institute of Health, Cleveland Clinic, FedEx, Bridgestone