Energy Focus, Inc. (NASDAQ:EFOI) Q2 2020 Earnings Conference Call - Final Transcript

Aug 14, 2020 • 11:00 am ET

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Energy Focus, Inc. (NASDAQ:EFOI) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to the Energy Focus Second Quarter Fiscal Year 2020 Conference Call. [Operator Instructions] A question-and-answer session will follow the formal presentation. [Operator Instructions].

I'd now like to turn the conference over to your host, Mr. Brett Maas, with Hayden IR. Thank you. You may begin.

Executive
Brett Maas

Thank you, operator, and good morning, everyone. Joining me on the call today are James Tu, Executive Chairman and Chief Executive Officer; and Tod Nester, President and Chief Financial Officer.

Before we begin today's call, I would like to remind everyone that we will be making certain forward-looking statements. These statements are based upon information that represents the company's current expectations or beliefs. The results realized may differ materially from those stated. For a discussion of the risks that could affect our results, please refer to the discussion under the heading Risk Factors on our most recent 10-Q as well as our 10-K and the most recently filed 10-Q, sorry, with the SEC. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Also, please note that during this call and in the accompanying press release, certain financial metrics are presented on both GAAP and non-GAAP adjusted basis. Reconciliations of the adjusted results to the GAAP results are available in the tables attached to the earnings release, which is posted on our corporate website, energyfocus.com in the Investor Relations section of the site.

I'll now turn the call over to James. James, please go ahead.

Executive
James Tu

Thank you, Brett. Good morning, everyone, and thank you for joining our second quarter 2020 earnings conference call. First of all, I hope you all stay safe and healthy as COVID-19 pandemic continues to rage across the country over the past few months. The team, as an essential business, we have continued our operations during the second quarter as normal and implemented a coronavirus contingency plan, or CCP, that mandate temperature taking, mask wearing and social distancing in our manufacturing facility and our corporate office. We are fortunate that none of our employees so far have contracted COVID-19. We appreciate the hard work from all of our employees, the business from our customers and the support of our suppliers in this unprecedented time. And we are continuing to enforce CCP until we believe that COVID-19 is no longer a clear public health risk.

Now turning to the review of our second quarter 2020 performance. It was both a challenging and encouraging quarter for Energy Focus. While our financial results were impacted by the previously announced shift of revenue from the second quarter into the third quarter, we continue to make exciting progress towards positioning our business for sustainable, profitable growth. Despite a significant amount of sales being shifted from Q2 to Q3 and a notable slowdown of commercial activities due to COVID-19, our net sales of $3.3 million in Q2 still grew 8.2% year-over-year over the second quarter of