Nexxus Lighting (NEXS) reported results this morning that were mixed. The company matched analyst estimates on the EPS side, posting a loss of $0.08/share but revenues fell just a bit short ($1.55 million vs. estimate of $1.77 million). The company attributed the revenue shortfall on the timing of larger projects.
In terms of strategy, Nexxus indicated it will modify it a bit and go after larger direct sales opportunities and continue to expand into the retail channel, which it’s currently doing in a big way with Lowe’s (NYSE:LOW), which will offer its LED lighting in over 1,000 stores beginning next month (offered online now). CEO Mike Bauer indicated that the company was having a tough time initially meeting the high demands of Lowe’s production, but has worked out the kinks and ready for the opportunity.
According to president/CEO Mike Bauer:
Our performance in the first quarter is a solid start to what I believe can be a break-out year for Nexxus. Our repositioning of the Lumificient business produced strong growth and our Array commercial business continued its market penetration. We also recognize the significant opportunity that the Lowe’s business represents to the Company and we have focused resources to properly execute and serve this important new customer and channel.
Shares of NEXS are down a bit more today after sinking with heavy volume yesterday. The near term deterioration likely indicates shares may need to pull back a bit more. Make no mistake, though: Once this consolidation is complete, I believe shares of NEXS will offer a big time buy opportunity, as the purchase orders from Lowe’s are beginning to come in. The area around $2.50 is major support. A bounce off that area is the buy entry.