Seeking Alpha

Revolution Lighting provides update, shares +3.9% premarket

  • Whereas Revolution (RVLT) previously guided for 2H pro forma revenue of $17M, it now expects Q3 revenue of $5M-$6M and Q4 revenue of $10M; the company blames the timing of certain international orders. (PR)
  • However, thanks in part to acquisitions (previous), full-year pro forma revenue is still expected to total $35M. Full-year organic revenue is expected to double Y/Y.
  • At a recent Craig-Hallum conference, Revolution said it's targeting 50%+ organic revenue growth and 35% or greater gross margins for the 2014-2016 timeframe.
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Comments (4)
  • bz1516
    , contributor
    Comments (114) | Send Message
     
    Now we can see that with the two acquisitions, including Relume, that H1 revenues increased less than $4mm from those acquisitions. This would put Relume volume at less than $7mm annually.

     

    However if we look at the Q3 revenue projections the company has made, it looks like the volume for Relume is even a lot less. Q3 revenues are now only going to be ~$5.5mm including Relume and the other acquisition, vs Q1 and Q2 revenues of ~$8.5mm.

     

    The companies revenues seem to be heading South, when they should be heading North. In such a situation operating income and net income can be expected to take it on the chin.

     

    And how does full year organic revenue double in the face of these declines? Perhaps the company has latitude to redefine the meaning of the term "organic growth" to something different from the meaning investors normally give to that term?
    1 Oct 2013, 09:32 AM Reply Like
  • pklein
    , contributor
    Comments (124) | Send Message
     
    Reexamine your assertion
    2 Oct 2013, 12:52 AM Reply Like
  • bz1516
    , contributor
    Comments (114) | Send Message
     
    Which assertion would you like me to reexamine pklein? Is it the one where I conclude that by taking management's new revenue figures of $17mm for H1 and subtracting the originally reported revenues of $13mm that the difference must be due to the acquisitions? Or is it what you may call an assertion, asking how they doubled revenues through organic growth?

     

    Since you seem to know this company well, can you explain how organic growth doubled revenues ytd? I would love to see your numbers.
    2 Oct 2013, 03:24 PM Reply Like
  • pklein
    , contributor
    Comments (124) | Send Message
     
    Yes , it's quite a tale. Your numbers are mine, so I agree. I'm just not questioning why the popularity or I should say what blinds the retail investor either. This may go north, but then be followed by the same pattern of fading with nothing to talk about. So I expect those who want to short will and should be as happy.
    3 Oct 2013, 02:38 AM Reply Like
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