Impacted by the hurricane activity in Texas and the Southeast, Revolution Lighting Technologies Inc. reported its third-quarter revenue as $43.1 million, down from $50.2 million in the previous third quarter.
“As previously reported, the unprecedented weather conditions in Texas and the Southeastern U.S. has negatively affected our multifamily housing business at Value Lighting,” CEO Robert LaPenta said in an earnings call. “The recovery is taking longer than anticipated. So as a result of the above and some slippage at our Energy Source division in Rhode Island and Massachusetts, we lowered our guidance to $47 million to $50 million from $60 million to $65 million in the fourth quarter.”
Gross profit was $13.9 million and $15.9 million for the third quarters of 2017 and 2016, respectively. Despite overall lower LED prices, gross profit margin held steady at 32 percent for both 2017 and 2016.
Having recently revised its full-year guidance downward in the wake of the storms, LaPenta said that Revolution was doing so again. The company, which had anticipated full-year revenue of $180 million to $185 million, now expects it to be in the $165 million to $170 million range, compared with the $172 million it posted in 2016. Guidance for 2018 will be provided when Revolution”™s fourth-quarter results are reported.
“While we are disappointed in our lower-than-anticipated results for 2017, we are excited that we are able to operationally position our company for double-digit growth in 2018 and beyond,” LaPenta said.
