Mar 25, 2020
Nestor: Energy Focus is an LED lighting and controls company. LED
lighting is like comparing a smartphone to a rotary phone. LED
lights are actually extremely high-tech—it's almost like having a
laptop inside the light. If you were to take one apart, you would
be amazed at how many computer components and wafers and chips are
in there. These lights are not a commodity. They are very
differentiated. Unfortunately, the industry historically has sold
them very much like a commodity, through the same channels as
fluorescent and incandescent lights. Energy Focus does not. One
thing that sets us apart is that we use a direct sales model, which
does give us, we think, a competitive advantage.
We will soon be launching a new product that has dimmable and
tunable LED lighting. It allows you to leverage your existing
wiring without having to use Bluetooth or wifi or do a big rewiring
in a facility. This is coming out in the market soon, and we think
that it will be revolutionary. The people who have seen the demos
have been very excited about it. This type of approach is what sets
us apart.
I think that we're a very unique company that is positioned very well in an industry that's going to be growing extraordinarily rapidly over the next 10 years. The key to success is growth, profitable growth, and we will do that. I really want to return Energy Focus to cash flow break-even—this is a very important goal for the next 12 months. We will be getting this new product launched successfully, and of course I'm always focused on generating shareholder returns. One of my key objectives that is the underpinning of everything that I do is generating shareholder returns.