Net loss improved to
For the three months ended
“As we described last quarter, with the transition to a new vendor
managed inventory arrangement with our largest customer in
First Quarter Financial Summary
Total revenues for the three months ended March 31, 2017 were
Gross profit was
Selling, general and administrative expenses were
Research, development and engineering expenses decreased to
Operating loss improved to
Non-GAAP Measures
In evaluating the operating performance of its business, Luna’s management considers Adjusted EBITDA, which excludes certain charges and credits that are required by generally accepted accounting principles (“GAAP”). Adjusted EBITDA provides useful information to both management and investors by excluding the effect of certain non-cash expenses and items that Luna believes may not be indicative of its operating performance, because either they are unusual and Luna does not expect them to recur in the ordinary course of its business or they are unrelated to the ongoing operation of the business in the ordinary course. Adjusted EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Adjusted EBITDA has been reconciled to the nearest GAAP measure in the table following the financial statements attached to this press release.
Conference Call Information
As previously announced, Luna will conduct an investor conference call
at
About Luna
Forward-Looking Statements
The statements in this release that are not historical facts constitute
“forward-looking statements” made pursuant to the safe harbor provision
of the Private Securities Litigation Reform Act of 1995 that involve
risks and uncertainties. These statements include Luna's expectations
regarding Luna’s future financial performance, the significant growth of
the market for Luna's 100G products in the second half of 2017, the
adoption of Luna's second generation 100G integrated coherent receivers,
and additional potential growth opportunities. Management cautions the
reader that these forward-looking statements are only predictions and
are subject to a number of both known and unknown risks and
uncertainties, and actual results, performance, and/or achievements of
Luna may differ materially from the future results, performance, and/or
achievements expressed or implied by these forward-looking statements as
a result of a number of factors. These factors include, without
limitation, failure of demand for Luna's products and services to meet
expectations, technological challenges and those risks and uncertainties
set forth in Luna’s periodic reports and other filings with the
Luna Innovations Incorporated Consolidated Statements of Operations |
||||||||
Three Months Ended March 31, |
||||||||
2017 | 2016 | |||||||
(unaudited) | ||||||||
Revenues: | ||||||||
Technology development | $ | 4,276,448 | $ | 3,723,262 | ||||
Products and licensing | 8,841,936 | 10,263,753 | ||||||
Total revenues | 13,118,384 | 13,987,015 | ||||||
Cost of revenues: | ||||||||
Technology development | 3,222,354 | 2,846,723 | ||||||
Products and licensing | 5,220,775 | 6,296,685 | ||||||
Total cost of revenues | 8,443,129 | 9,143,408 | ||||||
Gross profit | 4,675,255 | 4,843,607 | ||||||
Operating expense: | ||||||||
Selling, general and administrative | 4,495,701 | 4,645,282 | ||||||
Research, development and engineering | 1,444,828 | 1,550,491 | ||||||
Total operating expense | 5,940,529 | 6,195,773 | ||||||
Operating loss | (1,265,274 | ) | (1,352,166 | ) | ||||
Other income (expense): | ||||||||
Other income, net | 351 | 3,940 | ||||||
Interest expense | (64,374 | ) | (86,173 | ) | ||||
Total other expense | (64,023 | ) | (82,233 | ) | ||||
Loss before income taxes | (1,329,297 | ) | (1,434,399 | ) | ||||
Income tax expense | 26,690 | 25,175 | ||||||
Net loss | (1,355,987 | ) | (1,459,574 | ) | ||||
Preferred stock dividend | 34,096 | 21,210 | ||||||
Net loss attributable to common stockholders | $ | (1,390,083 | ) | $ | (1,480,784 | ) | ||
Net loss per share attributable to common stockholders: | ||||||||
Basic and diluted | $ | (0.05 | ) | $ | (0.05 | ) | ||
Weighted average common shares and common equivalent shares outstanding: | ||||||||
Basic and diluted | 27,541,356 | 27,477,181 |
Luna Innovations Incorporated Consolidated Balance Sheets |
||||||||
March 31, 2017 | December 31, 2016 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 12,105,934 | $ | 12,802,458 | ||||
Accounts receivable, net | 12,256,152 | 14,297,725 | ||||||
Inventory | 8,722,670 | 8,370,235 | ||||||
Prepaid expenses and other current assets | 1,536,003 | 1,627,175 | ||||||
Total current assets | 34,620,759 | 37,097,593 | ||||||
Property and equipment, net | 6,575,200 | 6,780,838 | ||||||
Intangible assets, net | 8,280,903 | 8,681,263 | ||||||
Goodwill | 2,348,331 | 2,348,331 | ||||||
Other assets | 68,778 | 88,948 | ||||||
Total assets | $ | 51,893,971 | $ | 54,996,973 | ||||
Liabilities and stockholders’ equity | ||||||||
Liabilities: | ||||||||
Current Liabilities: | ||||||||
Current portion of long-term debt obligations | $ | 1,833,333 | $ | 1,833,333 | ||||
Current portion of capital lease obligations | 53,043 | 52,128 | ||||||
Accounts payable | 3,147,754 | 4,466,192 | ||||||
Accrued liabilities | 8,672,431 | 8,667,100 | ||||||
Deferred revenue | 843,345 | 949,603 | ||||||
Total current liabilities | 14,549,906 | 15,968,356 | ||||||
Long-term deferred rent | 1,372,356 | 1,403,957 | ||||||
Long-term debt obligations | 1,965,776 | 2,420,032 | ||||||
Long-term capital lease obligations | 101,328 | 114,940 | ||||||
Total liabilities | 17,989,366 | 19,907,285 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value $0.001, 1,321,514 shares authorized, issued and outstanding at March 31, 2017 and December 31, 2016 | 1,322 | 1,322 | ||||||
Common stock, par value $0.001, 100,000,000 shares authorized, 27,989,104 and 27,988,104 shares issued, 27,542,277 and 27,541,277 shares outstanding at March 31, 2017 and December 31, 2016 | 28,621 | 28,600 | ||||||
Treasury stock at cost, 446,827 shares at March 31, 2017 and December 31, 2016 | (517,987 | ) | (517,987 | ) | ||||
Additional paid-in capital | 82,656,937 | 82,451,958 | ||||||
Accumulated deficit | (48,264,288 | ) | (46,874,205 | ) | ||||
Total stockholders’ equity | 33,904,605 | 35,089,688 | ||||||
Total liabilities and stockholders’ equity | $ | 51,893,971 | $ | 54,996,973 |
Luna Innovations Incorporated Consolidated Statements of Cash Flows |
||||||||
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
(unaudited) | ||||||||
Cash flows provided by/(used in) operating activities | ||||||||
Net loss | $ | (1,355,987 | ) | $ | (1,459,574 | ) | ||
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities | ||||||||
Depreciation and amortization | 956,687 | 939,799 | ||||||
Share-based compensation | 170,084 | 258,803 | ||||||
Bad debt expense | 29,671 | — | ||||||
Change in assets and liabilities | ||||||||
Accounts receivable | 2,011,902 | (298,309 | ) | |||||
Inventory | (352,435 | ) | 20,375 | |||||
Other current assets | 55,092 | (376,642 | ) | |||||
Accounts payable and accrued expenses | (1,313,107 | ) | (721,289 | ) | ||||
Deferred revenue | (137,859 | ) | 92,259 | |||||
Net cash provided by/(used in) operating activities | 64,048 | (1,544,578 | ) | |||||
Cash flows used in investing activities | ||||||||
Acquisition of property and equipment | (157,308 | ) | (138,099 | ) | ||||
Intangible property costs | (133,054 | ) | (101,467 | ) | ||||
Net cash used in investing activities | (290,362 | ) | (239,566 | ) | ||||
Cash flows used in financing activities | ||||||||
Payments on capital lease obligations | (12,697 | ) | (20,106 | ) | ||||
Payments of debt obligations | (458,333 | ) | (458,334 | ) | ||||
Proceeds from the exercise of options | 820 | — | ||||||
Net cash used in financing activities | (470,210 | ) | (478,440 | ) | ||||
Net decrease in cash or cash equivalents | (696,524 | ) | (2,262,584 | ) | ||||
Cash and cash equivalents-beginning of period | 12,802,458 | 17,464,040 | ||||||
Cash and cash equivalents-end of period | $ | 12,105,934 | $ | 15,201,456 |
Luna Innovations Incorporated Reconciliation of Net Loss to EBITDA and Adjusted EBITDA |
||||||||
Three Months Ended March 31, |
||||||||
2017 | 2016 | |||||||
(unaudited) | ||||||||
Net loss | $ | (1,355,987 | ) | $ | (1,459,574 | ) | ||
Interest expense | 64,374 | 86,173 | ||||||
Tax expense | 26,690 | 25,175 | ||||||
Depreciation and amortization | 956,687 | 939,799 | ||||||
EBITDA | (308,236 | ) | (408,427 | ) | ||||
Share-based compensation | 170,084 | 258,803 | ||||||
Non-recurring merger-related charges | — | — | ||||||
Adjusted EBITDA | $ | (138,152 | ) | $ | (149,624 | ) |
View source version on businesswire.com: http://www.businesswire.com/news/home/20170511006214/en/
Source:
Investor Contact:
Luna Innovations Incorporated
Dale
Messick, CFO, 1 540-769-8400
[email protected]