Net loss improves 67% from prior year quarter; Total revenues decrease 7% from prior year quarter; Operating expenses decrease 18% from prior year quarter
As compared to the same quarter last year, Luna improved its net loss to
Luna also reduced its operating expenses to
“We continue to make progress towards achieving the corporate growth
strategies that we outlined late last year,” said
First Quarter Financial and Business Highlights
-- Total revenues decreased by 7%, from
-- Products and licensing revenue decreased by 20%, from
-- Gross profit for the first quarter of 2012 decreased to
-- Selling, general and administrative expenses decreased by 25% to
-- Total operating expenses decreased to
-- Adjusted EBITDA increased to
-- Net loss attributable to common stockholders improved to
-- Cash and cash equivalents totaled
-- Luna extended its development and supply agreement with
-- Luna was recognized with a
-- Luna announced a development agreement with
Outlook 2012
Based on information as of
Non-GAAP Measures
In evaluating the operating performance of its business, Luna’s management excludes certain charges and credits that are required by generally accepted accounting principles (“GAAP”). These non-GAAP results provide useful information to both management and investors by excluding items that the company believes may not be indicative of its operating performance, because either they are unusual and the company 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. These non-GAAP measures should be considered in addition to results and guidance prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have 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,
About
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 our expectations
regarding financial results for the second quarter and full year 2012,
the company’s focus on accelerating product sales in fiber optic
sensing, continuing development of shape sensing technology in the
medical area and advancing cybersecurity solutions, demand for the
company’s fiber optic equipment and technologies, our expanded
relationship with
| Luna Innovations Incorporated | ||||||||
| Condensed Consolidated Statements of Operations | ||||||||
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2012 | 2011 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Revenues: | ||||||||
| Technology development | $ | 5,659,496 | $ | 5,621,615 | ||||
| Products and licensing | 2,713,814 | 3,377,009 | ||||||
| Total | 8,373,310 | 8,998,624 | ||||||
| Cost of revenues: | ||||||||
| Technology development costs | 3,902,900 | 4,086,165 | ||||||
| Products and licensing costs | 1,247,494 | 1,572,691 | ||||||
| Total | 5,150,394 | 5,658,856 | ||||||
| Gross profit | 3,222,916 | 3,339,768 | ||||||
| Operating expense: | ||||||||
| Selling, general, and administrative | 2,800,317 | 3,725,829 | ||||||
| Research, development, and engineering | 695,155 | 512,378 | ||||||
| Total | 3,495,472 | 4,238,207 | ||||||
| Operating loss | (272,556 | ) | (898,438 | ) | ||||
| Other expense, net | ||||||||
| Other income (expense), net | 23,265 | (1,985 | ) | |||||
| Interest expense | (79,658 | ) | (114,423 | ) | ||||
| Total | (56,393 | ) | (116,408 | ) | ||||
| Loss before income taxes | (328,949 | ) | (1,014,847 | ) | ||||
| Income tax expense | 5,799 | 10,020 | ||||||
| Net loss | (334,748 | ) | (1,024,867 | ) | ||||
| Preferred stock dividend | 34,096 | 41,628 | ||||||
| Net loss attributable to common stockholders | $ | (368,844 | ) | $ | (1,066,495 | ) | ||
| Net loss per share of common stock: | $ | (0.03 | ) | $ | (0.08 | ) | ||
| Luna Innovations Incorporated | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| March 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 7,879,363 | $ | 8,939,127 | ||||
| Accounts receivable, net | 6,824,530 | 5,958,086 | ||||||
| Inventory, net | 3,273,384 | 3,330,773 | ||||||
| Prepaid expenses | 930,689 | 1,071,438 | ||||||
| Other current assets | 36,796 | 35,717 | ||||||
| Total current assets | 18,944,762 | 19,335,141 | ||||||
| Property and equipment, net | 2,711,445 | 2,816,674 | ||||||
| Intangible assets, net | 513,656 | 539,563 | ||||||
| Other assets | 209,252 | 228,043 | ||||||
| Total assets | $ | 22,379,115 | $ | 22,919,421 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current Liabilities | ||||||||
| Current portion of long term debt obligation | $ | 1,500,000 | $ | 1,625,000 | ||||
| Current portion of capital lease obligation | 51,717 | 50,949 | ||||||
| Accounts payable | 1,649,169 | 1,656,602 | ||||||
| Accrued liabilities | 3,570,589 | 3,612,193 | ||||||
| Deferred credits | 1,211,972 | 1,462,603 | ||||||
| Total current liabilities | 7,983,447 | 8,407,347 | ||||||
| Long-term debt obligation | 3,375,000 | 3,625,000 | ||||||
| Long-term lease obligation | 169,787 | 183,008 | ||||||
| Total liabilities | 11,528,234 | 12,215,355 | ||||||
| Stockholders' equity | ||||||||
| Preferred stock | 1,322 | 1,322 | ||||||
| Common stock | 14,063 | 13,969 | ||||||
| Additional paid-in capital | 59,805,081 | 59,289,516 | ||||||
| Accumulated deficit | (48,969,585 | ) | (48,600,741 | ) | ||||
| Total stockholders' equity | 10,850,881 | 10,704,066 | ||||||
| Total liabilities and stockholders' equity | $ | 22,379,115 | $ | 22,919,421 | ||||
| Luna Innovations Incorporated | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
| 2012 | 2011 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Cash (used in)/provided by operating activities | ||||||||
| Net loss | $ | (334,748 | ) | $ | (1,024,867 | ) | ||
|
Adjustments to reconcile net loss to net cash used in operating activities |
||||||||
| Depreciation and amortization | 284,101 | 327,413 | ||||||
| Share-based compensation | 454,584 | 817,711 | ||||||
| Warrant Expense | 11,886 | 24,041 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (866,444 | ) | 483,634 | |||||
| Inventory | 57,389 | (426,375 | ) | |||||
| Other current assets | 139,670 | 89,405 | ||||||
| Other assets | 18,791 | 18,792 | ||||||
| Accounts payable and accrued expenses | (60,923 | ) | (384,997 | ) | ||||
| Deferred credits | (250,631 | ) | 684,497 | |||||
| Net cash (used in)/provided by operating activities | (546,325 | ) | 609,254 | |||||
| Cash flows used in investing activities | ||||||||
| Acquisition of property and equipment | (104,719 | ) | (102,221 | ) | ||||
| Intangible property costs | (48,246 | ) | (44,203 | ) | ||||
| Net cash used in investing activities | (152,965 | ) | (146,424 | ) | ||||
| Cash flows used in financing activities | ||||||||
| Payments on capital lease obligations | (12,453 | ) | (5,246 | ) | ||||
| Payments of debt obligations | (375,000 | ) | (288,523 | ) | ||||
| Proceeds from exercise of options and warrants | 26,979 | 132,379 | ||||||
| Net cash used in financing activities | (360,474 | ) | (161,390 | ) | ||||
| Net change in cash | (1,059,764 | ) | 301,440 | |||||
| Cash and cash equivalents, beginning of period | 8,939,127 | 7,216,580 | ||||||
| Cash and cash equivalents, end of period | $ | 7,879,363 | $ | 7,518,020 | ||||
| Luna Innovations Incorporated | |||||||||
| Reconciliation of EBITDA and Adjusted EBITDA to Net Loss | |||||||||
| Three Months Ended March 31, | |||||||||
| 2012 | 2011 | ||||||||
| (Unaudited) | (Unaudited) | ||||||||
| Net loss | $ | (334,748 | ) | $ | (1,024,867 | ) | |||
| Interest expense | 79,658 | 114,423 | |||||||
| Taxes | 5,799 | 10,020 | |||||||
| Depreciation and amortization | 284,101 | 327,413 | |||||||
|
EBITDA |
34,810 | (573,011 | ) | ||||||
| Share-based compensation and warrant expense | 466,470 | 841,752 | |||||||
| Adjusted EBITDA | $ | 501,280 | $ | 268,741 | |||||
Source:
Luna Innovations Incorporated
Investor Contact:
Dale
Messick, CFO, 1-540-769-8400
[email protected]