Company posts net income of $8.5 million
following sale of fiber optic medical shape sensing business;
products and licensing revenues increased 22% compared to first
quarter of prior year
Luna Innovations Incorporated (NASDAQ: LUNA) today announced its
financial results for the first quarter ended March 31, 2014.
Following the sale of its fiber optic shape sensing technology
for medical applications in the first quarter of 2014, Luna
reported a net income attributable to common stockholders of $8.5
million, or $0.49 per diluted common share, compared to a net
income attributable to common stockholders of $2.8 million, or
$0.17 per diluted common share for the first quarter of 2013. Net
income for the first quarter of 2014 includes an after-tax gain of
$9.5 million related to the sale of the medical shape sensing
business. Net income for the first quarter of the prior year
includes an after tax gain of $4.0 million realized from the sale
of the company’s secure computing and communications group in March
of 2013.
Total revenue increased by 9% from $4.1 million in the first
quarter of 2013 to $4.5 million in the first quarter of 2014,
driven by growth in the company’s products and licensing segment,
which increased 22% compared to the first quarter of 2013,
reflecting increased sales of fiber optic test and measurement
products. Technology development revenue also increased by 2%
compared to the first quarter of 2013. Gross profit increased to
$1.6 million for the first quarter of 2014 compared to $1.1 million
for the first quarter of 2013, resulting in an improvement in gross
margin to 35% for the first quarter of 2014 compared to gross
margin of 28% in the first quarter of 2013. Operating expenses were
relatively unchanged at $3.5 million for the first quarter of 2014
compared to $3.4 million for the first quarter of the prior
year.
The company reported a loss from continuing operations of $1.0
million for the first quarter of 2014, compared to a loss from
continuing operations of $1.3 million in the first quarter of 2013.
Adjusted EBITDA, a non-GAAP measure, which is earnings before
interest, taxes, and non-cash expenses of share-based compensation,
depreciation, amortization and warrant expense, improved to $(1.4)
million for the first quarter of 2014, as compared to $(1.6)
million for the first quarter of 2013.
“With the sale of the medical shape sensing business in the
first quarter, we significantly improved our liquidity, allowing us
to focus on our key growth initiative of fiber optic sensing for
strain and temperature,” said My Chung, president and chief
executive officer. “We ended the first quarter with $10.9 million
of cash on hand and in April received the second installment of $6
million from the sale. With this enhanced working capital, we are
positioned to continue to expand our sales and marketing and our
product development efforts toward the growth of our ODiSI platform
for distributed sensing, as well as to pursue future growth
opportunities through an ongoing pipeline of technologies within
the technology development segment of our business.”
First Quarter Financial and Business
Summary
- Total revenue increased by 9% to $4.5
million for the first quarter of 2014 from $4.1 million in the
first quarter of 2013.
- Technology development revenue
increased by 2% to $2.7 million for the first quarter of 2014 from
$2.6 million for the first quarter of 2013.
- Products and licensing revenue
increased by 22% to $1.8 million for the first quarter of 2014 from
$1.5 million in the first quarter of 2013.
- Gross profit for the first quarter of
2014 increased to $1.6 million, or 35% of total revenue, from $1.1
million, or 28% of total revenue, for the first quarter of
2013.
- Selling, general and administrative
expenses increased by 3% to $2.8 million, or 62% of total revenue,
for the first quarter of 2014, from $2.7 million, or 65% of total
revenue, for the first quarter of 2013.
- Total operating expenses increased to
$3.5 million, or 78% of total revenue, for the first quarter of
2014 from $3.4 million, or 82% of total revenue for the first
quarter of 2013.
- Net income attributable to common
stockholders improved to $8.5 million for the first quarter of 2014
from $2.8 million for the first quarter of 2013.
- Cash and cash equivalents totaled $10.9
million at March 31, 2014, as compared to $7.8 million at December
31, 2013.
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, Luna will conduct an investor
conference call at 5:00 p.m. (EDT) today to discuss its financial
results and business developments for the first quarter of 2014.
The call can be accessed by dialing 866-515-2913 domestically or
617-399-5127 internationally prior to the start of the call. The
participant access code is 82796803. Investors are advised to dial
in at least five minutes prior to the call to register. The
conference call will also be webcast live over the Internet. The
webcast can be accessed by logging on to the “Investor Relations”
section of the Luna website, www.lunainc.com, prior to the event.
The webcast will be archived under the “Webcasts and Presentations”
section of the Luna website for at least 30 days following the
conference call.
About Luna:
Luna Innovations Incorporated (www.lunainc.com) is a public
company composed of scientists, engineers, and business
professionals developing and manufacturing a new generation of
technologies and products. Luna has been successful in taking
innovative technologies from applied research to product
development and ultimately to the commercial market, driving
breakthroughs in fields such as aerospace, automotive,
telecommunications, healthcare, energy, and defense.
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 the company’s future growth and
commercialization of the company’s shape sensing platform and other
growth opportunities in the company's technology development
segment. 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 the company 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 the company’s
products and services to meet expectations, technological
challenges and those risks and uncertainties set forth in the
company’s periodic reports and other filings with the Securities
and Exchange Commission. Such filings are available at the SEC’s
website at www.sec.gov and at the company’s website at
www.lunainc.com. The statements made in this release are based on
information available to the company as of the date of this release
and Luna undertakes no obligation to update any of the
forward-looking statements after the date of this release.
Luna Innovations Incorporated Condensed
Consolidated Statements of Operations Three
Months Ended March 31, 2014 2013 (unaudited) Revenue:
Technology development revenue $ 2,675,452 $ 2,627,241 Products and
licensing revenue 1,796,429 1,478,127 Total revenue
4,471,881 4,105,368 Cost of revenue: Technology development costs
2,025,155 2,184,914 Products and licensing costs 894,640
785,728 Total cost of revenue 2,919,795 2,970,642 Gross
Profit 1,552,086 1,134,726 Operating expense:
Selling, general and administrative 2,755,078 2,663,108 Research,
development and engineering 749,154 712,952 Total
operating expense 3,504,232 3,376,060 Operating loss (1,952,146 )
(2,241,334 ) Other income/(expense): Other income, net 82,106
98,154 Interest expense (32,365 ) (58,179 ) Total other income
49,741 39,975 Loss from continuing operations before
income taxes (1,902,405 ) (2,201,359 ) Income tax benefit (939,815
) (898,433 ) Loss from continuing operations (962,590 ) (1,302,926
) Income from discontinued operations, net of income taxes
9,502,814 4,088,523 Net Income 8,540,224 2,785,597
Preferred stock dividend 29,536 23,629 Net income
attributable to common stockholders $ 8,510,688 $ 2,761,968
Net loss per share from continuing operations: Basic $ (0.07
) $ (0.09 ) Diluted $ (0.07 ) $ (0.09 ) Net income per share from
discontinued operations: Basic $ 0.65 $ 0.29 Diluted $ 0.55
$ 0.25 Net income per share attributable to common
stockholders: Basic $ 0.58 $ 0.20 Diluted $ 0.49 $ 0.17
Weighted average common shares and common equivalent shares
outstanding: Basic 14,653,262 14,011,814 Diluted 17,424,769
16,615,574
Luna Innovations Incorporated
Condensed Consolidated Balance Sheets March
31, 2014 December 31, 2013
Assets
Unaudited Current assets: Cash and cash equivalents $ 10,886,015 $
7,778,541 Accounts receivable, net 10,512,087 5,408,281 Inventory,
net 3,294,498 3,346,177 Prepaid expenses 542,788 708,974 Other
current assets 70,208 70,208 Total current assets
25,305,596 17,312,181 Property and equipment, net 1,960,095
2,060,709 Intangible assets, net 223,366 288,475 Other assets
23,918 42,710
Total assets $ 27,512,975
$ 19,704,075
Liabilities and stockholders’ equity
Liabilities: Current Liabilities: Current portion of long-term debt
obligation $ 1,500,000 $ 1,500,000 Current portion of capital lease
obligation 67,621 66,617 Accounts payable 1,257,633 1,401,764
Accrued liabilities 3,061,184 3,546,585 Deferred credits 552,831
691,424 Total current liabilities 6,439,269 7,206,390
Long-term debt obligation 250,000 625,000 Long-term lease
obligation 93,021 110,307
Total liabilities
6,782,290 7,941,697 Commitments and contingencies
Stockholders’ equity: Preferred stock, par value $ 0.001, 1,321,514
shares authorized, issued and outstanding at March 31, 2014 and
December 31, 2013 1,322 1,322 Common stock, par value $ 0.001,
100,000,000 shares authorized, 14,731,652 and 14,527,335 shares
issued and outstanding at March 31, 2014 and December 31, 2013,
respectively 15,066 14,842 Additional paid-in capital 63,213,966
62,756,571 Accumulated deficit (42,499,669 ) (51,010,357 )
Total
stockholders’ equity 20,730,685 11,762,378
Total liabilities and stockholders’ equity $ 27,512,975
$ 19,704,075
Luna Innovations
Incorporated Condensed Consolidated Statements of Cash
Flows Three Months Ended March 31,
2014 2013 (unaudited) Cash
flows used in operating activities Net income $ 8,540,224 $
2,785,597 Adjustments to reconcile net loss to net cash used in
operating activities Depreciation and amortization 202,305 228,267
Share-based compensation 230,939 313,516 Gain on sale of
discontinued operations, net of income taxes (9,537,241 )
(4,029,210 ) Tax benefit from utilization of net operating loss
carryforward (951,592 ) (861,071 ) Change in assets and
liabilities: Accounts receivable 896,194 2,039,952 Inventory 13,314
(185,004 ) Other current assets 112,286 (127,333 ) Other assets
18,792 53,792 Accounts payable and accrued expenses (821,763 )
(231,431 ) Deferred credits (138,593 ) (259,427 ) Net cash used in
operating activities (1,435,135 ) (272,352 )
Cash flows provided
by investing activities Acquisition of property and equipment
(67,944 ) (50,255 ) Intangible property costs (126,091 ) (11,777 )
Proceeds from sale of discontinued operations, net of fees
4,958,891 4,522,460 Net cash provided by investing
activities 4,764,856 4,460,428
Cash flows used in
financing activities Payments on capital lease obligations
(16,282 ) (13,221 ) Payment on debt obligations (375,000 ) (250,000
) Proceeds from the exercise of options and warrants 169,035
1,682 Net cash used in financing activities (222,247 )
(261,539 )
Net increase in cash or cash equivalents
3,107,474 3,926,537 Cash and cash equivalents—beginning of period
7,778,541 6,340,461 Cash and cash equivalents—end of
period $ 10,886,015 $ 10,266,998
Luna Innovations Incorporated Reconciliation of Net
Income to EBITDA and Adjusted EBITDA Three
Months Ended March 31, 2014 2013
(unaudited) Net income $ 8,540,224 $ 2,785,597 Less income
from discontinued operations, net of income taxes 9,502,814
4,088,523 Loss from continuing operations (962,590 )
(1,302,926 ) Interest expense 32,365 64,056 Tax benefit (939,815 )
(898,433 ) Depreciation and amortization 202,305 228,267
EBITDA (1,667,735 ) (1,909,036 ) Share-based compensation
230,939 313,516 Adjusted EBITDA $ (1,436,796 ) $ (1,595,520 )
Luna Innovations IncorporatedDale Messick,
CFO1-540-769-8400IR@lunainc.com
Luna Innovations (NASDAQ:LUNA)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Luna Innovations (NASDAQ:LUNA)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024