Net income from continuing operations improved
to $0.5 million for the three months ended September 30, 2017
compared to a net loss from continuing operations of $(0.4) million
for the three months ended September 30, 2016. Cash and cash
equivalents were $38.5 million at September 30, 2017.
Luna Innovations Incorporated (NASDAQ: LUNA) today announced its
financial results for the three and nine months ended
September 30, 2017.
For the three months ended September 30, 2017, Luna reported net
income of $15.8 million compared to a net loss of $(0.4) million
for the three months ended September 30, 2016. Net income for the
2017 period included an after-tax gain of $15.1 million recognized
on the sale of Luna's high speed optical receivers ("HSOR")
business in August 2017. Net income from continuing operations
improved by $0.9 million, to $0.5 million, or $0.02 per share, for
the three months ended September 30, 2017, compared to a net loss
from continuing operations of $(0.4) million, or $(0.01) per share,
for the three months ended September 30, 2016. Adjusted earnings
before interest, taxes, depreciation and amortization ("Adjusted
EBITDA") was $0.9 million for the three months ended September 30,
2017 compared to $0.3 million for the three months ended September
30, 2016. A reconciliation of net income/(loss) to adjusted EBITDA
can be found in the schedules included in this release.
“We are extremely pleased with our third quarter financial
results," said Scott Graeff, president and chief executive officer
of Luna. "The combination of positive income from our continuing
operations for the quarter and the significant liquidity provided
by the sale of the HSOR business provides a solid foundation for
Luna to continue to drive its fiber optic test & measurement
initiative. I am excited to be taking on the leadership of the
company at this time of high growth potential within our strategic
initiative, supported by a highly dedicated group of talented
employees and a strong balance sheet."
Third Quarter Financial
Summary
Total revenues for the three months ended September 30,
2017, were $11.6 million compared to $11.2 million for the three
months ended September 30, 2016. Technology development
revenues increased 11% to $4.6 million for the three months ended
September 30, 2017, compared to $4.1 million for the three months
ended September 30, 2016. Products and licensing revenues remained
substantially unchanged at $7.1 million for the three months ended
September 30, 2017 and 2016. The increase in the technology
development revenues for the three months ended September 30, 2017
compared to the three months ended September 30, 2016 was realized
primarily in Luna's intelligent systems research group.
Gross profit was $4.5 million, or 39% of revenues, for the three
months ended September 30, 2017, compared to gross profit of
$4.4 million, or 39% of revenues, for the three months ended
September 30, 2016.
Selling, general and administrative expenses were $3.3 million
for the three months ended September 30, 2017, compared to
$3.8 million for the three months ended September 30, 2016.
The decrease in selling, general and administrative expense was
largely driven by a $0.2 million decrease in bad debt expense and a
$0.2 million decrease in sales and marketing expenses resulting
from lower headcount in the three months ended September 30,
2017.
Research, development and engineering expenses remained
substantially unchanged at $0.8 million for the three months ended
September 30, 2017 and 2016.
Net income from continuing operations improved to $0.5 million
for the three months ended September 30, 2017, compared to a
net loss from continuing operations of $(0.4) million for the three
months ended September 30, 2016. Net income from discontinued
operations was $15.2 million for the three months ended
September 30, 2017, compared to a net loss from discontinued
operations of $(0.1) million for the three months ended
September 30, 2016. Net income from discontinued operations
for the three months ended September 30, 2017, included the
recognition of the after tax gain on the sale of the HSOR business
of $15.1 million in addition to after tax income of $0.1 million
associated with the operations of the HSOR business prior to its
sale. Net loss from discontinued operations for the three months
ended September 30, 2016, reflect the after tax results of
operations of the HSOR business during the period.
Net income attributable to common stockholders for the three
months ended September 30, 2017 was $15.7 million, compared to a
net loss attributable to common stockholders of $(0.5) million for
the three months ended September 30, 2016. Adjusted EBITDA was $0.9
million for the three months ended September 30, 2017,
compared to $0.3 million for the three months ended September 30,
2016.
Year to Date Financial
Summary
Total revenues for the nine months ended September 30, 2017,
were $33.0 million, compared to $30.1 million for the nine months
ended September 30, 2016. Technology development revenues increased
14% to $13.4 million for the nine months ended September 30, 2017,
compared to $11.8 million for the nine months ended September 30,
2016. The increase in technology development revenues was primarily
as a result of increased sales in Luna's intelligent systems,
nanomaterials, and biomedical technologies groups. Products and
licensing revenues were $19.6 million for the nine months ended
September 30, 2017, compared to $18.3 million for the nine months
ended September 30, 2016. The increase in Products and Licensing
segment revenues was primarily driven by an increase in Luna's
sales of optical backscatter reflectometer instruments and
optoelectronic components.
Gross profit increased to $12.8 million, or 39% of revenues for
the nine months ended September 30, 2017, compared to $11.1
million, or 37% of revenues, for the nine months ended September
30, 2016.
Selling, general and administrative expenses decreased to $10.3
million for the nine months ended September 30, 2017, compared to
$11.3 million for the nine months ended September 30, 2016. The
decrease in selling, general and administrative expenses year to
date was primarily related to a $0.2 million decrease in bad debt
expense, a $0.2 million decrease in share based compensation
expense, and a $0.4 million decrease in sales and marketing
costs.
Research, development and engineering expenses decreased to $2.6
million for the nine months ended September 30, 2017, compared to
$2.8 million for the nine months ended September 30, 2016. The
decrease was due to lower engineering costs in internal research
for Luna's Terahertz product as more engineering time was spent on
externally funded research activities and, accordingly, included in
Luna's technology development cost of revenues.
Net loss from continuing operations improved to $(0.3) million
for the nine months ended September 30, 2017, compared to $(3.0)
million for the nine months ended September 30, 2016. Net income
from discontinued operations was $14.5 million for the nine months
ended September 30, 2017, compared to $0.3 million for the nine
months ended September 30, 2016. Net income from discontinued
operations for the nine months ended September 30, 2017, included
an after tax gain of $15.1 million recognized on the sale of the
HSOR business offset by an after tax loss of $(0.6) million related
to the operations of the HSOR business prior to its sale. Net
income from discontinued operations for the nine months ended
September 30, 2016, included the after tax income related to the
operations of the HSOR business during the period.
Net income/(loss) attributable to common stockholders improved
to a net income of $14.1 million for the nine months ended
September 30, 2017, compared to a net loss of $(2.8) million for
the nine months ended September 30, 2016. Adjusted EBITDA increased
to $1.2 million for the nine months ended September 30, 2017,
compared to $(1.2) million for the nine months ended September 30,
2016.
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 5:00 pm (EST) today to discuss its financial
results for the three and nine months ended September 30,
2017, and recent business developments. The call can be accessed by
dialing 844.578.9643 domestically or 270.823.1522 internationally
prior to the start of the call. The participant access code is
2469766. 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 leader in
optical technology, providing unique capabilities in high speed
optoelectronics and high performance fiber optic test products for
the telecommunications industry and distributed fiber optic sensing
for the aerospace and automotive industries. Luna is organized into
two business segments, which work closely together to turn ideas
into products: a Technology Development segment and a Products and
Licensing segment. Luna's business model is designed to accelerate
the process of bringing new and innovative technologies to
market.
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 the high growth potential within
Luna's strategic initiative. 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 Securities and Exchange Commission
("SEC"). Such filings are available on the SEC’s website at
www.sec.gov and on Luna’s website at www.lunainc.com. The
statements made in this release are based on information available
to Luna 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 Consolidated
Statements of Operations
Three Months Ended Nine Months Ended
September 30, September 30, 2017
2016 2017 2016 (unaudited)
(unaudited) Revenues: Technology development $ 4,590,054 $
4,118,245 $ 13,428,428 $ 11,772,731 Products and licensing
7,052,094 7,066,908 19,593,648 18,301,631
Total revenues 11,642,148 11,185,153
33,022,076 30,074,362 Cost of revenues: Technology
development 3,491,840 3,068,360 10,045,261 8,986,312 Products and
licensing 3,617,547 3,758,765 10,201,459
9,954,987 Total cost of revenues 7,109,387 6,827,125
20,246,720 18,941,299 Gross profit 4,532,761
4,358,028 12,775,356 11,133,063
Operating expense: Selling, general and administrative 3,256,074
3,816,679 10,345,964 11,296,389 Research, development and
engineering 833,811 812,050 2,581,473
2,789,801 Total operating expense 4,089,885 4,628,729
12,927,437 14,086,190 Operating income/(loss)
442,876 (270,701 ) (152,081 ) (2,953,127 ) Other income
(expense): Other expense (3,389 ) (231 ) (4,258 ) (1,904 ) Interest
expense (55,099 ) (71,991 ) (179,860 ) (237,081 ) Total other
expense (58,488 ) (72,222 ) (184,118 ) (238,985 ) Income/(loss)
from continuing operations before income taxes 384,388 (342,923 )
(336,199 ) (3,192,112 ) Income tax (benefit)/expense (130,977 )
44,797 (63,350 ) (173,801 ) Net income/(loss) from
continuing operations 515,365 (387,720 ) (272,849 ) (3,018,311 )
Gain on sale, net of $1,508,373 of related income taxes 15,096,666
— 15,096,666 —
Income/(loss) from discontinued
operations, net of income tax (benefit)/expense of $(349,515),
$(35,095), $(349,515), and $209,678.
145,293 (57,358 ) (644,241 ) 342,685 Net
income/(loss) from discontinued operations 15,241,959
(57,358 ) 14,452,425 342,685 Net income/(loss)
15,757,324 (445,078 ) 14,179,576 (2,675,626 ) Preferred stock
dividend 33,699 28,941 97,331 74,731
Net income/(loss) attributable to common stockholders $ 15,723,625
$ (474,019 ) $ 14,082,245 $ (2,750,357 ) Net
income/(loss) per share from continuing operations: Basic $ 0.02
$ (0.01 ) $ (0.01 ) $ (0.11 ) Diluted $ 0.02 $ (0.01
) $ (0.01 ) $ (0.11 ) Net income/(loss) per share from discontinued
operations: Basic $ 0.55 $ 0.00 $ 0.52 $ 0.01
Diluted $ 0.47 $ 0.00 $ 0.52 $ 0.01
Net income/(loss) per share attributable to common
stockholders: Basic $ 0.57 $ (0.02 ) $ 0.51 $ (0.10 )
Diluted $ 0.48 $ (0.02 ) $ 0.51 $ (0.10 ) Weighted
average common shares and common equivalent shares outstanding:
Basic 27,692,539 27,605,028 27,611,905 27,531,730 Diluted
32,714,389 27,605,028 27,611,905 27,531,730
Luna
Innovations Incorporated Consolidated Balance Sheets
September 30,2017
December 31,2016
(unaudited) Assets Current assets: Cash and cash
equivalents $ 38,514,437 $ 12,802,458 Accounts receivable, net
8,940,405 10,269,012 Inventory 7,300,035 6,848,835 Prepaid expenses
and other current assets 924,196 1,375,659 Current assets held for
sale — 5,801,629 Total current assets 55,679,073
37,097,593 Property and equipment, net 3,145,769 3,482,687
Intangible assets, net 3,264,285 3,367,217 Goodwill 502,000 502,000
Long term receivable- sale of HSOR business 4,000,000 — Other
assets 18,024 38,194 Non-current assets held for sale —
10,509,282
Total assets $ 66,609,151 $
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 49,070 52,128 Accounts payable 2,188,776
2,954,742 Accrued liabilities 9,586,554 7,913,544 Deferred revenue
897,023 837,906 Current liabilities held for sale —
2,376,703 Total current liabilities 14,554,756 15,968,356
Long-term deferred rent 1,221,170 1,319,402 Long-term debt
obligations 1,057,263 2,420,032 Long-term capital lease obligations
79,246 114,940 Non-current liabilities held for sale —
84,555
Total liabilities 16,912,435 19,907,285
Commitments and contingencies Stockholders’ equity:
Preferred stock, par value $0.001, 1,321,514 shares authorized,
issued and outstanding at September 30, 2017 and December 31, 2016
1,322 1,322 Common stock, par value $0.001, 100,000,000 shares
authorized, 28,402,887 and 27,988,104 shares issued, 27,815,060 and
27,541,277 shares outstanding at September 30, 2017 and December
31, 2016 29,074 28,600 Treasury stock at cost, 587,827 and 446,827
shares at September 30, 2017 and December 31, 2016 (746,007 )
(517,987 ) Additional paid-in capital 83,204,263 82,451,958
Accumulated deficit (32,791,936 ) (46,874,205 )
Total
stockholders’ equity 49,696,716 35,089,688
Total liabilities and stockholders’ equity $ 66,609,151
$ 54,996,973
Luna Innovations
Incorporated Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2017
2016 (unaudited) Cash flows provided by/(used in)
operating activities Net income/(loss) $ 14,179,576 $
(2,675,626 ) Adjustments to reconcile net income/(loss) to net cash
used in operating activities Depreciation and amortization
2,241,867 2,759,877 Share-based compensation 476,428 665,354 Bad
debt expense 40,753 255,522 Loss on disposal of fixed assets 3,640
— Gain on sale of discontinued operations (15,096,666 ) Change in
assets and liabilities Accounts receivable 2,127,794 (1,197,885 )
Inventory (2,251,236 ) 964,443 Other current assets 380,858
(381,632 ) Accounts payable and accrued expenses (1,581,608 )
(1,055,060 ) Deferred revenue 59,980 (120,871 ) Net cash
provided by/(used in) operating activities 581,386 (785,878
)
Cash flows provided by/(used in) investing activities
Acquisition of property and equipment (893,698 ) (1,433,260 )
Intangible property costs (392,485 ) (317,287 ) Proceeds from sale
of property and equipment 3,000 — Proceeds from sales of
discontinued operations 28,026,528 — Net cash
provided by/(used in) investing activities 26,743,345
(1,750,547 )
Cash flows provided by/(used in) financing
activities Payments on capital lease obligations (38,752 )
(44,404 ) Payments of debt obligations (1,375,000 ) (1,375,000 )
Repurchase of common stock (228,020 ) (325,060 ) Proceeds from the
exercise of options 29,020 — Net cash used in
financing activities (1,612,752 ) (1,744,464 )
Net decrease in
cash or cash equivalents 25,711,979 (4,280,889 ) Cash and cash
equivalents-beginning of period 12,802,458 17,464,040
Cash and cash equivalents-end of period $ 38,514,437 $
13,183,151
Luna Innovations
Incorporated Reconciliation of Net Loss to EBITDA and
Adjusted EBITDA Three Months Ended
Nine Months Ended September 30, September
30, 2017 2016 2017
2016 (unaudited) (unaudited) Net income/(loss)
$ 15,757,324 $ (445,078 ) $ 14,179,576 $ (2,675,626 ) Less
income/(loss) from discontinued operations, net of income taxes
15,241,959 (57,358 ) 14,452,425 342,685 Net
income/(loss) from continuing operations 515,365 (387,720 )
(272,849 ) (3,018,311 ) Interest expense 55,099 71,991 179,860
237,081 Tax (benefit)/expense (130,977 ) 44,797 (63,350 ) (173,801
) Depreciation and amortization 279,147 327,235
929,615 1,089,240 EBITDA 718,634 56,303 773,276
(1,865,791 ) Share-based compensation 154,671 200,326
476,428 665,354 Adjusted EBITDA $ 873,305 $
256,629 $ 1,249,704 $ (1,200,437 )
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171113006226/en/
Investor Contact:Luna Innovations IncorporatedDale
Messick, CFO, 1-540-769-8400IR@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