Luna Reports 3Q 2012 Financial Results

Luna Innovations Inc. announced its financial results for the third quarter and nine months ended Sept. 30, 2012.

For the three months ended Sept. 30, 2012, the company reported a net loss attributable to common stockholders of $0.3 million compared to net income to common stockholders of $0.2 million for the third quarter of 2011.

Total revenues decreased by 9%, from $8.8 million in the third quarter of 2011 to $8.0 million in the third quarter of 2012. Products and licensing revenues increased by 18%, from $2.7 million in the third quarter of 2011 to $3.2 million in the third quarter of 2012, due to increased sales of the company’s new ODiSI product line.

Revenues in the company’s technology development segment declined by 21% from $6.2 million in the third quarter of 2011 to $4.9 million in the third quarter of 2012, primarily due to lower revenues in the company’s Secure Computing and Communications group, where several short-term projects benefitted the group’s third quarter 2011 revenues. Gross profit decreased from $3.5 million for the third quarter of 2011 to $3.1 million for the third quarter of 2012.

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, declined to $0.7 million for the third quarter of 2012, as compared to $1.1 million for the third quarter of 2011. Cash at September 30, 2012 of $6.7 million represents an increase of $0.1 million from $6.6 million at June 30, 2012.

“I am pleased with the successes we continue to make on each of our key strategic growth initiatives,” said My Chung, president and chief executive officer. “In addition to our continuing progress in our fiber optic shape sensing and secure computing initiatives, the introduction of our ODiSI line of products for strain measurement earlier this year drove the incremental products and licensing revenues we generated this quarter. We are encouraged that our customers are embracing our technology and remain optimistic that the growing composite test market will continue to provide diversity in our revenue sources.”

For the nine months ending Sept. 30, 2012, Luna’s total revenues decreased $2.9 million, or 10%, to $24.6 million, compared to $27.5 million for the nine months ended Sept. 30, 2011. Products and licensing revenues decreased by 13%, to $8.7 million for the nine months ended Sept. 30, 2012, from $10.1 million for the nine months ended Sept. 30, 2011, while technology development revenues decreased by 9%, to $15.9 million in 2012 from $17.4 million in 2011.

Gross profit decreased by 9%, to $9.5 million for the nine months ended Sept. 30, 2012, from $10.5 million for the nine months ended Sept. 30, 2011. Adjusted EBITDA decreased to $1.7 million for the nine months ended Sept. 30, 2012, from $2.1 million for the nine months ended Sept. 30, 2011.