Luna Innovations Reports 2Q 2013 Financial Results

Luna Innovations announced its financial results for the second quarter and six months ended June 30, 2013.

As compared to the same quarter last year, total revenue decreased by 11%, from $6.7 million in the second quarter of 2012 to $6.0 million in the second quarter of 2013. Products and licensing revenues increased 11% compared to the second quarter of 2012, driven by higher sales of the company’s ODiSI product line in addition to increased revenue from the development of the company’s fiber optic shape sensing product. Products and licensing revenues for the second quarter also increased 69% compared to the first quarter of 2013.

Technology development revenues declined by 28% compared to the second quarter of 2012 due primarily to the continued lower level of contract research projects within the company’s optical systems group. Technology development revenues grew by 7% compared to the first quarter of 2013. Gross profit decreased from $2.7 million for the second quarter of 2012 to $2.4 million for the second quarter of 2013. Operating expenses for the second quarter of 2013 increased $0.2 million, or 6%, over the second quarter of 2012.

The company reported a net loss attributable to common stockholders of $1.0 million, or $0.07 per common share, for the second quarter of 2013, compared to a net loss of $0.3 million, or $0.02 per common share, in the same quarter last year. 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, decreased to $(0.3) million for the second quarter of 2013, as compared to $0.4 million for the second quarter of 2012.

“I am pleased to report growth in the Products and Licensing segment of our business,” said My Chung, chief executive officer of Luna. “Growth in sales of our ODiSI products for measuring strain and temperature continued to offset the softness of the telecom test and measurement market for us. The multi-year renewal of our agreement with Intuitive Surgical during the second quarter also provides a strong base for growth in the future as we work toward the commercialization of the shape sensing platform.”

Total revenue decreased by 22% to $10.5 million for the six months ended June 30, 2013 compared to $13.4 million for the six months ended June 30, 2012. Technology development revenues decreased by 31%, from $7.8 million for the six months ended June 30, 2012 to $5.4 million for the six months ended June 30, 2013. Products and licensing revenue decreased by 9%, from $5.6 million for the six months ended June 30, 2012 to $5.0 million for the six months ended June 30, 2013.

Gross profit for the six months ended June 30, 2013 decreased by 30%, to $3.8 million, compared to a gross profit of $5.5 million for the six months ended June 30, 2012. Gross margin percentages decreased to 36% of revenues for the first six months of 2013 from 41% of revenues for the first six month of 2012.
Adjusted EBITDA decreased to $(1.7) million for the six months ended June 30, 2013 from $0.5 million for the six months ended June 30, 2012.