Luna Reports 1Q 2013 Financial Results

Luna recorded net income attributable to common stockholders of $2.8 million, or $0.17 per diluted share, for the first quarter of 2013, compared to a net loss attributable to common stockholders of $0.4 million, or ($0.03) per diluted share in the first quarter of 2012.

The net income in the first quarter of 2013 included a net after-tax gain of $4.0 million realized on the sale of the company’s Secure Computing and Communications group (SCC) in March.

Total revenues from continuing operations decreased to $4.5 million in the first quarter of 2013 compared to $6.7 million in the first quarter of 2012, reflecting a decrease of $1.3 million in the Technology Development segment and a decrease of $0.8 million in the Products and Licensing segment. This decrease in revenue was driven primarily by decreased contract research revenue within its optical systems group and lower sales of telecom related test and measurement equipment.

Gross profit decreased to $1.4 million for the first quarter of 2013 compared to $2.7 million for the first quarter of 2012. Luna’s operating expenses remained steady at $3.3 million in the first quarter of 2013, comparable to the first quarter of the prior year. The resulting net loss from continuing operations, which excludes the effects of SCC’s operations prior to its sale and the gain associated with the sale, was $1.1 million for the first quarter of 2013, compared to a net loss from continuing operations of $0.7 million for the first quarter of 2012.

Adjusted EBITDA, a non-GAAP measure, which is earnings before interest, taxes, and non-cash expenses of stock based compensation, depreciation, amortization and warrant expense, and excludes the effects of discontinued operations, declined to ($1.3) million for the first quarter of 2013, as compared to $0.1 million for the first quarter of 2012. With the proceeds from the sale of SCC, our cash and cash equivalents increased to $10.3 million at March 31, 2013 from $7.9 million at March 31, 2012.

“The sale of SCC during the first quarter added significant liquidity to our balance sheet,” said My Chung, CEO of Luna. “We are now continuing to focus on our two remaining strategic initiatives for future revenue growth — shape sensing for minimally invasive medical applications and fiber optic measurement of strain and temperature for a wide variety of industries. We’re optimistic about developments in the telecommunications industry pointing to investment in upgrading networks, which provides increased opportunity for our technological solutions. At the same time, we’re making great strides with our shape-sensing technology, transitioning toward product integration.”