Luna Innovations Reports Solid Second-Quarter 2020 Results

Date Announced: 12 Aug 2020

Maintains 2020 Outlook.

Highlights

• Total revenues of $18.6 million for the three months ended June 30, 2020, up 4% compared to the three months ended June 30, 2019
• Operating income and margin of $1.8 million and 10% of total revenues, for the three months ended June 30, 2020 versus operating income and margin of $1.0 million and 6% of total revenues, for the three months ended June 30, 2019
• Net income of $1.4 million, or $0.04 per fully diluted share, for the three months ended June 30, 2020, compared to $0.8 million, or $0.02 per fully diluted share, for the three months ended June 30, 2019
• Adjusted EBITDA increased to $3.0 million for the three months ended June 30, 2020, compared to $2.4 million for the three months ended June 30, 2019
• Company maintains 2020 outlook, tightens revenue range to $81M to $83M

Roanoke, VA – Luna Innovations Inc. (NASDAQ: LUNA), a global leader in advanced optical technology, today announced its financial results for the three and six months ended June 30, 2020. During the second quarter of 2020, the company changed its reportable segments to align with how management reviews and evaluates the business.  The two new reportable segments are Lightwave and Luna Labs.

“Given the current environment, I’m extremely pleased with our second-quarter 2020 results and the team’s focus on delivering this quarter,” said Scott Graeff, President and Chief Executive Officer of Luna. “Like other companies, we experienced the effects of the COVID-19 pandemic during Q2 and now have a better perspective on what its impact may be in the future.

"I strongly believe that the swift and decisive action we took as a management team in mid-March helped to safeguard the long-term potential of our businesses. The entire Luna team continues to be incredibly flexible to address the changing dynamics of the current environment. Above all, their safety is paramount. As we learn more about the potential impact of this virus on our business and our employee safety, we continue to improve upon the mitigating processes we put into place in Q1.”

Second-Quarter Fiscal 2020

Financial results for the three months ended June 30, 2020 marked the 11th consecutive quarter of year-on-year revenue and Adjusted EBITDA growth. Highlights of the financial results for the second-quarter of 2020 are available on the Luna Innovations website.

Six Months Year-to-Date Fiscal 2020 

The results for the six months ended June 30, 2020 include six months of the business of General Photonics Corporation (“GP”), acquired in March 2019, compared to four months for the prior-year period. Highlights of the financial results for the six months ended June 30, 2020 are available on the Luna Innovations website.

2020 Full-Year Outlook

Luna recognizes that the COVID-19 pandemic has created evolving and significant macroeconomic uncertainty. Based on a bottoms-up analysis, Luna is slightly tightening its revenue outlook range to $83 million. Incorporating this slight adjustment, the Company reiterates the outlook it provided on May 7, 2020, which projected revenues at the lower end of the range: 

• Total revenues of $81M to $83M
• Adjusted EBITDA of $10M to $12M

COVID-19 Update

Luna continues to operate at its normal capacity with the well-being and safety of its workforce a priority.  Luna and has not experienced any material impacts related to COVID-19. Luna has a strong cash position and adequate access to capital. Cash and cash equivalents were $26.5 million as of June 30, 2020, and Luna continues to have access to its $10 million revolving credit facility.

The company believes it is in a strong position to take advantage of trends such as 5G, lightweighting and infrastructure monitoring and that these trends will continue during and after the COVID-19 pandemic. Luna’s operations are essential and continue to operate at normal capacity with necessary COVID-19 precautions.  The company has not experienced any material disruptions to its supply chain that it has not been able to mitigate.

Fiber Optic Sensors from Luna Monitor Structural Integrity of New Composite Bridge

Luna Innovations has partnered with researchers at the University of Tennessee and the Institute for Advanced Composites Manufacturing Innovation (IACMI) to equip a new fiber-reinforced polymer composite material (FRP) bridge deck with integrated, high-density fiber optic sensors. The sensors will be used to monitor the composite deck system over time to give critical performance and safety data, thus providing a sustainable solution for aging infrastructures such as bridges and tunnels.

The Morgan County demonstration bridge in north central Tennessee will replace a damaged, decades-old concrete bridge. County officials are partnering with private industry and researchers on a bridge that can be installed faster and at a lower cost than traditional methods. Luna’s fiber optic sensors will form the key element of a structural health monitoring framework for the bridge, allowing engineers to ensure that the bridge operates safely and within established performance parameters for many years to come.

“Luna’s sensing solutions deliver data and insight not available with conventional data acquisition and monitoring systems,” said Scott Graeff, President and Chief Executive Officer of Luna. “We strive to enhance the safety of people and structures by leveraging our expertise in fiber optic-based technology and the information it provides. The Morgan County demonstration bridge is a great example of how Luna is enabling the future with fiber by providing advanced sensing solutions that address our nation’s aging infrastructure.”

Contact

E-mail: Via website

Web Site: https://lunainc.com