Luna Innovations Incorporated (NASDAQ:LUNA) announced the results from its 4Q and full year 2013 operations after markets closed yesterday. The highlights of the earnings call are as follows.
For the fourth quarter, the company’s total revenue went down by 4 percent, to bottom out at $5.9 million as against the $6.1 million it had recorded in 4Q12. Revenue from technology development went down by a huge 21 percent to hit $2.9 million for the quarter, thus becoming the biggest contributor for the dip in overall revenue. In 4Q12, the revenue from this segment had come in at $3.6 million. Offsetting this dip was the company’s revenue from its products and licensing business which went up by a huge 18 percent, adding up to $3 million for the 4Q.
In 4Q12, this stream came in at $2.5 million. Gross profits from fourth quarter operations were $2 million, which constituted a average 34 percent of its overall revenue. The firm’s expenses on the other hand increased 40 percent to reach $3.5 million, thereby reducing the earnings substantially. The huge increase in cost was linked to the firm’s sale of optic sensing tech to a third party. Net loss which was linked to the company operations for the fourth quarter came in at $2 million which was well above the $0.6 million it had reported in 2012.
Expressing his happiness for a strong finish to the quarter, while highlighting the unbridled potential going forward, Luna Innovations Incorporated (NASDAQ:LUNA) President, Chief Executive Officer, Director My E. Chung has been quoted to have said that, “With the successful completion of the sale transactions related to our secure computing and communications group in the first quarter of 2013 and our fiber optic shape sensing technology in the first quarter of 2014, we have narrowed the company’s focus to concentrate on our key initiative surrounding fibre optic sensing solutions for future growth.”