Luna(US:LUNA)2020-11-09 21:46Revenue Performance - Total revenues for the three months ended September 30, 2020, were $21.05 million, representing a 14% increase from $18.39 million in the same period of 2019[127]. - Lightwave segment revenues increased by 17% to $15.35 million for the three months ended September 30, 2020, compared to $13.09 million in 2019[127]. - Luna Labs segment revenues grew by 8% to $5.7 million for the three months ended September 30, 2020, up from $5.3 million in 2019[127]. - Total revenues for the nine months ended September 30, 2020, increased by $5.7 million, or 11%, to $56.8 million compared to $51.0 million for the same period in 2019[139]. - Lightwave segment revenues for the nine months ended September 30, 2020, increased by $4.7 million, or 13%, to $39.8 million compared to $35.1 million for the same period in 2019[139]. - Total revenues for the three months ended September 30, 2020, increased by $2.7 million, or 14%, to $21.1 million compared to $18.4 million for the same period in 2019[127]. Segment Contributions - The Lightwave segment accounted for 73% of total revenues for the three months ended September 30, 2020, while the Luna Labs segment represented 27%[111][118]. - Lightwave segment revenues for the three months ended September 30, 2020 were $15.4 million, representing 73% of total revenues, compared to $13.1 million and 71% for the same period in 2019[111]. - Luna Labs segment revenues for the three months ended September 30, 2020 were $5.7 million, accounting for 27% of total revenues, compared to $5.3 million and 29% in 2019[114]. Backlog Information - The approximate value of the Lightwave segment backlog was $21.6 million at September 30, 2020, compared to $16.1 million at December 31, 2019[113]. - The Luna Labs segment backlog was approximately $24.4 million at September 30, 2020, down from $31.3 million at December 31, 2019[114]. - Total backlog for the Lightwave segment was approximately $21.6 million as of September 30, 2020, up from $16.1 million at December 31, 2019[113]. - Total backlog for the Luna Labs segment was approximately $24.4 million as of September 30, 2020, down from $31.3 million at December 31, 2019[114]. Financial Performance - Overall gross margin increased to 52% for the three months ended September 30, 2020, compared to 50% for the same period in 2019[133]. - Income from continuing operations before income taxes was $2.3 million for the three months ended September 30, 2020, compared to $1.6 million for the same period in 2019[137]. - Gross profit for the three months ended September 30, 2020, increased by $1.7 million, or 18%, to $10.9 million, resulting in a gross margin of 52% compared to 50% in the prior year[131][133]. - Total operating expenses for the three months ended September 30, 2020, increased by $0.9 million, or 12%, to $8.7 million, primarily due to increased selling, general, and administrative expenses[134]. - Total operating expenses for the nine months ended September 30, 2020, increased by $1.2 million, or 5%, to $24.4 million compared to $23.2 million for the same period in 2019[145]. - Overall gross margin for the nine months ended September 30, 2020, increased to 51% compared to 49% for the same period in 2019, attributed to a favorable revenue mix[144]. Cash Flow and Liquidity - Cash and cash equivalents were $26.4 million as of September 30, 2020[152]. - Net cash provided by operating activities for the nine months ended September 30, 2020 was $0.1 million, a decrease of $0.988 million compared to $1.1 million in the same period of 2019[154]. - Net cash provided by investing activities for the nine months ended September 30, 2020 was $0.29 million, a significant improvement from a net cash outflow of $19.7 million in the same period of 2019[157]. - Net cash provided by financing activities for the nine months ended September 30, 2020 was $1.029 million, compared to a net cash outflow of $2.434 million in 2019, reflecting a positive change of $3.463 million[158]. - The company believes its cash balance and available credit will provide adequate liquidity for the next twelve months, despite potential impacts from the COVID-19 pandemic[153]. Acquisitions and Investments - The company acquired General Photonics Corporation for $19 million, with an additional earn-out provision of up to $1 million, completed in the second quarter of 2020[114]. - The company anticipates continued investment in product development and commercialization to drive future sales growth[108]. - The company continues to invest in product development and commercialization, anticipating increased product sales growth in the future[108]. Impact of COVID-19 - The impact of the COVID-19 pandemic has introduced uncertainties in supply chain management, but the company has managed minor impacts thus far[116]. - The impact of the COVID-19 pandemic on the company's operations remains uncertain, with minor supply chain impacts managed through existing inventory[116]. - There are no off-balance sheet arrangements as of September 30, 2020[159].