Luna Innovations Incorporated (NASDAQ: LUNA) today announced its financial results for the fourth quarter and year ended December 31, 2010.
As compared to the same quarter last year, total revenue increased 6.2%, from $8.5 million in the fourth quarter of 2009 to $9.1 million in the fourth quarter of 2010. Gross profit increased 5.5% from $3.2 million in the fourth quarter of 2009 to $3.4 million in 2010. In the fourth quarter of 2009, the company reported net income of $24.9 million due to a one-time benefit associated with a $26.6 million reduction in litigation reserves. Excluding that reduction in litigation reserves, the company would have reported a net loss attributable to common stockholders of $1.7 million for the fourth quarter of 2009 compared to a net loss attributable to common stockholders of $0.5 million for the fourth quarter of 2010. Adjusted EBITDA, excluding reorganization and Hansen litigation related costs, was $1.0 million for both the fourth quarter of 2009 and 2010.
For the full year, revenues decreased slightly from $34.6 million in 2009 to $34.5 million in 2010, reflecting a 29.4% increase in product and license revenues offset by an 11% decrease in technology development revenues. Gross profit increased 1.5% from $12.8 million in 2009 to $12.9 million in 2010. Net loss decreased 87.2% from 2009 to 2010 from $20.4 million to $2.6 million due primarily to costs incurred in connection with the company’s litigation with Hansen and the company’s reorganization during 2009. Adjusted EBITDA, excluding litigation and bankruptcy related costs, improved 25.3% from $2.3 million in 2009 to $2.9 million in 2010.
Dale Messick, interim President and Chief Operating Officer, provided this overview of Luna’s results: “We are pleased to report improvements in both revenues and operating expenses, excluding litigation and reorganization costs, for the quarter as we continue our progress toward profitability. Our net loss attributable to common stockholders of less than $0.5 million for the quarter and positive adjusted EBITDA of approximately $1.0 million for the quarter clearly demonstrate the benefits we have realized through our cost reduction initiatives over the past two years while at the same time continuing to expand our market presence, particularly in providing industry leading fiber-optic solutions to our customers.”