Luna Innovations Incorporated (NASDAQ: LUNA) today announced its financial results for the third quarter and nine months ended September 30, 2011.
For the third quarter of 2011, Luna achieved its first quarterly positive net income since its IPO (excluding the fourth quarter of 2009, in which net income resulted primarily from the reversal of previous litigation accruals). Net income attributable to common stockholders of $0.2 million for the third quarter of 2011 reflects an improvement of $0.7 million compared to net loss attributable to common stockholders of $0.5 million for the third quarter of 2010, as revenues increased while operating expenses declined.
Also, as compared to the same quarter last year, total revenue increased by 3%, from $8.6 million in the third quarter of 2010 to $8.8 million in the third quarter of 2011. Revenue in the company’s technology development segment improved by 23% from $5.0 million in the third quarter of 2010 to $6.2 million in the third quarter of 2011, while product and license revenue decreased by 25%, from $3.6 million in the third quarter of 2010 to $2.7 million in the third quarter of 2011. Gross profit increased from $3.4 million for the third quarter of 2010 to $3.5 million for the third quarter of 2011.
Adjusted EBITDA, a non-GAAP measure, which is earnings before interest, taxes, depreciation and amortization, excluding litigation and reorganization related items and non-cash stock-based compensation and warrant expense, improved to $1.1 million for the third quarter of 2011, as compared to $0.9 million for the third quarter of 2010. Cash decreased from $8.1 million at June 30, 2011 to $6.8 million at September 30, 2011.
“Our third quarter results reflect the achievement of a significant milestone in our financial and operational objectives,” said My Chung, chief executive officer of Luna. “I am extremely pleased that during a weak economy for product sales our team was able to deliver bottom line results that exceeded expectations. Moving forward we will focus our efforts on accelerating growth within the company through a principal focus on opportunities in fiber optic sensing and secure computing.”