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Luna Innovations' (LUNA) CEO My Chung on Q2 2015 Results - Earnings Call Transcript


Good day ladies and gentlemen and welcome to the Luna Innovations Incorporated Second Quarters 2015 Earnings Conference Call. At this time all participants are in listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions]

I would now like to turn the conference over to Dale Messick, Chief Financial Officer. You may begin.

Dale Messick - CFO

Thank you, Nicole. Good afternoon everyone and thank you for joining us today as we review our operating results for the second quarter of 2015. Recording of this conference call will subsequently be posted on our website.

Before we proceed with your presentation today, let me remind each of you that statements made in this conference call, as well as in our public filings, releases and websites which are not historical facts may be forward-looking statements that involve risk and uncertainties and are subject to changes at any time, including but not limited to statements about our expectations regarding future operating results or an ongoing prospects of the company following our combination with Advanced Photonix.

We caution investors that any forward-looking statements made by us are management’s beliefs based on currently available information and should not be taken as a guarantee of future results or performance. Actual results may differ materially as a result of a variety of factors discussed in our latest forms filed with the Securities and Exchange Commission.

We disclaim any obligation to update any such factors or to announce publicly the results of any revisions to any of the forward-looking statements to reflect future events or developments expect as required by law. There is more complete information regarding forward-looking statements, risks and uncertainties in the company’s filings with the SEC available on the SECs website and our website.

And at this time I’d like to turn the call over to My Chung, President and CEO of Luna Innovations.

My Chung - President and CEO

Thank you, Dale and thank you all for joining us today. This is an exciting time for Luna and I’m happy to be here today to share with you the progress that we have made following the merger with Advanced Photonix.

As the transaction was completed in mid-quarter in May, the financial results we released today reflect the results for the full quarter for the historical Luna entity, but only about a half of the quarter of that result for the historical API entity. However, this partial result confirms our belief that this transaction will accelerate our path to profitability as we will already able to achieve the positive adjusted EBITDA in our first combined quarter.

The savings in having only one publicly listed company rather than two and the leveraging of shared expenses and resources will accelerate our path to profitability while creating the bigger and stronger company.

We are seeing traction in each of our key strategic growth initiatives and we are optimistic about our ability to continue to grow. Our product and license revenues were $6.3 million for the second quarter which included $3.6 million of revenue from API for this partial period.

We had $2.7 million of revenue from the historical Luna product operations which represents the 35% growth over the second quarter of last year. This growth came largely from sales of our ODiSI system for distributed high resolution measurements of strain and temperature. We are making good headway in penetrating the strain measurement market especially as it relates to the testing of composite elements in structures.