ORLANDO, FL / ACCESSWIRE / November 14, 2023 / Laser Photonics Corporation (NASDAQ:LASE), ("LPC"), a leading global developer of CleanTech laser systems for laser cleaning and other material applications, today announced results for its third quarter ended September 30, 2023.
Wayne Tupuola, CEO of Laser Photonics, commented: "Our third quarter showed strong sequential and modest year-over-year growth in revenue and gross margin as we added new customers in the military, energy and automotive verticals, in addition to expanding our Service Provider Network (SPN) membership into Hawaii and Nebraska. We also continued to invest in sales, marketing, and R&D during the quarter to set the table for future sales growth, including the commercial launch of our MARLIN product line and our new CleanTech Robotic Cell enclosure that automates laser cleaning. These efforts have enabled us to expand our pipeline, and we are working diligently to convert these to orders over the next 12 months."
"We also enhanced our leadership team during the quarter, adding a new CFO with significant financial experience in industrial product companies. Additionally, we filled an empty board seat with an executive from Fastenal, who brings experience with distribution into our key verticals. We are excited to have these two join our team and look forward to benefiting from their contributions."
Third Quarter Financial Highlights (FY23 vs FY22)
- Revenue increased 1.2% to $1.2 million;
- Gross Margin expanded to 73.1% from 45.2%;
- GAAP Operating loss of ($1.1 million) versus operating income of $0.2 million;
- GAAP Net Loss and Loss per Share of ($1.1 million) and ($0.13) versus Net Income and EPS of $0.2 million and $0.04, respectively.
| Select Financial Metrics: Fiscal 2023 versus Fiscal 2022* | |||||||||||||
(in $M except for EPS) |
3Q23 | 3Q22 | Change | ||||||||||
Revenue |
$ | 1.2 | $ | 1.2 | 1.4 | % | |||||||
Gross Margin |
73.1 | % | 45.2 | % | +2790bps | ||||||||
Operating Income/(Loss) |
$ | (1.1 | ) | $ | 0.2 | nm | |||||||
GAAP Net Income (Loss) |
$ | (1.1 | ) | $ | 0.2 | nm | |||||||
GAAP Diluted Earnings/(Loss) per Share |
$ | (0.13 | ) | $ | 0.04 | nm | |||||||
*numbers may not add due to rounding |
|||||||||||||
nm - non-measurable |
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Third Quarter Business Highlights
Customer Orders
- Fort Liberty , one of the largest military installations in the world, purchased CleanTech technology;
- Cummins Natural Gas Engines , a global power technology leader, purchased CleanTech technology;
- Navistar , an industry leader in the transport sector, purchased MarkStar technology;
- Acier Marquis , a leading metal fabrication company in the steel industry, purchased CleanTech technology;
- Apollo Machine & Welding Ltd., a manufacturing leader and trusted global supplier of machined components purchased MarkStar technology;
- Electrostatic Refinishing Solutions , LLC, an Atlanta-based refurbishing company purchased CleanTech technology;
- 2B Laser Solutions purchased CleanTech technology;
- U.S. DEVCOM facility purchased CleanTech technology.
Distribution
- Expanded sales and distribution partnership in the U.S. and Canada with Fastenal, a leading national distributor of industrial products with more than 3,000 locations servicing thousands of customers;
- Expanded the SPN into Nebraska and Hawaii with the addition of Aresco Inc. and Hawaii Laser Solutions.
Products/Technology
- LPC introduced its new CleanTech Robotic Cell Enclosure, an AI-capable system that automates laser cleaning.
Leadership
- Appointed Troy Parkos to the board of directors and named him Chairman of the Governance Committee. Parkos brings more than 20 years of entrepreneurial and senior-level experience driving innovation in industrial distribution with Fastenal;
- Appointed Jade Barnwell as chief financial officer. Barnwell brings 20 years of strategic finance and business leadership experience in accounting, finance, operations, reporting, mergers and acquisitions and business development.
Subsequent Events
- Introduced the CleanTech Handheld LPC-500-CTHD product;
- Opened pre-orders for the AI-capable CleanTech Robotic Cell Enclosure;
- Launched the MARLIN commercial with a focus on the maritime industry.
2023 Commentary
"We are continuing to innovate within our CleanTech product line by adding new capabilities and creating vertical-specific offerings, as well as adding new applications. Our continued investment in R&D and new technology development is meant to continue to differentiate our products and expand our market opportunities over the long term. Additionally, we will continue to expand our sales and marketing efforts over the near term to drive market awareness and to demonstrate to our shareholders that we can drive improved near and medium-term performance, " concluded Tupuola.
Conference Call and Webcast Information
Management will host a conference call and webcast to review the Company's results. Investors can submit questions ahead of time to laser@haydenir.com .
Conference Call Date/Time: Tuesday, November 14, 11:00 a.m. Eastern Time
Toll Free: 1-877-407-3982
Toll/International: 1-201-493-6780
Call me™ Call me™
- Participants can use Guest dial-in #s above and be answered by an operator OR click the Call me™ link for instant telephone access to the event. Call me™ link will become active 15 minutes before the scheduled start time.
Webcast Location: https://viavid.webcasts.com/starthere.jsp?ei=1642338&tp_key=765168791e
Replay
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13742541
Replay Start: Tuesday, November 14, 2023, 12:00 p.m. ET
Replay Expiry: Tuesday, November 28, 2023, at 11:59 p.m. ET
About Laser Photonics Corporation
Laser Photonics is a vertically-integrated manufacturer and R&D Center of Excellence for industrial laser technologies and systems. LPC seeks to disrupt the $46 billion, centuries-old sand and abrasives blasting markets, focusing on surface cleaning, rust removal, corrosion control, de-painting and other laser-based industrial applications. LPC's new generation of leading-edge laser blasting technologies and equipment also addresses the numerous health, safety, environmental, and regulatory issues associated with the old methods. As a result, LPC has quickly gained a reputation as an industry leader for industrial laser systems with a brand that stands for quality, technology and product innovation. Currently, world-renowned and Fortune 1000 manufacturers in the aerospace, automotive, defense, energy, industrial, maritime, space exploration and shipbuilding industries are using LPC's "unique-to-industry" systems. For more information, visit www.laserphotonics.com .
Cautionary Note Concerning Forward-Looking Statements
This press release contains "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), including statements regarding the Company's plans, prospects, potential results and use of proceeds. These statements are based on current expectations as of the date of this press release and involve a number of risks and uncertainties, which may cause results and uses of proceeds to differ materially from those indicated by these forward-looking statements. These risks include, without limitation, those described under the caption "Risk Factors" in the Registration Statement. Any reader of this press release is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release except as required by applicable laws or regulations.
Laser Photonics Investor Relations Contact:
laser@haydenir.com
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value data)
| September 30, 2023 (Unaudited) | December 31, 2022 | |||||||
ASSETS |
|
|
||||||
Current Assets: |
|
|
||||||
Cash and Cash Equivalents |
$ | 8,311 | $ | 12,182 | ||||
Accounts Receivable, Net |
1,656 | 1,347 | ||||||
Inventory |
2,610 | 1,694 | ||||||
Other Current Assets |
67 | 73 | ||||||
Total Current Assets |
12,644 | 15,296 | ||||||
Property, Plant & Equipment, Net |
761 | 628 | ||||||
Intangible Assets |
2,796 | 2,939 | ||||||
Operating Lease Right-of-Use Asset |
588 | 832 | ||||||
Total Assets |
$ | 16,789 | $ | 19,695 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Current Liabilities: |
||||||||
Accounts Payable |
233 | 190 | ||||||
Operating Lease Liabilities, Current |
352 | 345 | ||||||
Accrued Expenses |
0 | 1,181 | ||||||
Total Current Liabilities |
586 | 1,716 | ||||||
Operating Lease Liabilities, Noncurrent |
236 | 488 | ||||||
Total Liabilities |
822 | 2,203 | ||||||
Common Stock |
83 | 79 | ||||||
Additional Paid in Capital |
19,112 | 18,141 | ||||||
Accumulated Retained Earnings (Deficit) |
(3,228 | ) | (728 | ) | ||||
Total Stockholders' Equity |
15,967 | 17,491 | ||||||
Total Liabilities & Stockholders' Equity |
$ | 16,788 | $ | 19,695 | ||||
STATEMENTS OF PROFIT AND LOSS
(in thousands, except per share data)
(unaudited)
| Three Months Ended September 30, |
||||||||
| 2023 | 2022 | |||||||
|
|
|
|||||||
Net Revenue |
$ | 1,240 | $ | 1,224 | ||||
Cost of Goods Sold |
333 | 671 | ||||||
Gross Profit |
906 | 553 | ||||||
Operating Expenses |
||||||||
Sales & Marketing |
652 | 134 | ||||||
General & Administrative |
1,198 | 120 | ||||||
Depreciation & Amortization |
152 | 85 | ||||||
Total Operating Expenses |
2,003 | 338 | ||||||
Operating Income (Loss) |
(1,096 | ) | 215 | |||||
Other Income (Expenses): |
||||||||
Interest Income/(Expense) |
- | (10 | ) | |||||
Other Income (Expense) |
- | - | ||||||
Total Other Income (Expenses) |
- | (10 | ) | |||||
Income (Loss) Before Tax |
(1,096 | ) | 205 | |||||
Tax Provision |
- | - | ||||||
Net Income (Loss) |
$ | (1,096 | ) | $ | 205 | |||
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
|
Nine Months Ended
September 30, 2023
|
||||
Cash Flow from: |
|
|||
OPERATING ACTIVITIES |
|
|||
Net Income (Loss) |
$ | (2,499 | ) | |
Adjustments: |
||||
Depreciation & Amortization |
336 | |||
Net change, Right-of-Use Asset |
- | |||
Change in Operating Assets & Liabilities: |
||||
Accounts Receivable |
(309 | ) | ||
Inventory |
(916 | ) | ||
Other Current Assets |
6 | |||
Accounts Payable |
43 | |||
Accrued Expenses |
(1,181 | ) | ||
Customer Deposits |
- | |||
Other Liabilities |
0 | |||
Net Cash Flow from Operating Activities |
(4,521 | ) | ||
INVESTING ACTIVITIES |
||||
Purchase of Long Term Assets |
(289 | ) | ||
Purchase of Intangible Assets |
(37 | ) | ||
Net Cash Flow from Investing Activities |
(326 | ) | ||
|
FINANCING ACTIVITIES
|
||||
Proceeds from (Repayment of) Notes |
- | |||
Proceeds from (Repayment of) PPP Loan |
- | |||
Proceeds from Sale of Common Stock |
975 | |||
Net Cash Flow from Financing Activities |
975 | |||
Net Change in Cash |
$ | (3,871 | ) | |
Cash - Beginning of Period |
12,182 | |||
Cash - End of Period |
$ | 8,311 | ||
SOURCE: Laser Photonics Corp.
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