LUNA warn and the stock gets hammered.
Luna Innovations Announces Financial Outlook for the Second Half of 2006
Thursday September 7, 6:30 pm ET
ROANOKE, Va., Sept. 7 /PRNewswire-FirstCall/ -- Luna Innovations Incorporated (Nasdaq: LUNA - News), in an open letter to stockholders issued today and attached to this press release, provided guidance for its estimated revenues and net loss for the second half of 2006. The Company's revenues and earnings estimates for the second half of 2006 are expected to be lower than generally held expectations. In the letter, Chairman and Chief Executive Officer Kent A. Murphy said the Company expects revenues to be in the range of $11.5 million to $12.5 million and its net loss to be between $4.5 million and $5.5 million, or ($0.46) to ($0.56) per share on a diluted basis, respectively, for the six month period ending December 31, 2006. The Company said that currently anticipated revenues of between $21.0 million and $22.0 million for the full year ending December 31, 2006 will reflect an increase of approximately 28 percent to 34 percent year over year from the prior year ended December 31, 2005. On a pro forma basis, giving effect to its September 2005 acquisition of Luna Technologies, Inc. as if such acquisition had occurred on January 1, 2005, the increase in estimated revenues from the prior year is expected to be in the range of approximately 13 percent to 19 percent.
The Company stated that it expects results for fiscal year 2006 to be negatively affected by the previously announced lag in the recruitment of personnel to work on recently awarded contracts, as well as by lower than expected sales of products, especially the sales of advanced technology products related to sensing systems and sales of advanced materials. In the letter, Murphy reviewed operations and identified certain milestones that he said are important for the Company's growth.
Despite the Company's expectations as to its 2006 financial outlook, Murphy wrote to investors that, "We are encouraged by our progress in the substantive work that will ultimately be responsible for our success." He asked that investors measure the Company's progress by both the achievement of financial goals and the accomplishment of key product milestones, some of which are identified in his letter to stockholders.
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