ORLANDO, FL / ACCESSWIRE / May 10, 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 first quarter ended March 31, 2023.
Wayne Tupuola, chief executive officer of Laser Photonics, commented: "Our first quarter was largely in line with our expectations, with revenue down slightly, strong gross margins and GAAP operating losses due to investments for future growth and non-cash and one-time expenses. Additionally, during the quarter, we shipped to several new customers, including new members of our service provider network (SPN), which we expect to serve as a sales multiplier over time."
First Quarter Financial Highlights (FY23 vs FY22)
- Revenue increased 2.1% to $1.2 million;
- Gross Margin expanded 510 basis points to 80.5%;
- GAAP Operating Loss of ($1.2) million versus GAAP Operating Income of $0.4 million;
- First quarter 2023 GAAP Operating Loss included approximately $1.0 million in mark-to-market expense related to non-cash stock issuance costs and expense related to a severance agreement;
- Other Loss of $0.2 million related to an increase in bad debt expense from a prior year sale;
- GAAP Net Loss and Loss per Share of of ($1.4) million and ($0.18) versus GAAP Net Income and EPS of $0.4 million and $0.08, respectively;
- First quarter 2023 GAAP Net Loss included approximately $1.0 million in mark-to-market expense related to non-cash stock issuance costs and expense related to a severance agreement.
Select Financial Metrics: Fiscal 2023 versus Fiscal 2022*
(in $M except for EPS) |
1Q23 | 1Q22 | Change | |||||||||
Revenue |
$ | 1.2 | $ | 1.2 | $ | 0.0 | ||||||
Gross Margin |
80.5 | % | 75.4 | % | ||||||||
Operating Income/(Loss) |
$ | (1.2 | ) | $ | 0.4 | nm | ||||||
GAAP Net Income (Loss) |
$ | (1.4 | ) | $ | 0.4 | nm | ||||||
GAAP Diluted Earnings/(Loss) per Share |
$ | (0.18 | ) | $ | 0.08 | nm | ||||||
*numbers may not add due to rounding
Nm - non-measurable
2023 Commentary
"As we discussed last month on our fourth quarter earnings call, we plan on making significant investments in 2023 to capture the tremendous market opportunity over the mid to long term for our CleanTech systems. We have already taken steps towards executing on this investment plan, adding four senior account executives to focus on the DoD/military, energy and automotive verticals with plans to target adding three more account executives over the next few months with experience in additional verticals. We believe these additions will help us start to show signs of accelerating revenue growth during 2023, but with a larger impact in 2024 and beyond," concluded Tupuola.
Conference Call and Webcast Information
Management will host a conference call and webcast to review the Company's results and forward expectations. Investors can submit questions ahead of time to laser@haydenir.com.
Conference Call Date/Time: Thursday, May 11 at 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=1614947&tp_key=9fa18f7f24
Replay
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13738757
Replay Start: Thursday, May 11, 2023, 2:00 p.m. ET
Replay Expiry: Thursday, May 25, 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, exceptpar value data)
|
March 31,
2023
|
December 31,
2022
|
|||||||
| Unaudited | ||||||||
Assets |
||||||||
Current Assets: |
||||||||
Cash and Cash Equivalents |
$ | 10,815,690 | 12,181,799 | |||||
Accounts Receivable, Net |
1,747,153 | 1,347,494 | ||||||
Inventory |
1,950,707 | 1,693,810 | ||||||
Total Current Assets |
14,513,550 | 15,223,104 | ||||||
Other Current Assets |
183,062 | 72,527 | ||||||
Property, Plant, & Equipment, Net |
652,317 | 627,848 | ||||||
Intangible Assets, Net |
2,882,236 | 2,939,041 | ||||||
Operating Lease Right-of-Use Asset |
741,464 | 832,072 | ||||||
Total Assets |
$ | 18,972,629 | 19,694,592 | |||||
Liabilities & Stockholders' Equity |
||||||||
Current Liabilities: |
||||||||
Accounts Payable |
$ | 420,588 | 190,387 | |||||
Deferred Revenue |
0 | 0 | ||||||
Current Portion of Operating Lease |
344,510 | 344,510 | ||||||
Loans Payable, Current Portion |
0 | 0 | ||||||
Accrued Expenses |
1,751,250 | 1,181,000 | ||||||
Total Current Liabilities |
2,516,348 | 1,715,897 | ||||||
Long Term Liabilities: |
||||||||
Loans Payable |
0 | 0 | ||||||
Operating Lease Liability, less Current Portion |
396,952 | 487,562 | ||||||
Total Long-Term Liabilities |
396,952 | 487,562 | ||||||
Total Liabilities |
2,913,300 | 2,203,459 | ||||||
Commitments and Contingencies (Note 3) |
0 | 0 | ||||||
Stockholders' Equity: |
||||||||
Common Stock Par Value $0.01: 100,000,000 shares authorized, 7,878,419 issued and outstanding as of March 31, 2023 and December 31, 2022 |
78,783 | 78,783 | ||||||
Additional Paid in Capital |
18,140,520 | 18,140,520 | ||||||
Retained Earnings (Deficit) |
(728,170 | ) | (728,170 | ) | ||||
Net Income (Loss) |
(1,431,804 | ) | ||||||
Total Stockholders' Equity |
16,059,329 | 17,491,133 | ||||||
Total Liabilities & Stockholders' Equity |
$ | 18,972,629 | 19,694,592 | |||||
STATEMENTS OF PROFIT AND LOSS
(in thousands, except per share data)
(unaudited)
| 3 Months Ending March 31, | ||||||||
| 2023 | 2022 | |||||||
Net Sales |
$ | 1,237,047 | 1,212,084 | |||||
Cost of Sales |
241,128 | 298,588 | ||||||
Gross Profit |
995,919 | 913,496 | ||||||
Operating Expenses: |
||||||||
Sales & Marketing |
1,067,925 | 78,791 | ||||||
General & Administrative, Payroll, Rent |
1,076,571 | 363,637 | ||||||
Depreciation & Amortization |
83,137 | 89,961 | ||||||
Total Operating Expenses |
2,227,633 | 532,389 | ||||||
Operating Income (Loss) |
(1,231,714 | ) | 381,107 | |||||
Other Income (Expenses): |
||||||||
Interest Expense |
0 | (4,408 | ) | |||||
Other Income (Expense) |
(200,090 | ) | 0 | |||||
Total Other Income (Expense) |
(200,090 | ) | (4,408 | ) | ||||
Income (Loss) Before Tax |
(1,431,804 | ) | 376,699 | |||||
Tax Provision |
0 | 0 | ||||||
Net Income (Loss) |
$ | (1,431,804 | ) | 376,699 | ||||
Income (Loss) per Share: |
||||||||
Basic |
$ | (0.18 | ) | $ | 0.08 | |||
Fully Diluted |
$ | N/A | $ | 0.08 | ||||
Weighted Average Shares Outstanding (September 30, 2021 is reflective of a 1/6 reverse stock split): |
||||||||
Basic |
7,878,419 | 4,878,419 | ||||||
Fully Diluted |
8,253,419 | 4,878,419 | ||||||
STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
|
3 Months Ending
March 31,
|
||||||||
| 2023 | 2022 | |||||||
Cash Flows From: |
||||||||
OPERATING ACTIVITIES |
||||||||
Net Income (Loss) |
$ | (1,431,804 | ) | 376,699 | ||||
Adjustments to Reconcile Net Income (Loss) to Net Cash Flow from Operating Activities: |
||||||||
Depreciation & Amortization |
83,137 | 89,961 | ||||||
Net Change, Right-of-Use Asset & Liabilities |
||||||||
Change in Operating Assets & Liabilities: |
||||||||
Accounts Receivable |
(399,659 | ) | (653,191 | ) | ||||
Inventory |
(256,898 | ) | (133,076 | ) | ||||
Other Current Assets |
(110,535 | ) | (1,406 | ) | ||||
Accounts Payables |
230,201 | 503,206 | ) | |||||
Accrued Expenses |
570,250 | |||||||
Operating Lease Right of Use Assets and Lease Liability Offset |
||||||||
Net Cash From (Used In) Operating Activities |
(1,315,308 | ) | 182,193 | |||||
INVESTING ACTIVITIES |
||||||||
Purchase of Long Term Assets |
(50,801 | ) | 0 | |||||
Purchase of Intangible Assets |
0 | (4,195 | ) | |||||
Net Cash From (Used In) Investing Activities |
(50,801 | ) | (4,195 | ) | ||||
FINANCING ACTIVITIES |
||||||||
Proceeds from (Repayment of) Notes |
0 | (65,550 | ) | |||||
Proceeds from (Repayment of) PPP Loan |
0 | (261,684 | ) | |||||
Net Cash From (Used In) Financing Activities |
0 | (327,234 | ) | |||||
Net Cash Flow for Period |
$ | (1,366,109 | ) | (149,236 | ) | |||
Cash - Beginning of Period |
12,181,799 | 615,749 | ||||||
Cash - End of Period |
$ | 10,815,690 | 466,513 | |||||
SOURCE: Laser Photonics Corp.
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