Revenue increased 10%; reduced operating loss by 39%; reduced net loss and diluted loss per share by 57% each
ORLANDO, FL / May 14, 2024 / 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, 2024.
Wayne Tupuola, CEO of Laser Photonics, commented: “Our first quarter generally showed positive momentum with 10% revenue growth and significant operating and net loss reductions. Despite CleanTech making up over 80% of sales, our gross margin was down from last year as we sold several lower power systems in the quarter. Now that we’ve ramped our sales and marketing resources, our next priority is to refine our production processes and improve the cost efficiency of our manufacturing operations, which should drive improvements to our cost of goods sold in time.”
First Quarter Financial Highlights (FY24 vs FY23)
-
- Revenue increased 9.9% to $0.7 million;
- Gross Profit decreased 4.9% to $0.4 million; Gross Margin decreased to 52.0% from 60.1%;
- GAAP Operating loss decreased 39.2% to ($0.5) million versus ($0.9) million;
- GAAP Net Loss and Loss per Share decreased 56.6% to ($0.5) million and 57.1% to ($0.06) versus ($1.3) million and ($0.14), respectively.
| 2024 Select Financial Metrics Versus 2023 | |||
| (in $M except for EPS) | 1Q24 | 1Q23 | Change |
| Revenue | $0.7 | $0.7 | 9.9% |
| Gross Profit | $0.4 | $0.4 | -4.9% |
| Gross Margin | 52.0% | 60.1% | |
| Operating Loss | ($0.5) | ($0.9) | 39.2% |
| Net Loss | ($0.5) | ($1.3) | 56.6% |
| Diluted Loss per Share (EPS) | ($0.06) | ($0.14 | 57.1% |
*numbers may not add due to rounding
First Quarter Business Highlights
Announced Customer Orders
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- Pima Air & Space Museum acquired a CleanTech LPC-1000-CTHS Laser Cleaning System
- Liberty Utilities acquired a Markstar Pro Laser Marking System
- Mine System Solutions acquired a CleanTech LPC-3000-CTHD and a MarkStar Pro Laser Marking System
- Sustainable Solutions Co., Ltd. acquired a CleanTech LPC-500-CTHD Laser Cleaning System
- Karavan Trailers, LLC acquired a CleanTech LPC-1500-CTHD Laser Cleaning System
Distribution Agreements
-
- Signed a distribution agreement for laser cleaning and personal protective equipment with the Fastenal Company, one of the country’s largest industrial distributors
- Established a sales and distribution agreement with Incredible Supply and Logistics (ISL), a leading national marketer and distributor to the U.S. Government and DoD
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 [email protected].
Conference Call Date/Time: Tuesday, May 14, 10:00 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 numbers above and be answered by an operator OR click the Call me™ link for instant telephone access to the event. The Call me™ link will become active 15 minutes before the scheduled start time.
Webcast Location: https://viavid.webcasts.com/starthere.jsp?ei=1671875&tp_key=7948928750
Replay
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13746685
Replay Start: Tuesday, May 14, 2023, 12:00 p.m. ET
Replay Expiry: Tuesday, May 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:
[email protected]
Fourth quarter revenue grew by 673%
Fourth quarter operating and net losses improved by 36% and 86%, respectively
Orlando, Fla., April 15, 2024 – Laser Photonics Corporation (LPC) (NASDAQ: LASE), a leading global industrial developer of CleanTech Laser Systems for laser cleaning and other applications, today announced financial results for its fourth quarter and year ended December 31, 2023, and provided the following letter to its shareholders from CEO Wayne Tupuola.
Dear Shareholders,
2023 was a year of transition for Laser Photonics. During the year, we made significant investments that have positioned us well to capture the vast market opportunity ahead for CleanTech while introducing additional, vertical-centric product lines that we believe will drive revenue growth in the future. In addition to product development, we invested heavily in this future growth opportunity by expanding our sales and marketing resources and distribution partnerships. This investment began to pay off during the fourth quarter, with 673% revenue growth and reduced operating and net losses.
| Select Financial Metrics: Fiscal 2023 versus Fiscal 2022 (as restated)* | ||||||
| (in $M except for EPS) | 4Q23 | 4Q22 | Change | 2023 | 2022 | Change |
| Revenue | $0.8 | $0.1 | 673.3% | $3.9 | $3.9 | 1.0% |
| Operating Loss | ($1.9) | ($3.0) | 36.3% | ($3.8) | ($2.1) | -81.6% |
| Net Loss | ($0.4) | ($3.0) | 85.8% | ($3.8) | ($2.1) | -79.9% |
| Diluted Loss per Share (EPS) | ($0.05) | ($0.38) | 87.9% | ($0.42) | ($0.35) | -20.0% |
*numbers may not add due to rounding
Customer and Product Line Expansion
In 2023, we continued to grow our customer base and expand our reach into high-potential industry verticals. We aimed to attract new customers by providing world-class products and introducing new technology targeted at markets with a strong need for industrial laser solutions. One example of this product line expansion was in January 2023, when we introduced our 3000-watt CleanTech system. This product further differentiated our offering by expanding our laser cleaning capabilities at the higher end of the laser power market.
We also developed our CleanTech Robotic Cell Enclosure, a product that significantly reduces or eliminates safety concerns for human operators. This programable enclosure will have the ability to leverage AI to effectively serve as an additional dedicated employee capable of fulfilling multiple tasks simultaneously, including serving as a cleaning operator, quality control inspector, engineering programmer and process engineer. We believe this new product offering will raise the bar for laser cleaning applications and safety while reducing the total cost of ownership for the customer.
Next, we introduced the DefenseTech product line for military and defense applications, which we believe has massive potential for our technology. This product line leverages our CleanTech and Markstar technologies, which, in combination with our increased sales and marketing efforts to the DoD, led to new sales and deepened our penetration in this market. We have now supplied systems to army depots, naval installations, shipyards and air force bases, and we believe DefenseTech will help us continue to grow with these customers.
Finally, we released our MARLIN (Marine Application Rust Laser Inhibitor) line of portable laser systems, specifically designed for small craft marine vessel applications, including laser cleaning and surface treatment for small areas requiring delicate cleaning, de-painting and other surface preparation operations. This product line opened up a $500 million addressable market opportunity for Laser Photonics.
The launch of these new products has reinforced our position as a leading provider of laser solutions for manufacturing, repair and operations (MRO) and industrial cleaning in the defense and maritime industry.
Expanded Relationship with Fonon Corporation
Fonon Corporation (and its subsidiary Fonon Technologies) is an affiliated company through its control by ICT Investments. We license various technologies from Fonon and serve as the manufacturing, sales and marketing arm for these technologies for industrial verticals. Additionally, Fonon Technologies is set up as a government and military contractor and provides sales and marketing to the U.S. Government and the Department of Defense (DoD) for CleanTech, Markstar, DefenseTech, and other brands, with LPC serving as the manufacturer. Late last year, we expanded our relationship with Fonon to enter the laser cutting market with its high-power Turbo Piercing (“Cold Cutting”) Laser Cutting equipment and technology in exchange for cash and stock.
Separately, ICT Investments transferred three million of its shares in LPC to Fonon, making Fonon our largest holder. In the coming months, we expect to further strengthen this partnership through additional licenses for new technologies that will expand our market opportunity and other potential transactions, including becoming a subsidiary of Fonon. LPC will continue to focus on industrial applications for the technology, while Fonon will focus on sales and marketing to the government and DoD.
Strategic Partnerships and Distribution Agreements Bolster Inside Sales and Marketing Efforts
Through our partnership with Fonon Technologies, we established a sales and distribution agreement with Incredible Supply and Logistics (ISL), a leading national marketer and distributor to the U.S. Government and DoD. We believe this relationship will build on our strong DefenseTech product line and accelerate penetration into these customers in the future.
Throughout the year, we also attended numerous events and introduced thousands of tradeshow attendees to the benefits of our products. These events introduced us to new industry contacts and key decision-makers while facilitating purchases and business relationships. In 2023, we also began building and expanding our Customer Experience Center (CEC). This facility will serve as an environment to showcase our innovative technologies and demonstrate capabilities to customers during the sales process. The CEC also serves as a testing center for both LPC and our customers.
2024 Outlook
Going forward, we will continue working to meet customer demand across various industries, including the general manufacturing, automotive, maritime and energy markets, and we expect to launch several new product lines throughout 2024 to address these opportunities.
In early 2024, we signed a distribution agreement for our laser cleaning and personal protective equipment with the Fastenal Company, one of the country’s largest industrial distributors. We also announced a technology integration partnership with Brokk, the world’s leading manufacturer of advanced remote-controlled demolition machines, popularly called “demolition robots,” to integrate LPC’s laser cleaning and cutting technology into its robots. Combined with ISL, these strategic partners have equipped us with a more extensive distribution network, which we believe will contribute to faster growth and increased sales. We plan to continue building on these existing relationships while also working to forge new strategic partnerships.
Looking at our product roadmap, in 2024, we will introduce the newest generation of our CleanTech systems. A key feature of this new line is that customers can customize the system’s power and frequency to meet the cleaning needs of a broader range of materials. Certain versions will also bring a smaller form factor, lighter scan heads, lower power requirements and an improved air knife design. Higher-power versions will be IOT-ready and come with WiFi & Ethernet support. Additionally, we plan to release an air-cooled 1500-watt laser, the smallest and most portable form factor currently available. We believe this updated line of products will give users greater flexibility for in-field applications while opening up additional sales opportunities for LPC.
Next, we plan to continue developing our SaberTech laser-cutting product line, utilizing the recently acquired cold-cutting and Turbo Piercing technology licenses. The significance of cold cutting and Turbo Piercing technology is that it will increase the cutting capabilities of the product by reducing the risk of warping during the cutting process due to the laser’s heat. This is very important for many industries, such as the aviation sector, which, to date, have not been able to adopt laser-cutting technology due to working with thinner materials. As part of our investment in the SaberTech product line, the Titan FX, our large format laser cutting system will be entirely revamped with automatic sheet metal loading and unloading systems. The system will load metal sheets into the Titan, cut them, and then unload the cut pieces onto a rack system. With this automation, customers can run the Titan 24/7 to have plenty of material ready for their production shifts.
Finally, we will introduce the MarkStar VIN, a marking and engraving solution tailored for automotive applications. This introduction is a direct response to the recently passed California Senate Bill 55, which requires all motor vehicle catalytic converters to be marked with the VIN. This system will have specific capabilities and features targeted at complying with this new legislation, ensuring that automotive manufacturers and repair shops can easily adhere to the law. By incorporating this legal requirement into our product’s capabilities, we aim to explore and capitalize on the untapped potential within the automotive market that we believe can help re-invigorate our traditional laser sales. These additions expand our existing line of unique-to-industry systems, enhancing our product offering and capitalizing on essential markets.
In summary, we are driving innovation and diversifying our product offerings with groundbreaking solutions. Our plans to release the SaberTech, MarkStar VIN and next-generation CleanTech systems this year highlight our unwavering dedication to addressing the ever-changing demands of global industries. Our investment in research and development echoes this strong commitment to strengthen our competitive advantages and adapt to the rising need for this technology across many sectors, fueled by stringent regulations and restrictions.
As we look to the year ahead, we are committed to propelling sales growth and creating significant value for our shareholders. We will continue leveraging the momentum from our strategic investments and have a heightened focus on penetrating key markets, which we expect will drive sustainable growth across all product lines. As a result, we are confident in our ability to deliver improved financial results in 2024. Thank you to our stockholders, partners and team for supporting our journey.
We look forward to providing positive future updates on our business.
Sincerely,
Wayne Tupuola
Chief Executive Officer
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 [email protected].
Conference Call Date/Time: Monday, April 15, 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=1662459&tp_key=3bf9ff1b33
Replay
Toll Free: 1-844-512-2921
Toll/International: 1-412-317-6671
Replay Pin Number: 13746070
Replay Start: Monday, April 15, 2024, 12:00 p.m. ET
Replay Expiry: Monday, April 29, at 11:59 p.m. ET
About Laser Photonics Corporation
Laser Photonics Corporation is a vertically integrated manufacturer and R&D Center of Excellence for industrial laser technologies and systems. At LPC, we are disrupting the centuries-old $46 billion sand and abrasives blasting markets, focused on surface cleaning, rust removal, corrosion control, de-painting and other laser-based industrial applications. Our new-generation laser blasting technologies and equipment address the health, safety, environmental and regulatory concerns associated with outdated methods, proving Laser Photonics Corp. an industry leader for industrial laser systems. Renowned manufacturers in aerospace, automotive, defense, energy, industrial, maritime, space exploration and shipbuilding sectors rely on our “unique-to-industry” systems. For more information, visit www.laserphotonics.com.
Cautionary Note Concerning Forward-Looking Statements
This news release contains forward-looking statements within the meaning of applicable securities laws. These statements are based on current expectations as of the date of this press release and involve risks and uncertainties that may cause results and uses of proceeds to differ materially from those indicated by these forward-looking statements. We encourage readers to review the “Risk Factors” in our Registration Statement for a comprehensive understanding. Laser Photonics Corp. undertakes no obligation to revise or update any forward-looking statements, except as required by applicable laws or regulations, to reflect events or circumstances after the date of this press release.
Investor Relations Contact:
Email: [email protected]
Media Contact:
Karla Kizzort
Phone: 407-804-1000×1132
Email: [email protected]
ORLANDO, FL / April 1, 2024 / Laser Photonics Corporation (NASDAQ: LASE), (“LPC”), a leading global developer of CleanTech laser systems for laser cleaning and other material applications, today announced it will postpone reporting its fourth quarter and full-year 2023 ended December 31, 2023, as it is still in the final stages of completing its audit. As a result, the Company is canceling its webcast and conference call to discuss results that was scheduled to take place on April 1, 2024.
The Company intends to notify investors via press release when it is able to determine a date to report its fourth quarter and full-year 2023 numbers and reschedule its conference call to discuss these results.
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.
Laser Photonics Investor Relations Contact:
[email protected]
ORLANDO, FL / 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
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 [email protected].
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:
[email protected]
