Fourth quarter revenue grew by 673%
Fourth quarter operating and net losses improved by 36% and 86%, respectively
ORLANDO, FL / ACCESSWIRE / 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 programmable 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
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- 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]
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except par value data)
| Year Ended December 31, | ||||||||
Assets | 2023 | 2022 | ||||||
Current Assets: | ||||||||
Cash and Cash Equivalents | $ | 6,201,137 | $ | 12,181,799 | ||||
Accounts Receivable, Net | $ | 816,364 | $ | 421,362 | ||||
Inventory | $ | 2,277,816 | $ | 1,046,020 | ||||
Other Assets | $ | 39,190 | $ | 72,527 | ||||
Total Current Assets | $ | 9,334,507 | $ | 13,721,708 | ||||
Property, Plant, & Equipment, Net | $ | 952,811 | $ | 1,090,556 | ||||
Intangible Assets, Net | $ | 4,279,986 | $ | 2,939,041 | ||||
Operating Lease Right-of-Use Asset | $ | 597,143 | $ | 832,072 | ||||
Total Assets | $ | 15,164,447 | $ | 18,583,377 | ||||
Liabilities & Stockholders' Equity | ||||||||
Current Liabilities: | ||||||||
Accounts Payable | $ | 223,040 | $ | 190,387 | ||||
Deferred Revenue | $ | 701,234 | $ | - | ||||
Current Portion of Operating lease | $ | 434,152 | $ | 344,510 | ||||
Accrued Expenses | $ | 161,538 | $ | 429,429 | ||||
Total Current Liabilities | $ | 1,519,964 | $ | 964,326 | ||||
Long Term Liabilities | ||||||||
Lease Liability - Less Current | $ | 162,991 | $ | 487,562 | ||||
Total Long Term Liabilities | $ | 162,991 | $ | 487,562 | ||||
Total Liabilities | $ | 1,682,955 | $ | 1,451,888 | ||||
Stockholder's Equity: | ||||||||
Preferred Stock Par Value $.001: 100,000,000 shares authorized; 0 issued and outstanding as of December 31, 2023 and 2022. | $ | - | $ | - | ||||
Common Stock Par Value $.001: 100,000,000 shares authorized. 9,253,419 and 7,878,419 issued and outstanding as of December 31, 2023 and 2022. | $ | 92,533 | $ | 78,783 | ||||
Additional Paid in Capital | $ | 19,097,445 | $ | 18,140,520 | ||||
Shares to be issued | $ | 829,500 | ||||||
Retained Earnings (Deficit) | $ | (5,683,246 | ) | $ | (1,917,315 | ) | ||
Treasury Stock | $ | (25,240 | ) | $ | - | |||
Total Stockholder's Equity | $ | 13,481,492 | $ | 17,131,488 | ||||
Total Liabilities & Stockholders' Equity | $ | 15,164,447 | $ | 18,583,376 | ||||
STATEMENTS OF PROFIT AND LOSS
(in thousands, except per share data)
| 12 Months Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
Net Sales | $ | 3,939,474 | $ | 3,894,901 | ||||
Other Income | - | 7,169 | ||||||
Cost of Goods Sold | 1,489,458 | 1,954,328 | ||||||
Gross Profit | 2,450,016 | 1,947,742 | ||||||
Operating Expenses: | ||||||||
Sales & Marketing | $ | 1,996,363 | $ | 1,677,976 | ||||
General & Administrative | 1,902,760 | 894,521 | ||||||
Depreciation & Amortization | 523,380 | 437,832 | ||||||
Payroll | 1,400,951 | 887,852 | ||||||
Other | 220,298 | 18,397 | ||||||
Research and Development | 202,259 | 100,802 | ||||||
Total Operating Expenses | $ | 6,246,011 | $ | 4,017,380 | ||||
Operating Loss | $ | (3,795,995 | ) | $ | (2,069,638 | ) | ||
Other Income (Expense): | ||||||||
Other Income | 30,063 | - | ||||||
Interest Expense | - | (24,246 | ) | |||||
Total Other Income (Expenses) | $ | 30,063 | $ | (24,246 | ) | |||
Loss Before Tax | $ | (3,765,932 | ) | $ | (2,094,064 | ) | ||
Tax Provision | - | - | ||||||
Net Income (Loss) | $ | (3,765,932 | ) | $ | (2,094,064 | ) | ||
Loss Per Share: | ||||||||
Basic | $ | (0.42 | ) | $ | (0.35 | ) | ||
Fully Diluted | $ | (0.42 | ) | $ | (0.35 | ) | ||
SOURCE: Laser Photonics Corp.