Luna Innovations, Inc. · OTC:LUNA
Luna Innovations — 23rd Annual Needham Virtual Growth Conference (January 2021)
31 slides from Luna Innovations's conference presentation, Jan 11, 2021
Slide 1: 23rd Annual Needham Virtual Growth Conference
23rd Annual Needham Virtual Growth Conference January 13, 2021 Scott A. Graeff, President and CEO
Slide 2: Safe Harbor Statement
NASDAQ: LUNA Luna Innovations Incorporated© 2021 2 Safe Harbor Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This presentation includes information that constitutes “forward-looking statements” made pursuant to the safe harbor provision of the Private Securities Li
Slide 3: Luna – Enabling the Future with Fiber
NASDAQ: LUNA Luna Innovations Incorporated© 2021 3 Luna – Enabling the Future with Fiber Proprietary, measurement technology, offering unprecedented combination of resolution, accuracy and speed Customers in attractive markets: Military and Defense, Communications, Infrastructure, Energy and Automot
Slide 4: Luna is a global company
NASDAQ: LUNA Luna Innovations Incorporated© 2021 4 Luna is a global company History Incorporated 1990 IPO 2006 Reporting Segments Lightwave Luna Labs Revenue FY19 $70.5M FY20 Guidance $81M-83M AEBITDA FY19 $9.5M FY20 Guidance $10M-12M 400+ Employees Overview Chino, CA – optical communications Santa
Slide 5: Luna has a clear vision and established history
NASDAQ: LUNA Luna Innovations Incorporated© 2021 5 Luna has a clear vision and established history LUNA’s Transformation Vision: Enabling the Future with Fiber Incorporated Merger with API Sale of non-core business to OSI and acquisition of Micron Optics IPO Sale of non- core business to MACOM Acqui
Slide 6: OptaSense Transaction Highlights
NASDAQ: LUNA Luna Innovations Incorporated© 2021 6 OptaSense Transaction Highlights Transformative, strategic acquisition allows Luna to enhance product / solution portfolio, adding access to larger, high-growth markets Adds to existing U.S. leadership position; cost-effectively establishes strong
Slide 7: OptaSense Acquisition: Compelling business model with strong growth potential
NASDAQ: LUNA Luna Innovations Incorporated© 2021 7 OptaSense Acquisition: Compelling business model with strong growth potential Organic Growth: Mid-to High-teens Lightwave = 18% to 20% Luna Labs = 6% to 8% Revenue Growth Margin Expansion Shareholder Return Strategic M&A Within core focus and accret
Slide 8: Luna Overview
NASDAQ: LUNA Luna Innovations Incorporated© 2021 8 Luna Overview Comms Test Components Short-haul network Contract Research Materials Systems & Analytics Biotech Sensing Long-range, continuous Long-range, high speed Short-range, high resolution Material thickness Lightwave Luna Lab
Slide 9: Where Does Luna Play?
NASDAQ: LUNA Luna Innovations Incorporated© 2021 9 Where Does Luna Play? Comms Test: 5G Buildout Field Support Comms Test Sensing Market size* $900M $2.5B Luna growth 15%-20% 20-25% Drivers 5G, Silicon Photonics Lightweighting, Smart Infrastructure, IoT Key competition Keysight, Viavi, Exfo HBM, Vis
Slide 10: Sensing
NASDAQ: LUNA Luna Innovations Incorporated© 2021 10 Sensing Fiber optic sensors are the “nerves” of smart materials Luna’s products are the “brain” that collects and aggregates data from fiber sensor “nerves” The new OptaSense acquisition will add missing capability to Luna’s Sensing business
Slide 11: The combination of Luna and OptaSense creates a global market leader in DFOS
NASDAQ: LUNA Luna Innovations Incorporated© 2021 11 The combination of Luna and OptaSense creates a global market leader in distributed fiber sensing (DFOS) technology Luna is already a global leader in fiber sensing with market leading products ODiSI – short range, high resolution (fully distribu
Slide 12: Sensing: long-range, continuous
NASDAQ: LUNA Luna Innovations Incorporated© 2021 12 Sensing: long-range, continuous Product: OptaSense Long-Range Distributed Acoustic Sensing (DAS) Proprietary distributed acoustic sensing and software analytics Measure acoustic signals continuously using fiber over very long lengths (50 km)
Slide 13: Sensing: long-range, high-speed
NASDAQ: LUNA Luna Innovations Incorporated© 2021 13 Sensing: long-range, high-speed Product: Hyperion High-Speed, Long-Range FBG Sensing Measuring strain, temperature, acceleration, displacement and pressure Focus on structural health and security • Buildings, tunnels, bridges • Perimeter securi
Slide 14: Sensing: Short-range, high-resolution
NASDAQ: LUNA Luna Innovations Incorporated© 2021 14 Sensing: Short-range, high-resolution Product: ODiSI High-Definition Fiber Optic Sensing Measuring strain and temperature in composites and other advanced materials Focus on military and commercial aerospace and automotive
Slide 15: Sensing: Material thickness
NASDAQ: LUNA Luna Innovations Incorporated© 2021 15 Sensing: Material thickness Product: Terahertz technology Layer thickness measurements for process control, inspection and non-destructive testing Advanced technology measures thickness of opaque materials Unique measurement of composites and c
Slide 16: Comms Test
NASDAQ: LUNA Luna Innovations Incorporated© 2021 16 Comms Test Increased data and video consumption Video forecasted to represent 82% of all IP traffic in 2022, 34% CAGR Growth in mobile and 4G/5G Mobile data traffic growing at 46% CAGR Cloud services and adoption of Internet of Things Data ce
Slide 17: Comms Test: Components
NASDAQ: LUNA Luna Innovations Incorporated© 2021 17 Comms Test: Components Product: Optical Vector Analyzer (OVA) Ensuring speed at the chip level Unprecedented visibility inside devices ˗ you can’t fix what you can’t see Reduces time and cost associated with the development of high-speed optical co
Slide 18: Comms Test: Short-haul network
NASDAQ: LUNA Luna Innovations Incorporated© 2021 18 Comms Test: Short-haul network Product: Optical Backscatter Reflectometer (OBR) Bandwidth demands continue to drive double-digit connectivity growth Delivers unprecedented visibility into short-haul networks Emerging market for on-board aircraft co
Slide 19: Luna Labs
NASDAQ: LUNA Luna Innovations Incorporated© 2021 19 Luna Labs Work with universities and government research labs to explore technological feasibility with a goal toward proof of concept Collaborate with prime contractors, government offices and federally-funded R&D centers Work with contract manufa
Slide 20: 3Q FY20 Results
3Q FY20 Results
Slide 21: Third-quarter 2020: Key Financial Results
NASDAQ: LUNA Luna Innovations Incorporated© 2021 21 Third-quarter 2020: Key Financial Results Strong financial performance: $1.4M improvement in Adjusted EBITDA1 year-over-year Total revenues of $21.1M; up 14% year-over-year: Lightwave revenue of $15.4M; up 17% year-over-year Luna Labs revenue
Slide 22: Third-quarter 2020 and Other Recent Accomplishments
NASDAQ: LUNA Luna Innovations Incorporated© 2021 22 Third-quarter 2020 and Other Recent Accomplishments Reported strong third-quarter 2020 financial results in challenging COVID environment Acquired New Ridge Technologies Brings advanced measurement capabilities to our communications test portfoli
Slide 23: Strong Financial Results
NASDAQ: LUNA Luna Innovations Incorporated© 2021 23 ($2.0) $0.3 $9.5 FY16 FY17 FY18 FY19 FY20 Adjusted EBITDA1, 2 (millions) $3.1 $29.6 $33.1 $42.9 $70.5 FY16 FY17 FY18 FY19 FY20 Revenue1 (millions) $56.8 Strong Financial Results 1 Based on management’s estimates of the impact from the divestiture o
Slide 24: A Flexible Balance Sheet and Strong Cash Position
NASDAQ: LUNA Luna Innovations Incorporated© 2021 24 A Flexible Balance Sheet and Strong Cash Position Strong balance sheet on September 30, 2020: $95.9M in total assets • $26.4M in cash and cash equivalents • $49.3M in working capital Continued focus on working capital and reinvestment in business
Slide 25: Optasense Financing Details
NASDAQ: LUNA Luna Innovations Incorporated© 2021 25 Optasense Financing Details – subsequent to 3Q2020 results Announced debt financing simultaneous with the announcement of the acquisition of Optasense Two separate financing vehicles; a term facility and a revolver facility: The term facility: $1
Slide 26: 2020 Financial Outlook
NASDAQ: LUNA Luna Innovations Incorporated© 2021 26 2020 Financial Outlook Maintaining FY2020 outlook: Total revenues of $81M to $83M Adjusted EBITDA1 of $10M to $12M 1 Adj EBITDA is a non-GAAP measure. Reconciliation of comparable GAAP measures to non-GAAP measures are included in the appendix
Slide 27: Luna – Enabling the Future with Fiber
NASDAQ: LUNA Luna Innovations Incorporated© 2021 27 Luna – Enabling the Future with Fiber Proprietary, measurement technology, offering unprecedented combination of resolution, accuracy and speed Customers in attractive markets: Military and Defense, Communications, Infrastructure, Energy and Automo
Slide 28: Appendix
Appendix
Slide 29: Reconciliation of Net Income to Adjusted EBITDA
NASDAQ: LUNA Luna Innovations Incorporated© 2021 29 Reconciliation of Net Income to Adjusted EBITDA (1) Non-recurring charges consist of the following: 2020) footprint consolidation 2019) transaction expenses related to the acquisition of General Photonics.
Slide 30: Reconciliation of Net Income to Adjusted EBITDA: Full Year
NASDAQ: LUNA Luna Innovations Incorporated© 2021 30 Reconciliation of Net Income to Adjusted EBITDA: Full Year (1) Non-recurring charges consist of the following: 2020) footprint consolidation 2019) transaction expenses related to the acquisition of General Photonics.
Slide 31: New Segment Quarterly Results
NASDAQ: LUNA Luna Innovations Incorporated© 2021 31 New Segment Quarterly Results
Luna Innovations — 23rd Annual Needham Virtual Growth Conference (January 2021) on 6ix