Luna’s quarterly loss increases on litigation, decreased sales
- September 10, 2009
Luna Innovations reported a $2.4 million loss during its second quarter, primarily from lower product sales and ongoing litigation.
The Roanoke-based company, a manufacturer specializing in medical instrumentation and nanomedicines, said revenues decreased 12 percent to $9.9 million, compared with $8.7 million during the same quarter the year before.
The $2.4 million loss for the quarter resulted in a loss of 21 cents per share. Last year, the company reported a loss of $1.8 million during the second quarter, or 16 cents per share.
Luna Innovations filed for Chapter 11 bankruptcy protection in July. Hansen Medical filed a lawsuit against Luna in 2008 for breach of contract and misappropriation of trade secrets. A California jury ruled earlier this year that Luna owed Hansen $36.3 million in damages.
Luna Chairman and CEO Kent Murphy said operational efficiencies had helped mitigate the quarterly loss.
“While the costs of our ongoing litigation with Hansen Medical also continue to adversely impact our bottom-line results, we have made significant improvements in the efficiency of our operations and continue to conduct business in the ordinary course,” Murphy said in a statement.
The company’s reported legal costs were $1.6 million during the quarter, but without the litigation, total expenses for the company would have decreased $1 million during the quarter.
Luna also reported that its stock listing, which was in danger of being delisted, has been moved from the NASDAQ Global Market to the NASDAQ Capital Market. The company can remain listed if it meets certain conditions, including emerging from bankruptcy by the end of the year