Lumera Reports Second Quarter 2008 Results, Confirms Progress on Proposed Merger
Monday August 4, 4:30 pm ET
BOTHELL, Wash.--(BUSINESS WIRE)--Lumera Corporation (NASDAQ:LMRA - News), a leader in photonics communication, today reported financial results for the second quarter 2008.
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Revenues totaled $1,499,000 for the three months that ended June 30, 2008 compared to $934,000 for the same period in 2007, reflecting an increase of 60%. Lumera’s loss from continuing operations totaled $1,649,000 or $0.08 per share for the second quarter of 2008 compared with a loss from continuing operations of $2,188,000 or $0.11 per share for the same period in 2007.
Revenues totaled $1,983,000 for the six months ended June 30, 2008 compared to $1,794,000 for the same period in 2007, reflecting an increase of 11%. Lumera’s loss from continuing operations totaled $5,226,000 or $0.26 per share for the six months of 2008 compared with a loss from continuing operations of $3,909,000 or $0.19 per share for the same period in 2007.
“We are pleased with our results this quarter," said Dr. Joe Vallner, Interim Chief Executive Officer of Lumera. “We have the highest level of government contract revenue commitments in our history which, as expected, will drive increasing contract revenues for us this year. Achieving our Telcordia testing milestones validates for us that our materials and devices can meet tough industry standards. Our restructuring efforts are bearing fruit, allowing us to focus singularly on our electro-optic business opportunities, and we’ve made good headway reducing embedded operating costs. We expect to see more of the same in the coming quarter leading up to our proposed merger.”
Lumera’s electro-optic business unit is developing a new generation of electro-optic modulators and other devices for optical networks and systems based on proprietary polymer materials.
During the quarter, Lumera announced that it had successfully completed its Telcordia standard reliability testing of its packaged polymer-based electro-optic modulators. Achieving these positive test results for the modulators demonstrates the viability of Lumera’s electro-optic polymer technology for component fabrication and validates the assertion that polymer modulators can pass the same rigorous tests required of industry standard components. Lumera is now in a position to share its internal reliability test results with potential customers and business partners.
The company also recently announced that it had completed a device shipment to Lockheed Martin in conjunction with a third order placed under the Material Transfer Agreement signed with Lockheed Martin in the first quarter 2008. This recent shipment evidences that Lumera’s relationship with Lockheed is continuing and expanding beyond electro-optic materials into prototype devices.
Proposed Merger with GigOptix, LLC
On March 27, 2008, Lumera Corporation and GigOptix, LLC (“GigOptix”) announced their entry into a definitive agreement to merge the two companies. Upon completion of the merger, which is subject to Lumera shareholder and other regulatory approval, existing securities holders of Lumera and GigOptix will each own approximately 50% of the outstanding securities of a new holding company named “GigOptix, Inc.” which will trade on the NASDAQ Market under the ticker symbol “GIGX.”
Lumera also recently announced that the Company had entered into definitive agreements with selected institutional investors to sell 4 million shares of its common stock and warrants to purchase an additional 2 million shares through a registered direct offering for net proceeds of approximately $2.8 million, after deducting offering fees and expenses. With the net proceeds from this offering, which was completed on July 16, 2008, we have met the minimum capital requirements closing condition in the GigOptix merger agreement.
Activities associated with our proposed merger with GigOptix continue to progress, albeit on a delayed schedule, due to a longer than expected period to produce audited GAAP financial statements at GigOptix. Information pertaining to the proposed merger, audited historical results for GigOptix LLC, and pro forma financial statements of the combined businesses will become available when an initial Registration Statement on Form S-4 is filed with the SEC. Due to the time required to produce the GigOptix financial statements, we currently expect to file the S-4 prior to the end of the third quarter. At that time, we anticipate holding a joint conference call to introduce Dr. Avi Katz and to discuss the proposed merger with GigOptix.
