Luna Reports Operating Metric Updates and Plans to Deregister Stock
Luna, a global leader in advanced fiber optic-based technology, has announced an update on select operating metrics while also communicating its intent to voluntarily accelerate its delisting from Nasdaq. The company further plans to deregister its common stock under Section 12(b) and Section 12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and suspend its reporting obligations under Section 15(d) of the Exchange Act. Luna has assured stakeholders that this accelerated delisting and deregistration process will not negatively impact its ongoing operations or the listing of its common stock on the OTC Experts Market.
Company Performance and Strategic Direction
Luna faced significant challenges at the start of 2024, which resulted in headwinds during the first half of the year. Despite these obstacles, the company exhibited resilience and commitment to its customers, suppliers, and innovation. These efforts led to notable Luna Reports Operating Metric Updates and Plans to Deregister Stock improvements in performance during the latter half of 2024.
Kevin Ilcisin, President, Chief Executive Officer, and a member of Luna’s board, stated, “Having strengthened our management team and deepened our customer and supplier relationships, the company experienced improved performance in both bookings and revenue during the second half of 2024. These results stand as a testament to our dedicated employees and channel partners. We are grateful for the ongoing trust and partnership of our customers and suppliers through this period.”
Ilcisin further elaborated on the company’s decision regarding delisting: “While the Luna team has been working diligently to complete its previously disclosed delinquent filings, we are unable to file them within Nasdaq’s prescribed timeline. As a result, Nasdaq has notified us of its intent to delist our common stock. Given the pending delisting, we have made a strategic decision to accelerate the delisting and terminate the Company’s reporting obligations under the Exchange Act.”
He emphasized that these actions will yield cost savings and allow the company to reallocate resources from regulatory compliance to core business operations. By doing so, Luna aims to strengthen its balance sheet and maintain a profitable growth trajectory. Additionally, Luna has engaged Evercore as its financial advisor to explore further strategic alternatives.
Business Update and Market Growth
Will Denman, Senior Vice President and General Manager of the Optical Communications Test business, highlighted the company’s success in securing major Tier 1 customer wins in expanding sectors such as data centers, artificial intelligence, and quantum computing. Luna’s new product developments have also played a pivotal role in securing partnerships with leading fusion energy projects, which address the growing energy demands of AI-driven data centers.
Similarly, Thomas Oldemeyer, Senior Vice President and Managing Director of EMEA, reported continued strong demand for Luna’s products in the oil and gas and power utilities markets. He noted several multi-million dollar contracts related to critical infrastructure projects and expressed confidence in Luna’s latest Atlas Interrogation Unit, which integrates state-of-the-art Distributed Acoustic Sensing Technology. Oldemeyer also acknowledged the successful initial phases of integrating Silixa, which Luna acquired in December 2023.
Financial Performance and Projections
Preliminary estimates indicate the following financial results for Luna’s fiscal year ending December 31, 2024:
- Bookings: Expected to be between $125 million and $130 million, with second-half bookings showing approximately 40% growth compared to the first half.
- Backlog: Expected to exceed $40 million as of December 31, 2024.
- Revenue: Anticipated to range from $110 million to $115 million, with second-half revenue reflecting a 30% increase over the first half of the year.
SEC Deregistration Process
Given its financial and operational standing, Luna has determined that remaining an SEC registrant imposes an unnecessary administrative burden and cost. Consequently, the company formally notified Nasdaq of its intent to accelerate the delisting of its common stock.
Luna anticipates filing a Form 25 with the SEC regarding the delisting and deregistration of its common stock on or about February 6, 2025. This move is intended to streamline operations and enable the company to focus on delivering differentiated products and solutions while optimizing costs.
Preliminary Financial Disclosure
The company has provided preliminary, unaudited financial estimates for the fiscal year ending December 31, 2024. Luna has emphasized that its full audited condensed consolidated financial statements are not yet finalized, and the figures shared may be subject to change. The company opted to disclose estimated ranges rather than precise amounts due to the ongoing financial closing procedures.
Luna remains committed to its long-term strategic goals despite the challenges faced in 2024. With strong financial performance in the latter half of the year, a focus on technological innovation, and strategic decisions aimed at improving efficiency, Luna aims to maintain a growth-oriented approach moving forward. The decision to delist and deregister its common stock aligns with its broader vision of resource optimization and business sustainability. Stakeholders will be kept informed as the company progresses through this transition.
