LUNA - Earnings call transcript Q2 2022 | Luna Innovations Incorporated

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Operator

Good day, and thank you for standing by. Welcome to the Q2 2022 Luna Innovations Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session [Operator Instructions]. Please be advised that today’s conference is being record. to Allison conference Woody, like speaker to now today, for Director would turn over the your I of Administration. ahead. go Please

Allison Woody

Thank release. you thank this our morning, us quarter Good second press Earlier issued morning, for earnings XXXX today. we you. joining and

posted Relations section we a Web of quarter. the Investor information supplemental and for the addition, our site In presentation

Web If supplemental materials, the you release site lunainc.com. the at or do not of have check a our copy please

Web of We site. will our a call replay this also to post

presentation comments certain Some are indicator The on and our GAAP performance. supplement deem today of what and exclude these exclusion based we a of useful items. of be focus non-GAAP financial the items more discussions numbers to a ongoing on adjusted statements. the other the to adjusted are measures. non-cash Luna operating reliable These results and effect in believes of is order expenses to

with update made facts, releases, uncertainties remind and about sites, subject but factors. our statements public More are Company. ongoing complete information us filings, are our such publicly and our presentation including, events and to, let conference or Before risks on found involve any is factors be or that future at as of SEC forward-looking of Soller, forward-looking except will President Chief or of as reflect Web obligation forward-looking our revisions Chief the to can call in any to any results turn variety and Financial well be site historical uncertainties disclaim at announce which the not this required differ to of we as statements which time, Scott. And on changes risks to Web law. Brian filings, proceed After result SEC in available developments, today, a Company’s your over results to regarding statements not site. time, maybe We take materially Web Nestro; any that Operating Officer, and results you call the limited along may prospects and to future Gene operating any Actual the our expectations to the statements Executive the prepared of Graeff, to as Chief questions. statements, a regarding Scott Officer; Officer, our this and like by remarks, with I’d available the

Scott Graeff

everyone. performance top announcing taking morning, today solid the our to I'm of another against for And thanks time and join line call. with excitedly quarter objectives. operational progress Good our you

that term. mid long Part the used the confident remain acquire significant over and term told this right opportunities front call, infrastructure we're in growth other bullish is that I platforms. well an new On of rapid strong the last and capitalize to capabilities be and long up to our investment strategy and on of strong now to bolster is Luna's quarter's continue set you us operational capital investments to one about to own We opportunities technologies the is making in and for us. part

talent and our products acquired capabilities. and I'm nurtured the products grown increasing And technologies, and we've internally. and the about for by demand excited what be continuing to customer and continue We we've encouraged

line, talking need the continuing, even quarter Luna about momentum the delivered in include expectations, our several delays LIOS, the taking team. our to whole below this thanks majority testament said, commitment and customers in which both to second and to optic over for on based incredible is primarily still and products and some Luna's of our the a many top a Luna our My work is of For With recession. employee. XXXX, accomplishment have came see delivery It of that project we the in work that an large to and we Luna as every capabilities do that's products. world businesses due sensing

and is revenue involve The based based that product of project a comprised recognition traveling associated based services. our nature locations of which install largely portfolio, often may is project the of the to businesses slightly You to sales. or remember sale customer rest different of perform than

revenue product although, takes So sold to the customer recognition delays and shipped rules. technically recording have may we we the actually incurred experience product in the according of may possession the associated expenses, and still the revenue associated until

based in of is the remainder XXXX year. into we us that the One good that through of the of shipments will project clarity the have businesses benefits made for these be

bill booked than to ground book very year. us $X the the This on puts were strong LIOS QX, at as with in look nearly fact, the we build. in optic-sensing remainder and more In of million solid

acquisitions, lot through learn all need work integration and the and in a process cases, with as As many to made. you'll you refinements be changes

we're delivered in the looking products rest our with the be changes make process sold Luna to are and portfolio. of of to order One the project related the by would consistent harmonize which

distributed these price. and We are very our gap in assets still expenses. important more look being There new to about they is We with important clear. teams filled person and regularly. at very no that a recent this good match that revenues feel in temperature good to the We to question We Luna of with forward acquisitions. doing existing acoustic capabilities, related an be growing want the better these I sensing. acquired

Farnborough Now several from that spend was lifted of a where Soller, some the in travel mostly larger of got our on segment. with Air COO, restrictions and newer great our colleagues. with customers I been Show the Aerospace met COVID our to Brian and have it recently back week the we international just

drive deal existing team visited assets several make shared. great most be to at with will closely be these two in we this a of top in to activities Cologne, of potential are in IP the both right, spend combination the the We bottom this we our our to offices. unlocked at line the and also and we with office Luna. days are acquisition the There and recent took getting coordinate Germany excited And from Sensing, those opportunity synergies of we right. to also office, On trip, about assets and groups more LIOS and have a want are sure deliberate we to the LIOS officers of value and lot get There that is it to growth.

to during second future. about quarter. second of that, about We the provide optimistic are quarter highlights move With the accomplishments on incredibly financials, discuss excited an and potential assets the like and these increasing in I'd on operational to then the update

to $XX.X year's revenues quarter. XXXX, quarter the prior the of XX% For second compared total to were up million

were half first with Total XXXX. revenues revenues half, first XX% up company our the expectations. the versus For internal of inline were

continue our We to products. Luna for strong experience demand

digit in the last bookings XXXX double fact, In year. we second versus growth quarter realized

XXXX. QX revenues The that of towards versus margin million as LIOS gross strongly in XX% business loss loss XXXX for versus QX the addition reported $X in of weighted operating QX increased loss XX% largest an driver million quarter. We of of was Our in in $X.X the the are to XXXX operating of year. the prior half the the latter year a second

comp line quarter. our our Adjusted to large quarter products, essentially with there Related tough I last products and QX million a dollars as a bottom are bottom million was that line. just $X.X against want second $X benefit customers million the delivery increase first, of that two not outlook. operations emphasize gives repeat to from our the added in we did buckets year-over-year the in based have several loss are, had increase next These both that tax XXXX. $X.X of project result XXXX, reiterating of comfort fact cases of addition, in In million. quarter in QX roughly The taking slippage line a to year's built to the several of many XXXX in an me last performance, are from affected shipped EBITDA and revenue discontinued EBITDA that year's net in would

of not the is realized yet implemented P&L. as we the initiative, The synergy the expense been of organization, size reductions but in savings have bucket second dollars million our has that several part of right undertaking

Before I businesses investments. detail, about touch on in want our the move more to to talk I

with Our opportunities clear fully through accomplish the this, to in rapid because leader, customers our a we to To and mission fiber. capability invest will and continue chip businesses with hasn't this a company enabling future changed, beyond, Luna a build as as of growth. on capital focused abundance solidify on year seen for blue to we've strong

while In of expense ensuring that opportunities. growth be prudent addition, our capitalize positioned the structure, on we are to best continue we will to managers

the more let in Now businesses discuss me detail.

testing. Luna and business reminder, fiber a areas, two focuses sensing As optic communications on

the in full a second mentioned legacy the LIOS test was contribution comms and quarter just and XXXX, For commercial revenue growth solid sales by the quarter of sensing business. I driven

QX our bookings again, in our once growth, fact, XXXX. exceeded In growth revenue

used legacy Let's as fiber sensing, sensor as double structures. of little well may LIOS which products. demand the the last into and grew we a you QX as Luna year, smart physical digit dig driven Revenues to materials a deeper versus by both full create quarter is recall where strong for

In and digit sales product HYPERION fact, growth. each Terahertz Luna legacy, ODiSI, lines, double contributed

a decline products wins OptaSense, in growth earlier, realized customer key riser enhancing business. oil mentioned [dash] strategic that orders to I bookings the an for increased Hyperion takes slight large for those adoption monitor sea the a as offshore in a gas I oil sensing. than surface, the mentioned to of from strong year, made the XXX% to period driven space. and products had key And quarter product operational Terahertz [SaaS] the successful and first on resulted the half infrastructure, automotive timing achieved in these critical standpoint, in by from in the a earlier, oil progress EV of pipe from last greatly more also that important receipt versus Relating OptaSense customer But of the floor within for real continued XXXX areas focus win and same as the to in time safety extraction. perspective. of revenues of We several monitoring use

in switching against revenues QX a Now to in XXXX. tough were particularly test. test communications flat XXXX Comms comp QX

that quarter XX% last a mentioned comms test that for quarter quarter. recall was year's you If nearly record second we growth year-on-year in it with

come Stay with performed to follow X,XXX large secured multi-unit a test order for well comms some We comparison, year. that this Martin. on Lockheed Given from Martin. more Lockheed tuned OBR

with time attended sales We to gather completely week Blacksburg our multiple and data day the blue an pandemic teams speed pumped. Brian was that together conference enthusiasm vast were communications all in This customers and I were the worldwide telecommunications important the the in markets. the by chip facility. wins secured strategic They opportunity high as sales began person. left and sales the reviewed The exciting. able teams since extremely also three in just first

inspired In nature team while overwhelming capabilities fact, front that to cause have focused by in more and safer capitalizing to and and reliable, max. or the place. Luna’s the society, products help The on it's dams us products better world us the assets, leveraging government opportunities continues in safer to on of our or bridges will term XG make industry be are the order securing be best the Luna's to ensure of projects, a networks we private key impacts making customers and our whether year the

chain. perspective, semiconductor said cycles technology of related of still air supply while as with I've availability of timing impact, particular sales in seeing supply delays From chain rarefied and parts are previously, a and as lead affected certain chain we limitless. our pandemic supply our well As persistent nearly the pandemic pricing in has sit effects applications In fiber times. we

As closely we've working stock to largely safety we've for been partners chain electronic risks more to supply with delivery. previously, by able parts in our chain supply and building mitigate mentioned ensure

this However, strong. out In demand we remains for customer is to ongoing it Luna an want call summary, products challenge. because

have Sourcing to some work at still is do component and remains team. my grow executive profitability that challenging. a to And both pace me acceptable to we

term, six sum, will well now building reap Luna products couple acquisitions. continue next In the hard to acquisitions significant and Luna fundamental million perspective, and of with total is at term. and to over long long profitability. the $XX behind guidance And will revenues Strategically, team and these our and details. of be will the the team million tackling the of reporting the for in work. continued now in $XX on we at more to initiatives move on The to adjusted With of recent accomplishments, and rest us their we've hand all profitability $XXX were While blocking Gene legacy quarters as continue million focus I'll already $XXX improve work comfortable these XXXX we of a very to delivering Luna for in months grateful to of Gene? need as the from certainly million. our bottoms the according right EBITDA call to of feel to our I'm to implemented on executing expectation, we looking focus up grow order incredibly benefits. drive financial the for

Gene Nestro

Scott. Thank you,

into financials. the dive right Let's

profit As revenues compared and strength $XX LIOS QX XXXX performance full to the $XX.X Scott growth top strong revenue was of businesses in million XX% over year which over were QX margin sales to essentially to Within by XXXX. growth the to line from to million for quarter nicely that in Terahertz contributing XXXX increase. sensing, noted, flat our us of Within revenues Gross a comp quarter comms ODiSI, products, QX year legacy as our acquired of quarter. year Scott business showed of tough QX XX% our driven growth. year compared million XXXX, XX% digit a for growth. XXXX of double compared QX million A was representing a test, compared representing XX% and QX of year in same $XX last and the for XXXX prior $XX.X mentioned, gross each year, for quarter was revenue the HYPERION very contributed

driven QX favorable So in the in of this the were part million of margin expenses XXX gross mix. LIOS XXXX, amortization. by basis XXXX increase $X.X OpEx million was associated points by Operating versus $XX.X increased million and by in QX $XX.X product

moment expenses for to I something want a quarter. the to our highlight take Now about underlying

If mentioned. increase you quarter, a for associated watermark reflect composition not look year-on-year does the of OpEx. full the expenses LIOS our cost our was to of first acquisitions our with at the QX the was this operating XXXX Scott half quarter It and about related impact amortization. high of and was synergies

cost see the with synergies year impact the of hitting the these QX. second of to in expect the We ramp-up full impact half in

opportunity We are support. increased focused quality areas customer efficiency or for of without identifying on expense product infrastructure, sacrificing

We nimble are working more create efficient a Luna. and always to

operating an in XXXX of operating last Moving million to in $X.X of we on, an recognized of million compared loss year. QX QX loss $X

costs As offset within due project $X.XX that increase Scott for was associated loss a million for same operating partially related a the in share to the loss net absorbing already period. $X.X or are businesses mentioned, per $X.X Net the based to of was of compared without revenue timing loss QX to fixed or XXXX. QX share loss million XXXX of $X.XX per that

Before I the areas highlight I statements financial move to on clarity. on to three adjusted want for EBITDA,

a repeat First, versus from QX operations of benefit in both a roughly million result XXXX. XXXX comp QX quarter didn't and that as tough the in discontinued tax $X.X

adjusted of key non-GAAP we reconciliation a to find includes Second, accommodation customer. the several has had resulting a you'll the undertaken GAAP EBITDA the expense P&L. which of And organization, warranty million yet initiatives for benefit we dollars reduction not flowed through have the third, rightsize to

and in taxes. quarter. $X line other schedule And for EPS finally, was You'll charges. the titled for reconciliation the versus prior adjusted of by operations QX find QX million for the million impacted XXXX of XXXX year $X.XX discontinued $X.XX share $X.X loss Again, was under EBITDA a per profit largely non-recurring XXXX QX adjusted for versus and this

maximize to has customer chain approximately for largely me end Let extraordinary Terahertz cash sheet. to XXXX. planned date, highlight have efficiency production pandemic, and inventory $X.X million of buildup cash short a they output. challenges. the compared was the now to in the purchase to of proud and through due the quarter order move and at chain a to in the We to am missed supply LIOS, an The of expansion four the of that here supply never balance term I with team managing job a ended on decrease minimize $X.X disruption equivalents even done proactive million shipment

what at outstanding sheet December revolver. the debt million years cash Scott. by is million. five all million $XX total approximately using bank I XX, we this earlier as we At remainder Investments the year, have to over outlined compared need in been and by XXXX capital XXXX, should the access on $XX.X Our XX, drawn funded our the revolving and of first we for working $XX.X quarter the have had of guidance our June a in second through on to of and $XX.X balance debt, that am Based past it. million $XX.X comfortable amount reaffirming debt end and term XXXX Of million credit half on the million we see facility $X.X was of XXXX. was

addition, revenues million. we QX for range are of company $XX today, In providing total $XX guidance to million a

we've heavily Therefore, in before, is In comments. margin the product on As I'll forecasting year gross still our we're Scott's of mix. dependent said summary, margin full a reiterate high XX%. gross

We evaluating over tackling ensure And those we Scott. to economy we prudent recognize markets, carefully. back we continue drive current cost to that, and to will continue to blocking to to I be to while, invest We'll needs on the growth. we're call turn implementing for growth. also response appropriate need to focus and initiatives balance With and continue in

Scott Graeff

Brian this call Thanks, to I'd address available questions. to Gene. be questions. also Operating for and and with like will this open time, time, these Soller Gene At Officer, me Lisa, the Lisa? is Chief at

Operator

is question [Operator coming [Ethan]. Instructions] from First

Unidentified Analyst

if you the supply see you're color right just situation playing and how on could maybe a provide in little going the chain now that you Congrats was forward. conditions I seeing quarter. wondering what out on

Scott Graeff

our some talk in our situation. see you about -- I think some of of cash that Gene

the it's make that our not Brian detail, having more in think And I'll we're going any to of I inventory let issues parts are an really we're stay to build trying sure some and that it… out on of that I seeing. of issue. up But on mean, with kind We actively address to top

Brian Soller

we've shortages with often in situation had material which our to in the around We're those supplies, vendors some But of scheduled get shift hasn't moves getting parts on operation time. and working they're late to in arrive of parts built still able instruments that the our to impact on general, the today seeing business. complicates with notice, that electronic manage key systems and of terms when to date been

we work manage around lot improvement. forward We we of lot That year. early move this And indications and and it. haven't -- situation of see next to of said, the by some a do have the later part it situation easing of we we should mitigate with year So a is. seen just we the as into that

hoping But we're certainly as of the we're So to limitations dealing see still now, chain. the supply with of that.

Unidentified Analyst

chain I kind inventories until the see And normalize. are assume that to of elevated supply going remain those we

Scott Graeff

think I fair. think that's that's Yes, I fair.

Unidentified Analyst

then mentioned was was of And up. that Difficulty] the impact you quantify you a you've last that wondering one wondering seen kind I far. so follow [Technical I if from quarter. could

Scott Graeff

today, mean, out kind what from married we of to were our price purchase that go well. that to price did a when parts increase to continue monitor we of increase did lot -- the that we seeing XX% but did XX% exchange as I we in we and on increase on based the of

fine. that stands So I think still

Brian Soller

doing. with went consistent a begin more what pretty that. I timeframe, increases, through to away get the of quarters our February P&L That from officially we was when rest we with few industry's as will flow out the It think price the

was of certainly expect quoted more year we the of through understand QX in bit of then of see full already a that. probably slowing But little you'll set could a you more to was lot under next see impact As a older impact the and into and the business when prices.

Operator

& Next Needham question coming from is Alex Company. Henderson of

Alex Henderson

the amount and absorption like I already shipped wanted to to customer, that the there. the and a cost. bit project fair about sounds the the back mechanics vendor to of you incurred go little cost It being the delayed a you it or talked about of product, went to understand you've

basis metastasizing look it revenues that out that Does into So And just as margin mean that, be back it quarters it the the time if it takes does per actually at we higher? like delayed in out be that back is in it to is that shifted in amount somewhat the gets or for just on same so half. that of shift into the will half? the time, project it cluster on when realized multiple revenue a the is quarter

Scott Graeff

half. those of would gross expense. pushing some gross expense, tend projects ones do XX% on recognized of cluster those XX%, in of certainly a bigger back margin. projects, see a of certainly those would higher of because they in the to the already some you XX%, much They we some recognition the of in If be we're XX% out. on normalized those And state some that on margin have are And

couple a out, were but expense, have they it were here which it there happened, deals shipped, right, by XX. door, as but June needs installed that customer, off a happen by the sit You're order today the recognized the sign we we needs didn't and out -- already in, so

Alex Henderson

lower me if the your wrong. back than just Correct half little guide margin reported? a Isn't you what for I'm

Scott Graeff

orders affected. it's to Well, have will all I you be some remember mean, that larger need --

half the in second have much being second versus they full LIOS, the LIOS first also of a about lower the second You I margins. of half have heavily half half and talked weighted that

important. So about is look Speakers] talked product we as the at mix those [Multiple Gene

that little the kind everyone a down a threw just to bit. does pie we there of sure larger that that of our Lios make bring as So out becomes understood piece margin

Alex Henderson

are Can your sales remind me, all international dollars? in you

Scott Graeff

Not them a all, of but are. lot

Alex Henderson

us Can you [tell] percentage? what

Scott Graeff

most say would the what off is I my I the top say… I of would guess Not head.

Gene Nestro

that… of XX%

Scott Graeff

[Multiple So Speakers]… not we're

Alex Henderson

the that that any for pricing you exchange Going there customers? international given absorb pressure this rate markets, make to to need swings the international Is into occurred. viable

Scott Graeff

is, increased I'd XX% our or up kind XX% or tariff started in headwind, that quite XX%. of And now to impact not seeing an we it products being fighting currency have business been it negative way. impact from same the issue. was things since taking say a what we big situation with situation And on currency XX% of but not the We've XXXX Asia in date, We trade say, are when issue, the an some to as [take] had the as a that.

with our partners sometimes to was and about in make pricing. we accommodation. pricing, previous we care have our individual but of increases some fluctuation our this customers work we to only some this some in and we've to built pricing have not had year But asking built-in take have We have -- cost increases that of

major the So we but by geo kind answer any in have you short a basis, is business see geo manage we if don't impact to on the of will. it

Alex Henderson

a the then the question And of in insulated terms of basically mechanics business most part, your that The assume last macro from you're of selling one I projects, for I'll these conditions see programs economic floor. because characterization? Is and very multi around activity. downs and large much things that programs, on year are based typically don't to move ups those fair tend

Scott Graeff

Brian a conversation due to fair Yes. -- with But we last someone. susceptible had not this are I characterization. these. yes, mean, that's week I just

talking some their year installations been that. have things for We to quite in time like and multi these

macro seem issues. doesn't it to So move around

Brian Soller

have it But affect business, the a timing to globally type more no, of us… general, the impact anything. quarter-to-quarter on in tends the It does not looking than basis at on

Alex Henderson

any have it on duration contracts? impact of Does on negotiations

Brian Soller

haven't general, we in that. much Some, of But I in yes. seen it can. mean,

Operator

The Marrone. coming [Operator from next Jim Instructions] is question

Jim Marrone

Marrone, Singular This research. Jim is

perhaps more the assume little What we which discuss we just pipeline, hearing about terms from Lockheed the on client, side Martin? you bit the in I but that end. if could just largest is are still in customers’ Martin. can Lockheed So of your mentioned a if are calls I previous not end necessarily constraints with you've traction supply regards and know year to

-- is So what’s it Lockheed that -- and a constraints Martin are with customers? their well just that side with client? are other and as discussing pipeline the that any, program perhaps there current geopolitical supply up as bode easing does pipeline with forward expanding you Is going risk, far hearing the bit developments other maybe like

Scott Graeff

we about, I X.X have talked mean, been like about X.XX, book-to-bill. running at Jim, we

bookings we on about I in see the activity. talked LIOS strong OptaSense business. And overbuild $X million so nearly specifically and

And we activity out seeing are do Brian, there. have… you so strong

Brian Soller

versus seen that robust you of Yes, X.X for gives we were book Lockheed what and consistent quarters last to, largest a Martin, that we you The or part for driving delivery year an on the seven so the in pushing that or pipeline QX requirements customer order is was geopolitical year. for we years for mentioned sure. next for remarks Book-to-bill into the negotiations several prepared customers we've that's we with in and the -- again build. our nearly into behind six more The the tuned now program. with driver that that what and working growth potentially idea us what figure had more remains we're larger this quarter urgency referring more stay range, that, for in five on nice next and a with our there. but them. in of world Scott situation of a kind mentioned the news Yes. volume, here more nice

Scott Graeff

in price sure, I to they price. who five and forget pricing we are Lockheed you making I deals and with when increase. Martin, think the about in like year two, careful we we lock question folks year ask negotiating talked look But multi at deals on three, as want

we see what where couple about can when talk and increase order they kind we parts to a in for careful years price all XXX increasing So have plus multi of certainly should a be we get you deal. is where placed these comfortable feel year we That with ago.

Jim Marrone

to really businesses. did But Top one military really the maybe wanted you impact discount fact back reboot not of again. on and that the a I'm who Gun knows material in add, I Maverick same have just thing material on Top that do [size] the XXXXs impact can't current the think have Gun spending, current may

cost may, regards and Just have Is savings. well and recognition to the expect differences, numbers? to on the as the revenue finding in the revenue or QX the QX if as impact just more going expense they that I

Scott Graeff

there half full to have here think we I combined acquisition synergy think, with and we probably I impact of LIOS OptaSense. in impact more second savings. throttle at you're in going you'll see went it more if in this We We into --you'll and when see European making looked more knew operation the a acquired of year, QX. were

very some of saw see then and some expense see in yes, of the here, out. many to things. Europe, will you'll part takes time that small know, as will savings turn flesh in it those part little you'll match we those in and a we QX. start takes But it to revenue what in the you QX to As QX in those and over more recognize given to start But with also you mostly see

Operator

Savageaux The next of Tim Northland. question from comes

Tim Savageaux

specifically sort is and commentary. growth also the outlined of thinking bill And question what with quarter could if to puts of about target past. quarter, of in through you that for your in you in of the business. talk the growing but and reasonable One lot Is here business that is about quarter, consistent in talked contribution and a for If which guidance the kind your book in quarter company the and be type a still sort varies LIOS of it's organically, the look the which to also high run know still was contribution Is rate be the rate great. that about around teens, would And when -- -- bought what terms you LIOS you the kind the seems the organically, don't you contributions. kind I takes range? assuming we of overall to acquisition that year, have about comps of called if you've out specifically

Scott Graeff

mean, a that had dollars that I holds upper been still million I would've think organic were recognize delays. That not about talked rate stays those that we revenue. it had true, true the could at growth some and customer teens several I of still true. we not sitting

at sitting Difficulty] the other a OptaSense, teens several than customer all that rate parts growth in recognize that could dollars we million other not that So were the high revenue. organic [Technical saw

was the sub does, of they that, teens the -- saw QX than for We from organic participating customers they in and rate. LOIS little bit two or where other just saw delivered that specifically. deliver growth in for contribution high what on higher we expected in what that. a flip rev week So we they in did couldn't QX fact, than all OptaSense and over where did the some parts them. had recognize we that had them other OptaSense, are period that modeled that QX, the in really It delays

the So what second are heavily weighted towards they of half more the year.

is entire the that expected we to to assets So top to takes that synergies organization as synergistic needed some Because in where some and on LIOS certainly and in savings. deliver were half. those we extent the over again, fully you some time say, they line. there valuable look the second we actually where be recognized we've into we recognize have knowing of recognized can just and to picked it QX went recognize at them, a redundancy here savings great But that did that up we in done to those can OptaSense, the and that

Operator

There over Instructions] to Scott turn in remarks. queue. no the questions call for [Operator closing I would like more now to are back Graeff

Scott Graeff

Please time conferences San in reach to of Innovations. questions. investor free to everyone you Alison, Francisco for to joining upcoming your And look some I any Gene, Thank today. us in feel the fall. and myself, forward Chicago at with Luna for interest and seeing out Brian, you in Thank you our

that earnings this now, So call. conclude Lisa,

Operator

you, This participating. concludes you today's call, Thank for conference sir. thank

participating. for you thank all, You

Luna Innovations (LUNA) 11 Aug 222022 Q2 Earnings call transcript