Laser Photonics Announces Third Quarter 2024 Results

Laser Photonics Corporation (NASDAQ:LASE), ("LPC"), a leading global developer of CleanTech laser systems for laser cleaning and other material applications, today announced results for its third quarter ended September 30, 2024.

Wayne Tupuola, CEO of Laser Photonics, commented on the third quarter:

"Looking at the quarter, we navigated a challenging period marked by increased investment in HR, Sales, and administrative functions—strategic moves that, while impacting our short-term performance, are essential for our future growth. We also secured several key deals, such as a sale of our CleanTech Industrial Roughening Laser 3050 to Acuren, another sale to the U.S. Navy, and an expansion with Brokk into the Asia-Pacific region. Each of these highlights our ongoing commitment to driving growth and value across strategic verticals."

"Looking to our future, we're excited about the advancement of our innovative product concepts, including the Laser Shield Anti-Drone System (LSAD) and the Next-Gen CleanTech Robotic Cell, both poised to play critical roles in defense and industrial markets."

Control Micro Systems (CMS) Acquisition

Tupuola continued, "I'm also thrilled to share details about our recent acquisition of CMS, which was finalized shortly after the third quarter. This acquisition represents a transformative opportunity for Laser Photonics by extending our footprint into the healthcare and pharmaceutical industries, particularly in controlled-release drug delivery and counterproofing pills, while also bringing synergies to our industrial markets. CMS specializes in custom precision laser systems, including laser drilling for controlled-release pharmaceuticals and anti-counterfeiting solutions, aligning perfectly with our vision to innovate in critical, high-growth sectors.

"The CMS acquisition diversifies our portfolio, enhancing our resilience against economic cycles and providing stability to our CleanTech revenue stream. CMS already serves some of the world's largest pharmaceutical companies, giving us a platform to strengthen relationships with industry leaders and expand our client base. By leveraging LPC's sales and marketing capabilities, we see significant potential to unlock value in CMS's offerings, supported by over $2 million in unbilled contracted revenue."

Financial Highlights: (Q324 vs. Q323)

• Revenue: $0.8 million compared to $1.3 million;
• Gross Profit: $0.6 million compared to $1.0 million;
• Operating Loss: ($1.7) million compared to ($0.9) million;
• Net Loss: ($1.6) million from ($0.9) million;
• Loss per Share: ($0.13) compared to ($0.11).

Third Quarter Business Highlights

Announced CleanTech Customer Orders:

• Acuren - a leader in nondestructive testing services, selected LPC's CleanTech laser systems to support critical inspection and maintenance processes;
• Semiconductor and Solar - A leading poly-silicon manufacturer is using CleanTech to enhance its manufacturing process;
• Oil & Gas: A global company in the oil and gas sector.

Announced DefenseTech Customer Orders:

• U.S. Navy - The Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility integrated LPC's DefenseTech laser system for the removal of corrosion from naval vessels.

Partnerships:

• Expanded partnership with Brokk to its Australian subsidiary to bring laser cleaning and cutting technology to the mining, tunneling, construction, metal processing, and military ecosystems in Australia, New Zealand and throughout the Asia-Pacific region.

Products:

• Released concept video for Laser Shield Anti-Drone System (LSAD) prototype at LPC's testing facility. The LSAD is a cutting-edge solution in development for the deterrence of unauthorized drone activity;
• Released concept for Next Gen Robotic Clean Cell.

About Laser Photonics Corporation

Laser Photonics is a vertically-integrated manufacturer and R&D Center of Excellence for industrial laser technologies and systems. LPC seeks to disrupt the $46 billion, centuries-old sand and abrasives blasting markets, focusing on surface cleaning, rust removal, corrosion control, de-painting and other laser-based industrial applications. LPC's new generation of leading-edge laser blasting technologies and equipment also addresses the numerous health, safety, environmental, and regulatory issues associated with the old methods. As a result, LPC has quickly gained a reputation as an industry leader for industrial laser systems with a brand that stands for quality, technology and product innovation. Currently, world-renowned and Fortune 1000 manufacturers in the aerospace, automotive, defense, energy, industrial, maritime, space exploration and shipbuilding industries are using LPC's "unique-to-industry" systems. For more information, visit www.laserphotonics.com.

Cautionary Note Concerning Forward-Looking Statements

This press release contains "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), including statements regarding the Company's plans, prospects, potential results and use of proceeds. These statements are based on current expectations as of the date of this press release and involve a number of risks and uncertainties, which may cause results and uses of proceeds to differ materially from those indicated by these forward-looking statements. These risks include, without limitation, those described under the caption "Risk Factors" in the Registration Statement. Any reader of this press release is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release except as required by applicable laws or regulations.

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