ROANOKE, Va. - Luna Innovations (NASDAQ:LUNA) Incorporated (NASDAQ:LUNA), specializing in advanced fiber optic-based technology, announced today that it will restate its financial statements for the fiscal year ended December 31, 2022, and the interim periods within that fiscal year due to revenue recognition errors. The company's Audit Committee, with input from management and external advisors, determined that the affected financial documents should no longer be relied upon.
The decision to restate follows an independent review initiated on March 12 by a Special Committee of the company's Board of Directors, which examined certain revenue recognition matters. With the assistance of external legal and financial advisors, the review is still underway, and the company has yet to determine the full impact of these errors.
As a result of the ongoing assessment, Luna Innovations cannot currently provide a timeline for when it will file its restated financials. The company has committed to working diligently on the issue and plans to furnish updated information when it becomes available.
Luna Innovations, headquartered in Roanoke, Virginia, is known for its high-performance, fiber optic-based test products for the telecommunications industry and distributed fiber optic sensing for various industries. The company's business model focuses on swiftly bringing new and innovative technologies to the marketplace.
This news article is based on a press release statement from Luna Innovations Incorporated.
InvestingPro Insights
Amidst the challenges faced by Luna Innovations Incorporated with its financial restatements, investors are closely monitoring the company's performance metrics and market sentiment. According to real-time data from InvestingPro, Luna Innovations has a market capitalization of approximately $97.15 million. The company's revenue growth over the last twelve months as of Q3 2023 stands at 14.31%, reflecting a positive trajectory in sales. However, the firm's profitability remains under scrutiny, with an adjusted P/E ratio for the same period at -156.12, indicating that the company has not been profitable over the last twelve months.
InvestingPro Tips suggest that Luna's stock is currently considered to be in oversold territory based on the Relative Strength Index (RSI), which could potentially signal a buying opportunity for contrarian investors. Furthermore, despite the recent financial restatement announcement, analysts are optimistic about Luna's net income growth this year.
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With the next earnings date approaching on May 7, 2024, and the stock having experienced significant price volatility, Luna Innovations' investors will be keenly awaiting further updates on the company's financial revisions and strategic direction.
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