Laser Photonics Corp Q1 FY2023 earnings call

Wayne's Remarks - Reported solid Q1 with 35% year-over-year growth, led by product lines including high-power laser cleaning and entry-level systems. Invested in sales, marketing, and R&D. ### Peter's Remarks - Strategic plan focuses on sales, customer support, and distribution channels. Hired senior account managers, expanded inside sales, and developed Service Partner Network (SPN) and dealer distributor network. ### Bill's Remarks - First quarter revenue up 2% to $1.24M; GAAP operating loss $1.2M; non-GAAP net loss $0.4M; gross margin 80%; cash balance $10.8M with no debt.

First quarter revenue increased by 2% to $1.24 million. Gross margin on Q1 sales increased by 500 basis points to approximately 80% due to a mix more heavily weighted toward higher-margin CleanTech systems. Revenue contribution was led by solid performance across all product lines, especially high-power laser cleaning processing applications and affordable entry-level systems.

Revenue - 2023 revenue expected higher than 2022 due to initiatives. ### Gross Margin - May decline from Q1 80% but still exceed prior year's 58%. ### Profitability - Target to achieve profitability by end of 2023. ### Prior Projection - Revenue projection of $7 million to $10 million for 2023 still holds.

• Forward-looking statements subject to risks and uncertainties in SEC filings. - Q1 operating loss included $1 million noncash stock issuance costs and costs related to former CFO severance, with $0.6M reversed in Q2.

Q: Could you elaborate on the nonrecurring events affecting results and if more would occur in Q2?

A: Bill explained nonrecurring events were IPO stock-based payments and former CFO severance, with $0.6M reversed in Q2 and no further nonrecurring items since quarter end.

Q: Does the $7 million to $10 million revenue projection for 2023 still hold?

A: Peter stated the projection still holds, encouraged by hiring process in marketing and sales.

Q: Do you see yourselves turning a profit this year?

A: William said profitability expected to increase with top line, gross margin, and expense ramp-up, targeting end-of-year profitability but no formal guidance.

Q: Did you buyback stock this quarter and plan for rest of year?

A: William said no stock buybacks during quarter or since close, Board approved buybacks but using cash wisely.

Q: Why is adoption of laser cleaning not happening more quickly?

A: Wayne explained it's a disruptive technology with specs just published, government agencies still learning to incorporate, in gain and scale model taking time but expected to take off this year and beyond.