Conference Call to Be Held Today at 4:30pm Eastern Time
SANTA FE, N.M., Aug. 14, 2018 (GLOBE NEWSWIRE) -- Sigma Labs, Inc. (NASDAQ:SGLB) (“Sigma Labs,” we," "our" or the “Company”), a provider of quality assurance software under the PrintRite3D® brand, today announced financial results for the three months ended June 30, 2018 and provided an overview of recent accomplishments.
Second Quarter 2018 and Recent Business Highlights
- June 2018 – Announced the closing of a public offering for gross proceeds of $2,390,000.
- May 2018 – Sigma labs demonstrated proof of concept for closed loop quality control during metal additive manufacturing.
- May 2018 - Sigma Labs allowed a US patent entitled “Method and System for Monitoring Additive Manufacturing Processes.”
- May 2018 – Sigma Labs expanded its business development in Europe by hiring its first employee in Europe.
- April 2018 – Sigma Labs completed a $1.0 Million private placement financing.
- April 2018 – Sigma Labs participated in two significant industry events including The Additive Manufacturing Users Group (AMUG) Conference and Exhibition in St. Louis, MO ( http://www.amug.com) and The Rapid 2018 Conference in Fort Worth, TX ( http://www.rapid3devent.com).
“We had an active quarter of strength building as we continued to transform ourselves from an R&D company with a high potential R&D product into a commercialization company with reliable high-performance market-ready products to sell. During the quarter we announced successful demonstration of Closed Loop Control capability while also strongly bolstering our balance sheet,” commented John Rice, Chairman and CEO of Sigma Labs. “In the course of the past 9 months, Sigma recruited additional expert personnel to balance our required skillsets, implemented new business processes in product development and customer service, and step by step, set out to elevate our lab-ready hardware and software products into robust commercial equipment ready to deploy into high quality production settings. I am proud of what we have achieved so far in 2018 internally strengthening Sigma’s product, operations, and balance sheet. Now, going forward we must thrust our product effectively into the marketplace.”
Second Quarter 2018 Financial Results
In the second quarter of 2018, we recognized revenue of $98,663 compared to $290,553 during the same period of 2017.
Sigma’s total operating expenses for the second quarter of 2018 were $1,422,511 compared to $1,108,234 for the same period of 2017. The most significant of our operating expenses is personnel costs, comprised of payroll and stock-based compensation expense. Payroll costs in the second quarter of 2018 were $426,049 compared to $346,994 for the same period in 2017 or 30% and 31% of total operating expenses for the period, respectively. The total payroll costs increase of $79,055 resulted primarily from the strategic addition of six employees since the second quarter of 2017 as we continue the concentrated acceleration of technology development and expand into the European 3D manufacturing market. Stock-based compensation for the second quarter of 2018 was $423,067 compared to $166,773 for the same period in 2017. The $256,294 increase resulted primarily from the issuance of stock options to our Chief Executive Officer in the second quarter of 2018, $61,651 of additional stock options vesting expense related to the options issued to our President and Chief Technology Officer, and the amortization of an additional $72,494 in Board of Director stock compensation cost in that same 2018 period.
During the three months ended June 30, 2018, Sigma incurred research and development expenditures of $95,045 compared to $131,908 in the same period of 2017. The $36,863 decrease in these expenditures resulted primarily from a reduction in the amount of third party consulting utilized in Sigma’s Inspect 2.0 software and contour hardware development between the two periods.
Sigma’s total net loss for the second quarter of 2018 was $1, 388,804 as compared to $988,741 for the second quarter of 2017, a $572,563 increase with operating income contributing $400,063 to the increased loss and increased other income and expense offsetting it by $63,260.
During the six months ended June 30, 2018, we recognized revenue of $202,078 compared to $405,076 of revenue recognized during the same period of 2017. The primary contributors to the $202,998 reduction were revenue decreases of $134,473 from the DARPA and Aerojet government programs and $130,561 in new system sales, partially offset by increased net other revenue in the 2018, primarily, $58,631 of contract AM service sales.
Payroll costs for the six months ended June 30, 2018 were $824,706 compared to $785,204 for the same period in 2017. The $39,502 increase resulted primarily from the earlier mentioned addition of six employees since the end of the second quarter of 2017.
During the six months ended June 30, 2018, Sigma incurred research and development expenditures of $217,022 compared to $186,413 in the same period of 2017. The $30,609 increase in these expenditures during the first six months of 2018 resulted primarily from the purchase of multiple upgraded servers and various pieces of specialized equipment as part of our continued concentrated acceleration of technology development.
Sigma’s net loss for the six months ended June 30, 2018 totaled $2,559,680 as compared to $1,815,373 for the same period of 2017, a $744,307 increase with operating income contributing $644,338 and other income and expense contributing $99,969.
Liquidity and Capital Resources
As of June 30, 2018, we had $3,519,637 in cash and had a working capital surplus of $3,320,502, as compared with $1,515,674 in cash and a working capital surplus of $2,273,801 as of December 31, 2017.
Investor Conference Call
Management will host a conference call on Tuesday, August 14, 2018 at 4:30pm to review financial results and corporate highlights. Following management’s formal remarks, there will be a question and answer session.
To listen to the call by phone, interested parties within the U.S. should call 1-844-802-2441 and International callers should call 1-412-317-5134. All callers should ask for the Sigma Labs conference call. The conference call will also be available through a live webcast at www.sigmalabsinc.com. Details for the webcast may be found on the Company’s IR events page at: http://client.irwebkit.com/sigmalabsinc/events.
A replay of the call will be available approximately one hour after the end of the call through September 15, 2018. The replay can be accessed via Sigma Labs' website or by dialing 877-344-7529 (domestic) or 412-317-0088 (international) or Canada Toll Free at 855-669-9658. The replay conference ID number is 10123080. The webcast replay will be available through November 14, 2018.
About Sigma Labs, Inc.
Sigma Labs, Inc. is a provider of quality assurance software under the PrintRite3D® brand and a developer of advanced, in-process, non-destructive quality assurance software for commercial firms worldwide seeking productive solutions for advanced manufacturing. For more information please visit us at www.sigmalabsinc.com.
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 (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company’s forward-looking statements, please see the Company’s Annual Report on Form 10-K (including but not limited to the discussion under “Risk Factors” therein) filed with the SEC on April 17, 2018 and which may be viewed at http://www.sec.gov.