Laser Photonics Reports $3.415 Million Revenue Decline and Acquires Control Micro Systems

Laser Photonics Corporation reported a net revenue of $3.415 million for the fiscal year ending December 31, 2024, a decrease of approximately 13.3% from $3.939 million in 2023. The company's gross profit also fell significantly, from $2.898 million in 2023 to $1.481 million in 2024, reflecting a gross margin decline from 73.6% to 43.4%. The company incurred a net loss of $2.519 million, an improvement from the previous year's loss of $3.318 million. The loss per share decreased from $(0.37) to $(0.22), indicating a slight improvement in financial performance despite the overall losses.

The company experienced a notable increase in operating expenses, which rose to $7.944 million in 2024 from $6.246 million in 2023. This increase was attributed to higher costs in sales and marketing, general and administrative expenses, and significant depreciation and amortization expenses. Additionally, Laser Photonics recognized an impairment of $932,669 related to its intangible assets, which contributed to the overall increase in operating expenses.

Strategically, Laser Photonics expanded its market presence by acquiring Control Micro Systems, Inc. on October 30, 2024, which allows the company to enter the pharmaceutical manufacturing sector. This acquisition is expected to enhance the company's product offerings and customer engagement, particularly in the growing market for controlled-release medications. The company also launched new products, including the CleanTech Professional Portable Finishing Laser 1040, aimed at small and medium businesses, and expanded its sales force to better serve this segment.

Operationally, Laser Photonics reported a significant increase in its sales pipeline, reaching $41.1 million in industrial products and $19.9 million in military and government sales. The company employed 94 full-time employees as of December 31, 2024, and has been focusing on enhancing its sales and marketing efforts, with plans to invest an additional $3 million over the next two years. The company anticipates returning to profitability in 2025, driven by increased sales and improved operational efficiencies.

Looking ahead, Laser Photonics aims to strengthen its position in the laser technology market by continuing to innovate and expand its product offerings. The company is also focused on improving its internal controls and financial reporting processes, as it has identified weaknesses in its current systems. Management remains optimistic about future growth opportunities, particularly in the defense and pharmaceutical sectors, despite the challenges posed by market conditions and operational costs.