On April 15th local time, Laser Photonics, a developer of laser cleaning equipment and solutions, announced its financial results for the fourth quarter and the year ended December 31, 2023. The financial report shows that in the fourth quarter of 2023, its revenue was $800000, with reduced operating and net losses. Here are the specific data:
In addition to the financial report, the company's CEO Wayne Tupuola also solemnly issued the following letter to shareholders:
Dear shareholders
2023 is a year of transformation for Laser Photonics. During this year, we made significant investments that enabled us to seize the huge market opportunities of cleaning technology in the future, while introducing additional vertically centered product lines that we believe will drive future revenue growth. In addition to product development, we have also invested heavily in future growth opportunities by expanding our sales and marketing resources, as well as distribution partnerships. This investment began to yield returns in the fourth quarter, with revenue increasing by 673% and operating and net losses decreasing.
Customer and product line expansion
In 2023, we will continue to expand our customer base and expand our business into high potential vertical industries. Our goal is to attract new customers by providing world-class products and introducing new technologies for markets with strong demand for industrial laser solutions. An example of expanding this product line was in January 2023 when we launched a 3000 watt laser cleaning system. This product has further differentiated our products by expanding our laser cleaning capabilities in the high-end laser power supply market.
We have also developed the CleanTech robot battery case, which greatly reduces or eliminates safety issues for human operators. This programmable shell will be able to effectively utilize artificial intelligence to serve as additional full-time employees, capable of completing multiple tasks simultaneously, including serving as a cleaning operator, quality control inspector, engineering programmer, and process engineer. We believe that this new product will improve the standards for laser cleaning applications and safety, while reducing the total cost of ownership for customers.
Next, we have launched the DefenseTech product line for military and defense applications, and we believe that our technology has enormous potential. This product line utilizes our CleanTech and Markstar technologies, combined with our increased sales and marketing efforts to the Department of Defense, to bring new sales and deepen our penetration into this market. We have now provided systems to US Army warehouses, naval bases, shipyards, and air force bases, and we believe that DefenseTech will help us continue to grow with these customers.
Finally, we have released the MARLIN series of portable laser systems designed specifically for small ship applications, including laser cleaning and surface treatment of small areas that require fine cleaning, paint removal, and other surface preparation operations. This product line has opened up a potential market opportunity of $500 million for Laser Photonics.
The launch of these new products has solidified our position as a leading supplier of manufacturing, maintenance, and operation (MRO) and industrial cleaning laser solutions for the defense and maritime industries.
Expand cooperation with Fonon company
Fonon Corporation (and its subsidiary Fonon Technologies) is a subsidiary controlled by ICT Investments. We obtain various technology licenses from Fonon and serve as the manufacturing, sales, and marketing departments for these technologies in the vertical industrial sector. In addition, Fonon Technologies was established as a government and military contractor and provides sales and marketing for CleanTech, Markstar, DefenseTech, and other brands to the US government and Department of Defense (DoD). At the end of last year, we expanded our relationship with Fonon and entered the laser cutting market with its high-power turbine piercing ("cold cutting") laser cutting equipment and technology in exchange for cash and stocks.
In addition, ICT Investments has transferred its 3 million shares in LPC to Fonon, making Fonon our largest shareholder. In the coming months, we hope to further strengthen this partnership through additional new technology licenses, which will expand our market opportunities and other potential transactions, including becoming a subsidiary of Fonon. LPC will continue to focus on the industrial application of this technology, while Fonon will focus on sales and marketing to the government and the Ministry of Defense.
Establishing strategic partnerships and distribution agreements
Through cooperation with Fonon Technologies, we have established a sales and distribution agreement with Incremental Supply.
In terms of product roadmap, in 2024, we will launch the latest generation of cleaning technology systems. A key feature of this new production line is that customers can customize the power and frequency of the system to meet a wider range of material cleaning needs. Some versions will also bring smaller shapes, lighter scanning heads, lower power requirements, and improved air knife designs.
The higher power version will support the Internet of Things and support WiFi and Ethernet. In addition, we plan to release a 1500 watt air-cooled laser, which is currently the smallest and most portable form factor available.
We believe that this updated product line will provide users with greater flexibility in on-site applications, while also opening up more sales opportunities for LPC.
Next, we plan to continue developing our SaberTech laser cutting product line using the recently obtained licenses for cold cutting and turbo piercing technology. The significance of cold cutting and turbo piercing technology is that it will improve the cutting ability of products by reducing the risk of warping caused by laser heat during the cutting process. This is very important for many industries, such as the aviation sector, which so far cannot adopt laser cutting technology due to the use of thinner materials. As part of our investment in the SaberTech product line Titan FX, our large format laser cutting system will be completely transformed into an automatic sheet metal loading and unloading system. The system loads metal sheets into Titan, cuts them, and then unloads the cut metal sheets onto the rack system. With this automation, customers can run Titan 24/7 and prepare sufficient materials for their production shifts.
Finally, we will introduce MarkStar VIN, a tailor-made marking and engraving solution for automotive applications. This is a direct response to the recently passed California Senate Bill 55, which requires all motor vehicle catalytic converters to be labeled with a VIN. The system will have specific functions and features aimed at complying with this new regulation, ensuring that car manufacturers and repair shops can easily comply with the law. By incorporating this legal requirement into our product functionality, our goal is to explore and leverage the untapped potential in the automotive market, which we believe can help revive our traditional laser sales. These new products expand our existing unique industry system series, enhance our product supply, and fully utilize key markets.
In summary, we are driving innovation and diversifying our products through breakthrough solutions. We plan to release SaberTech, MarkStar VIN, and the next generation CleanTech system this year, highlighting our unwavering commitment to meeting the ever-changing demands of global industry. Driven by strict regulations and restrictions, our investment in research and development echoes this firm commitment to strengthen our competitive advantage and adapt to the growing demand for this technology in many industries.
Looking ahead to the next year, we will be committed to driving sales growth and creating tremendous value for shareholders. We will continue to leverage the momentum of strategic investment and highly focus on penetrating key markets, which we expect to drive sustainable growth for all product lines. Therefore, we are confident in achieving better financial performance in 2024. Thank you to our shareholders, partners, and team for their support on our journey.
We look forward to providing a positive future and updating our business.
Source: OFweek
