My note:The Picometrix division of Luna contines to make improvements in it's THz division. I also thought the discussion of the ODiSi, platform is very interesting, and shows huge promise. (You can read the entire CC on the link below).
https://seekingalpha.com/article/4072498-luna-innovations-luna-ceo-chung-q1-2017-results-earnings-call-transcript?part=single
Operator
Our next question is from Randy Knudson. Your line is now open.
Unidentified Analyst
Good afternoon.
My Chung
Hi, Randy.
Unidentified Analyst
I wanted to first ask you about your $2 million stock repurchase, which was announced about a year ago and see if that's all been concluded or is there still money left to buy stock?
My Chung
So, we have not consumed the entire amount. In fact, there was not any repurchase activity that was done in Q1 just because we set this up in a 10b5-1 plan. So, there were specific parameters that were established for it. And with the increase in the stock price that we had end of last year and in Q1, we went outside of those repurchase parameters.
So, we’ve not spent the entire amount. It was established as a one-year plan. So, it’s something that was approved at our board meeting in May of last year and it will be another topic of discussion at the May board meeting this year as to whether or not we want to extend that or under what parameters we would.
Unidentified Analyst
Okay, thank you. I was glad to hear you at least mention your terahertz division. I know in the last couple of phone conferences, I don't think the word terahertz was even mentioned, which kind of surprises all of us old-time API investors.
And so, I just want to see what the trend is there. What are your thoughts on terahertz in Ann Arbor. Is it coming along? Or are we going to – is it going to be one of your drivers in the future?
My Chung
It’s actually coming along rather well. The focus that we put them on was really improving the quality of the system and the dependability of the measurement. We had one value-added reseller that was one of the first ones we signed up. And their feedback to me when I came on board was they couldn’t depend upon the quality and reliability of the system.
And as a result, we had a lot of units sent back for repair and we decided, hey, let’s slow down a little bit, let’s fix the problems that we need to fix, so that customers can rely on the systems that we’re selling and the measurements. And that’s come a significantly long way. We’ve signed up new value-added resellers. We’re in discussions with quite a number. So, in fact, I think Q4 was a very strong quarter for us for terahertz. And I guess we should have mentioned it at the last earnings.
But it’s still active. The team is still intact. It’s the same team that's been there. It’s not growing quite as high-speed optical receivers, and so we downplayed a little bit, but by no means that we shut it down.
Unidentified Analyst
Right. And once again, what do you see in the future for the terahertz division? Is it something that's going to – I am assuming, by your mention of Q4, it's reached profitability?
My Chung
Yes, it did. It’s a very good quarter. Our focus is on manufacturing applications and we have a number of aircraft – military aircraft manufacturers talking to us about utilizing that technology as a means with which to find faults. They’ve funded a chunk of research for us in anticipation of that. So, I think that will be a big application for us. And likewise, our sales guy is actively involved with a number of customers from a process manufacturing to, in a number of cases, to replace beta gauges that are currently being used.
Unidentified Analyst
Got you. Primarily in the wood, plastic, those areas?
My Chung
Exactly. Yes, yeah.
Unidentified Analyst
And then the airline inspection that you talked about, is that something related to what you're already doing for the F-35 in terms of the paint application or is this something to do with inspection of the structure itself, relating to what we saw at Wright State University, in press release?
My Chung
No, it’s the F-35.
Dale Messick
And there’s also some – we’re actually going to do a big demonstration on a submarine as well.
Unidentified Analyst
Okay, great. And I guess my kind of related question to that is with, it's really difficult to find any information about Lunar. I do applaud you on your blog that you have occasionally, and I read it and try to share that actively on the net, but it seems like there's a lot of things that you would have an opportunity to share with us that might encourage some shareholder buying…
My Chung
We recognize that and we are looking to make significant changes here in this year.
Unidentified Analyst
Great.
My Chung
All right? It’s been a challenge for our team to assimilate all the different technologies that we ended up with from the merger. They’ve been understaffed. In fact, I’m looking at the people in charge of that right now and they keep on telling, My, we need more, we need more.
So, it is on my list this year. All right? That we do need to improve dramatically information flow out, both from an investors’ perspective as well as from a technology.
Unidentified Analyst
And then, in terms of your Odyssey platform, which sounds like it’s really one of your primary focuses going forward in the future. That too is – other than your blog, it’s almost impossible to find any information out there. I was pleased to hear – and let me just see if I understood you correctly. You're really – you really have no direct competition in that particular area of composite or stress testing. Is it – did I understand that correctly?
My Chung
That is absolutely correct. Our competition is the traditional individualist strain gauges and people have to put on – quite a significant number of them trying to cover the entire structure. The most of the other fiber optic sensing technology that's out there is more – how do I say it? It’s more single sensor based. In other words, they add a sensor on to the fiber to test at that point whereas we use the bare fiber and we have the ability to look at reflections along that entire length of the fiber. We don’t need a grading put on the fiber in other words. So, it’s a very unique technology that we have. It’s a technology that we use on the medical space. So, the reason why Intuitive Surgical was very interested in us because we had that ability that we could track the bends of that fiber throughout the entire length.
Unidentified Analyst
Well, that’s great. And it’d be wonderful to have something – more information about that. And I know you mentioned that's one of your goals. So, I would sure appreciate seeing that because I think there would be a lot of people interested in knowing more about that and lots of potential investors that would be excited about that.
My Chung
No, I agree. And that indeed is something that we’ve tasked ourselves with doing. It was the best kept secret.
Unidentified Analyst
Yeah, got you. And lastly, I just want to applaud you also for mentioning Rob Risser because he was truly a great person from my many conversations with him and he’ll be sorely missed. And thank you.
My Chung
He’s an incredible individual with an incredible background and sad to see how quickly he passed on last month. So, it was a shocker to all of us.
Unidentified Analyst
Well, thank you again.
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