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With a 12 percent decline in revenues, Roanoke-based Luna Innovations Inc. posted a net loss for the second quarter of the year.

Luna reported a net loss of $2.4 million, or 21 cents per share, for the quarter ended June 30, compared with a loss of nearly $1.8 million, or 16 cents per share, for the same period a year ago.

Total revenues for the quarter were down to $8.7 million from $9.9 million last year.

The high-tech company has yet to be profitable since becoming publicly traded in June 2006. It said that its ongoing litigation with Hansen Medical Inc. and the economic recession both contributed to its financial results.

"The slowdown in product sales that began in the fourth quarter of last year with the country's overall economic decline continued to affect our product sales in the second quarter," Kent Murphy, chairman and CEO of Luna, said in a news release. "While the costs of our ongoing litigation with Hansen Medical also continue to adversely impact our bottom-line results, we have made significant improvements in the efficiency of our operations and continue to conduct business in the ordinary course."

Excluding the increase in legal costs, Murphy said operating expenses for the quarter decreased by about 20 percent compared with the same period last year.

Legal costs increased to $1.6 million for the quarter from about $800,000 for the same period in 2008. Hansen, based in California, filed a civil suit against Luna over breach of contract and misappropriation of trade secrets in February 2008. In April a California jury found in favor of Hansen, ordering Luna to pay $36.3 million in damages, lost profit and unjust enrichment.

The quarterly financial report, which was released Wednesday after the stock market closed, was actually due last month. The delay in reporting the information stemmed from Luna's bankruptcy proceedings. On July 17, Luna filed for Chapter 11 protection with the U.S. Bankruptcy Court for the Western District of Virginia.

Luna develops and manufactures products for the health care, telecommunications, energy and defense markets, employing about 200 people at locations in Roanoke, Blacksburg, Charlottesville and Danville.

Shares of Luna closed Wednesday at 65 cents, down 5 cents from the previous close.