Good morning, everyone. Thanks for joining our call this morning.
We have a few things discussed today including very strong results for the third quarter and a further discussion of the acquisition of Micron Optics that we announced several weeks ago. Also, because we're close to the end of our fiscal year and we've had several recent transactions, we'd like to cover briefly some of our expectations for the duration of 2018. With all of this to discuss, our call maybe a bit longer this morning.
As I review the specifics, I hope you will see that we continue to accelerate the progress of executing our strategy to drive robust growth through a focus on our core fiber optic-based capabilities.
The third quarter of 2018 marks the fourth consecutive quarter of double-digit growth in our revenues from continuing operations and the sixth quarter of very strong revenue growth. In the quarter, we achieved growth of 29% in revenue and over 40% in gross profit versus the same quarter last year. I'm am very proud of all the members of the Luna team, who worked to deliver these terrific results. And I'm excited about our progress as we see this performance as a validation that our strategy is working and that our target markets are rich with opportunity for continued growth. We've capitalized on the advancement of optical-based technologies. And as I've mentioned before, our products and capabilities fit squarely into the sweet spot of this growth. We feel we are well positioned to continue to benefit from trends, such as higher demand for higher bandwidth in data communications and data centers, and the growing use of composites and other advanced materials in the automotive and aerospace sectors. We maintain a strong balance sheet with financial flexibility and still have good liquidity following the acquisition of Micron Optics, which we paid cash.
We are continuing to invest internally, both in the R&D necessary to advance our technologies offerings and in the sales and marketing resources necessary to create exposure for and awareness of our capabilities and products. I'm pleased to say that the existing businesses continue to perform well with strong top line growth evidence that we're getting a return from some of these internal investments we've already made.
In addition, we will continue to be interested in further M&A investments that fits squarely within our strategy and which we believe would accelerate our performance in our two important market verticals, communications test and structural test based on optical sensing. We drove revenue growth of 29% in the quarter and 27% for the first three quarters of 2018 versus the comparable year-ago periods. Gross profit margin grew from 40% to 44% in both the third quarter and the first nine months of fiscal 2018. Revenues from our Technology Development segment grew 16% in the quarter and revenues from our Products and Licensing segment, which includes Lightwave and Odyssey grew a robust 45%.
As a reminder, in addition to Odyssey, Lightwave includes our instruments for testing fiber optic components and networks used for high speed communications. These products target the growing demand for bandwidth, fueling the development of silicon photonics and the building of more and more data centers.
Our Odyssey instruments measure structural health and integrity of components and structures.
Before handing over to Dale, I'd like to highlight the progress and status of the various business divisions at Luna, as well as review the acquisition we announced last month. Starting with Lightwave, here are some of the highlights for the quarter. Total Lightwave revenues were up 22% year-over-year. Revenues in the sensing part of Lightwave were up 18% year-over-year with 12 Odyssey units shipped during the quarter. Revenues in the communications test part of our business were up 26% year-over-year.
We continue to make progress in our two key growth verticals. In our sensing vertical, lightweighting and electrification of vehicles remains a strong driver for the technology in the aerospace and automotive markets. In order to further penetrate these markets, we have continued to invest in the Odyssey platform and in Q3, we introduced multiple new features that improve its overall performance and ease of use, which has been well received by our customer base. This allows us to infiltrate core markets and this quarter we delivered multiple units to Top tier automotive manufacturers and research institutions for design validation of next-generation designs. In our communications test vertical, development of optical functionality in silicon continues to be a primary growth driver to sales of our OVA and OVR products. In Q3, this trend continued with multiple sales into our silicon photonics applications. Growth was also enhanced by strengthening sales into other applications as well. Reversing the decline we saw last quarter, in Q3, we experienced strong sales of our comps test products in North America to our base of government funded laboratories such as Lawrence Livermore, Los Alamos National Lab and Sandia Natural Lab.
New sales of our OVR product to these entities were strong in Q3 based on common applications requiring very precise measurement of the length of optical fiber links used in high energy physics research.
Our OVR products provide very precise length measurements of fiber links with capability far beyond that of any other product on the market.
Our Terahertz division is continuing the strong momentum built in Q1 and Q2 with a 55% increase in products revenue in Q3 year-over-year.
We continued with our strategy of enhancing market presence and sales channel expansion with the addition of two new value-added resellers. These additions accelerated our sales and marketing efforts to deliver innovative Terahertz products into new process control market opportunities in Korea and Taiwan. In the third quarter, we successfully deployed the higher performing Terahertz gauge developed in Q2 into new process control and non-destructive testing applications. This new gauge will meet the demand for measurement of thinner and buried layers. These more demanding process control and non-destructive testing applications are driving demand for accurate process control with high repeatability at a continuously growing rate.
Additionally, we continue to improve our operating efficiencies to effectively balance the daily deliverables and growth opportunities our expanded sales channels demand.
As a reminder, our Technology Development segment complements the business drivers in our Product and Licensing segment.
Here we create and develop new technologies and products that can generate future revenue growth. The work is funded by government contracts, which support not only the research, but the full operations, including management and business development. This segment grew 16% for the quarter on a year-over-year basis. And as we've discussed, we approached the work in this segment with an eye not just on contracts, but towards commercialization. A great example of this is in the third quarter. Luna shipped over 150 aircraft corrosion sensors, amounting to over $600,000 to complete a deployment at 10 air force bases around the world to study the effect of corrosion and maintenance cycles.
Although this revenue is reflected in our product line, the development of these sensors began with two Phase 1 SBIR projects. And we see many other similar opportunities in the future. In summary, we made great progress in the first three quarters of 2018. And I continue to be excited about the expanding opportunities that our products target in the test and measurement market. We believe we have the right strategy in place and certainly we are seeing the results of that performance.
More importantly, I'd like to thank our employees for their hard work and achievements delivering this record third quarter. I know that they remain committed and focused on driving future results.
Now let's switch gears. I'd like to quickly review some of the highlights of the acquisition of Micron Optics announced a couple weeks ago.
You might remember that Luna acquired Micron for $5 million in cash and Micron had 2017 sales of $8 million. This 30-year old company with a corporate culture very similar to Luna's is based in Atlanta, Georgia. The company sells products and sensing solutions, filters and lasers with a significant piece of the revenue driven by sales of its fiber optic sensing instrumentation, which is very complementary to our Odyssey product and fits right into our structural test vertical. Like Luna, Micron sells into Aerospace and Defense, Industrial and Medical. But the acquisition also brings exposure to the oil and gas and civil engineering [Technical Difficulty] giving Luna the opportunity to cross-sell quickly into markets in which it previously did not have a significant exposure. Both companies offer product suites that combine an instrument and fiber optic sensor for measurement. And both companies are also driven by the continuing trends driving demand for higher bandwidth. The engineering teams at Micron in Lightwave Division of Luna already have a strong understanding of one another's existing products and programs, allowing for speedy integration. The combined products and capabilities will allow us to offer solutions containing a full suite of products to measure structures and processes on both a continuous basis and the point-basis depending on the application. There are some applications where Micron's products maybe more cost-effective or easier to install, making our solutions better for a wider range of customers. The combination will also open up new markets for both Luna and Micron products, including a greater exposure to Europe and Asia and will provide robust opportunities for cross-sell and up-sell. With solid product management and greater resources, this acquisition will enable Luna's Lightwave Division to penetrate worldwide markets more quickly and therefore expedite the scaling towards which the division has been working. And as we discussed during the announcement, we believe Micron is a perfect strategic acquisition with a profile that will allow a seamless and quick integration and which will be fully accretive in 2019 and adjusted EBITDA accretive in Q4 of 2018.
As I've mentioned before, we're very excited about this acquisition and confident this is the right deployment of capital for the right asset. One last item I'll cover, is an outlook for the remainder of the year.
As you know, we do not typically give financial guidance. But because of the proximity to year-end and the various transactions we've done this year, we'd like to provide an outlook range.
We are not committing to providing guidance in the future, but we will continue to regularly evaluate which disclosures makes the most sense.
We expect fourth quarter 2018 revenues to be in the range of $12 million to $12.5 million.
We expect full-year 2018 revenues to be in the range of $41.5 million to $42 million. This would give us EPS in a range of breakeven to $0.01 per diluted share for the fourth quarter of fiscal 2018. And for the full fiscal 2018, we would expect EPS in a range of $0.31 to $0.32 per diluted share. With that I will turn the call over to Dale to review the third quarter and year-to-date 2018 financial results in more detail. Dale?