Wednesday, January 30, 2013

LightPath Technologies Announces Profitable Second Quarter 2013


LightPath Technologies Announces Profitable
Second Quarter
Q2 FY2013 Revenues Increased 9% Over Q2 FY2012
Cost Reductions Drive Increases in EBITDA and Gross Margin

ORLANDO, FL - (PRNewswire - January 30, 2013) - LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath", the "Company" or "we"), a global manufacturer, distributor and integrator of proprietary optical components and high-level assemblies, announced today its financial results for the second quarter ended December 31, 2012.
Second Quarter Highlights:
•  Revenue for the second quarter of fiscal 2013 increased 9% to $2.92 million compared to $2.67 million for the second quarter of fiscal 2012.
• 12-month backlog increased 21% to $4.64 million as of December 31, 2012 compared to $3.82 as of December 31, 2011.
• Gross margin for the quarter was 43%, the highest level since the fourth quarter of fiscal 2010, compared to 32% in the second quarter of fiscal 2012.
• EBITDA increased to $356,000, or 12% of revenues, compared to $6,000, in the second quarter of fiscal 2012.
• Net income was $141,000, or $0.01 per share for the quarter compared to a net loss of $343,000, or $0.04 loss per share in the second quarter of fiscal 2012.
Jim Gaynor, President and Chief Executive Officer of LightPath, commented, "LightPath continued to make financial progress in the quarter. Revenue continues to grow, and gross margin improved significantly over the prior year, driving increased EBITDA and resulting in another profitable quarter. Gross margin, in fact, reached the highest level since the fourth quarter of fiscal 2010. Improvement in gross margin resulted from productivity gains, lower tooling costs and continued benefit from our ongoing cost reduction programs. Our revenue growth was led by the telecommunications sector, specifically the need for expanded infrastructure to support mobile internet demand, our industrial tool business which benefited from improving Chinese market, and our entry into the digital projection market, which is highlighted by the initial $1.1 million order we received from a new customer in November."
Mr. Gaynor added, "Our goal is to accelerate our top line growth and we are rigorously pursuing opportunities to further proliferate with our current accounts and penetrate new ones. We believe the themes of mobile internet growth, recovery of the Chinese industrial tool market and new product applications bode well for our long term growth, though overall markets are still weak and somewhat choppy as was indicated by our lower booking rate in the second quarter. To take advantage of these emerging opportunities in the marketplace, we have implemented some changes to our sales organization. Specifically we are changing our sales approach to a product centered focus. We expect these changes will enable us to move more rapidly towards our growth objectives. In addition, we continue to develop new products in order to keep our produ ct offerings current and in line with the latest technology relevant to our customers, as is demonstrated by our recent announcement for the new products to be released at the upcoming Photonics West Trade Show. Our product offerings, which serve a diverse group of end-markets, have found growth opportunities for our core business in precision molded optics and are building a presence in the infrared market. We will continue to work hard to ensure that we are positioned to capitalize on the many opportunities we see ahead for our products and technology."
Financial Results for Three Months Ended December 31, 2012
Revenue for the second quarter of fiscal 2013 totaled approximately $2.92 million compared to approximately $2.67 million for the second quarter of fiscal 2012, an increase of 9%. This increase was primarily attributable to increases in sales of custom optics and an increase in our industrial tool products offset by slightly lower sales volumes in our collimator, isolator and GRADIUM® product lines. Growth in sales for the next several quarters is expected to be derived primarily from the precision molded lens product line, with an increase in low cost lenses being sold in Asia and from new business with penetration into imaging applications. Infrared products, now being designed and introduced are expected to accelerate the Company’s growth more meaningfully beginning in the fourth quarter of fiscal 2013 and continuing in fiscal 2014.
The gross margin percentage in the second quarter of fiscal 2013 was 43%, compared to 32% for the second quarter of fiscal 2012. Total manufacturing costs of $1.65 million decreased by approximately $178,000 in the second quarter of fiscal 2013 compared to the same period of the prior fiscal year due to an decrease of $123,000 in wages $116,000 in tooling costs and $40,000 in freight costs offset by a $100,000 increase in direct costs associated with the infrared project. Direct costs, which include material, labor and services, were 23% of revenue in the second quarter of fiscal 2013, as compared to 26% of revenue in the second quarter of fiscal 2012.
During the second quarter of fiscal 2013, total costs and expenses increased by approximately $128,000 compared to the same period of the prior year. Selling, general and administrative expenses were $1.02 million for the second quarter of fiscal 2013. Total operating loss for the second quarter of fiscal 2013 improved to approximately $25,000 compared to $320,000 for the same period in fiscal 2012.
In the second quarter of fiscal 2013, we recognized a gain of approximately $170,000 related to the change in the fair value of derivative warrants issued in connection with our June 2012 private placement. This fair value will be re-measured each reporting period throughout the five year life of the warrants or until exercised.
Other income increased by approximately $13,000 to $12,000 in the second quarter of fiscal 2013 from approximately ($1,000) in the second quarter of fiscal 2012.
Net income for the second quarter of fiscal 2013 was $141,000 or $0.01 per basic and diluted common share, compared with a net loss of $343,000 or $0.04 per basic and diluted common share for the same period in fiscal 2012. Weighted-average basic shares outstanding increased to 11,801,684 in the second quarter of fiscal 2013 compared to 9,761,129 in the second quarter of fiscal 2012 which is primarily due to the issuance of shares of common stock in the June 2012 private placement, shares issued for the payment of interest on our convertible debentures and the shares issued for our employee stock purchase plan.
Financial Results for Six Months Ended December 31, 2012
Revenue for the first half of fiscal 2013 totaled approximately $5.81 million compared to approximately $5.41 million for the first half of fiscal 2012, an increase of 7%. This increase was primarily attributable to increases in sales of custom optics, an increase in our industrial tool products and our entry in the digital projection market offset by slightly lower sales volumes in our collimator, isolator and GRADIUM® product lines. Growth in sales for the next several quarters is expected to be derived primarily from the precision molded lens product line, with an increase in low cost lenses being sold in Asia and from new business with penetration into imaging applications.
The gross margin percentage in the first half of fiscal 2013 was 42%, compared to 36% for the first half of fiscal 2012. Total manufacturing costs of $3.36 million decreased by approximately $115,000 in the first half of fiscal 2013 compared to the same period of the prior fiscal year due to a decrease of $244,000 in wages offset by and increase of $130,000 in direct costs associated with higher revenues. Direct costs, which include material, labor and services, were 24% of revenue in the first half of fiscal 2013, as compared to 26% of revenue in the first half of fiscal 2012.
During the first half of fiscal 2013, total costs and expenses increased by approximately $40,000 compared to the same period of the prior year. Selling, general and administrative expenses were $2.00 million for the first half of fiscal 2013. Total operating loss for the first half of fiscal 2013 improved to approximately $52,000 compared to $529,000 for the same period in fiscal 2012.
In the first half of fiscal 2013 we recognized a gain of approximately $265,000 related to the change in the fair value of derivative warrants issued in connection with our June 2012 private placement. This fair value will be re-measured each reporting period throughout the five year life of the warrants or until exercised.
Other income increased by approximately $41,000 to $75,000 in the first half of fiscal 2013 from approximately $34,000 in the first half of fiscal 2012. In the first half of fiscal 2013 we sold a technology license for our GRADIUM® product line in Asia and recognized $50,000 in income associated with the license agreement.
Net income for the first half of fiscal 2013 was $242,000 or $0.02 per basic and diluted common share, compared with a net loss of $542,000 or ($0.06) per basic and diluted common share for the same period in fiscal 2012. Weighted-average basic shares outstanding increased to 11,786,793 in the first half of fiscal 2013 compared to 9,753,618 in the first half of fiscal 2012 which is primarily due to the issuance of shares of common stock in the June 2012 private placement, shares issued for the payment of interest on our convertible debentures and the shares issued for our employee stock purchase plan.
Cash and cash equivalents totaled approximately $1.78 million as of December 31, 2012. The current ratio as of December 30, 2012 was 2.18 to 1 compared to 3.59 to 1 as of June 30, 2012. The change was primarily due to our convertible debt moving from a long term to a current liability. Total stockholders’ equity as of December 31, 2012was approximately $4.48 million compared to $4.00 million as of June 30, 2012.
As of December 31, 2012, our 12-month backlog was $4.64 million compared to $4.89 million as of June 30, 2012.
Investor Conference Call and Webcast Details:
LightPath will host an audio conference call and webcast on Wednesday, January 30th at 4:30 p.m. (ET) to discuss the Company's financial and operational performance for the second quarter of fiscal 2013.
Conference Call Details
Date: Wednesday, January 30, 2013
Time: 4:30 p.m. (ET)
Dial-in Number: 1-800-860-2442
International Dial-in Number: 1-412-858-4600
It is recommended that participants dial-in approximately 5 to 10 minutes prior to the start of the 4:30 p.m. call. A transcript archive of the webcast will be available for viewing or download on the company web site shortly after the call is concluded.About LightPath Technologies
LightPath manufactures optical products including precision molded aspheric optics, GRADIUM® glass products, proprietary collimator assemblies, laser components utilizing proprietary automation technology, higher-level assemblies and packing solutions. The Company's products are used in various markets, including industrial, medical, defense, test and measurement and telecommunications. LightPath has a strong patent portfolio that has been granted or licensed to it in these fields. For more information visit www.lightpath.com.
The discussions of our results as presented in this release include use of non-GAAP terms "EBITDA" and "gross margin." Gross margin is determined by deducting the cost of sales from operating revenue. Cost of sales includes manufacturing direct and indirect labor, materials, services, fixed costs for rent, utilities and depreciation, and variable overhead. Gross margin should not be considered an alternative to operating income or net income, which is determined in accordance with Generally Accepted Accounting Principles ("GAAP"). We believe that gross margin, although a non-GAAP financial measure is useful and meaningful to investors as a basis for making investment decisions. It provides investors with information that demonstrates our cost structure and provides funds for our total costs and expenses. We use gross margin in measuring the performance of our business and have historically analyzed and reported gross margin information publicly. Other companies may calculate gross margin in a different manner.
EBITDA is a non-GAAP financial measure used by management, lenders and certain investors as a supplemental measure in the evaluation of some aspects of a corporation's financial position and core operating performance. Investors sometimes use EBITDA as it allows for some level of comparability of profitability trends between those businesses differing as to capital structure and capital intensity by removing the impacts of depreciation, amortization, and loss on extinguishment of debt and interest expense. EBITDA also does not include changes in major working capital items such as receivables, inventory and payables, which can also indicate a significant need for, or source of, cash. Since decisions regarding capital investment and financing and changes in working capital components can have a significant impact on cash flow, EBITDA is not a good indicator of a busi ness's cash flows. We use EBITDA for evaluating the relative underlying performance of the Company's core operations and for planning purposes. We calculate EBITDA by adjusting net loss to exclude net interest expense, income tax expense or benefit, depreciation and amortization, thus the term "Earnings Before Interest, Taxes, Depreciation and Amortization" and the acronym "EBITDA."
This news release includes statements that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our ability to expand our presence in certain markets, future sales growth, continuing reductions in cash usage and implementation of new distribution channels. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, factors detailed by LightPath Technologies, Inc. in its public filings with the Securities and Exchange Commission. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not have any intenti on or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Wednesday, January 23, 2013

LightPath Technologies Schedules Fiscal First Quarter 2013 Conference Call


LightPath Logo

 

LightPath Technologies Schedules
Fiscal Second Quarter 2013 Conference Call
Company Will Announce Second Quarter 2013 Results on January 30, 2013
Conference Call Slated for 4:30 pm

ORLANDO, FL - (PRNewswire – January 23, 2013) - LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath", the "Company" or "we"), a global manufacturer, distributor and integrator of patented optical components and high-level assemblies, announced today it will host a conference call to discuss the Company's financial and operational results for the fiscal second quart er of 2013, the period ended December 31, 2012.
Details of the call are as follows:
Conference Call:
Date: Wednesday, January 30, 2013
Time: 4:30 PM (ET)
Dial-in Number: 1-800-860-2442
International Dial-in Number: 1-412-858-4600
Webcast:
http://www.videonewswire.com/event.asp?id=91514
Participants are recommended to dial-in approximately 5 to 10 minutes prior to the start of the call. A replay of the call will be available approximately one hour after completion through February 7, 2013. To listen to the replay, dial 1-877-344-7529 (within the U.S.) and 1-412-317-1088 (international calls), and enter conference ID # 10023316.
About LightPath Technologies
LightPath manufactures optical products including precision molded aspheric optics, GRADIUM® glass products, proprietary collimator assemblies, laser components utilizing proprietary automation technology, higher-level assemblies and packing solutions. The Company's products are used in various markets, including industrial, medical, defense, test and measurement and telecommunications. LightPath has a strong patent portfolio that has been granted or licensed to it in these fields. For more information visit www.lightpath.com

Monday, January 14, 2013

LightPath Technologies Provides Quarterly Update on Infrared Initiatives


LightPath Logo

LightPath Technologies Provides Quarterly Update on Infrared Initiatives

R&D Has Yielded 30% IR Manufacturing Cost Reductions
Evaluation of Prototypes with Prospective New OEM Customers for Thermal Imaging Systems Now Underway
ORLANDO, FL - (PRNewswire – January 14, 2012) - LightPath Technologies, Inc. (NASDAQ: LPTH) (“LightPath”, the “Company” or “we”), a global manufacturer, distributor and integrator of patented optical components and high-level assemblies, today provided an update to shareholders on its progress with infrared lens initiatives.  
LightPath continues to cultivate its thermal imaging business and has started delivering production units to several new OEM customers. Sales and technical teams continue to contact OEMs who purchase infrared optics in this space and deliver prototypes of optical assemblies for their respective thermal imaging systems.
To support anticipated growth in its thermal infrared product lines, LightPath continues to implement multiple cost reduction programs and is simultaneously expanding the manufacturing capacity at its Orlando facility. During the past quarter, work has remained focused on molding yield improvement, expanded preform capability, and work station layout. These programs have already reduced manufacturing costs by 30% and the company is on track to achieve its expected cost targets. Additionally, LightPath has deployed new polishing equipment that increases the capacity of its glass preparation facility by 80% in anticipation of an acceleration of orders in the second half of fiscal 2013.  
LightPath’s chalcogenide optics provides significant material cost advantages for customers compared to the materials that are currently in use for high volume infrared systems.
Jim Gaynor, President and Chief Executive Officer of LightPath, commented, “We are excited to be in the position to penetrate this $150 million addressable market for infrared products, spanning a diverse customer base.  We are continuing to expand our thermal imaging business with OEM customers and see additional opportunities as we introduce additional quantum cascade laser lenses which will be showcased at the upcoming Photonics West exhibition February 5th thru February 7th.  These new lenses continue to interest customers in various subsectors, such as infrared countermeasures, gas analysis, and spectroscopy.”
About LightPath Technologies
LightPath manufactures optical products including precision molded aspheric optics, GRADIUM® glass products, proprietary collimator assemblies, laser components utilizing proprietary automation technology, higher-level assemblies and packing solutions. The Company's products are used in various markets, including industrial, medical, defense, test and measurement and telecommunications. LightPath has a strong patent portfolio that has been granted or licensed to it in these fields. For more information visit www.lightpath.com.
Forward-Looking Statements
This news release includes statements that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding our ability to expand our presence in certain markets, future sales growth, continuing reductions in cash usage and implementation of new distribution channels. This information may involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, factors detailed by LightPath Technologies, Inc. in its public filings with the Securities and Exchange Commission. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not have any intentio n or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. 

Wednesday, January 9, 2013

MACF: Manufacturing Sales Tax Change


Effective January 1, 2013 Florida manufacturers purchasing machinery and equipment for expanding operations need only show 5% productivity (reduced from 10%) to be eligible for a sales tax exemption on such machinery and equipment.

This was a priority of the state manufacturing association Manufacturers Association of Florida (MAF), Regional Associations such as the Manufacturers Association of Central Florida (MACF) and Governor Scott in 2012 Legislature and fortunately was passed by the Florida Legislature. MAF Site

REGISTER NOW FOR SATURDAY, JANUARY 19th ENTREPRENEURSHIP WORKSHOP -


Do you need assistance with business plan development, raising capital, legal matters, customer acquisition strategies, government contracting, grant opportunities (including SBIR) and networking?  

SATURDAY, JANUARY 19, 2013 - 8:30 AM TO 4:00 PM

What are the Benefits of Participating in a  
TRDA Entrepreneurship Workshop?
  • Immediate, honest feedback on your business plan, and its potential attractiveness to angels, venture capitalists or other sources of capital
  • Ongoing access to a deep, statewide network of experienced "been there, done that" mentors that have walked in your shoes and raised capital for their own companies
  • Quick-drop education on best practices for business plan development, financial modeling, market strategies and closing your first customers
  • Access to a statewide network of critical business service providers at reduced rates
What are the Criteria to Participate in these Workshops?
Florida-based technology Clean Tech companies with the following criteria are eligible:
  • Potential for rapid revenue growth within five years
  • Relevant technical expertise on team for product strategy
  • In the Clean Tech/Alternative Energy sectors
What is the Cost to Participate?
CleanTech companies in the State of Florida may qualify by location or business type for a scholarship for the workshop fees.   There will be a charge of $250 for companies outside the CleanTech arena.  Qualification for scholarship will be determined upon registration. 

To find out more information about the entrepreneurship workshop on January 19, 2013, email Ryan Greenough or call 321-872-1050 x111.  


Technological Research and Development Authority (TRDA)