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ORLANDO, FL – February 2, 2015 – LightPath Technologies, Inc. (NASDAQ: LPTH) (“LightPath,” the “Company” or “we”),
a leading vertically integrated global manufacturer, integrator and
distributor of proprietary optical components, infrared lenses and
high-level assemblies, announced today the implementation of strategic
growth initiatives and an organizational optimization plan. Under these plans, the Company will
be better positioned to accelerate its revenue growth and profitability,
principally by the transition to a technical sales process that leverages
the success of its existing demand-creation model. To align the organization for specific
goals and accountability, an executive structure has been created with
three direct reporting lines: Operations, China, and Finance.
Commenting on the newly implemented initiatives, Jim
Gaynor, President and Chief Executive Officer of LightPath, said, “We are
driving changes in the marketplace and are adapting accordingly. Over the past five years we have
recorded a compounded annual revenue growth rate of approximately 10% for
our core aspheric optical lens business, which excludes our new infrared
product line and a large non-recurring DARPA program. During this period, we invested to
expand our high speed manufacturing capacity, enhance our manufacturing,
coating and finishing processes, and implemented a demand-creation model
that leverages our low cost, high volume, superior quality production
capabilities to not only take market share but, more importantly, to
create new market opportunities.”
“The
Company’s revenue growth alone reflects the success of our efforts, with
our top line supporting significant market share gains as we have
increased sales of our precision molded optics by a 9.8% compound annual
growth rate for the period of 2009 through 2014 as compared to the 5.8%
market growth rate for laser diodes for the period of 2010 through 2014 as
reported by Laser Focus World’s annual survey. Furthermore, as we reported in our last
quarterly financial results, our 12 month backlog increased approximately
25% to $5.3 million at September 30, 2014 as compared to June 30, 2014,
and our bookings for optical lenses in the first quarter of fiscal 2015
were nearly $3.5 million, the highest level in ten quarters. Other
measures that demonstrate our improved operational position is in our
production capacity and profitability.
The average number of lenses sold per year from 2006 through 2008
were under 400,000 as compared with an average number of lenses sold per
year reaching over 2 million from 2012 through 2014. At the same time, our annual average
gross margin as a percentage of revenue increased from 18% in 2006
through 2008 to 42% in 2012 through 2014.”
“Given the success we have achieved over the last
several years, the growth initiatives and organizational modifications
announced today are intended to further enhance our incremental organic
growth position for our core aspheric lens business, prime our operations
for the anticipated high growth of our new infrared products, and allow
for the integration of strategic acquisitions. An ancillary benefit of the changes
announced today is an estimated annual reduction of operating expenses of
5% to 10% or savings of approximately $200,000 to $375,000 per year upon
complete implementation. We are
benefiting from a substantial increase in revenue generating
opportunities and broader market applications as a result of our
investments in technologies that decreased our lens production costs and
expanded our production capacity.
We believe we can further improve upon our track record of growth
– and to do so far more profitably. ”
As an
integral component to accomplish its goals, LightPath is aligning its
sales and marketing efforts to elevate its demand-creation model to an
even more technically-based approach as its addressable markets have
proven to be increasingly receptive to the Company’s product lines. Technical and engineering staff will be
more fully integrated with the Company’s sales force, and two new sales
positions have been created: (1) Executive Sales Manager, combining the
responsibility for all sales and marketing under Glenn Breeze; and, (2)
Marketing Manager under Kimberly Clifton. Organizations supporting
aspheric visible lens products and the Company’s new line of infrared
products will be combined. Sales,
marketing, engineering and quality will report to Alan Symmons, who
assumes the newly created position of Executive Vice President-Operations.
Mr. Symmons, previously Vice
President of Corporate Engineering, has been a valued part of LightPath’s
leadership team since 2006. He is credited with making significant
corporate-wide improvements, including the organization and management of
a technical staff; implementation of LightFast, a quick turnaround of
product quotes and production of custom designs; and the development of
new lens products that include low cost lenses, blue lenses and many
custom designs.
Mr. Breeze, previously Director
of Infrared Sales, joined LightPath in 2013 from Ophir Optics where he
was Director of Sales and Marketing. Mr Breeze has over 40 years
experience in engineering, technical sales and business development. His
experience with electro optical applications, infrared optical components
and design bring exactly the skills and industry contacts needed to
support the growth of LightPath’s business.
Ms. Clifton also joined
LightPath in 2013 to lead the inside sales and marketing communications
function. She has over 20 years of experience in sales, marketing, media
communications and merchandising for companies such as Stanley Black and
Decker, Crossfire Safety Eyewear, Scholastic Inc., The Gap, and NPI
Direct Mail Marketing.
LightPath’s Finance organization
will continue to be led by Chief Financial Officer Dorothy Cipolla, who
also will assume the newly created position of Chief Administrative
Officer. Areas reporting to Ms.
Cipolla now include functions relating to finance, controller, human
resources, purchasing, facilities, and internal control systems/IT.
Ms. Cipolla has been Chief
Financial Officer, Secretary and Treasurer since February 2006. She has over 30 years’ experience and
served as a CFO for both public and private companies. Prior to joining
LightPath, Ms. Cipolla was engaged as CFO for LaserSight Inc., a
manufacturer of laser eye surgery equipment from March 2004 through
February 2006. Ms. Cipolla served in various accounting, finance and
business positions with LaserSight Inc., Alliant Energy Corporation,
Goliath Networks, Inc., and Network Six, Inc. as well as various roles
within The Kendall Company (Colgate Palmolive) and Ernst & Young. Ms.
Cipolla is a certified public accountant.
LightPath’s business in China
will continue to be led by General Manager Hui Yue. Mr. Yue has been with LightPath since
2007, serving as General Manager for the Company’s activities in China
for the last three years. Earlier at
LightPath, he had been Deputy GM for the Shanghai province operations for
over five years. Under his
leadership, LightPath has doubled its lens manufacturing capacity,
including the recently opened facility in Zhenjiang province. Prior to
joining LightPath Mr. Yue was the Senior Director of Sales for Walsin
Fujikura.
About LightPath
Technologies:
LightPath Technologies, Inc. (NASDAQ: LPTH) provides
optics and photonics solutions for the industrial, defense,
telecommunications, testing and measurement, and medical industries.
LightPath designs, manufactures, and distributes optical and infrared
components including molded glass aspheric lenses and assemblies,
infrared lenses and thermal imaging assemblies, fused fiber collimators,
and gradient index GRADIUM® lenses. LightPath also offers custom optical
assemblies, including full engineering design support. For more information, visit www.lightpath.com.
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 intention or obligation to update publicly
any forward-looking statements, whether as a result of new information,
future events or otherwise.
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Investor
Contact:
Jordan Darrow
Darrow Associates, Inc.
631-367-1866
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