LPTH Press Release - Lightpath Technologies Releases Q3 Results

LightPath Technologies Announces Third Quarter Financial Results ORLANDO, FL - (Marketwire - April 28, 2011) - 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 its financial results for the third quarter ended March 31, 2011. Third Quarter Highlights: Backlog scheduled to ship within the next 12 months was $3.63 million as of March 31, 2011, an increase of 23% or $683,000 from June 30, 2010. EBITDA for the third quarter of fiscal 2011 is $73,000 compared to $397,000 in the third quarter of fiscal 2010. Unit shipment volume in precision molded optics increased 61% in the third quarter of fiscal 2011 compared to the same period of last year. Revenue for the third quarter of fiscal 2011 was $2.43 million compared to $2.66 million for the third quarter of fiscal 2010. Gross margin was 40% for the third quarter of fiscal 2011 as compared to 47% for the third quarter of fiscal 2010. Cash on hand as of March 31, 2011 was $1.0 million as compared to $1.46 million on June 30, 2010. Jim Gaynor, President and Chief Executive Officer of LightPath, commented, "LightPath continues to make significant progress in the execution of our business strategy. EBITDA improved by $118,000 from the previous quarter, operating loss improved 41% from the previous quarter and backlog grew 11% from the previous quarter. We used cash for expansion by increasing the number of tools available and completing the installation of our new press stations. During the third quarter we improved our working capital position by extending the maturity date of our convertible debentures from August 2011 to August 2013. Although our revenue decreased slightly this was a solid quarter for LightPath given the continued penetration of our target markets and resulting backlog of orders growth. We have established business with over eleven major customers in the Asian industrial tool market. Over the next 3 to 6 months this new customer demand equates to an additional 200,000 lenses per month. This increase in unit volume over our existing business will utilize our recently installed capacity.” Mr. Gaynor continued “We continue to position the Company to take advantage of larger markets with low cost high volume applications, value added services and thermal imaging and sensing application designs and products. LightPath is transitioning its business to focus on providing low cost high volume lenses for products such as laser levels, range finders, gun sights and projectors. In addition to the industrial tool market, we are targeting opportunities in biomedical instruments, communications and imaging. As we continue to work to grow our revenue, improve our production efficiencies and continue cost reduction efforts, our margins and cash flow will continue to improve. We are confident in our strategy and see the improvements occurring. In the coming quarters we remain optimistic and in the long run believe our strategy offers significant financial rewards for the Company and our stockholders.” Financial Results for Three Months Ended March 31, 2011 Revenue for the third quarter of fiscal 2011 totaled approximately $2.43 million compared to approximately $2.66 million for the third quarter of fiscal 2010, a decrease of 9%. The decrease from the third quarter of the prior fiscal year was primarily attributable to lower sales prices on increased unit volume of precision molded optics, lower sales volume of GRADIUM lenses and isolators offset by higher sales for infrared lenses and collimators. Growth in sales going forward is expected to be derived primarily from the precision molded lenses product line, particularly our low cost lenses being sold in Asia where we have experienced an increase in bookings during this quarter. Our gross margin percentage in the third quarter of fiscal 2011 compared to the third quarter of fiscal 2010 was 40% compared to 47%. Total manufacturing costs of $1.46 million were approximately $47,000 higher in the third quarter of fiscal 2011 compared to the same period of the prior fiscal year. The increase in manufacturing costs, as compared to the same period of the prior fiscal year, is a reflection of a product mix change associated with increased sales of infrared lenses and collimators, which have a higher material cost. Unit shipment volume in precision molded optics increased by 61% in the third fiscal quarter of 2011 compared to the same period last year. Direct costs, which include material, labor and services were 24% of revenue in the third quarter of fiscal 2011, as compared to 26% of revenue in the third quarter of fiscal 2010. Our average cost per unit decreased by 34% due to higher unit volume reducing overhead costs per unit offset by slightly higher labor costs and higher freight costs. This improvement in the average cost per unit was offset by a 41% decrease in the average selling price per unit, negatively impacting our gross margin. During the third quarter of fiscal 2011, total costs and expenses increased $80,000 to $1.13 million compared to $1.05 million for the same period in fiscal 2010. This increase was primarily due to a $76,000 credit in the prior year for the reversal of an accrual for legal expenses. Also included in total costs and expenses for the third quarter of fiscal 2011 were $861,000 in selling, general and administrative expenses. As a result, total operating loss for the third quarter of fiscal 2011 was approximately $151,000 compared to income of $203,000 for the same period in fiscal 2010. Net interest expense was $93,000 in the third quarter of fiscal 2011 as compared to $191,000 in the third quarter of fiscal 2010 represents interest on our convertible debentures, at 8% per annum and amortization of debt discount and debt costs. Loss on extinguishment of debt of $132,000 during the third quarter of fiscal 2011 resulted from the two year extension of the maturity date of our convertible debentures and included the write-off of approximately $89,000 of debt issuance costs and debt discount and premium of $43,000 from debt exchange for a non-related debt holder. Net loss for the third quarter of fiscal 2011 was $376,000 or $0.04 per basic and diluted common share, compared with a net income of $12,000 or $0.00 per basic and diluted common share for the same period in fiscal 2010. The $388,000 increase in net loss resulted primarily from the loss on extinguishment of debt of $132,000 and a $76,000 reversal of a legal accrual in the prior year and lower revenue. Weighted-average basic shares outstanding increased to 9,715,266 in the third quarter of fiscal 2011 compared to 8,232,496 in the third quarter of fiscal 2010 which is primarily due to the issuance of shares of common stock related to a private placement in the fourth quarter of fiscal 2010 and convertible debentures that were converted to shares of common stock in the first and second quarters of fiscal 2011. Financial Results for Nine Months Ended March 31, 2011 Revenue for the first nine months of fiscal 2011 was approximately $7.22 million compared to approximately $6.44 million for the first nine months of fiscal 2010, an increase of 12%. This increase from the first nine months of fiscal 2010 was primarily attributable to higher sales volumes in all of our product lines. The number of units of precision molded optics increased 34% due to our increased production capability and our pursuit of low cost, high volume lens business. Growth in sales going forward is expected to be derived primarily from our precision molded optics product line, particularly our low cost lenses sold in Asia. Our gross margin percentage in the first nine months of fiscal 2011 compared to the first nine months of fiscal 2010 decreased to 39% from 45%. Total manufacturing costs of $4.41 million were approximately $846,000 higher in the first nine months of fiscal 2011 compared to the same period of the prior fiscal year. This increase in manufacturing costs resulted from an increase in costs necessary to support higher production and sales volumes and a product mix change to products with a higher material cost, such as isolators and collimators. Direct costs, which include material, labor and services increased to 26% of revenue in the first nine months of fiscal 2011, as compared to 23% of revenue in the first nine months of fiscal 2010. Our average cost per unit decreased by 8% due to higher unit volume reducing overhead costs per unit offset by slightly higher labor costs and higher freight costs. This improvement in the average cost per unit was offset by a 17% decrease in the average selling price per unit, negatively impacting our gross margin. During the first nine months of fiscal 2011, total costs and expenses increased $686,000 to approximately $3.69 million compared to approximately $3.00 million for the same period in fiscal 2010. This increase was due to a $128,000 increase in wages, an $89,000 increase in sales tax, $38,000 in recruiting fees, $46,000 in outside services for information technology, a $58,000 increase in stock compensation expense due to stock options granted in the third quarter of fiscal 2010, and a $24,000 increase in materials for engineering projects. In addition, in the first nine months of 2010 there was a one time benefit resulting from legal expenses incurred which was offset by receipt of a reimbursement from our D&O insurance carrier in the net amount of $278,000 for legal expenses incurred in connection with litigation. As a result, total operating loss for the first nine months of fiscal 2011 increased to a loss of approximately $879,000 compared to a loss of $120,000 for the same period in fiscal 2010. Net interest expense was approximately $583,000 in the first nine months of fiscal 2011 as compared to approximately $534,000 in the first nine months of fiscal 2010. This increase was due to the write-off of unamortized debt discount and debt costs related to the conversion of debentures totaling $832,500 into shares of common stock in the first nine months of fiscal 2011. Our interest expense included interest on our convertible debentures, at 8% per annum, the amortization of the related debt issuance costs and debt discount, and write off of debt issue costs, prepaid interest and debt discount for convertible debentures that were converted into shares of common stock during the first nine months of fiscal 2011. Loss on extinguishment of debt of $132,000 during the nine months ended March 31, 2011 resulted from the extension of the maturity date of our convertible debentures from August 2011 to August 2013 and included the write-off of approximately $89,000 of debt costs and debt discount and $43,000 premium from debt exchange for a non-related debenture holder. Net loss for the first nine months of fiscal 2011 was approximately $1.60 million or $0.17 per basic and diluted common share, compared with a net loss of approximately $653,000 or $0.08 per basic and diluted common share for the same period in fiscal 2010. The $950,000 increase in net loss was primarily from the loss on extinguishment of debt of $132,000, the reimbursement of $278,000 from our D&O insurance carrier for legal expenses, which was received last year and an increase of $457,000 in wages associated with the increased unit volume, sales and engineering development and an increase of $51,000 for stock compensation expense. Weighted-average basic shares outstanding increased to 9,474,204 in the first nine months of fiscal 2011 compared to 7,901,156 in the first nine months of fiscal 2010 which is primarily due to the issuance of shares of common stock related to a private placement in the fourth quarter of fiscal 2010 and convertible debentures converted into shares of common stock in the first half of fiscal 2011. Cash and cash equivalents totaled approximately $1.0 million as of March 31, 2011. Total current assets and total assets as of March 31, 2011 were approximately $4.49 million and $7.04 million compared to approximately $4.80 million and $7.46 million, respectively, as of June 30, 2010. Total current liabilities and total liabilities as of March 31, 2011 were approximately $1.54 million and $3.11 million compared to approximately $1.09 million and $3.21 million, respectively, as of June 30, 2010. As a result, the current ratio as of March 31, 2011 was 2.92 to 1 compared to 4.41 to 1 as of June 30, 2010. Total stockholders’ equity as of March 31, 2011 totaled approximately $3.92 million compared to $4.24 million as of June 30, 2010. As of March 31, 2011 our backlog of orders scheduled to ship in the next 12 months, was $3.63 million compared to $2.95 million as of June 30, 2010. Investor Conference Call and Webcast Details: LightPath will host an audio conference call and webcast on Thursday, April 28th at 4:00 p.m. EDT to discuss the Company's financial and operational performance for the third quarter of fiscal 2011. Conference Call Details Date: Thursday, April 28, 2011 Time: 4:00 p.m. (EDT) Dial-in Number: 1-877-407-8033 International Dial-in Number: 1-201-689-8033 It is recommended that participants dial-in approximately 5 to 10 minutes prior to the start of the 4:00 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 http://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 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 business'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 intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Contacts: LightPath Technologies, Inc. Jim Gaynor President & CEO or Dorothy Cipolla CFO +1 (407) 382-4003 dcipolla@lightpath.com

May's Lunch Connection - Equipment Leasing Made Easy!

bioBUZZ: Action Alert: Support Florida's Biomedical Research Programs

Dear bioOrlando Members:

The Senate and House started the budget conference process this morning. Late Tuesday night, the Senate and House appointed their budget negotiators ("conferees"). Budget conferees will meet over the next 5 days to work out the differences between the two budgets.

NEED YOUR HELP! Biomedical research funding is in danger of being eliminated this year, as legislators attempt to balance the state budget amid an almost $4 billion budget deficit. Click here.

Currently, the House funds the James and Esther King Biomedical Research Program (King) at $1.2 million and eliminates funding for the Bill Bankhead and David Coley Biomedical Research Program (Bankhead-Coley). The Senate funds King at $12.2 million and Bankhead-Coley at $10 million. The Senate also allocates $10 million each to the H. Lee Moffitt Cancer Center and Research Institute, the Shands Cancer Hospital and the Sylvester Cancer Center at the University of Miami.

Florida's Biomedical Research Programs:

• Increase Florida's biomedical and cancer researchers' national funding competitiveness;
• Facilitate collaborations between talented scientists within Florida, nationally and internationally;
• Expand research capacity through the training of new scientists and provision of research instruments; and
• Bolster the Florida's investment to grow its technology-based economy in the biosciences.

Please email the Senate and House Health Care Conferees

Senate Health Care Budget Conferees

Sen. Joe Negron - negron.joe.web@flsenate.gov

Sen. Anitere Flores - flores.anitere.web@flsenate.gov

Sen. Rene Garcia - garcia.rene.web@flsenate.gov

Sen. Jim Norman - norman.jim.web@flsenate.gov

Sen. Garrett Richter - richter.garrett.web@flsenate.gov

Sen. Eleanor Sobel - sobel.eleanor.web@flsenate.gov

House Health Care Budget Conferees

Rep. Matt Hudson - matt.hudson@myfloridahouse.gov

Rep. Charles "Chuck" Chestnut - charles.chestnut@myfloridahouse.gov

Rep. Richard Corcoran - richard.corcoran@myfloridahouse.gov

Rep. Daniel Davis - daniel.davis@myfloridahouse.gov

Rep. Jose Diaz - jose.diaz@myfloridahouse.gov

Rep. Jim Frishe - jim.frishe@myfloridahouse.gov

Rep. Gayle Harrell - gayle.harrell@myfloridahouse.gov

Rep. Mia Jones - mia.jones@myfloridahouse.gov

Rep. Mark Pafford - mark.pafford@myfloridahouse.gov

Rep. Ken Roberson - ken.roberson@myfloridahouse.gov

Rep. Greg Steube - greg.steube@myfloridahouse.gov

Rep. John Wood - john.wood@myfloridahouse.gov

Rep. Dana Young - dana.young@myfloridahouse.gov

Thank you for helping bioOrlando support Florida's Biomedical Research Programs!

4.28.11 / MAP 318 / 3-4pm / Seminar: “Simulating Photonic Interactions with Graphical Methods: Numerical Modeling without Writing Software” – Mary Pot

Seminar: “Simulating Photonic Interactions with Graphical Methods: Numerical Modeling without Writing Software” – Mary Potasek, Simphotek Inc.
MAP 318 – Department of Mathematics
Thursday, April 28, 2011 / 3:00pm-4:30pm

Dr. Mary Potasek
Simphotek, Inc.

Abstract:
Formulating a numerical model for photo-physical interactions is complex, often requiring additional effort when the actual optical experiments involve materials of different types of nonlinearities, multi-photon absorptions/relaxations, photo-induced energy transfer, up-conversion, stimulated emission, Auger process, in organics/inorganics and quantum dots with different types of electronic level transitions. We illustrate a method based on computational transition modules (photonic building blocks), which allows simulating a wide range of photonic interactions without reformulating the propagation-material equations and rewriting or editing the simulation code.

For More Information:
Dr. Demetrios Christodoulides
407-882-0074

Enterprise Florida Governors Business Diversification Awards

Program honors businesses for job growth, economic investment feats

ORLANDO, FL (April 18, 2011) – If your company falls into one of the sectors listed below, it’s eligible to compete for a Governor’s Business Diversification Award. It recognizes businesses for making noteworthy contributions toward Florida’s economic development efforts.

· Aviation/Aerospace
· Cleantech
· Corporate Headquarters
· Distribution/Logistics
· Education/Training
· Emerging Industries
· Financial/Professional Services
· Homeland Security/Defense
· Information Technology
· Life Sciences
· Manufacturing
· Marine
· Trade/Export Services

The entry deadline is June 24 at 5 p.m. ET., and the application will be available online via Enterprise Florida’s Web site, www.eflorida.com/govawards, starting April 18.
The nomination of a business can be made by a local or regional economic development organization, or a professional or industry association. Self-nominations are acceptable, also. Three awards will be given in each of these categories:
· Governor’s Business Expansion Award: For Florida companies that expanded their operations in 2010, investing capital and creating jobs for Floridians.


· Governor’s Newcomer Award: For new-to-Florida companies that began business operations in 2010.


· Governor’s Export Excellence Award: For Florida companies with new or significant increases in documented export sales in 2010.


· Governor’s Entrepreneurship Award: For Florida start-up companies (less than 5 years old) that have set a standard for entrepreneurship and creativity.


· Governor’s Innovation Award: For Florida companies, organizations or institutions that through product or process best exemplified innovative leadership in 2010.


· Governor’s Green-to-Gold Award: For Florida companies that through product or process best exemplified "green" leadership as it pertains to the state's goal to become a leader in this emerging field.


-- more --

ADD 1
The winners will be announced in September during Industry Appreciation Week, the third week of the month. The awards will be presented at that time during a special event.
Corporate sponsors for this program this year are Bank of America and Florida Trend.
For more information about the Governors Business Diversification Awards and entry requirements, businesses and economic development organizations can contact:
Luis Pérez-Codina
External Affairs Program Manager
(850) 298-6638 or gbda@eflorida.com
www.eflorida.com/govawards
* * *
Enterprise Florida, Inc. is a partnership between Florida's business and government leaders and is the principal economic development organization for the state of Florida. Headquartered in Orlando, Enterprise Florida’s mission is to diversify Florida’s economy and create better-paying jobs for its citizens by supporting, attracting and helping to create businesses in innovative, high-growth industries. In pursuit of its mission, Enterprise Florida works closely with a statewide network of economic development partners and is funded both by the State of Florida and by private-sector businesses.

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2011 Visioning Luncheon hosted by East Orlando Chamber of Commerce

LPTH Press Release - Lightpath Technologies Introduces New IR Lenses at the SPIE Defense, Security And Sensing Conference

LIGHTPATH TECHNOLOGIES INTRODUCES TWO NEW NEW INFRARED OPTICS AT THE SPIE DEFENSE, SECURITY AND SENSING CONFERENCE IN ORLANDO, FLORIDA FROM APRIL 26TH – 28TH LIGHTPATH TECHNOLOGIES ADDS NEW LENSES TO ITS LONG WAVE INFRARED (LWIR) CATALOG --Targets Large Addressable Markets including Homeland Security-- Orlando, FL - (April 26, 2011) - LightPath Technologies, Inc. (Nasdaq: LPTH), a global manufacturer, distributor and integrator of patented optical components and assemblies, announced today it has added new molded infrared aspheres to its catalog of Long Wave Infrared (LWIR) lenses. These lenses are designed as the primary optics for thermal imagers used in a wide variety of applications including homeland security, firefighting, predictive maintenance and driver’s vision enhancement systems in automobiles. These infrared markets have a combined current estimated value of over $2.5 billion. This new lens is a low cost thermal imaging lens designed specifically for the high volume thermal imaging security camera market. Its f/1.3 and 7.7mm focal length design is optimized for use with the latest generation of 640x512, 17 micron pixel infrared detectors from all of the major thermal imaging camera core suppliers. These new lenses are manufactured from LightPath’s Black Diamond ™ chalcogenide glass and are a less expensive substitute for high-volume, diamond-turned Germanium and Zinc Selenide optics. “LightPath Technologies is continuing to expand its product offering for Infrared Optics with the introduction of these lenses. These new products will address the rapidly expanding thermal imaging and night vision enhancement markets that required high volumes of infrared optics at prices that are lower than currently available,” said Jim Gaynor, CEO and President of LightPath. LIGHTPATH TECHNOLOGIES ADDS NEW MID-WAVE INFRARED COLLIMATOR TO ITS CATALOG --Targets Growing Markets including IRCM & Gas Sensing-- Orlando, FL - (April 26, 2011) - LightPath Technologies, Inc. (Nasdaq: LPTH), a global manufacturer, distributor and integrator of patented optical components and assemblies, announced today it has added a new Mid-Wave Infrared (MWIR) fiber collimator using LightPath’s molded infrared aspheres. This collimator is designed as a beam expanding optic for MWIR fibers or as a collimating lens for Quantum Cascade Lasers (QCL) used in a wide variety of applications including infrared countermeasures (IRCM), and gas analytical instrumentation for environmental sensing. These infrared markets are growing rapidly as the cost of MWIR laser sources continues to decline. This new collimator is based on LightPath’s existing MWIR collimating lenses and extends our existing product line of collimators into the infrared. These new lenses are manufactured from LightPath’s Black Diamond ™ chalcogenide glass and are a less expensive substitute for high-volume, diamond-turned Germanium and Zinc Selenide optics. “LightPath Technologies is continuing to expand its product line for Infrared Optics with the introduction of these collimators. These new products are an expansion of our business in high performance molded aspheres for laser collimation. The combination of LightPath’s experience in laser collimation and our new Black Diamond infrared optics is proving to be an excellent market for our unique capabilities,” said Jim Gaynor, CEO and President of LightPath. 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. LightPath has a strong patent portfolio that has been granted or licensed to us in these fields. LightPath common stock trades on the Nasdaq Capital Market under the stock symbol LPTH. For more information visit www.lightpath.com Contact: Ray Pini, Director of Marketing LightPath Technologies, Inc. Phone: +1-407-382-4003 x336 Email: rpini@lightpath.com Internet: 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. 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. GRADIUM® is a registered trademark of LightPath Technologies