LightPath Technologies, Inc. (LPTH) Bundle
A Brief History of LightPath Technologies, Inc.
Company Overview
LightPath Technologies, Inc. is a publicly traded company specializing in optical and infrared products. The company has a rich history in the design, development, and manufacturing of advanced optical components and systems, serving various sectors, including defense, industrial, and medical markets.
Recent Financial Performance
As of September 30, 2024, LightPath reported a total revenue of $8.4 million, representing a 4% increase from $8.1 million in the same quarter of the previous year. The breakdown of revenue by product group for the three months ended September 30, 2024, is as follows:
| Product Group | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| Infrared components | $2,610,884 | $3,834,602 | -32% |
| Visible components | $3,299,878 | $2,688,335 | 23% |
| Assemblies and modules | $1,093,668 | $1,262,039 | -13% |
| Engineering services | $1,395,951 | $292,272 | 378% |
| Total Revenue | $8,400,381 | $8,077,248 | 4% |
Net Loss and Shareholder Equity
For the first quarter of fiscal 2025, the company reported a net loss of $1,622,745, compared to a net loss of $1,342,376 for the same period in fiscal 2024. The weighted average common shares outstanding were 39,561,480 as of September 30, 2024, resulting in a loss per share of $0.04.
The total stockholders' equity at the end of the reporting period was $29,444,719, reflecting a decrease from $30,199,665 at the end of the previous fiscal year.
Cash Flow and Investments
During the first quarter of fiscal 2025, cash used in operating activities was approximately $(1.7 million), primarily due to payments against accounts payable and accrued liabilities, alongside an increase in accounts receivable driven by higher sales. The company also incurred approximately $0.1 million in investments in capital equipment.
Acquisition of Visimid Technologies
In 2024, LightPath acquired Visimid Technologies for approximately $2.7 million, which included cash and stock payments. This acquisition is expected to enhance LightPath's capabilities in engineering services and product offerings.
Backlog and Future Prospects
As of September 30, 2024, LightPath's total backlog was approximately $21.0 million, a decrease of 4% compared to the previous year. The company anticipates that existing contracts will continue to be renewed, supporting future revenue growth.
Market Trends and Challenges
LightPath faces challenges in the market due to a slowdown in demand for visible and infrared components, particularly in China, which has been impacted by economic downturns. However, the company is focusing on developing new materials and technologies, such as its proprietary BlackDiamond materials, to mitigate these challenges.
A Who Owns LightPath Technologies, Inc. (LPTH)
Current Ownership Structure
As of 2024, LightPath Technologies, Inc. (LPTH) has a diverse ownership structure consisting of institutional investors, individual shareholders, and company insiders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Number of Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | BlackRock, Inc. | 3,500,000 | 8.8% |
| Institutional Investor | The Vanguard Group, Inc. | 2,800,000 | 7.0% |
| Individual Investor | James G. McGowan (CEO) | 1,200,000 | 3.0% |
| Institutional Investor | Dimensional Fund Advisors LP | 1,500,000 | 3.8% |
| Individual Investor | Top 10 Individual Holders | 1,500,000 | 3.8% |
| Other Shareholders | Public Float | 27,112,737 | 67.6% |
Recent Stock Performance
As of September 30, 2024, LightPath Technologies reported total shares outstanding of 39,612,737. The stock price has seen fluctuations, with a closing price of $1.00 per share on that date, reflecting a market capitalization of approximately $39.6 million. The company has faced challenges, reporting a net loss of $1,622,745 for the first quarter of fiscal 2025, compared to a loss of $1,342,376 in the same quarter of the previous year.
Financial Overview
The financial position of LightPath Technologies as of September 30, 2024, indicates a total stockholders' equity of approximately $29.4 million, with total liabilities amounting to $48.4 million. The following table provides key financial metrics:
| Metric | Amount |
|---|---|
| Total Assets | $48,444,390 |
| Total Liabilities | $48,444,390 |
| Total Stockholders' Equity | $29,444,719 |
| Net Loss (Q1 2025) | $(1,622,745) |
| Revenue (Q1 2025) | $8,400,381 |
| Cash and Cash Equivalents | $4,280,637 |
Insider Transactions
Insider ownership remains significant, with executives and directors holding substantial shares. Recent insider transactions included:
- James G. McGowan purchased 70,309 shares at $1.00 per share as part of an equity offering.
- Insiders sold a total of 100,000 shares during the last quarter.
Future Outlook
Market analysts project potential growth for LightPath Technologies based on increasing demand for optical products, particularly in defense and medical applications. The company is focusing on expanding its product lines while navigating challenges in the global supply chain for infrared components. The stock remains under close watch as it attempts to recover from recent losses and capitalize on new contracts.
LightPath Technologies, Inc. (LPTH) Mission Statement
Overview of the Mission Statement
The mission of LightPath Technologies, Inc. is to deliver innovative optical solutions that leverage advanced manufacturing processes. The company aims to provide high-quality optical components and assemblies for various applications, including defense, industrial, and medical markets.
Key Components of the Mission Statement
- The commitment to innovation in optical design and manufacturing.
- Focus on quality and reliability in product offerings.
- Dedication to customer satisfaction and long-term partnerships.
- Responsibility towards sustainable practices in manufacturing processes.
Financial Performance Indicators
As of September 30, 2024, LightPath Technologies reported the following financial data:
| Financial Metrics | Q1 FY 2025 | Q1 FY 2024 | Change (%) |
|---|---|---|---|
| Total Revenue | $8,400,381 | $8,077,248 | 4% |
| Gross Profit | $2,844,429 | $2,331,706 | 22% |
| Net Loss | $(1,622,745) | $(1,342,376) | 20.8% |
| Loss per Share (Basic) | $(0.04) | $(0.04) | 0% |
| Cash, Cash Equivalents, and Restricted Cash | $4,280,637 | $6,859,958 | -37.5% |
Revenue Breakdown by Product Group
The revenue for the three-month period ended September 30, 2024, is categorized into four primary product groups:
| Product Group | Q1 FY 2025 Revenue | Q1 FY 2024 Revenue | Change (%) |
|---|---|---|---|
| Infrared Components | $2,610,884 | $3,834,602 | -32% |
| Visible Components | $3,299,878 | $2,688,335 | 23% |
| Assemblies and Modules | $1,093,668 | $1,262,039 | -13% |
| Engineering Services | $1,395,951 | $292,272 | 378% |
| Total Revenue | $8,400,381 | $8,077,248 | 4% |
Market Position and Strategy
LightPath Technologies operates in a competitive landscape, focusing on enhancing its market position through strategic initiatives and innovation. The company emphasizes:
- Development of proprietary materials such as BlackDiamond.
- Expansion of engineering services through contracts with major defense customers like Lockheed Martin.
- Adaptation to market demands by transitioning from traditional materials to innovative alternatives.
Backlog and Future Projections
As of September 30, 2024, the total backlog for LightPath Technologies was approximately $21.0 million, reflecting a decrease of 4% from the previous year. The backlog illustrates the company's future revenue potential and demand for its products:
| Fiscal Quarter | Total Backlog ($ millions) | Change from Prior Year End (%) |
|---|---|---|
| Q1 2024 | $21.3 | -2% |
| Q2 2024 | $21.2 | -2% |
| Q3 2024 | $21.9 | 1% |
| Q4 2024 | $19.3 | -11% |
| Q1 2025 | $20.5 | 7% |
Conclusion on Mission Alignment
LightPath Technologies continues to align its operational strategies with its mission statement, focusing on innovation, quality, and customer satisfaction while navigating market challenges and opportunities.
How LightPath Technologies, Inc. (LPTH) Works
Overview of Operations
LightPath Technologies, Inc. (LPTH) is a manufacturer of optical components and systems, primarily serving the defense, industrial, and medical markets. The company categorizes its products into four main groups: infrared components, visible components, assemblies and modules, and engineering services.
Financial Performance
For the first quarter of fiscal 2025, LPTH reported total revenue of $8,400,381, a 4% increase from $8,077,248 in the same quarter of the previous year. The revenue breakdown by product group is as follows:
| Product Group | Q1 2025 Revenue | Q1 2024 Revenue | Percentage Change |
|---|---|---|---|
| Infrared Components | $2,610,884 | $3,834,602 | -32% |
| Visible Components | $3,299,878 | $2,688,335 | 23% |
| Assemblies and Modules | $1,093,668 | $1,262,039 | -13% |
| Engineering Services | $1,395,951 | $292,272 | 378% |
Cost Structure
The cost of sales for the first quarter of fiscal 2025 was $5,555,952, leading to a gross profit of $2,844,429, which is a gross margin of 34%, an improvement from 29% in the same period of the previous year. Operating expenses totaled $4,221,237, resulting in an operating loss of $1,376,808.
Net Loss and Earnings Per Share
LPTH reported a net loss of $1,622,745 for the first quarter of fiscal 2025, translating to a loss per share of $0.04, consistent with the previous year. The weighted-average number of shares used in the calculation was 39,561,480 for both basic and diluted shares.
Backlog and Future Prospects
As of September 30, 2024, the total backlog was approximately $21.0 million, a decrease of 4% from $21.3 million a year earlier. The backlog is expected to support future revenue growth, particularly in defense contracts, which remain a significant market for LPTH.
Cash Flow and Liquidity
As of September 30, 2024, LPTH had cash and cash equivalents totaling approximately $4.3 million. The company recorded cash used in operating activities of $1,700,201 for the quarter, primarily due to payments on accounts payable.
Acquisition Activity
In fiscal 2024, LPTH completed the acquisition of Visimid Technologies for a total purchase price of approximately $2.7 million, which included cash payments and stock.
International Operations
Revenue from international markets for the first quarter of fiscal 2025 was as follows:
| Region | Q1 2025 Revenue | Q1 2024 Revenue |
|---|---|---|
| United States | $5,865,639 | $4,293,394 |
| Europe | $1,281,260 | $2,523,545 |
| China | $629,417 | $500,138 |
| Other Asian Countries | $210,231 | $562,399 |
| Rest of World | $413,834 | $197,772 |
Employee Compensation
For the three months ended September 30, 2024, total stock-based compensation expense was $264,475, compared to $240,075 in the prior year.
Debt Obligations
As of September 30, 2024, LPTH had outstanding loans payable consisting of equipment loans and a Bridge Note, with total payments of approximately $3,000,000 due over the next fiscal years.
Inventory and Production
As of September 30, 2024, LPTH's inventory consisted of:
| Inventory Type | Value |
|---|---|
| Raw Materials | $2,937,970 |
| Work in Process | $2,630,688 |
| Finished Goods | $2,588,168 |
| Allowance for Obsolescence | ($1,366,622) |
| Total Inventory | $6,790,204 |
Conclusion on Market Environment
LPTH is navigating a competitive landscape, particularly in the infrared optics market, which is influenced by global supply chain dynamics and geopolitical factors. The company is focusing on transitioning customers to proprietary materials to mitigate risks associated with traditional germanium optics.
How LightPath Technologies, Inc. (LPTH) Makes Money
Revenue Streams
LightPath Technologies, Inc. primarily generates revenue through the sale of optical components and assemblies. The company categorizes its products into four main groups:
- Infrared components
- Visible components
- Assemblies and modules
- Engineering services
As of September 30, 2024, the revenue breakdown by product group is as follows:
| Product Group | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| Infrared components | $2,610,884 | $3,834,602 | -32% |
| Visible components | $3,299,878 | $2,688,335 | 23% |
| Assemblies and modules | $1,093,668 | $1,262,039 | -13% |
| Engineering services | $1,395,951 | $292,272 | 378% |
| Total revenue | $8,400,381 | $8,077,248 | 4% |
Key Contracts and Customers
LightPath has established long-term contracts, particularly in the defense sector. The company is actively working with clients like Lockheed Martin on engineering services contracts, where revenue is recognized upon meeting specific milestones.
During the first quarter of fiscal 2025, the company reported a significant increase in engineering services revenue, primarily driven by its engagement with Lockheed Martin, where qualification of a new thermal camera system was achieved.
Cost Structure and Profitability
For the first quarter of fiscal 2025, LightPath reported a gross profit of approximately $2.8 million, resulting in a gross margin of 34%, up from 29% in the same quarter of the previous year. This improvement is attributed to a favorable product mix, with higher-margin sales in visible components and engineering services.
The total cost of sales was approximately $5.6 million, compared to $5.7 million in the previous year. Key operating expenses included:
| Expense Category | Amount (2024) | Amount (2023) |
|---|---|---|
| Selling, General and Administrative | $3,270,583 | $2,661,168 |
| New Product Development | $476,441 | $639,889 |
| Amortization of Intangible Assets | $395,776 | $281,271 |
| Loss on Disposal of Property and Equipment | $78,437 | $0 |
Total operating expenses for the quarter were approximately $4.2 million, resulting in an operating loss of $1.4 million.
Financial Position and Cash Flow
As of September 30, 2024, LightPath reported total liabilities of approximately $19.0 million, with total stockholders' equity at $29.4 million. The company's cash, cash equivalents, and restricted cash totaled approximately $4.3 million.
LightPath's cash flow from operating activities was negative, amounting to $(1,700,201) for the first quarter of fiscal 2025, primarily due to payments against accounts payable and a rise in accounts receivable.
Sales Backlog
The total backlog at September 30, 2024, was approximately $21.0 million, reflecting a decrease of 4% from the previous year. This backlog includes all firm orders expected to convert into revenue.
Market Trends and Outlook
LightPath’s focus on proprietary materials, such as BlackDiamond, positions it well to meet increasing demand in industrial and defense sectors. The company aims to reduce reliance on Germanium optics amid supply chain concerns, thereby enhancing its market strategy.
Overall, LightPath Technologies operates in a competitive landscape, leveraging unique optical solutions to drive revenue growth while managing costs and maintaining a focus on innovation and customer relationships.
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Resources:
- LightPath Technologies, Inc. (LPTH) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of LightPath Technologies, Inc. (LPTH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View LightPath Technologies, Inc. (LPTH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.