FOR IMMEDIATE RELEASE:
LightPath Technologies Announces Third Quarter
Financial Results
14% Increase in Revenues is Accompanied by 18% Rise in
Backlog
ORLANDO, FL - (PRNewswire - May 10, 2012) - 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 third quarter
ended March 31, 2012.
Third Quarter Highlights:
• Backlog scheduled to ship within the next 12 months was $4.39 million as of March 31,
2012, an increase of 18% or $518,000 from June 30, 2011.
• Unit shipment volume in precision-molded optics increased 12% in the third quarter of fiscal
2012 compared to the same period of last year.
• Revenue for the third quarter of fiscal 2012 was $2.78 million compared to $2.43 million for the third quarter of fiscal 2011, an increase of 14%.
• Cash on hand as of March 31, 2012 was $490,000 as compared to $929,000 on June 30,
2011.
Jim Gaynor, President and Chief Executive Officer of
LightPath, commented, "LightPath's third quarter showed
continued improvement in business conditions with strong
bookings of $3.9 million across all of our product lines.
These bookings include a major infrared contract from
Raytheon Vision Systems, which helped drive an 18% increase
in our 12-month backlog to $4.39 million. The Raytheon
contract provides funding for infrared materials testing and
analysis, process development and coating technology that we
can leverage into our commercial business. We received the
initial funding under this contract subsequent to the end of
the third quarter and have begun work. Our work under this
contract complements other investments we are implementing in
our infrared technology development program and will
accelerate our infrared efforts. We believe that over the
next three years, sales of infrared products have the
potential of doubling our revenue."
Mr. Gaynor added, "While we are excited about our progress in
the emerging infrared business, our core business continues
to grow. Bookings, excluding the Raytheon Vision Systems
contract, have averaged $3.0 million over the last five
quarters demonstrating the continued growth of our core
business. Revenues also increased by 14% as compared to the
third fiscal quarter of 2011 with signs of recovery in our
industrial tool business in Asia and our entry into the
imaging market."
Mr. Gaynor continued, "Our gross margin percentage for the
third quarter of fiscal 2012 remained at
32% for the second quarter in a row. The factors that
contributed to our gross margin percentage being lower than
anticipated were, increased labor costs associated with our
ramp up of the development of new infrared and collimator
products and increased lens coating costs. The higher
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coating costs were due to a cleaning process issue that
affected our yields and the conversion to lower cost glass
materials that is temporarily impacting efficiencies. The
coating on our higher-cost glass lenses is different from the
coating on our lower-cost glass lenses and requires separate
coating runs. Once the transition to lower-cost glass lenses
is complete, we expect our coating efficiencies to improve
and our costs to decrease. In an effort to improve gross
margin in coming quarters, we implemented measures to reduce
our manufacturing overhead costs by approximately $400,000
subsequent to the end of the third quarter of 2012. We
believe these reductions will improve our gross margin
percentage to the low to mid 40% range as soon as the fourth
quarter."
Mr. Gaynor added, "We experienced revenue and backlog growth
in a tough environment and expect to achieve continued
revenue growth over time with new product introductions
across all of our product lines, specifically with our
infrared product line."
Financial Results for Three Months Ended March 31, 2012
Revenue for the third quarter of fiscal 2012 totaled
approximately $2.78 million compared to approximately $2.43
million for the third quarter of fiscal 2011, an increase of
14%. This increase from the third quarter of the prior fiscal
year was primarily attributable to an increase in sales
volumes across all product lines. Unit shipment volume of
precision molded optics increased by
12% in the third quarter of 2012 compared to the same period
of the prior fiscal year. Growth in sales going forward is
expected to be derived primarily from the precision molded
lenses product line, particularly low cost lenses being sold
in Asia and from infrared and collimator products.
The gross margin percentage in the third quarter of fiscal
2012 was 32% compared to 40% in the third quarter of fiscal
2011. Total manufacturing costs of $1.90 million increased by
approximately
$439,000 in the third quarter of fiscal 2012 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 result of directs costs of $242,000
for material, labor and outside services on increased sales,
an increase of
$35,000 in coating costs, and an increase of $85,000 in labor
costs for the infrared and collimator products as we ramp up
the development of these products. Direct costs, which
include material, labor and services, were 24% of revenue in
the third quarter of fiscal 2012, as compared to 27% of
revenue in the third quarter of fiscal 2011.
During the third quarter of fiscal 2012, total costs and
expenses increased $258,000 to $1.39 million compared to
$1.13 million for the same period in fiscal 2011. This
increase was primarily due to incurring expenses of $227,000
related to our securities offering which was subsequently
withdrawn in the third quarter of fiscal 2012. Selling,
general and administrative expenses were $1.14 million for
the third quarter of fiscal 2012. Total operating loss for
the third quarter of fiscal 2012 was approximately $506,000
compared to a loss of $151,000 for the same period in fiscal
2011.
Interest expense was $23,000 in the third quarter of fiscal
2012 as compared to $90,000 in the third quarter of fiscal
2011 which represents interest on the 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 the convertible debentures
and included the write-off of approximately $89,000 of debt
issuance costs and debt discount and premium of $43,000 from
the debt exchange for a non-related debt holder.
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Net loss for the third quarter of fiscal 2012 was $519,000 or
$0.05 per basic and diluted common share, compared with a net
loss of $376,000 or $0.04 per basic and diluted common share
for the same period in fiscal 2011. Weighted-average basic
shares outstanding increased to 9,767,640 in the third
quarter of fiscal 2012 compared to 9,715,266 in the third
quarter of fiscal 2011 which is primarily due to the issuance
of shares of common stock for the payment of interest on
convertible debentures, shares issued for our employee stock
purchase plan and shares issued upon the exercise of
incentive stock options.
Financial Results for Nine Months Ended March 31, 2012
Revenue for the first nine months of fiscal 2012 was
approximately $8.18 million compared to approximately $7.22
million for the first nine months of fiscal 2011, an increase
of 13%. This increase was primarily attributable to higher
sales volumes in all of our major product lines. The number
of units of precision molded optics sold increased by 35% due
to our increased production capability and our pursuit of the
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, and our infrared and collimator
product lines.
Our gross margin percentage in the first nine months of
fiscal 2012 decreased to 34% compared to
39% in the first nine months of fiscal 2011. Total
manufacturing costs of $5.37 million were approximately
$962,000 higher in the first nine months of fiscal 2012
compared to the same period of the prior fiscal year. This
increase in manufacturing costs resulted from an increase in
direct costs of $412,000 for materials, labor and outside
services on increased revenues, an increase of $349,000 in
labor costs for our collimator and infrared products as we
ramp up the development of these products, and an increase of
$174,000 in coating costs. Direct costs, which include
material, labor and services, remained unchanged at 26% of
revenue in the first nine months of fiscal 2012 and
2011.
During the first nine months of fiscal 2012, total costs and
expenses increased $158,000 to approximately $3.84 million
compared to approximately $3.68 million for the same period
in fiscal
2011. As a result, total operating loss for the first nine
months of fiscal 2012 increased to a loss of approximately
$1.04 million compared to a loss of $879,000 for the same
period in fiscal 2011.
Interest expense was approximately $69,000 in the first nine
months of fiscal 2012 as compared to approximately $583,000
in the first nine months of fiscal 2011.
Net loss for the first nine months of fiscal 2012 was
approximately $1.06 million or $0.11 per basic and diluted
common share, compared with a net loss of approximately $1.60
million or $0.17 per basic and diluted common share for the
same period in fiscal 2011. Weighted-average basic shares
outstanding increased to 9,758,233 in the first nine months
of fiscal 2012 compared to 9,474,204 in the first nine months
of fiscal 2011, which is primarily due to the issuance of
shares of common stock as payment of interest due on our
convertible debentures, shares issued for our employee stock
purchase plan and shares issued upon the exercise of
incentive stock options.
Cash and cash equivalents totaled approximately $490,000 as
of March 31, 2012. The current ratio as of March 31, 2012 was
2.17 to 1 compared to 3.01 to 1 as of June 30, 2011. Total
stockholders'
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equity as of March 31, 2012 totaled approximately $3.31
million compared to $4.04 million as of
June 30, 2011.
As of March 31, 2012 our 12-month backlog, was $4.39 million
compared to $3.87 million as of
June 30, 2011.
Investor Conference Call and Webcast Details:
LightPath will host an audio conference call and webcast on
Thursday, May 10th at 4 p.m. EDT to discuss the
Company's financial and operational performance for the
third quarter of fiscal 2012.
Conference Call Details
Date: Thursday, May 10, 2012
Time: 4 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 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
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capital intensity by removing the impacts of depreciation,
amortization, 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 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 | OR: | Brett Maas, Managing Partner |
LightPath Technologies, Inc. | Hayden IR | |
Tel: 407-382-4003 x305 | Tel: 646-536-7331 | |
Email: dcipolla@lightpath.com Web: www.lightpath.com | Email: Brett@haydenir.com Web: www.haydenir.com |
032873, 000013, 601274138
LIGHTPATH TECHNOLOGIES, INC.
EBITDA
(Unaudited) (Unaudited) Three months ended Nine months ended
March 31, March 31,
2012 2011 2012 2011
Net loss | $ (518,985) | $ (375,728) | $ (1,060,731) | $ (1,602,392) | |||
Depreciation and amortization | 286,014 | 227,861 | 857,721 | 655,131 | |||
Loss on extinguishment of debt - 131,784 - 131,784 | |||||||
Interest expense | 22,582 | 89,560 | 69,368 | 583,197 | |||
EBITDA | $ (210,389) | $ 73,477 | $ (133,642) | $ (232,280) |
032873, 000013, 601274138
LIGHTPATH TECHNOLOGIES, INC.
Consolidated Statements of Operations and Comphrehensive Income
(unaudited)
Three months ended Nine months ended
March 31, March 31,
2012 2011 2012 2011
Product sales, net | $ 2,775,486 | $ 2,434,056 | 8,180,749 | $ 7,216,052 | |
Cost of sales | 1,895,724 | 1,456,758 | 5,374,593 | 4,412,173 |
Gross margin 879,762 977,298 2,806,156 2,803,879
Operating expenses:
Selling, general and administrative | 1,141,366 | 861,051 | 3,020,869 | 2,929,578 |
New product development | 236,643 | 265,746 | 795,894 | 736,838 |
Amortization of intangibles | 8,217 | 8,217 | 24,651 | 24,651 |
Gain on sale of property and equipment - (7,211) - (7,751)
Total costs and expenses | 1,386,226 | 1,127,803 | 3,841,414 | 3,683,316 | |||
Operating loss | (506,464) | (150,505) | (1,035,258) | (879,437) | |||
Other income (expense): | |||||||
Interest expense | (21,750) | (32,115) | (66,920) | (148,414) | |||
Interest expense - debt discount | - | (46,746) | - | (316,590) | |||
Interest expense - debt costs | (832) | (10,699) | (2,448) | (118,193) | |||
Loss on extinguishment of debt | - | (131,784) | - | (131,784) | |||
Other income (expense), net | 10,061 | (3,879) | 43,895 | (7,974) | |||
Total other expense, net | (12,521) | (225,223) | (25,473) | (722,955) | |||
Net loss | $ (518,985) | $ (375,728) | $ (1,060,731) | $ (1,602,392) | |||
Loss per common share (basic and diluted) | $ (0.05) | $ (0.04) | $ (0.11) | $ (0.17) | |||
Number of shares used in per share calculation | 9,767,640 | 9,715,266 | 9,758,233 | 9,474,204 | |||
(basic and diluted) | |||||||
Foreign currency translation adjustment | 9,883 | 29,406 | 31,017 | 1,090 | |||
Comprehensive loss | $ (509,102) | $ (346,322) | $ (1,029,714) | $ (1,601,302) |
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LIGHTPATH TECHNOLOGIES, INC.
Consolidated Balance Sheets
Current assets:
(unaudited)
March 31, June 30, Assets 2012 2011
Cash and cash equivalents | $ 490,055 | $ 928,900 |
Trade accounts receivable, net of allowance of $15,191 and $7,245 | 2,396,639 | 1,833,044 |
Inventories, net | 1,563,441 | 1,622,637 |
Other receivables | 20,654 | 30,943 |
Prepaid interest expense | 29,000 | 7,250 |
Prepaid expenses and other assets | 209,858 | 189,630 |
Total current assets | 4,709,647 | 4,612,404 |
Property and equipment, net | 2,120,527 | 2,373,022 |
Intangible assets, net | 76,482 | 101,133 |
Debt costs, net | 4,732 | 7,180 |
Other assets | 27,737 | 27,737 |
Total assets | $ 6,939,125 | $ 7,121,476 |
Liabilities and Stockholders' Equity |
Current liabilities:
Accounts payable | $ 1,302,198 | $ 928,790 |
Accrued liabilities | 117,336 | 123,705 |
Accrued payroll and benefits | 468,448 | 481,318 |
Deferred revenue | 282,000 | - |
Total current liabilities | 2,169,982 | 1,533,813 |
Deferred rent | 371,509 | 464,262 | |
8% convertible debentures to related parties | 1,012,500 | 1,012,500 | |
8% convertible debentures | 75,000 | 75,000 | |
Total liabilities | 3,628,991 | 3,085,575 |
Stockholders' equity:
Preferred stock: Series D, $.01 par value, voting;
5,000,000 shares authorized; none issued and outstanding - - Common stock: Class A, $.01 par value, voting;
40,000,000 shares authorized; 9,768,100 and 9,713,099 | ||
shares issued and outstanding, respectively | 97,681 | 97,131 |
Additional paid-in capital | 207,939,837 | 207,636,440 |
Accumulated other comphrehensive income | 81,610 | 50,593 |
Accumulated deficit | (204,808,994) | (203,748,263) |
Total stockholders' equity | 3,310,134 | 4,035,901 |
Total liabilities and stockholders' equity | $ 6,939,125 | $ 7,121,476 |
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Cash flows from operating activities
LIGHTPATH TECHNOLOGIES, INC. Consolidated Statements of Cash Flows (unaudited)
Nine Months ended
March 31,
2012 2011
Net loss $ (1,060,731) $ (1,602,392) Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization 857,721 655,131
Interest from amortization of debt discount - 316,590
Interest from amortization of debt costs 2,448 118,193
Gain on sale of property and equipment - (7,751) Stock based compensation 202,802 161,660
Change in provision for doubtful accounts receivable 7,946 (14,355) Deferred rent (92,753) (77,221) Loss on extinguishment of debt - 131,784
Changes in operating assets and liabilities:
Trade accounts receivables (571,541) 213,307
Other receivables 10,289 - Inventories 59,196 (541,438) Prepaid expenses and other assets 45,022 142,943
Accounts payable and accrued liabilities 354,169 436,799
Deferred revenue 282,000 -
Net cash provided by (used in) operating activities 96,568 (66,750) Cash flows from investing activities
Purchase of property and equipment (580,575) (694,597)
Proceeds from sale of equipment - 7,751
Net cash used in investing activities (580,575) (686,846) Cash flows from financing activities
Proceeds from exercise of stock options - 5,653
Proceeds from sale of common stock from employee stock purchase plan 14,145 12,137
Costs associated with conversion of debentures - (6,748) Exercise of warrants - 231,659
Net cash provided by financing activities 14,145 242,701
Effect of exchange rate on cash and cash equivalents 31,017 1,090
Decrease in cash and cash equivalents (438,845) (509,805) Cash and cash equivalents, beginning of period 928,900 1,464,351
Cash and cash equivalents, end of period $ 490,055 $ 954,546
Supplemental disclosure of cash flow information:
Interest paid in cash $ 1,670 $ - Income taxes paid 3,694 4,079
Supplemental disclosure of non-cash investing & financing activities:
Convertible debentures converted into common stock
$ - $ 832,500
Prepaid interest on convertible debentures through the issuance of 87,000 - common stock
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LIGHTPATH TECHNOLOGIES, INC. Consolidated Statement of Stockholders' Equity Nine months ended March 31, 2012
(unaudited)
Class A Common Stock
Accumulated
Additional Other Total
Paid-in Comphrehensive Accumulated Stockholders'
Shares Amount Capital Income Deficit Equity
Balance at June 30, 2011 9,713,099 $ 97,131 $ 207,636,440 $ 50,593 $ (203,748,263) $ 4,035,901
Issuance of common stock for:
Employee stock purchase plan 13,169 132 14,013 - - 14,145
Interest payment on convertible debentures 41,832 418 86,582 - - 87,000
Stock based compensation on stock
options and restricted stock units - - 202,802 - - 202,802
Net loss - - - - (1,060,731) (1,060,731
Foreign currency translation adjustment - - - 31,017 - 31,017
Balance at March 31, 2012 9,768,100 $ 97,681 $ 207,939,837 $ 81,610 $ (204,808,994) $ 3,310,134
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distributed by |