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8-K - CURRENT REPORT - LIGHTPATH TECHNOLOGIES INC | lpth_8k.htm |
Exhibit
99.1
For Immediate Release
LightPath Technologies Announces Preliminary Results for Fourth
Quarter and Fiscal Year 2020
ORLANDO,
FL – August 6, 2020 – LightPath
Technologies, Inc. (NASDAQ: LPTH) (“LightPath,”
the “Company,” or “we”), a leading
vertically integrated global
manufacturer, distributor and
integrator of
proprietary optical
and infrared components and high-level
assemblies, today announced preliminary financial results
for the fourth quarter and fiscal year ended June 30, 2020. The
Company also announced the scheduling of a conference call and
simultaneous webcast to take place on September 10, 2020, to
discuss its financial and operational results for the fourth
quarter and full fiscal year.
Preliminary Results for the Fourth Quarter and Fiscal Year Ended
June 30, 2020
Subject
to completion of the audit of the Company’s financial results
for the fourth quarter and fiscal year ended June 30, 2020, the
Company expects to report:
●
12-month backlog
between $18 million and $19 million at June 30, 2020, compared to
$17.1 million at June 30, 2019.
●
Total revenues
between $8.7 million and $9.1 million for the fourth quarter of
fiscal 2020, compared to $8.7 million for the fourth quarter of
fiscal 2019. Total revenues for fiscal 2020 between $34.6 million
and $35.0 million, compared to $33.7 million for fiscal
2019.
●
Capital
expenditures of approximately $900,000 for the fourth quarter of
fiscal 2020, compared to $326,000 for the fourth quarter of fiscal
2019, including equipment purchased through finance leases. Capital
expenditures of approximately $2.4 million for fiscal 2020,
compared to $2.5 million for fiscal 2019, including equipment
purchased through finance leases.
●
Cash and cash
equivalents of approximately $5.4 million as of June 30, 2020, as
compared to $4.6 million at June 30, 2019.”
Commenting
on recent operating activities and preliminary fourth quarter and
fiscal 2020 financial results, Sam Rubin, Chief Executive Officer
of LightPath, stated, “We expect our fiscal 2020 financial
results will reflect the continuation of momentum achieved earlier
in the year. While this has been our expectation, under the
circumstances of the first six months of calendar 2020, our global
operating environment has been anything but
predictable.
“The
uncertainties resulting from the ongoing COVID-19 pandemic have
created challenges to our customers, vendors, and our own
operations over recent months. I would like to recognize
LightPath’s associates around the world for their efforts
during these challenging times, and express our appreciation to our
vendors and entire supply chain for continuing to support our
mission of being a trusted partner to our customers.
“During
COVID-19, we have been classified globally as an essential
business, which has allowed for all of our manufacturing facilities
in China, Latvia and the U.S. to remain open. We have been
operating without any reported health concerns while implementing
strict internally mandated safety protocols. Our non-manufacturing
employees in the U.S. continue to work from home with select office
appearances pursuant to the recommendations of local
authorities.
“Five
months ago, early in the onset of COVID-19, I assumed the role of
LightPath’s Chief Executive Officer. My first order of
business upon joining the Company was to assess our activities and
identify areas to improve operational efficiencies and process
optimization. The timing of such improvements proved critical, as
we have been running near capacity in the molded optics part of our
business for the past few months.
“During
our third quarter report, we addressed our approach amid the
uncertainties of the COVID-19 pandemic, which called for the
balancing of our manufacturing, minimization of expenses, and
preservation of cash in case our sales were negatively impacted in
a meaningful way. We are pleased to report that in spite of
fluctuating demand by some of our customers, to date, our sales
pipeline has not seen any materially negative impact, and overall
demand for optical and infrared products remains strong. If
anything, our anticipated fourth quarter sales have been
constrained due to fluctuations in customers’ supply chain
issues, delivery schedule modifications, and human resource
limitations, as well as restrictions due to COVID-19.
“The
greatest challenge to date for LightPath amid the COVID-19 pandemic
has been managing our customer requirements for delivery of
finished lenses, with variations depending on the ability of our
customers to receive our components, which are part of larger
finished assemblies or end products. To date, there have not been
any material cancellations of the orders we received or expected to
book, but we have been forced to modify our manufacturing
prioritization or to delay shipments, which has made it more
difficult to optimize our workflow and has resulted in some
inefficiencies, which has in turn negatively impacted revenue
recognition. This has been especially the case for our molded lens
products, where we have been running at capacity, while still
supporting customers’ changing delivery schedules to the best
of our ability. We have limited the quarterly precision molded
optics orders which are part of a longer term supplier relationship
for a large customer due to these production forecasting
impediments. Despite these conditions, we expect to report that our
12-month backlog at June 30, 2020 grew by approximately 5% to 11%,
with a healthy and growing base of contracts beyond the 2021 fiscal
year.
“Overall,
our manufacturing production has remained at near capacity since
February 2020. With robust demand globally for our diversified
product lines, we accelerated the commencement of the capital
investments component of our overall strategic review, which we
intend to discuss further when we report our final financial
results for fiscal 2020. To accommodate our manufacturing
expansion, we have nearly tripled the amount of capital
expenditures in the fourth quarter of fiscal 2020, as compared to
the fourth quarter of prior fiscal year, and we expect this
increase in capacity to come online in the coming
months.
“We
expect to issue our final financial results for the fourth quarter
and fiscal year ended June 30, 2020, on Thursday, September 10,
2020.”
Investor Conference Call and Webcast Details
LightPath
will host an audio conference call and webcast on Thursday,
September 10, 2020 at 4:30 p.m. ET to discuss its financial and
operational performance for the fourth quarter and fiscal year
ended June 30, 2020.
Date:
Thursday, September 10, 2020
Time:
4:30 PM (ET)
Dial-in
Number: 1-877-317-2514
International
Dial-in Number: 1-412-317-2514
Webcast:
https://services.choruscall.com/links/lpth200910.html
Participants
should dial-in or log-on approximately 10 minutes prior to the
start of the event. A replay of the call will be available
approximately one hour after completion through September 24, 2020.
To listen to the replay, dial 1-877-344-7529 (domestic) or
1-412-317-0088 (international), and enter conference ID
#10147020.
About LightPath Technologies
LightPath
Technologies, Inc. (NASDAQ: LPTH) is a leading global, vertically
integrated provider of optics, photonics and infrared solutions for
the industrial, commercial, defense, telecommunications, and
medical industries. LightPath designs, manufactures, and
distributes proprietary optical and infrared components including
molded glass aspheric lenses and assemblies, infrared lenses and
thermal imaging assemblies, fused fiber collimators, and
proprietary Black
DiamondTM (“BD6”)
chalcogenide-based glass lenses. LightPath also offers custom
optical assemblies, including full engineering design support. The
Company is headquartered in Orlando, Florida, with manufacturing
and sales offices in Latvia and China.
LightPath’s
wholly-owned subsidiary, ISP Optics
Corporation, manufactures
a full range of infrared products from high performance MWIR and
LWIR lenses and lens assemblies. ISP’s infrared lens assembly
product line includes athermal lens systems used in cooled and
un-cooled thermal imaging cameras. Manufacturing is performed
in-house to provide precision optical components including
spherical, aspherical and diffractive coated infrared lenses.
ISP’s optics processes allow it to manufacture its products
from all important types of infrared materials and crystals.
Manufacturing processes include CNC grinding and CNC polishing,
diamond turning, continuous and conventional polishing, optical
contacting and advanced coating technologies.
For
more information on LightPath and its businesses, please visit
www.lightpath.com.
Information Regarding Preliminary Results
The
preliminary estimated financial information contained in this press
release reflects management’s estimates based solely upon
information available to it as of the date of this press release
and is not a comprehensive statement of our financial results for
the fourth quarter and fiscal year ended June 30, 2020. We have
provided ranges for the preliminary estimated financial results
described above primarily because our financial closing procedures
for the fourth quarter and fiscal year ended June 30, 2020 are not
yet complete. The information presented above should not be
considered a substitute for full audited financial statements for
the fourth quarter and fiscal year ended June 30, 2020, once they
become available, and should not be regarded as a representation by
us or our management as to the actual financial results for the
fourth quarter and fiscal year ended June 30, 2020. The ranges for
the preliminary estimated financial results described above
constitute forward-looking statements. The preliminary estimated
financial information presented above is subject to change, and our
actual financial results may differ from such preliminary estimates
and such differences could be material. Accordingly, you should not
place undue reliance upon these preliminary estimates.
Forward-Looking Statements
This press release includes statements that constitute
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words
such as “forecast,” “guidance,”
“plan,” “estimate,” “will,”
“would,” “project,” “maintain,”
“intend,” “expect,”
“anticipate,” “prospect,”
“strategy,” “future,” “likely,”
“may,” “should,” “believe,”
“continue,” “opportunity,”
“potential,” and other similar expressions that predict
or indicate future events or trends or that are not statements of
historical matters, and include, for example, statements related to
the expected effects on the Company’s business from the
COVID-19 pandemic. These forward-looking statements are based on
information available at the time the statements are made and/or
management’s good faith belief as of that time with respect
to future events, and are subject to risks and uncertainties that
could cause actual results to differ materially from those
expressed in or suggested by the forward-looking statements.
Factors that could cause or contribute to such differences include,
but are not limited to, the duration and scope of the COVID-19
pandemic and impact on the demand for the Company products; the
ability of the Company to obtain needed raw materials and
components from its suppliers; actions governments, businesses, and
individuals take in response to the pandemic, including mandatory
business closures and restrictions on onsite commercial
interactions; the impact of the pandemic and actions taken in
response to the pandemic on global and regional economies and
economic activity; the pace of recovery when the COVID-19 pandemic
subsides; general economic uncertainty in key global markets and a
worsening of global economic conditions or low levels of economic
growth; the effects of steps that the Company could take to reduce
operating costs; the inability of the Company to sustain profitable
sales growth, convert inventory to cash, or reduce its costs to
maintain competitive prices for its products; circumstances or
developments that may make the Company unable to implement or
realize the anticipated benefits, or that may increase the costs,
of its current and planned business initiatives; and those factors
detailed by LightPath Technologies, Inc. in its public filings with
the Securities and Exchange Commission, including its Annual Report
on Form 10-K for the year ended June 30, 2019 and its Quarterly
Report on Form 10-Q for the quarter ended March 31, 2020. Should
one or more of these risks, uncertainties, or facts materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those indicated or anticipated by the
forward-looking statements contained herein. Accordingly, you are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made.
Forward-looking statements should not be read as a guarantee of
future performance or results and will not necessarily be accurate
indications of the times at, or by, which such performance or
results will be achieved. 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:
Sam Rubin, President & CEO
|
Don
Retreage, Jr. CFO
|
Jordan
Darrow
|
LightPath Technologies,
Inc.
|
LightPath
Technologies, Inc.
|
Darrow
Associates, Inc.
|
Tel: 407-382-4003
|
Tel: 407-382-4003
|
Tel: 512-551-9296
|
srubin@lightpath.com
|
dretreage@lightpath.com
|
jdarrow@darrowir.com
|