PR-Inside.com: 2018-11-08 22:01:18
Backlog Reaches Record Level of $14 Million at End of First Quarter Due to 30% Bookings Increase From Prior Year Period
ORLANDO, FL / ACCESSWIRE / November 8, 2018 / 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 financial results for its fiscal 2019 first quarter ended September 30, 2018.
Fiscal 2019 First Quarter Highlights:
Revenue for the first quarter of fiscal 2019 was $8.5 million, an increase of nearly $1 million, or 13%, as compared to $7.6 million in the first quarter of fiscal 2018.
Bookings in the first quarter of fiscal 2019 increased by 30% to $8.7 million, as compared to $6.7 million in the first quarter of fiscal 2018.
12-month backlog was approximately $14.0 million at September 30, 2018, representing an increase of 9% compared to $12.8 million at June 30, 2018.
Net loss for the first quarter of fiscal 2019 was approximately $583,000, as compared to net income of approximately $218,000 for the first quarter of fiscal 2018.
EBITDA* for the first quarter of fiscal 2019 was approximately $245,000, as compared to approximately $1.3 million in the first quarter of fiscal 2018.
Capital expenditures of $670,000 in the first quarter of fiscal 2019 for continued global growth initiatives and product development, including enhanced capacity for infrared ("IR") products.
Cash balance, including restricted cash, at September 30, 2018 was approximately $5.5 million.
Streamlined operations to maximize more profitable growth by consolidating product groups to three groups (instead of five) and organizing target markets by industry.
* This press release includes references to non-GAAP financial measures. Please see the heading "Use of Non-GAAP Financial Measures" below for a more complete explanation.
"Under the guidance of our strengthened management team, we started fiscal 2019 by streamlining our reporting process by product type and optimized our marketing channels by vertical industry," stated Jim Gaynor, President and Chief Executive Officer of LightPath. "We consolidated our business from five product groups into three product groups: IR optical products; precision molded optics ("PMO") products, which includes low volume and high volume precision molded optics, and specialty products, which includes non-recurring engineering ("NRE") projects."
"We also aligned our marketing efforts by industry. Our major industrial markets include Catalogs/Distributors, Commercial, Defense, Industrial, Medical and Telecommunications/Networking. Customers in each of these markets may now select the best optical technologies that suit their needs from LightPath's entire suite of products. This strategy is availing us to more cross-selling opportunities, particularly where we can leverage our knowledge base of technical requirements against our expanding design library. As a result, after only the first quarter of implementation, we observed an increased rate of follow-on purchases from customers, many of which are for new products."
"Our new BD6 IR products, which we developed using our proprietary Black DiamondTM chalcogenide-based glass compound, are off to an amazing start. The performance of this material rivals the much higher cost of germanium-based IR lenses. We believe we are the most advanced manufacturer in the world that can provide customers with a comprehensive choice of products for light spectrum, material, manufacturing process, design, region of production, and high volume quantities at competitive prices. This industry-leading value proposition is resonating with new and existing customers alike."
"Total sales for the first quarter were up 13% compared to the prior year period, and up 6% compared to the fourth quarter of fiscal 2018. Our 12-month backlog was approximately $14.0 million at September 30, 2018, representing an increase of 9% compared to $12.8 million at June 30, 2018, and an increase of over 60% compared to $8.6 million at September 30, 2017. Although our focus has been on securing long-term supply agreements over short-term purchase orders, we continue to report backlog for the 12-month period, which does not include any orders pertaining to the second or third years of multi-year contracts. Quarterly bookings are up 30% year-over-year. The long-term backlog and our increased rate of bookings provide us with directional visibility and confidence in our forward outlook."
"At the same time, we have been actively looking at ways to reduce our costs and improve our gross margins. For example, we believe the relocation of our Irvington, New York operations to our other facilities ultimately will reduce our costs and improve our gross margins. Temporarily, we are incurring additional costs in connection with this facility relocation, including labor, manufacturing inefficiencies, and overhead. As a result, this relocation negatively impacted our margins for the first quarter, while the rise in germanium material prices has negatively impacted our margins over the past few quarters. However, we are already seeing meaningful signs of progress with respect to the relocation. Despite the additional costs incurred in connection with the facility relocation, our overall gross margin as a percentage of revenue improved from 30% in the fourth quarter of fiscal 2018 to 36% for the first quarter of fiscal 2019."
"On a long-term basis, we expect the consolidation of manufacturing facilities and the overall streamlining of operations to improve gross margins and reduce operating and overhead costs, which will enable us to materially increase our overall profitability and cash flows from operations from today's levels," Mr. Gaynor concluded.
Financial Results for the Three Months Ended September 30, 2018, Compared to the Three Months Ended September 30, 2017
Revenue for the first quarter of fiscal 2019 was $8.5 million, an increase of approximately $978,000, or 13%, as compared to $7.6 million in the first quarter of fiscal 2018, primarily driven by an increase in IR product sales. Revenue generated by IR products was approximately $5.0 million for the first quarter of fiscal 2019, an increase of $1.4 million or 38% as compared to the first quarter of fiscal 2018. The increase in IR revenue reflects strong demand from the industrial market. Revenue generated by PMO prod