04 Sep 2014
Latest quarter upturn is bright spot in otherwise stagnant year for optical components maker.
Lightpath makes optical components, infrared lenses and assemblies.
Although revenue for 2014 increased slightly (0.4%) to $11.83m ($11.78m in 2013), net loss was $313,000 for 2014 compared to net income of $215,000 in 2013. Gross margin as a percent of revenue for fiscal 2014 rose to 46% (from 44%).
The latest quarter (Q4, 2014) showed a more positive picture, with net income of $102,000, compared to net loss of $244,000, in Q4 2013. This was despite Q4 2014 revenue decreasing to $3.11m from $3.13m in Q4 2013. Lightpath’s order backlog increased by 5% to $4.3m at June 30, over 2013’s equivalent figure. Cash on hand at the end of June, 2014 was $1.2m (from $1.6m).
The company cited a range of highlights in its financial statement, including: starting production at its Chinese subsidiary’s facility in Zhenjiang, which produced 100,000 aspheric lenses at greater than 96% yield during Q4, and increased output of our infrared lenses at its Orlando, FL, USA, facility.
Jim Gaynor, LightPath’s President and CEO, commented, “I would characterize 2014 as a year of investment in our future. We increased our R&D spend by 29% above that of 2013, and by 37% in Q4, 2014. For our new line of infrared lenses, we are converting from prototype development and production into full commercial production at our Orlando facility, with significant shipments to begin in September.
"In 2014, we invested $2 million in expanding our manufacturing capacity and purchasing new equipment for our Shanghai, Zhenjiang and Orlando facilities; we increased our anti-reflective coating and infrared glass preparation capacities, upgraded metrology equipment for our tooling operation and expanded high-end CNC machining equipment. All of these investments support the growth opportunities that we see in both the visible lens and infrared product businesses.”
“We have also increased our production capacity to 6.2 million lenses compared to 3.2 million lenses in fiscal 2013. We see these changes as the catalyst of continued growth. We are now well positioned with our major product lines to take advantage of the future opportunities we see for our business.”
Securities purchase deal
Addressing the previously disclosed securities purchase agreement with Pudong Science & Technology, Gaynor added, “We have continued to work with the U.S. Government concerning the proposed investment by Pudong Science & Technology. We remain optimistic that we will receive the necessary governmental approvals to close the proposed transaction. As we have previously stated, the proceeds from the sale of common stock are intended to provide working capital to support our continued growth through global expansion.”
About the Author
Matthew Peach is a contributing editor tooptics.org.