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Date Announced: 31 Jul 2018
Part of Continued Focus on Profitability and Efficiency Enhancement Strategies.
ORLANDO, FL / ACCESSWIRE / July 31, 2018 / LightPath Technologies, Inc. (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, announced today the relocation and consolidation of its New York operations into its existing facilities in Orlando, Florida and Riga, Latvia. The relocation is part of the Company's continued focus on profitability and efficiency enhancement strategies as volume production requirements have increased with accelerating adoption of its expanding line of proprietary infrared lenses.
Jim Gaynor, LightPath's President and Chief Executive Officer, stated, "We believe that the consolidation of our facilities will not only expand our capacity, but will also better position us for continued growth, with a focus on improved profitability. The New York facility provided a solid foundation for the establishment of ISP Optics Corporation ("ISP"), our wholly-owned subsidiary, but it is not conducive to our global expansion goals. In order to minimize any disruption to our business, we have already successfully established the capabilities and part of the capacity in other facilities to allow a smooth transition from New York for the transfer of our diamond turning functions and a substantial portion of the coating processes. Ultimately, we will benefit from improved turnaround time, better quality control, reduced operating and overhead costs, and a leaner organization."
The relocation of ISP's New York facility is expected to be completed in phases through the end of fiscal 2019. By completing the relocation in phases, the Company expects to minimize any disruption to its business during the transition period. The relocation will involve the decommissioning of older equipment, the purchase and installation of new replacement equipment capable of providing increased output at the Company's Orlando, Florida and Riga, Latvia facilities, and the relocation or hiring of staff at these two facilities. The Company believes that the additional equipment and staff at the Orlando, Florida and Riga, Latvia facilities will accommodate the anticipated increase in sales and improve LightPath's ability to serve its customers' needs.
In connection with the relocation of ISP's New York facility, the Company expects to incur additional expenses and charges during fiscal 2019 as the phases are executed. The Company will also incur capital expenditures in connection with the relocation; however, the Company anticipates that the capital expenditures incurred during fiscal 2018 and planned in fiscal 2019, which will include expenditures related to the relocation, will remain within the Company's capital expenditure budget for each fiscal year. The Company estimates that the savings from the project will generate a return for the investment in 18 to 24 months after substantial completion.
In addition to the relocation of ISP's New York facility, the Company previously expanded its Zhenjiang, China and Riga, Latvia facilities in 2017, and is currently expanding its Orlando, Florida facility. The Company expects to complete the expansion in Orlando by November 2018. Overall, the expanded operations and relocation will provide LightPath with more vertically integrated, comprehensive, and fully redundant manufacturing capabilities across three continents for the production of a robust product suite of infrared lenses and thermal imaging, sensory, and measurement applications.
Source: LightPath Technologies
E-mail: via web site
Web Site: www.lightpath.com
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