LightPath Technologies Announces Profitable Fourth Quarter
LightPath Technologies, Inc.
2603 Challenger Tech Court, Suite 100
Orlando, FL, 32826
Press release date: August 30, 2012
11% Increase in Revenues is Accompanied by 11% Rise in Backlog Achieves Largest Quarterly Net Income in Two Fiscal Years
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 fourth quarter and fiscal year ended June 30, 2012.
Fourth Quarter Highlights:
· Net Income was $196,000, or $0.02 per share for the quarter compared to $429, or $0.00 per share in the fourth quarter of fiscal 2011.
· 12-month backlog was $4.89 million as of June 30, 2012, an increase of 26% or $1.02 million from June 30, 2011.
· Revenue for the fourth quarter of fiscal 2012 increased 11% to $3.10 million compared to $2.78 million for the fourth quarter of fiscal 2011.
· Gross margin for the quarter remained at 40% as compared to the fourth quarter of fiscal 2011.
· EBITDA increased 72% to $485,000 compared to $281,000 in the fourth quarter of fiscal 2011.
· Cash on hand as of June 30, 2012 was $2.35 million as compared to $929,000 on June 30, 2011.
Jim Gaynor, President and Chief Executive Officer of LightPath, commented, "I am pleased to report top-and bottom-line improvement for our fourth quarter, driven by strength in demand for our custom optics and in particular our products designed for the telecom markets. Gross margin improved over each of the previous two quarters by 25% and has returned to 40%, due in part to cost reductions we implemented in April 2012 and an increase in revenue. EBITDA increased by 72% to $485,000 and we had positive operating cash flow for the fourth quarter of $309,000 before taking into account the proceeds we raised in our June 2012 private placement. The combination of increased sales volume and lower costs resulted in net income of $196,000, our highest quarterly net income since the fourth quarter of fiscal 2010. For the year, we demonstrated strong operating leverage with increases in both EBITDA and sales, and we reduced our net loss by 46%."
Mr. Gaynor added, "LightPath has increased its revenue and grown its backlog during a challenging period of uncertainty and weakness in the broader markets in which we do business. We continue to serve our markets well, and we expect to continue our growth given the opportunities we see ahead for not only our core business in precision molding, but particularly in the infrared markets. Our recently completed private placement has provided us with the opportunity to add the appropriate capacity to bring our exciting next generation of infrared products to market, and we are currently in the process of adding the equipment that will enable us to capitalize on diverse opportunities that we see ahead for such products and technology."
Financial Results for Three Months Ended June 30, 2012
Revenue for the fourth quarter of fiscal 2012 totaled approximately $3.10 million compared to approximately $2.78 million for the fourth quarter of fiscal 2011, an increase of 11%. This increase was primarily attributable to revenue from the Company's telecom products and custom optics which includes revenue from a large purchase order from the Raytheon Vision Systems ("Raytheon"). Growth in sales for the next several quarters 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. Infrared products, now being designed and introduced are expected to accelerate the Company's growth more meaningfully beginning in fiscal 2013 and continuing in fiscal 2014.
The gross margin percentage in the fourth quarter of fiscal 2012 was 40%, unchanged compared to the fourth quarter of fiscal 2011. Total manufacturing costs of $1.88 million increased by approximately $209,000 in the fourth quarter of fiscal 2012 compared to the same period of the prior fiscal year due to increased revenues. Direct costs, which include material, labor and services, were 22% of revenue in the fourth quarter of fiscal 2012, as compared to 30% of revenue in the fourth quarter of fiscal 2011.
During the fourth quarter of fiscal 2012, total costs and expenses increased by approximately $22,000 compared to the same period of the prior year. Selling, general and administrative expenses were $860,000 for the fourth quarter of fiscal 2012. Total operating income for the fourth quarter of fiscal 2012 was approximately $111,000 compared to $22,000 for the same period in fiscal 2011.
Net income for the fourth quarter of fiscal 2012 was $196,000 or $0.02 per basic and diluted common share, compared with a net income of $429 or $0.00 per basic and diluted common share for the same period in fiscal 2011. Weighted-average basic shares outstanding increased to 10,384,899 in the fourth quarter of fiscal 2012 compared to 9,714,156 in the fourth quarter of fiscal 2011 which is primarily due to the issuance of shares of common stock in the June 2012 private placement, shares issued for the payment of interest on our convertible debentures, the shares issued for our employee stock purchase plan and the shares issued upon the exercise of incentive stock options.
Financial Results for Year Ended June 30, 2012
Revenue for fiscal year 2012 was approximately $11.28 million compared to approximately $10.00 million for fiscal 2011, an increase of 13%. This increase was primarily attributable to revenue from the Raytheon purchase order, and sales of precision molded lenses for the telecom and laser tool markets and custom optics. The number of units of precision molded optics sold increased by 13% due to the Company's continuing pursuit of the low-cost, high-volume lens business. Growth in sales going forward is expected to be derived primarily from LightPath's precision molded optics product line, particularly its low cost lenses sold in Asia, and its infrared and collimator product lines.
Gross margin percentage for fiscal year 2012 decreased to 36% compared to 39% in fiscal 2011. Total manufacturing costs of $7.25 million were approximately $1.17 million higher in fiscal 2012 compared to the prior fiscal year. This increase in manufacturing costs resulted from a $576,000 increase in direct costs for materials, labor and outside services due to an increase in revenues, a $171,000 increase in labor costs for our collimator and infrared products as we continue to ramp up the development of these products, and a $293,000 increase in tooling costs. Direct costs, which include material, labor and services, were 25% of revenue in fiscal year 2012, as compared to 27% of revenue in fiscal year 2011.
During fiscal year 2012, total costs and expenses increased $180,000 to approximately $4.96 million compared to approximately $4.78 million for fiscal year 2011. As a result, total operating loss for fiscal year 2012 increased to a loss of approximately $924,000 compared to a loss of $857,000 for fiscal year 2011.
Net loss for fiscal year 2012 was approximately $865,000 or $0.09 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 fiscal year 2011. Weighted-average basic shares outstanding increased to 9,861,596 in fiscal year 2012 compared to 9,533,558 in fiscal year 2011, which is primarily due to the issuance of shares of common stock in the June 2012 private placement, the shares issued as payment of interest due on the Company's convertible debentures and the shares issued for our employee stock purchase plan.
Cash and cash equivalents totaled approximately $2.35 million as of June 30, 2012. The current ratio as of June 30, 2012 was 3.59 to 1 compared to 3.01 to 1 as of June 30, 2011.Total stockholders' equity as of June 30, 2012 totaled approximately $4.00 million compared to $4.04 million as of June 30, 2011.
As of June 30, 2012, our 12-month backlog, was $4.89 million compared to $3.87 million as of June 30, 2011.