LightPath Provides Update on Facilities Expansion

Rhea-AI Summary

LightPath Technologies, Inc. (NASDAQ:LPTH) announced progress on its facilities expansion in Orlando, Florida, aimed at transitioning from a components manufacturer to a complete solutions provider. CEO Sam Rubin noted that construction has disrupted production and delayed deliveries more than expected during the fiscal third quarter. However, phase one of the expansion is expected to align with increasing demand in the defense sector. The expansion is partly funded by a $2.4 million tenant improvement allowance and $2.5 million from the company’s resources. Completion is anticipated in the second half of 2023, enhancing production capacity for infrared imaging and solutions.

Positive

• Expansion aligns with increased demand in the defense industry.
• Construction completion expected in the second half of 2023.
• Partially funded by a $2.4 million tenant improvement allowance.

Negative

• Construction has disrupted production, delaying customer deliveries during the fiscal third quarter more than anticipated.

ORLANDO, FL / ACCESSWIRE / March 30, 2023 / LightPath Technologies, Inc. (NASDAQ:LPTH), ("LightPath" or the "Company"), a leading vertically integrated global manufacturer and integrator of proprietary optical and infrared technologies, provided an update on the progress of its facilities and capacity expansion at its Orlando, Florida manufacturing center.

"We are delighted with the progress being made to expand capacity in our Orlando, Florida facilities. As we evolve from a components manufacturer to a complete solutions provider, our exclusively licensed materials and technologies are being qualified for various defense and government initiatives. The ability to fulfill those orders is paramount to growing our business," stated Sam Rubin, Chief Executive Officer of LightPath Technologies. "Although the construction has disrupted production and delayed deliveries to customers during our fiscal third quarter to a greater extent than we anticipated, the timing of the first phase completion aligns well with the increased demand we are experiencing in the US, particularly in the defense industry. We believe moving to the next phase of construction and facilities completion will allow LightPath to fully take advantage of the opportunities ahead. We anticipate completing construction during the second half of calendar year 2023."

As previously disclosed, the expansion of the Company's manufacturing facilities in Florida has been partially funded with a $2.4 million tenant improvement allowance from the landlord, with the balance, estimated to be $2.5 million, funded by LightPath. A portion of the funds from the equity offering in January 2023 were earmarked to complete the expansion. The expansion will facilitate increased production and shipping capacity to support larger orders in the Company's solutions and infrared imaging businesses.

About LightPath Technologies:

LightPath Technologies, Inc. is a leading global, vertically integrated provider of optics, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries. LightPath designs and manufactures proprietary optical and infrared components including molded glass aspheric lenses and assemblies, custom molded glass freeform lenses, infrared lenses and thermal imaging assemblies, fused fiber collimators, and proprietary Black Diamond^TM ("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.

Investor Contact:

Brian M. Prenoveau, CFA
MZ Group - MZ North America
LPTH@mzgroup.us
+561 489 5315

SOURCE: LightPath Technologies

View source version on accesswire.com:
https://www.accesswire.com/746497/LightPath-Provides-Update-on-Facilities-Expansion

FAQ

What is the progress update on LightPath Technologies' facilities expansion?

LightPath announced significant progress on its facilities expansion in Orlando, which aims to increase production capacity.

How is the facilities expansion at LightPath Technologies funded?

The expansion is funded by a $2.4 million tenant improvement allowance and an additional $2.5 million from the company.

What impact has the construction had on LightPath Technologies' operations?

The construction has caused production disruptions and delayed deliveries more than expected in the fiscal third quarter.

When is the anticipated completion date for the expansion of LightPath's facilities?

The completion of the construction is anticipated in the second half of 2023.

What industry demand is LightPath Technologies expecting to meet with its expansion?

LightPath is aiming to meet increased demand in the defense industry with its expanded capabilities.