LightPath Technologies Announces Expansion of Optical Coating Capabilities with the Addition of High Durability Coating in Europe
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Insights
The expansion of LightPath Technologies' optical coating capabilities in Riga is a strategic move to capitalize on the shifting demands within the optics industry. As customers move away from Germanium due to export restrictions, the demand for alternative materials is expected to rise. LightPath's investment in its Riga facility is indicative of its commitment to capturing this market shift.
Their focus on the European defense market is particularly noteworthy. Since defense contracts often come with high-value and long-term commitments, this could potentially lead to increased revenue stability for LightPath. The introduction of the High Durability Anti-Reflective (HDAR) coating also signifies LightPath's response to the industry's need for more resilient materials in challenging environments, such as maritime applications. This could give the company a competitive edge in sectors where optical component durability is critical.
From a financial perspective, LightPath Technologies' investment in expanding its Riga facility's capacity could have significant implications for its earnings potential. The capital expenditure involved in such an expansion suggests confidence in the return on investment, likely driven by a strong pipeline of demand from the defense sector and other industries that require high-quality optical components.
Furthermore, the shift to proprietary materials like BlackDiamondTM infrared glass may improve profit margins, as reliance on externally sourced materials like Germanium decreases. This vertical integration strategy could enhance LightPath's control over its supply chain, reducing costs and potentially improving lead times for customers, which is often a competitive advantage in manufacturing.
The defense industry in Europe has stringent requirements for locally produced components, which LightPath Technologies is now well-positioned to meet with its expanded Riga facility. The company's ability to provide complete components, from optical coating to final assembly within the EU, aligns with the industry's localization trends and could lead to increased market share within the sector.
The new HDAR coating technology's suitability for harsh environments aligns with the rigorous performance standards required in defense applications. By offering advanced coatings that meet these standards, LightPath may become a preferred supplier for European defense contractors, potentially leading to long-term contracts and partnerships.
ORLANDO, FL / ACCESSWIRE / April 1, 2024 / LightPath Technologies, Inc. (NASDAQ:LPTH) ("LightPath," the "Company," or "we"), a leading global, vertically integrated provider of thermal imaging cores, custom optical assemblies, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries, announced today the commissioning of additional optical coating capabilities and capacity in its facility in Riga, Latvia, and the availability of a new, high durability coating from that facility.
LightPath's Riga facility, added in 2017 through the acquisition of ISP Optics, is a center of excellence for production of infrared optical components. In 2021 LightPath began adding optical coating capabilities to the Riga operation, making it vertically integrated and enabling it to produce complete components from start to finish without depending on other LightPath facilities in the US and China. The addition of this capability in Riga has since enabled LightPath to tap into the European defense market, which requires all components to be produced inside the European Union.
In recent years LightPath has seen its customers gradually transition away from using Germanium in their optical systems and integrate new materials such as LightPath's BlackDiamondTM infrared glass. This trend has accelerated with recent export limitations on Germanium by China, and LightPath expects significant growth in demand for its Germanium alternatives in the coming months. In anticipation of this, and with the increasing demand from the defense industry in Europe and Israel, LightPath has invested in expanding its coating capacity in Riga to serve those growing needs. Additionally, a new High Durability Anti-Reflective coating ("HDAR") now available from this facility provides customers an advanced coating that protects the optics in harsh environments, while maintaining high optical transmission. HDAR coating is often used in maritime applications and other harsh environments. The new coating is available for optics for the mid-wave infrared band ("MWIR") on a variety of materials and will later be made available for long-wave infrared band ("LWIR") optics.
LightPath's President and CEO, Sam Rubin commented, "We are excited to announce the successful completion of this project after initiating this investment several quarters ago. This expansion of our coating capabilities and capacity further demonstrates our continued commitment to growing our defense business in Europe."
About LightPath Technologies
LightPath Technologies, Inc. (NASDAQ:LPTH) 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 DiamondTM ("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 Dallas, Texas, Latvia and China.
LightPath's wholly-owned subsidiary, Visimid Technologies, was acquired in July 2023, and specializes in the design and development of customized infrared cameras, for the industrial and defense industries. Such customized cameras are often sold together with customized optical assemblies from LightPath.
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.
For more information on LightPath and its businesses, please visit www.lightpath.com
Sales Contact:
Jason Messerschmidt, VP of Sales
LightPath Technologies, Inc.
jmesserschmidt@lightpath.com
+570 449 5555
SOURCE: LightPath Technologies
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