LightPath Technologies Announces Successful Transition of Key Customer from Germanium to BlackDiamond(TM) Glass Optics

Rhea-AI Summary

LightPath Technologies (NASDAQ:LPTH) has announced a significant milestone in its transition from Germanium to BlackDiamond™ glass optics for a key defense customer. This shift comes in response to China's export restrictions on Germanium, which has led to a 60% increase in wholesale prices since January 2023. LightPath's proprietary BlackDiamond™ glass offers comparable performance to Germanium for thermal imaging applications, with additional benefits such as being lighter, having a wider thermal operating range, and containing no rare earths.

The customer has successfully completed qualification and evaluation of the new optics design using 100% BlackDiamond™ material. LightPath is now working on a production transition timeline, with an order expected once the customer depletes its Germanium inventory. This development represents a important step in securing a sustainable supply chain for industrial, civil, and defense customers, with optics made from materials produced in the United States.

Positive

• Successful qualification of BlackDiamond™ glass optics by a key defense customer
• Potential for increased market share in the thermal imaging industry
• Reduced dependence on Chinese Germanium supply
• BlackDiamond™ offers superior characteristics compared to Germanium
• Expected order from the customer after depletion of Germanium inventory

Negative

• Potential delay in order placement due to customer's existing Germanium inventory
• Transition period may impact short-term revenue from Germanium optics

ORLANDO, FL / ACCESSWIRE / July 23, 2024 / LightPath Technologies, Inc. (NASDAQ:LPTH) ("LightPath," the "Company," or "we"), a leading vertically integrated global manufacturer and integrator of proprietary optical and infrared technologies, today announced that a current key defense customer using Germanium lenses has successfully completed the qualification and evaluation of new optics made from LightPath's proprietary Black Diamond^TM ("BD") chalcogenide-based glass.

The shift to BlackDiamond™ glass comes in response to recent export restrictions on Germanium imposed by China, which supplies a significant portion of the world's Germanium. LightPath developed BlackDiamond™ glass as a viable alternative to Germanium, offering comparable performance for thermal imaging applications and has many superior characteristics, including containing no rare earths, is lighter and has a wider thermal operating range. since January 2023 wholesale price of Germanium has increased 60% due to known supply constraints, and represents a market worth hundreds of millions annually.

After extensive testing and qualification, the customer has approved a new optics design utilizing 100% BlackDiamond™ material, replacing a previous design made of 100% Germanium. LightPath is now working with the customer to build a timetable to transition production over to BlackDiamond™, with an order expected once the customer completes current demand using its inventory of Germanium. This is a critical customer for Germanium optics in the US and represents a significant part of LightPath's Germanium optics revenue.

"This approval and planned customer transition to BlackDiamond™ from Germanium is a significant validation of our development focus on chalcogenide materials," said Sam Rubin, President and Chief Executive Officer of LightPath. "BlackDiamond™ sets a new standard for next generation MWIR and LWIR optical components and assemblies that need to meet environmental and durability requirements. This transition also marks a crucial step in securing a sustainable and robust supply chain for our industrial, civil and defense industry customers with optics made from materials produced in the United States. We believe this successful qualification signifies a promising future for the widespread adoption of BlackDiamond glass in the thermal imaging industry. We look forward to continuing our partnership with this customer and ensuring a seamless transition to our BlackDiamond glass optics."

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 Diamond™ ("BD") 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.

Forward-Looking Statements
This press release includes statements that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "guidance," "plan," "estimate," "will," "would," "project," "maintain," "intend," "expect," "anticipate," "prospect," "strategy," "future," "likely," "may," "should," "believe," "continue," "opportunity," "potential," and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on information available at the time the statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the impact of varying demand for the Company products; the ability of the Company to obtain needed raw materials and components from its suppliers; actions governments, businesses, and individuals take in response to the pandemic, including restrictions on onsite commercial interactions; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; geopolitical tensions, the Russian-Ukraine conflict, and the Hamas/Israel war; the effects of steps that the Company could take to reduce operating costs; the inability of the Company to sustain profitable sales growth, convert inventory to cash, or reduce its costs to maintain competitive prices for its products; circumstances or developments that may make the Company unable to implement or realize the anticipated benefits, or that may increase the costs, of its current and planned business initiatives; and those factors detailed by LightPath Technologies, Inc. in its public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on 10-Q. Should one or more of these risks, uncertainties, or facts materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by the forward-looking statements contained herein. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

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

SOURCE: LightPath Technologies, Inc.

View the original press release on accesswire.com

FAQ

What is LightPath's BlackDiamond™ glass and how does it compare to Germanium?

BlackDiamond™ is LightPath's proprietary chalcogenide-based glass that offers comparable performance to Germanium for thermal imaging applications. It is lighter, has a wider thermal operating range, and contains no rare earths, making it a viable alternative to Germanium in optics manufacturing.

Why is LightPath (LPTH) transitioning from Germanium to BlackDiamond™ glass?

LightPath is transitioning due to recent export restrictions on Germanium imposed by China, which has led to a 60% increase in wholesale prices since January 2023. This transition aims to secure a sustainable and robust supply chain for their customers.

What is the significance of a key defense customer approving LightPath's (LPTH) BlackDiamond™ glass optics?

The approval signifies a major validation of LightPath's development focus on chalcogenide materials and represents a promising future for the widespread adoption of BlackDiamond™ glass in the thermal imaging industry. It also marks a important step in securing a sustainable supply chain for industrial, civil, and defense customers.

When can LightPath (LPTH) expect an order for BlackDiamond™ glass optics from the key defense customer?

LightPath expects an order once the customer completes current demand using its inventory of Germanium. The company is working with the customer to build a timetable for transitioning production to BlackDiamond™ glass optics.