LightPath Technologies Reports Financial Results for Fiscal 2021 First Quarter
LightPath Technologies reported a 26% increase in first-quarter revenue for fiscal 2021, totaling $9.5 million, up from $7.6 million a year earlier. Net income reached $97,000, a significant recovery from a $1.4 million loss in the same period last year. The company also reported a 26% growth in total backlog, amounting to $20.9 million. Gross margin improved to 40%, compared to 32% from the prior year. EBITDA stood at $1.4 million, up from a $236,000 loss in fiscal 2020.
- Revenue increased by 26% to $9.5 million compared to $7.6 million last year.
- Net income improved to $97,000 from a loss of $1.4 million a year ago.
- Total backlog grew 26% to $20.9 million from $16.6 million in September 2019.
- Gross margin improved to 40% from 32% in the prior year.
- EBITDA turned positive at $1.4 million from a loss of $236,000 in the same quarter last year.
- Backlog decreased by 5% from $21.9 million as of June 30, 2020.
- EBITDA decreased from $1.7 million in the previous quarter to $1.4 million.
Record First Quarter Revenue; Order Backlog Up From Prior Year; Manufacturing Capacity Added
ORLANDO, FL / ACCESSWIRE / November 5, 2020 / LightPath Technologies, Inc. (NASDAQ:LPTH) ("LightPath," the "Company," or "we"), a leading vertically integrated global manufacturer and integrator of proprietary optical and infrared components and high-level assemblies, today announced its financial results for its fiscal 2021 first quarter ended September 30, 2020.
Fiscal 2021 First Quarter Highlights:
- Revenue for the first quarter of fiscal 2021 was
$9.5 million , an increase of26% , as compared to$7.6 million in the first quarter of fiscal 2020. - Total backlog increased
26% to$20.9 million at September 30, 2020, compared to$16.6 million at September 30, 2019. - Gross margin as a percentage of revenue for the first quarter of fiscal 2021 was
40% , compared to32% in the first quarter of fiscal 2020. - Net income for the first quarter of fiscal 2021 was
$97,000 , compared to a net loss of$1.4 million in the first quarter of fiscal 2020. - EBITDA* for the first quarter of fiscal 2021 was
$1.4 million , compared to an EBITDA loss of$236,000 in the first quarter of fiscal 2020. - Capital expenditures were approximately
$1.2 million for the first quarter of fiscal 2021, compared to$257,000 for the first quarter of fiscal 2020. - Total debt, including finance leases, was reduced by
5% or approximately$308,000 in the first quarter of fiscal 2021, from June 30, 2020. - Cash and cash equivalents of
$5.4 million at September 30, 2020 was consistent with the balance as of June 30, 2020.
* This press release includes references to non-GAAP financial measures. Please see the heading "Use of Non-GAAP Financial Measures" below for a more complete explanation.
Management Comments
Sam Rubin, President and Chief Executive Officer of LightPath, stated, "Strong performance in the first quarter of fiscal 2021 reflects our continued trajectory of growth. Our growth and strong performance can be seen both sequentially, compared to the fourth quarter of fiscal 2020, as well as compared to the first quarter of last fiscal year, in which we suffered from significant operational challenges that impacted results in that quarter. Despite the coronavirus ("COVID-19") pandemic, which has disrupted supply chains and caused economic upheaval beyond the toll on global health conditions, we have been able to deliver strong results and have positioned the Company for more profitable and longer-term growth. I would like to commend our global staff for their continued efforts to support our customers while adhering to health and safety protocols to protect our co-workers and their families.
"We are pleased to announce strong growth in first quarter revenue of
"Though we have added capacity in recent months, we remain capacity constrained amid the growth in both revenue and total backlog, each of which has increased
"Continuous improvement through operational excellence, which is just one of the priorities identified as part of our new strategic direction, has already made an impact. Coinciding with our capital expenditure strategy, our profitability enhancement and production efficiency initiatives are intended to generate higher margins. Gross margin for the first quarter of fiscal 2021 improved more than 150 basis points from the fourth quarter of fiscal 2020. EBITDA increased to
"The results announced today reflect continued sales growth, improving manufacturing efficiencies and ongoing management of expenses. Our disciplined cash management has allowed us to hold a consistent cash balance of approximately
Financial Results for the Three Months Ended September 30, 2020, Compared to the Three Months Ended September 30, 2019
Revenue for the first quarter of fiscal 2021 was approximately
Revenue generated by IR products was approximately
Revenue generated by PMO products was approximately
Revenue generated by specialty products was approximately
Gross margin in the first quarter of fiscal 2021 was approximately
During the first quarter of fiscal 2021, total operating expenses were approximately
Interest expense, net, was approximately
During the first quarter of fiscal 2021, the Company recorded income tax expense of
LightPath recognized net foreign currency transaction losses due to changes in the value of the Chinese Yuan and Euro against the U.S. Dollar in the amount of approximately
Net income for the first quarter of fiscal 2021 was approximately
Weighted-average shares of common stock outstanding were 25,982,260 basic and 28,432,275 diluted in the first quarter of fiscal 2021, compared to 25,826,771 basic and diluted shares in the first quarter of fiscal 2020. The increase in the weighted-average shares of common stock outstanding was due to shares of Class A common stock issued under the Employee Stock Purchase Plan and upon the exercises of stock options and restricted stock units.
EBITDA for the first quarter of fiscal 2021 was approximately
Cash and cash equivalents totaled approximately
The current ratio as of September 30, 2020 was 3.0 to 1, compared to 2.9 to 1 as of June 30, 2020. Total stockholders' equity as of September 30, 2020 was approximately
Historically, LightPath has disclosed sales backlog on a 12-month basis, which examined orders required by customers for delivery within a one-year period. To better align with the Company's strategic focus on longer-term customer orders and relationships, beginning in fiscal 2021 disclosure will be provided for total backlog and will include all firm orders that are reasonably believed to remain in the backlog and convert into revenues. As of September 30, 2020, LightPath's total backlog was
*Use of Non-GAAP Financial Measures
To provide investors with additional information regarding financial results, this press release includes references to EBITDA and gross margin, both of which are non-GAAP financial measures. For a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP, see the tables provided in this press release.
A "non-GAAP financial measure" is generally defined as a numerical measure of a company's historical or future performance that excludes or includes amounts, or is subject to adjustments, so as to be different from the most directly comparable measure calculated and presented in accordance with GAAP. The Company's management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Management also believes that these non-GAAP financial measures enhance the ability of investors to analyze underlying business operations and understand performance. In addition, management may utilize these non-GAAP financial measures as guides in forecasting, budgeting, and planning. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures presented in accordance with GAAP.
The Company calculates EBITDA by adjusting net income to exclude net interest expense, income tax expense or benefit, depreciation, and amortization.
The Company calculates gross margin by deducting the cost of sales from operating revenue. Cost of sales includes manufacturing direct and indirect labor, materials, services, fixed costs for rent, utilities and depreciation, and variable overhead. Gross margin should not be considered an alternative to operating income or net income, which is determined in accordance with GAAP. The Company believes that gross margin, although a non-GAAP financial measure, is useful and meaningful to investors as a basis for making investment decisions. It provides investors with information that demonstrates cost structure and provides funds for total costs and expenses. The Company uses gross margin in measuring the performance of its business and has historically analyzed and reported gross margin information publicly. Other companies may calculate gross margin in a different manner.
Investor Conference Call and Webcast Details
LightPath will host an audio conference call and webcast on Thursday, November 5, 2020 at 4:30 p.m. ET to discuss its financial and operational performance for its fiscal 2021 first quarter ended September 30, 2020.
Date: Thursday, November 5, 2020
Time: 4:30 PM (ET)
Dial-in Number: 1-877-317-2514
International Dial-in Number: 1-412-317-2514
Webcast: https://services.choruscall.com/links/lpth201105.html
Participants are recommended to dial-in or log-on approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately one hour after completion through November 19, 2020. To listen to the replay, dial 1-877-344-7529 (domestic) or 1-412-317-0088 (international), and enter conference ID #10149045.
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, 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 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.
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, and include, for example, statements related to the expected effects on the Company's business from the COVID-19 pandemic. 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 duration and scope of the COVID-19 pandemic and impact on the 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 mandatory business closures and restrictions on onsite commercial interactions; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies and economic activity; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; 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 for the year ended June 30, 2020. 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.
Contacts:
Sam Rubin, President & CEO
LightPath Technologies, Inc.
Tel: 407-382-4003
srubin@lightpath.com
Don Retreage, Jr. CFO
LightPath Technologies, Inc.
Tel: 407-382-4003
dretreage@lightpath.com
Jordan Darrow
Darrow Associates, Inc.
Tel: 512-551-9296
jdarrow@darrowir.com
(tables follow)
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(unaudited)
| September 30, | June 30, | |||||||
Assets | 2020 | 2020 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 5,386,587 | $ | 5,387,388 | ||||
Trade accounts receivable, net of allowance of | 6,258,927 | 6,188,726 | ||||||
Inventories, net | 9,647,434 | 8,984,482 | ||||||
Other receivables | - | 132,051 | ||||||
Prepaid expenses and other assets | 666,501 | 565,181 | ||||||
Total current assets | 21,959,449 | 21,257,828 | ||||||
Property and equipment, net | 12,270,410 | 11,799,061 | ||||||
Operating lease right-of-use assets | 1,502,488 | 1,220,430 | ||||||
Intangible assets, net | 6,426,694 | 6,707,964 | ||||||
Goodwill | 5,854,905 | 5,854,905 | ||||||
Deferred tax assets, net | 659,000 | 659,000 | ||||||
Other assets | 27,737 | 75,730 | ||||||
Total assets | $ | 48,700,683 | $ | 47,574,918 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,337,477 | $ | 2,558,638 | ||||
Accrued liabilities | 1,161,796 | 992,221 | ||||||
Accrued payroll and benefits | 1,976,053 | 1,827,740 | ||||||
Operating lease liabilities, current | 814,307 | 765,422 | ||||||
Loans payable, current portion | 881,350 | 981,350 | ||||||
Finance lease obligation, current portion | 284,008 | 278,040 | ||||||
Total current liabilities | 7,454,991 | 7,403,411 | ||||||
Finance lease obligation, less current portion | 205,966 | 279,435 | ||||||
Operating lease liabilities, noncurrent | 1,075,781 | 887,766 | ||||||
Loans payable, less current portion | 4,296,670 | 4,437,365 | ||||||
Total liabilities | 13,033,408 | 13,007,977 | ||||||
Stockholders' equity: | ||||||||
Preferred stock: Series D, $.01 par value, voting; | ||||||||
500,000 shares authorized; none issued and outstanding | - | - | ||||||
Common stock: Class A, $.01 par value, voting; | ||||||||
44,500,000 shares authorized; 26,102,831 and 25,891,885 | ||||||||
shares issued and outstanding | 261,028 | 258,919 | ||||||
Additional paid-in capital | 230,905,905 | 230,634,056 | ||||||
Accumulated other comprehensive income | 1,465,200 | 735,892 | ||||||
Accumulated deficit | (196,964,858 | ) | (197,061,926 | ) | ||||
Total stockholders' equity | 35,667,275 | 34,566,941 | ||||||
Total liabilities and stockholders' equity | $ | 48,700,683 | $ | 47,574,918 | ||||
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(unaudited)
| Three Months Ended | ||||||||
| June 30, | ||||||||
| 2020 | 2019 | |||||||
Revenue, net | $ | 9,508,972 | $ | 7,551,930 | ||||
Cost of sales | 5,658,780 | 5,161,112 | ||||||
Gross margin | 3,850,192 | 2,390,818 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 2,440,477 | 2,341,778 | ||||||
New product development | 450,497 | 428,411 | ||||||
Amortization of intangibles | 281,271 | 283,521 | ||||||
Gain on disposal of property and equipment | (45 | ) | (50,000 | ) | ||||
Total operating expenses | 3,172,200 | 3,003,710 | ||||||
Operating income (loss) | 677,992 | (612,892 | ) | |||||
Other income (expense): | ||||||||
Interest expense, net | (58,549 | ) | (98,541 | ) | ||||
Other income (expense), net | (87,735 | ) | (515,406 | ) | ||||
Total other income (expense), net | (146,284 | ) | (613,947 | ) | ||||
Income (loss) before income taxes | 531,708 | (1,226,839 | ) | |||||
Income tax provision | 434,640 | 148,318 | ||||||
Net income (loss) | $ | 97,068 | $ | (1,375,157 | ) | |||
Foreign currency translation adjustment | 729,308 | 53,766 | ||||||
Comprehensive income (loss) | $ | 826,376 | $ | (1,321,391 | ) | |||
Earnings (loss) per common share (basic) | $ | 0.00 | $ | (0.05 | ) | |||
Number of shares used in per share calculation (basic) | 25,982,260 | 25,826,771 | ||||||
Earnings (loss) per common share (diluted) | $ | 0.00 | $ | (0.05 | ) | |||
Number of shares used in per share calculation (diluted) | 28,432,275 | 25,826,771 | ||||||
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Statements of Changes in Stockholders' Equity
(unaudited)
| Accumulated | ||||||||||||||||||||||||
| Class A | Additional | Other | Total | |||||||||||||||||||||
| Common Stock | Paid-in | Comprehensive | Accumulated | Stockholders' | ||||||||||||||||||||
| Shares | Amount | Capital | Income | Deficit | Equity | |||||||||||||||||||
Balances at June 30, 2020 | 25,891,885 | $ | 258,919 | $ | 230,634,056 | $ | 735,892 | $ | (197,061,926) | $ | 34,566,941 | |||||||||||||
Issuance of common stock for: | ||||||||||||||||||||||||
Employee Stock Purchase Plan | 3,306 | 33 | 10,976 | - | 11,009 | |||||||||||||||||||
Exercise of stock options, net | 207,640 | 2,076 | 124,024 | - | 126,100 | |||||||||||||||||||
Stock-based compensation on stock options & RSUs | - | - | 136,849 | - | - | 136,849 | ||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 729,308 | - | 729,308 | ||||||||||||||||||
Net income | - | - | - | - | 97,068 | 97,068 | ||||||||||||||||||
Balances at September 30, 2020 | 26,102,831 | $ | 261,028 | $ | 230,905,905 | $ | 1,465,200 | $ | (196,964,858) | $ | 35,667,275 | |||||||||||||
Balances at June 30, 2019 | 25,813,895 | $ | 258,139 | $ | 230,321,324 | $ | 808,518 | $ | (197,928,855 | ) | $ | 33,459,126 | ||||||||||||
Issuance of common stock for: | ||||||||||||||||||||||||
Employee Stock Purchase Plan | 13,370 | 134 | 12,033 | - | - | 12,167 | ||||||||||||||||||
Exercise of RSUs, net | 4,394 | 44 | (44 | ) | - | - | - | |||||||||||||||||
Stock-based compensation on stock options & RSUs | - | - | 98,459 | - | - | 98,459 | ||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 53,766 | - | 53,766 | ||||||||||||||||||
Net loss | - | - | - | - | (1,375,157 | ) | (1,375,157 | ) | ||||||||||||||||
Balances at September 30, 2019 | 25,831,659 | $ | 258,317 | $ | 230,431,772 | $ | 862,284 | $ | (199,304,012) | $ | 32,248,361 | |||||||||||||
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
| Three Months Ended September 30, | ||||||||
| 2020 | 2019 | |||||||
Cash flows from operating activities | ||||||||
Net income (loss) | $ | 97,068 | $ | (1,375,157 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 826,308 | 892,072 | ||||||
Interest from amortization of debt costs | 4,643 | 4,643 | ||||||
Gain on disposal of property and equipment | (45 | ) | (50,000 | ) | ||||
Stock-based compensation on stock options & RSUs, net | 136,849 | 98,459 | ||||||
Change in operating lease liabilities | (45,158 | ) | (24,844 | ) | ||||
Inventory write-offs to allowance | 112,282 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts receivable | (70,201 | ) | 682,975 | |||||
Other receivables | 132,051 | 353,695 | ||||||
Inventories | (775,234 | ) | (332,161 | ) | ||||
Prepaid expenses and other assets | 147,148 | 190,940 | ||||||
Accounts payable and accrued liabilities | 96,727 | 9,443 | ||||||
Net cash provided by operating activities | 662,438 | 450,065 | ||||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (1,216,817 | ) | (256,573 | ) | ||||
Proceeds from sale of equipment | - | 50,000 | ||||||
Net cash used in investing activities | (1,216,817 | ) | (206,573 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | 126,100 | - | ||||||
Proceeds from sale of common stock from Employee Stock Purchase Plan | 11,009 | 12,167 | ||||||
Payments on loan payable | (245,338 | ) | (145,338 | ) | ||||
Repayment of finance lease obligations | (67,501 | ) | (103,618 | ) | ||||
Net cash used in financing activities | (175,730 | ) | (236,789 | ) | ||||
Effect of exchange rate on cash and cash equivalents and restricted cash | 729,308 | 53,766 | ||||||
Change in cash and cash equivalents and restricted cash | (801 | ) | 60,469 | |||||
Cash and cash equivalents and restricted cash, beginning of period | 5,387,388 | 4,604,701 | ||||||
Cash and cash equivalents and restricted cash, end of period | $ | 5,386,587 | $ | 4,665,170 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid in cash | $ | 54,089 | $ | 95,870 | ||||
Income taxes paid | $ | 241,293 | $ | 57,660 | ||||
To supplement our consolidated financial statements presented in accordance with U.S. GAAP, we provide additional non-GAAP financial measures. Our management believes these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may or could, have a disproportionally positive or negative impact on results in any particular period. Our management also believes that these non-GAAP financial measures enhance the ability of investors to analyze our underlying business operations and understand our performance. In addition, our management may utilize these non-GAAP financial measures as guides in forecasting, budgeting, and planning. Any analysis on non-GAAP financial measures should be used in conjunction with results presented in accordance with GAAP. A reconciliation of these non-GAAP financial measures with the most directly comparable financial measures calculated in accordance with GAAP is presented in the tables below.
LIGHTPATH TECHNOLOGIES, INC.
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure
| (unaudited) | ||||||||
| Three Months Ended: | ||||||||
| September 30, 2020 | September 30, 2019 | |||||||
Net income (loss) | $ | 97,068 | $ | (1,375,157 | ) | |||
Depreciation and amortization | 826,308 | 892,072 | ||||||
Income tax provision | 434,640 | 148,318 | ||||||
Interest expense | 58,549 | 98,541 | ||||||
EBITDA | $ | 1,416,565 | $ | (236,226 | ) | |||
% of revenue | 15 | % | -3 | % | ||||
SOURCE: LightPath Technologies, Inc.
View source version on accesswire.com:
https://www.accesswire.com/614517/LightPath-Technologies-Reports-Financial-Results-for-Fiscal-2021-First-Quarter
FAQ
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