Financial Performance - LightPath Technologies reported a quarterly loss of $0.07 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.04, representing an earnings surprise of -75% [1] - The company posted revenues of $7.43 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 10.33%, compared to revenues of $7.32 million a year ago [2] - Over the last four quarters, the company has surpassed consensus EPS estimates only once [2] Stock Performance - LightPath Technologies shares have lost about 0.6% since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The current Zacks Rank for LightPath Technologies is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is -$0.05 on revenues of $8.06 million, and -$0.15 on revenues of $34.52 million for the current fiscal year [7] - The estimate revisions trend for LightPath Technologies is mixed, and changes in estimates for the coming quarters and current fiscal year are anticipated following the recent earnings report [6][7] Industry Context - LightPath Technologies operates within the Zacks Electronics - Miscellaneous Components industry, which is currently ranked in the bottom 48% of over 250 Zacks industries [8] - The performance of stocks in this industry can be significantly influenced by the overall industry outlook [8]

Revenue and Profitability - Revenue for the three months ended December 31, 2024, was $7,424,829, representing an increase from $7,315,637 in the same period of 2023, a growth of approximately 1.5%[15] - Gross profit for the six months ended December 31, 2024, was $4,775,260, compared to $4,500,027 for the same period in 2023, reflecting an increase of about 6.1%[15] - Total revenue for the three months ended December 31, 2024, was $7,424,829, an increase from $7,315,637 in the same period of 2023, representing a growth of 1.5%[15] - Total revenue for the six months ended December 31, 2024, was $15,825,210 compared to $15,392,885 in 2023[45] - Revenue from engineering services significantly increased to $692,687 for the three months ended December 31, 2024, compared to $77,197 in the same period of 2023[45] - For the first half of fiscal 2025, total revenue increased by 3% to $15.83 million compared to $15.39 million in the prior year[183] Losses and Expenses - Operating loss for the three months ended December 31, 2024, was $(2,484,339), compared to $(1,783,329) in the prior year, indicating a deterioration of approximately 39.2%[15] - Net loss for the six months ended December 31, 2024, was $(4,234,742), compared to $(3,056,039) for the same period in 2023, an increase in loss of about 38.5%[15] - The net loss for the three months ended December 31, 2024, was $2,611,997, compared to a net loss of $1,713,663 in 2023, representing a 52.3% increase in losses[67] - Selling, general and administrative expenses for the three months ended December 31, 2024, were $3,356,063, up from $2,858,457 in the same period of 2023, an increase of approximately 17.5%[15] - The total stock-based compensation on stock options, RSUs & RSAs for the six months ended December 31, 2024, was $506,020, compared to $551,853 for the same period in 2023, indicating a decrease of approximately 8.3%[20] Assets and Liabilities - Total current assets as of December 31, 2024, were $15,648,300, slightly up from $15,537,335 as of June 30, 2024[12] - Total liabilities increased to $19,125,253 as of December 31, 2024, compared to $17,887,299 as of June 30, 2024, marking an increase of approximately 6.9%[12] - Cash and cash equivalents decreased to $3,201,066 as of December 31, 2024, from $3,480,268 as of June 30, 2024, a decline of approximately 8.0%[12] - Total stockholders' equity decreased to $26,702,938 as of December 31, 2024, from $30,199,665 as of June 30, 2024, a decline of 11.0%[13] Acquisitions and Strategic Initiatives - The acquisition of Visimid Technologies included a purchase price of $1 million in cash, $1,550,000 in restricted stock, and $150,000 in assumed bank debt, with an earnout contingent on a specific customer contract[34] - The company announced a strategic acquisition of G5 Infrared for approximately $27 million, consisting of $20.25 million in cash and 1,972,531 shares of Class A common stock, with additional earnout consideration of up to $23 million based on revenue and EBITDA targets[98] - The company is transitioning from a component manufacturer to a supplier of imaging subsystems and systems, focusing on engineered solutions and partnerships for optical development[119] - The acquisition of Visimid Technologies in July 2023 aligns with the company's strategy to enhance its capabilities in thermal imaging and night vision applications[109] Cash Flow and Financing - Cash flows from operating activities resulted in a net cash used of $2,437,616 for the six months ended December 31, 2024, compared to a net cash provided of $850,569 for the same period in 2023[21] - Cash provided by financing activities was approximately $2.4 million for the first half of fiscal 2025, reflecting net proceeds from the Bridge Note[165] - The company plans to repatriate a portion of earnings from foreign subsidiaries, with approximately $1.2 million available for repatriation as of December 31, 2024[156] Future Outlook and Market Position - The company is actively seeking additional acquisitions and strategic transactions to expand its business and may need to raise additional funds to pursue these opportunities[97] - Demand for infrared products continues to grow, driven by interest in proprietary materials and the global supply constraints of Germanium[179] - The company expects to recognize approximately $1.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements[66]

Revenue and Profitability - Revenue for Q2 fiscal 2025 increased 1.5% to $7.4 million compared to $7.3 million in Q2 fiscal 2024[3] - Gross profit decreased 11% to $1.9 million, representing 26% of total revenues, down from 30% in the prior year[13] - Net loss for Q2 fiscal 2025 was $2.6 million, or $0.07 per share, compared to a net loss of $1.7 million, or $0.05 per share, in the same quarter last year[15] - EBITDA loss for Q2 fiscal 2025 was $1.5 million, compared to a loss of $0.5 million in Q2 fiscal 2024, reflecting lower gross profit and increased SG&A expenses[16] - Operating loss for the three months ended December 31, 2024, was $2.48 million, compared to a loss of $1.78 million in the same period last year, reflecting an increase in losses of 39.4%[32] - The company reported a net loss of $2.61 million for the three months ended December 31, 2024, compared to a net loss of $1.71 million in the same period in 2023, representing an increase in losses of 52.4%[32] - Net loss for the six months ended December 31, 2024, was $4,234,742, compared to a net loss of $3,056,039 for the same period in 2023, representing an increase in loss of approximately 38.4%[35] - The company reported a comprehensive loss of $3.06 million for the three months ended December 31, 2024, compared to a comprehensive loss of $1.45 million in the same period in 2023, indicating an increase in losses of 111.5%[32] Operating Expenses - Operating expenses rose 11.7% to $4.4 million, primarily due to higher legal and consulting fees related to business development initiatives[14] - Operating expenses for the three months ended December 31, 2024, totaled $4.42 million, an increase of 11.7% from $3.95 million in the prior year[32] Assets and Liabilities - Total assets decreased to $45.83 billion as of December 31, 2024, from $48.09 billion on June 30, 2024, representing a decline of approximately 4.9%[28] - Total current liabilities increased to $10.23 million as of December 31, 2024, from $8.04 million on June 30, 2024, marking a rise of 27.2%[29] - Stockholders' equity decreased to $26.70 million as of December 31, 2024, from $30.20 million on June 30, 2024, a decline of 11.1%[30] Cash Flow and Investments - Net cash used in operating activities was $(2,437,616), a significant decrease from net cash provided of $850,569 in the prior year[35] - Cash flows from investing activities resulted in a net cash outflow of $(149,507), compared to $(1,841,832) in the previous year, indicating a reduction in investment spending[35] - Cash flows from financing activities generated a net cash inflow of $2,389,181, contrasting with a net cash outflow of $(303,723) in the same period last year[35] - The company reported cash, cash equivalents, and restricted cash of $3,201,066 at the end of the period, down from $5,882,202 at the end of the previous year[35] - Interest paid in cash decreased to $40,838 from $110,774, reflecting a reduction of approximately 63.1%[35] Product Development and Acquisitions - The acquisition of G5 Infrared is expected to enhance LightPath's offerings and contribute to future growth, with G5's 2024 revenues exceeding $15 million[5] - LightPath launched new optical gas imaging cameras for ammonia and sulfur hexafluoride detection, addressing environmental concerns in industrial applications[8] - The company received a development contract from a European defense customer, leveraging its BlackDiamond glass technology for optical systems[7] - LightPath aims for a long-term goal of achieving 15% EBITDA margins at the corporate level, supported by the integration of G5 Infrared[6] - The company invested $764,396 in new product development during the three months ended December 31, 2024, compared to $607,747 in the same period in 2023, reflecting a growth of 25.7%[32] - The company acquired Visimid, resulting in a non-cash issuance of common stock valued at $321,358[35] Other Financial Metrics - Depreciation and amortization expenses were $1,893,602, slightly down from $1,943,000 in the previous year[35] - The company experienced a loss on disposal of property and equipment amounting to $78,437, with no comparable figure reported in the prior year[35] - Trade accounts receivable decreased by $350,703, contrasting with an increase of $1,717,283 in the previous year, indicating a shift in collection efficiency[35]

Core Insights - LightPath Technologies reported a slight revenue increase of 1.5% to $7.4 million for the second quarter of fiscal 2025 compared to $7.3 million in the same quarter of the previous year [2][10] - The company experienced a net loss of $2.6 million, a 52.4% increase from the net loss of $1.7 million in the same quarter of the prior year [2][13] - The acquisition of G5 Infrared is a strategic move aimed at enhancing LightPath's capabilities in the infrared imaging market, with G5's preliminary revenues exceeding $15 million in 2024 [4][7] Financial Performance - Revenue for the second quarter of fiscal 2025 was $7.4 million, up from $7.3 million in the same quarter of fiscal 2024, with a breakdown of product group revenues showing a decline in infrared components and assemblies [10][11] - Gross profit decreased by 11% to $1.9 million, representing 26% of total revenues, down from 30% in the same quarter of the previous year [11] - Operating expenses rose by 12% to $4.4 million, primarily due to increased legal and consulting fees related to business development and the G5 acquisition [12] Strategic Developments - The acquisition of G5 Infrared is expected to provide a significant growth opportunity, with anticipated synergies from integrating G5's products with LightPath's existing offerings [4][5] - LightPath has secured a development contract with a new European defense customer, highlighting its expanding presence in the European defense market [6] - The company launched new optical gas imaging cameras aimed at detecting harmful emissions, which are positioned to benefit from geopolitical supply chain issues affecting competitors [8] Market Positioning - LightPath aims to become a leading vertically integrated provider of infrared imaging solutions, leveraging G5's high-margin products and operational synergies [4][5] - The company is actively pursuing key defense contracts, including a partnership with Lockheed Martin for a major missile program, which could enhance its market position [9] - The growing demand for drone applications in defense is seen as a significant opportunity for LightPath's proprietary materials and technologies [6]

Core Viewpoint - LightPath Technologies has announced the acquisition of G5 Infrared, enhancing its position in the infrared imaging market and creating a vertically integrated optics leader [1][4][10]. Acquisition Summary and Strategic Rationale - G5 Infrared, founded in 2011, specializes in high-performance infrared camera systems, focusing on defense and security applications [3]. - The acquisition is expected to generate at least $55 million in revenue within 12 months post-acquisition, driven by G5's existing contracts and growth pipeline [4][7]. - G5's advanced thermal imaging technology complements LightPath's existing product offerings, particularly in long-range and short-range imaging applications [6][10]. Financial Aspects - The total consideration for the acquisition is $27 million, comprising $20.25 million in cash and $6.75 million in common shares, with potential performance-based additional payments [8][9]. - Financing for the acquisition includes private placements totaling $25.5 million and other financial instruments, positioning the company for stronger cash flow post-transaction [9]. Market Position and Growth Potential - The combined entity aims to capture a significant share of the $9 billion infrared imaging market, with a strategic vision for long-term revenue growth exceeding 20% and EBITDA margins above 15% [7][11]. - The integration of G5's cooled infrared camera products with LightPath's uncooled cameras is expected to enhance the product portfolio and meet growing demand in both defense and commercial sectors [6][10]. Management Commentary - Management views the acquisition as transformative, enhancing capabilities in high-performance imaging solutions and providing visibility into robust near-term revenue growth [10][11]. - The acquisition aligns with the broader M&A strategy to expand market reach and product offerings, focusing on innovation and operational excellence [11][12].

ORLANDO, Fla., Jan. 30, 2025 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading provider of next-generation optics and imaging systems for both defense and commercial applications, today announced it will release financial results for the fiscal second quarter ended December 31, 2024 after market close on February 13, 2025. Management will host an investor conference call at 5:00 p.m. Eastern time on Thursday, February 13, 2025 to discuss the Company ...

LightPath Technologies, Inc. (NASDAQ: LPTH ) is a micro-cap, global company that manufactures, distributes, and integrates its own optical components and high-level assemblies. It was founded back in 1985 and is based in Orlando, Florida—right in my home state. In simple terms,The mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing on small ...

Company to Host One-on-One Investor Meetings at the 27th Annual Needham Growth Conference and the Sequire Investor Summit Puerto Rico ORLANDO, Fla., Jan. 15, 2025 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading provider of next-generation optics and imaging systems for both defense and commercial applications, today announced that management will participate in two prominent investor conferences in early 2025: the 27th Annual Needham Growth Confe ...

FPV Drone Infrared Lens Assemblies for European Defense Customer Expected to Drive $1.0-2.0 Million in Revenue in Calendar Year 2025 ORLANDO, Fla., Dec. 23, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading provider of next-generation optics and imaging systems for both defense and commercial applications, today announced that it has begun sustained delivery of infrared lens assemblies per the terms of the October 2024 Letter of Intent ("LOI") ...

ORLANDO, Fla., Dec. 17, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading provider of next-generation optics and imaging systems for both defense and commercial applications, today issued a letter to shareholders from its President and Chief Executive Officer, Sam Rubin. Dear Shareholders, 2024 was a transformational year for LightPath, evolving from a pure component supplier to a leading provider of high-value, next-generation optics and imagi ...