LightPath Technologies Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results

Core Insights - LightPath Technologies reported financial results for fiscal year 2024, highlighting a strategic transition towards custom thermal imaging solutions and a focus on defense, automotive, and camera solutions [3][11]. Fiscal 2024 Full Year & Fourth Quarter Highlights - Fourth quarter revenue was $8.6 million, a decrease of 11% from $9.7 million in the same quarter of the previous year; full year revenue was $31.7 million, down 4% from $32.9 million [2][6]. - Customized lens assemblies and related engineering services contributed 28% and 20% of revenue for the fourth quarter and full year, respectively [2]. - The total backlog as of June 30, 2024, was $19.3 million, down 11% from $21.7 million a year earlier [2][8]. - The net loss for the fourth quarter was $2.4 million, compared to a loss of $0.8 million in the same quarter of the prior year; the full year net loss was $8.0 million, up from $4.0 million [5][6]. - EBITDA loss for the fourth quarter was $1.3 million, compared to a gain of $0.1 million in the same period last year; full year EBITDA loss was $3.7 million [5][6]. Management Commentary - The CEO emphasized the company's strategic shift from a component provider to a custom thermal imaging solutions provider, with significant advancements in thermal imaging camera technology [3]. - The collaboration with Lockheed Martin on a missile program is expected to be transformative for the company, with successful qualification milestones achieved [3]. - The transition away from Germanium optics to proprietary BlackDiamond materials is seen as a strategic move to mitigate supply chain risks and enhance customer partnerships [3]. Product Revenue Breakdown - Revenue from infrared components was $3.0 million in the fourth quarter, down 36% from $4.8 million; visible components revenue remained stable at $3.2 million [4]. - Engineering services revenue surged to $1.0 million, a 698% increase compared to the previous year, driven by contracts with Lockheed Martin [4][6]. - For the full year, infrared components revenue was $14.1 million, a 2% decrease, while visible components revenue fell 16% to $11.2 million [6]. Cost and Margin Analysis - Gross margin for the fourth quarter was approximately $2.5 million, a decrease of 18% year-over-year, with a gross margin percentage of 29% compared to 32% [4][6]. - Selling, general and administrative costs increased by 20% to approximately $3.6 million in the fourth quarter, primarily due to higher wages and legal fees [4][6]. Liquidity and Capital Resources - Cash provided by operations was approximately $0.5 million for fiscal 2024, a significant improvement from cash used in operations of $2.8 million in the prior year [7]. - Capital expenditures were approximately $2.2 million, down from $3.1 million in the previous fiscal year, with a notable acquisition of Visimid Technologies for approximately $0.8 million [7]. Backlog and Future Contracts - The decrease in backlog is attributed to shipments against prior period contracts, but significant contract renewals are anticipated in the near future [8]. - A major contract renewal for advanced infrared optics for a military program represented a 40% increase in dollar value compared to the previous order [8].