LightPath Technologies Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results
Fiscal 2024 Full Year & Fourth Quarter Highlights:
- Revenue of
$8.6 million for the fourth quarter of fiscal 2024; revenue of$31.7 million for the full fiscal year 2024- 28% and 20% of revenue, respectively, for customized lens assemblies and solutions and related engineering services, or LightPath 2.0 as we refer to these product groups
- Total backlog at
June 30, 2024 , of$19.3 million - Net loss for the fourth quarter of fiscal 2024 was
$2.4 million ; net loss of$8.0 million for the full fiscal year 2024 - EBITDA* loss for the fourth quarter of fiscal 2024 was
$1.3 million ; EBITDA* loss of$3.7 million for the full fiscal year 2024 - Achieved Key Qualification Milestone with Lockheed Martin for US Army Missile Program
- Successfully Transitioned Key Customer from Germanium to BlackDiamond Glass Optics
- Released First AI-Ready EdgeIR Cameras
Management Commentary
LightPath's President and Chief Executive Officer
"Throughout the year, we demonstrated the potential of our thermal imaging cameras through each introduction of application-specific variations. We introduced new versions of the Mantis camera, including a high-temperature furnace monitoring camera and a long-range detection camera, as well as AI-enabled thermal cameras. Each one of these cameras introduces capabilities previously unavailable within a single camera. The development of these specially tuned cameras was enabled by our acquisition of Visimid in
"Our strategic decision to focus on defense began to pay dividends as we announced our work with Lockheed Martin on a next-generation missile project. The work on this project will influence LightPath over the long term, and should Lockheed secure the project, it would be a transformative opportunity for the Company. Since being chosen for this project, we have continually hit our milestones and have now qualified to ship air worthy units."
2024 Fiscal Fourth Quarter Financial Results
Revenue for the fourth quarter of fiscal 2024 was approximately
Product Group Revenue |
Fourth Quarter |
Fourth Quarter |
% Change |
Infrared ("IR") components |
|
|
-36 % |
Visible components |
|
|
0 % |
Assemblies & modules |
|
|
-14 % |
Engineering services |
|
|
698 % |
** Numbers may not foot due to rounding |
- Revenue generated by IR components was approximately
$3.0 million in the fourth quarter of fiscal 2024, a decrease of approximately$1.7 million , or 36%, as compared to the same quarter of the prior fiscal year. The decrease in revenue is primarily due to a decrease in sales against a large annual contract for Germanium-based products, which was not renewed in the second quarter of fiscal year 2024, as we decided to reduce the amount of optics we produce from Germanium, both to reduce our risk of supply chain disruption, and more importantly, to work with customers to convert their systems to use optics made of our own BlackDiamond materials. - Revenue generated by visible components was approximately
$3.2 million , which was about the same in comparison to the same quarter of the prior fiscal year, with a decrease in sales to defense customers due to timing of orders offset by an increase in sales throughU.S. catalog and distribution channels. - Revenue from assemblies and modules decreased by
$0.2 million for the fourth quarter of fiscal 2024, as compared to the same quarter of the prior fiscal year, primarily due to lower sales of a custom visible lens assembly to a medical customer for which we have an end-of-life order in backlog going into fiscal 2025. In the fourth quarter of fiscal year 2023, this customer requested a greater number of units shipped, whereas in fiscal year 2024 we have shipped a lower but more consistent amount each quarter. This decrease was partially offset by the addition of Visimid revenue. - Revenue from engineering services was
$1.0 million for the fourth quarter of fiscal 2024, an increase of$0.9 million as compared to the same quarter of the prior fiscal year. This increase was primarily driven by Visimid's contract with Lockheed Martin, where revenue is generally recognized based on the achievement of milestones.
Gross margin in the fourth quarter of fiscal 2024 was approximately
Selling, general and administrative ("SG&A") costs were approximately
Net loss for the fourth quarter of fiscal 2024 was approximately
EBITDA* for the quarter ended
2024 Fiscal Year Financial Results
Revenue for fiscal 2024 was approximately
Product Group Revenue ($ in |
Fiscal 2024 |
Fiscal 2023 |
% Change |
Infrared ("IR") components |
|
|
-2 % |
Visible components |
|
|
-16 % |
Assemblies & modules |
|
|
-5 % |
Engineering services |
|
|
363 % |
** Numbers may not foot due to rounding |
- Revenue generated by IR components was approximately
$14.1 million in fiscal 2024, a decrease of approximately$0.3 million , or 2%, as compared to the prior fiscal year. The decrease in revenue related to the Germanium-based annual contract that was not renewed was mostly offset by an increase in shipments against an annual contract for an international military program. This contract was renewed during the first quarter of fiscal 2024 for a higher dollar value than the previous contract. - Revenue generated by visible components was approximately
$11.2 million in fiscal 2024, a decrease of approximately$2.2 million , or 16%, as compared to the prior fiscal year. The decrease in revenue is primarily due to a decrease in sales to customers in the defense industry, as well as a decrease in sales through catalog and distribution channels in theU.S. and inEurope . Sales to customers in the telecommunications industry inChina also decreased. - Revenue from assemblies and modules was approximately
$4.5 million in fiscal 2024, a decrease of approximately$0.2 million , or 5%, as compared to the prior fiscal year, primarily due to a decrease in shipments against a multi-year contract with a defense customer due to timing, as well as decreases in sales of infrared assemblies to industrial customers inChina and theU.S. . Customers in both regions have been steadily decreasing orders since the peak of COVID-19. These decreases were partially offset by the addition of revenue from sales of infrared camera cores. - Revenue from engineering services was approximately
$2.0 million for fiscal 2024, an increase of$1.5 million as compared to the prior fiscal year. This increase was primarily driven by our contract with Lockheed Martin, where revenue is generally recognized based on the achievement of milestones. The remaining increase is driven by revenue from one of our space-related funded research contracts.
Gross margin for fiscal 2024 was approximately
SG&A costs were approximately
Net loss for fiscal 2024 was approximately
EBITDA* for fiscal 2024 was a loss of approximately
Liquidity and Capital Resources
Cash provided by operations was approximately
Capital expenditures were approximately
Sales Backlog
Our total backlog as of
Investor Conference Call and Webcast Details
LightPath will host an audio conference call and webcast on
Date:
Time:
Dial-in Number: 1-877-317-2514
International Dial-in Number: 1-412-317-2514
Webcast: 4Q24 Webcast Link
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
*Use of Non-GAAP Financial Measures
To provide investors with additional information regarding financial results, this press release includes references to EBITDA, which is a non-GAAP financial measure. For a reconciliation of this non-GAAP financial measure to the most directly comparable financial measure calculated in accordance with GAAP, see the table 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 this non-GAAP financial measure, when considered together with the GAAP financial measure, 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 this non-GAAP financial measure enhances 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.
About
LightPath's wholly-owned subsidiary, Visimid Technologies, was acquired in
LightPath's wholly-owned subsidiary,
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; 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
(tables follow)
|
|||||||
Condensed Consolidated Balance Sheets |
|||||||
(unaudited) |
|||||||
|
|
|
|
||||
|
|
|
|
|
|
|
|
Assets |
2024 |
|
2023 |
||||
Current assets: |
|
|
|
|
|||
|
Cash and cash equivalents |
$ 3,480,268 |
|
$ 4,687,004 |
|||
|
Restricted cash |
— |
|
2,457,486 |
|||
|
Trade accounts receivable, net of allowance of |
4,928,931 |
|
6,634,574 |
|||
|
Inventories, net |
6,551,059 |
|
7,410,734 |
|||
|
Prepaid expenses and deposits |
445,900 |
|
570,293 |
|||
|
Other current assets |
131,177 |
|
— |
|||
|
|
|
|
Total current assets |
15,537,335 |
|
21,760,091 |
|
|
|
|
|
|
|
|
Property and equipment, net |
15,210,612 |
|
12,810,930 |
||||
Operating lease right-of-use assets |
6,741,549 |
|
9,571,604 |
||||
Intangible assets, net |
3,650,739 |
|
3,332,715 |
||||
|
|
|
6,764,127 |
|
5,854,905 |
||
Deferred tax assets, net |
123,000 |
|
140,000 |
||||
Other assets |
|
59,602 |
|
65,939 |
|||
|
|
|
|
Total assets |
$ 48,086,964 |
|
$ 53,536,184 |
Liabilities and Stockholders' Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ 3,231,713 |
|
$ 2,574,135 |
|||
|
Accrued liabilities |
1,911,867 |
|
662,242 |
|||
|
Accrued payroll and benefits |
1,446,452 |
|
1,499,896 |
|||
|
Operating lease liabilities, current |
1,059,998 |
|
969,890 |
|||
|
Loans payable, current portion |
209,170 |
|
1,023,814 |
|||
|
Finance lease obligation, current portion |
177,148 |
|
103,646 |
|||
|
|
|
|
Total current liabilities |
8,036,348 |
|
6,833,623 |
|
|
|
|
|
|
|
|
Deferred tax liabilities, net |
326,197 |
|
465,000 |
||||
Accrued liabilities, noncurrent |
611,619 |
|
— |
||||
Finance lease obligation, less current portion |
528,753 |
|
341,201 |
||||
Operating lease liabilities, noncurrent |
8,058,502 |
|
8,393,248 |
||||
Loans payable, less current portion |
325,880 |
|
1,550,587 |
||||
|
|
|
Total liabilities |
17,887,299 |
|
17,583,659 |
|
|
|
|
|
|
|
|
|
Commitments and Contingencies |
|
|
|
||||
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
||||
|
Preferred stock: Series D, |
|
|
|
|||
|
|
500,000 shares authorized; none issued and outstanding |
— |
|
— |
||
|
Common stock: Class A, |
|
|
|
|||
|
|
94,500,000 and 44,500,000 shares authorized; |
|
|
|
||
|
|
39,254,643 and 34,344,739 shares issued and outstanding |
392,546 |
|
373,447 |
||
|
Additional paid-in capital |
245,140,758 |
|
242,808,771 |
|||
|
Accumulated other comprehensive income |
509,936 |
|
606,536 |
|||
|
Accumulated deficit |
(215,843,575) |
|
(207,836,229) |
|||
|
|
|
|
Total stockholders' equity |
30,199,665 |
|
35,952,525 |
|
|
|
|
Total liabilities and stockholders' equity |
$ 48,086,964 |
|
$ 53,536,184 |
|
|
|
|
|
|
|
|
|
|||||||||||
Condensed Consolidated Statements of Comprehensive Income (Loss) |
|||||||||||
(unaudited) |
|||||||||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenue, net |
$ 8,634,132 |
|
$ 9,684,721 |
|
|
|
|
||||
Cost of sales |
6,109,100 |
|
6,603,559 |
|
23,094,946 |
|
21,859,126 |
||||
|
|
|
Gross margin |
2,525,032 |
|
3,081,162 |
|
8,631,246 |
|
11,074,823 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||
|
Selling, general and administrative |
3,605,988 |
|
3,009,109 |
|
12,297,383 |
|
11,437,241 |
|||
|
New product development |
582,822 |
|
615,675 |
|
2,400,420 |
|
2,145,413 |
|||
|
Amortization of intangible assets |
434,403 |
|
281,271 |
|
1,635,523 |
|
1,125,083 |
|||
|
Loss (gain) on disposal of property and equipment |
111,336 |
|
(22,463) |
|
124,584 |
|
(78,373) |
|||
|
|
|
Total operating expenses |
4,734,549 |
|
3,883,592 |
|
16,457,910 |
|
14,629,364 |
|
|
|
|
Operating loss |
(2,209,517) |
|
(802,430) |
|
(7,826,664) |
|
(3,554,541) |
|
Other income (expense): |
|
|
|
|
|
|
|
||||
|
Interest expense, net |
(42,814) |
|
(54,561) |
|
(191,862) |
|
(283,266) |
|||
|
Other income (expense), net |
(155,354) |
|
59,769 |
|
78,670 |
|
24,970 |
|||
|
Total other income (expense), net |
(198,168) |
|
5,208 |
|
(113,192) |
|
(258,296) |
|||
|
|
|
Loss before income taxes |
(2,407,685) |
|
(797,222) |
|
(7,939,856) |
|
(3,812,837) |
|
Income tax provision |
(53,912) |
|
11,618 |
|
67,490 |
|
234,034 |
||||
|
|
|
Net loss |
|
|
$ (808,840) |
|
|
|
|
|
Foreign currency translation adjustment |
(119,009) |
|
(370,492) |
|
(96,600) |
|
(328,589) |
||||
|
|
|
Comprehensive loss |
|
|
|
|
|
|
|
|
Loss per common share (basic) |
$ (0.06) |
|
$ (0.02) |
|
$ (0.21) |
|
$ (0.13) |
||||
Number of shares used in per share calculation (basic) |
38,850,526 |
|
37,320,084 |
|
37,944,935 |
|
31,637,445 |
||||
Loss per common share (diluted) |
$ (0.06) |
|
$ (0.02) |
|
$ (0.21) |
|
$ (0.13) |
||||
Number of shares used in per share calculation (diluted) |
38,850,526 |
|
37,320,084 |
|
37,944,935 |
|
31,637,445 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Condensed Consolidated Statements of Changes in Stockholders' Equity |
||||||||
(unaudited) |
||||||||
|
|
|
|
|
Accumulated |
|
|
|
|
|
Class A |
Additional |
Other |
|
Total |
||
|
|
Common Stock |
Paid-in |
Comphrehensive |
Accumulated |
Stockholders' |
||
|
|
Shares |
Amount |
Capital |
Income |
Deficit |
Equity |
|
Balances at |
|
27,046,790 |
$ 270,468 |
$ 232,315,003 |
$ 935,125 |
$ (203,789,358) |
$ 29,731,238 |
|
Issuance of common stock for: |
|
|
|
|
|
|
|
|
|
Employee Stock Purchase Plan |
|
33,523 |
335 |
40,045 |
— |
— |
40,380 |
|
Exercise of Stock Options, RSUs & RSAs, net |
|
1,173,516 |
11,735 |
34,165 |
— |
— |
45,900 |
|
Issuance of common stock under public equity placement |
|
9,090,910 |
90,909 |
9,108,601 |
— |
— |
9,199,510 |
Stock-based compensation on stock options, RSAs & RSUs |
|
— |
— |
1,310,957 |
— |
— |
1,310,957 |
|
Foreign currency translation adjustment |
|
— |
— |
— |
(328,589) |
— |
(328,589) |
|
Net loss |
|
— |
— |
— |
— |
(4,046,871) |
(4,046,871) |
|
Balances at |
|
37,344,739 |
373,447 |
242,808,771 |
606,536 |
(207,836,229) |
35,952,525 |
|
Issuance of common stock for: |
|
|
|
|
|
|
|
|
|
Employee Stock Purchase Plan |
|
30,447 |
304 |
39,373 |
— |
— |
39,677 |
|
Exercise of Stock Options, RSUs & RSAs, net |
|
945,188 |
9,452 |
(9,452) |
— |
— |
— |
|
Issuance of common stock under public equity placement |
|
585,483 |
5,855 |
800,477 |
— |
— |
806,332 |
|
Issuance of common stock for acquisition of Visimid |
|
348,786 |
3,488 |
482,566 |
— |
— |
486,054 |
Stock-based compensation on stock options, RSUs & RSAs |
|
— |
— |
1,019,023 |
— |
— |
1,019,023 |
|
Foreign currency translation adjustment |
|
— |
— |
— |
(96,600) |
— |
(96,600) |
|
Net loss |
|
— |
— |
— |
— |
(8,007,346) |
(8,007,346) |
|
Balances at |
|
39,254,643 |
$ 392,546 |
$ 245,140,758 |
$ 509,936 |
$ (215,843,575) |
$ 30,199,665 |
|
|
|
|
|
|
|
|
|
|
|||
Condensed Consolidated Statements of Cash Flows |
|||
(unaudited) |
|||
|
|
|
|
|
Year Ended |
||
|
2024 |
|
2023 |
Cash flows from operating activities: |
|
|
|
Net loss |
$ (8,007,346) |
|
$ (4,046,871) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
Depreciation and amortization |
4,048,409 |
|
3,174,569 |
Interest from amortization of debt costs |
— |
|
58,774 |
Loss (gain) on disposal of property and equipment |
124,584 |
|
(78,373) |
Stock-based compensation on stock options, RSUs & RSAs, net |
1,019,023 |
|
1,310,957 |
Provision for credit losses |
(4,426) |
|
8,158 |
Change in operating lease assets and liabilities |
183,393 |
|
(231,561) |
Inventory write-offs to allowance |
136,676 |
|
316,297 |
Deferred taxes |
(121,803) |
|
(73,015) |
Changes in operating assets and liabilities: |
|
|
|
Trade accounts receivable |
1,498,698 |
|
(1,431,440) |
Other current assets |
(131,177) |
|
- |
Inventories |
960,739 |
|
(741,604) |
Prepaid expenses and deposits |
133,810 |
|
(97,792) |
Accounts payable and accrued liabilities |
680,457 |
|
(977,622) |
Net cash provided by (used in) operating activities |
521,037 |
|
(2,809,523) |
|
|
|
|
Cash flows from investing activities: |
|
|
|
Purchase of property and equipment |
(2,182,805) |
|
(3,077,154) |
Proceeds from sales of equipment |
— |
|
209,169 |
Proceeds from sale-leaseback of equipment |
364,710 |
|
— |
Acquisition of Visimid Technologies, net of cash acquired |
(847,141) |
|
— |
Net cash used in investing activities |
(2,665,236) |
|
(2,867,985) |
|
|
|
|
Cash flows from financing activities: |
|
|
|
Proceeds from sale of common stock from Employee Stock Purchase Plan |
39,677 |
|
40,380 |
Proceeds from issuance of common stock under public equity placement |
806,332 |
|
9,199,510 |
Borrowings on loans payable |
278,926 |
|
141,245 |
Payments on loans payable |
(2,459,474) |
|
(1,852,256) |
Repayment of finance lease obligations |
(131,901) |
|
(73,003) |
Net cash (used in) provided by financing activities |
(1,466,440) |
|
7,455,876 |
Effect of exchange rate on cash and cash equivalents |
(53,583) |
|
(141,769) |
Change in cash, cash equivalents and restricted cash |
(3,664,222) |
|
1,636,599 |
Cash, cash equivalents and restricted cash, beginning of period |
7,144,490 |
|
5,507,891 |
Cash, cash equivalents and restricted cash, end of period |
$ 3,480,268 |
|
$ 7,144,490 |
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
Interest paid in cash |
$ 196,541 |
|
$ 221,773 |
Income taxes paid |
$ 166,858 |
|
$ 428,914 |
Supplemental disclosure of non-cash investing & financing activities: |
|
|
|
Purchase of equipment through finance lease arrangements |
$ 396,058 |
|
$ 451,058 |
Equipment deposit paid in restricted stock |
— |
|
$ 45,900 |
Operating right-of-use assets acquired in exchange for operating lease |
$ 92,136 |
|
— |
|
|
|
|
To supplement our consolidated financial statements presented in accordance with
|
||||||||
Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure |
||||||||
|
|
|
|
|
||||
|
|
(unaudited) |
||||||
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net loss |
$ (2,353,773) |
|
$ (808,840) |
|
$ (8,007,346) |
|
$ (4,046,871) |
|
Depreciation and amortization |
1,062,559 |
|
815,019 |
|
4,048,409 |
|
3,174,569 |
|
Income tax provision |
(53,912) |
|
11,618 |
|
67,490 |
|
234,034 |
|
Interest expense |
42,814 |
|
54,561 |
|
191,862 |
|
283,266 |
|
|
EBITDA |
$ (1,302,312) |
|
$ 72,358 |
|
$ (3,699,585) |
|
$ (355,002) |
|
% of revenue |
-15 % |
|
1 % |
|
-12 % |
|
-1 % |
|
|
|
|
|
|
|
|
|
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SOURCE