Contact Information: Contacts: Dorothy Cipolla CFO LightPath Technologies, Inc. (407) 382-4003 Internet: www.lightpath.com
LightPath Technologies, Inc. Releases Preliminary Q4 2007 Results
Announces Search for New CEO
| Source: LightPath Technologies
ORLANDO, FL--(Marketwire - September 19, 2007) - LightPath Technologies, Inc. (NASDAQ : LPTH ),
manufacturer and integrator of families of precision molded aspheric
optics, precision molded infrared optics, GRADIUM® glass products, and
high-performance fiber-optic collimators and isolators, reported today that
projected results for its fourth quarter of fiscal 2007 include sales of
approximately $2.2 million compared with $3.4 million in the fourth quarter
of fiscal 2006, a decrease of 33%. Fiscal year 2007 sales increased 10%, to
$13.4 million compared to fiscal 2006 when the Company reported sales of
approximately $12.2 million. The increase for the year was primarily
attributable to increases in aspheric lenses offset by decreases in
products sold to the telecommunications industry. Starting in the second
quarter of fiscal 2007, new orders from our telecommunications customers
slowed down realizing lower revenues in the fourth quarter of fiscal 2007.
At June 30, 2007, our Disclosure Backlog (as defined in our Annual Report
on Form 10K for June 30, 2006) was $1.8 million, a decrease of 57% over our
Disclosure Backlog at June 30, 2006 of $4.3 million. Comparing fiscal 2007
to fiscal 2006 our backlog at the end of fiscal 2006 was higher in products
to the telecommunications industry, due to an increase in orders and higher
than normal delinquent delivery rate. Due to market conditions, throughout
fiscal 2007 new orders from the telecommunications industry were lower. We
believe the downward trend in the Disclosure Backlog was principally caused
by a slow down in telecommunications orders in the second, third and fourth
quarters of fiscal year 2007.
The impact of the revenue decline in the fourth quarter of 2007 was due to
much lower communications sales due to market conditions and about $362,000
of late shipments due to manufacturing operational issues, we expect these
late shipments to be shipped by the end of September 2007. Cash used in
the fourth quarter of fiscal 2007 was significantly higher than the cash
used in the fourth quarter of 2006. The fourth quarter included one time
charges of $341,000 due to glass yield issues, overtime for direct labor,
travel for engineering and management to resolve issues, and freight and
duty expenses. The cash balance as of June 30, 2007 was $1.3 million. This
balance does not include the recent July 2007 equity raise of $3.2 million.
Ms. Dorothy Cipolla, CFO, stated, "To offset the poor financial performance
in the fourth quarter, over the last few months the company has reduced the
workforce in Orlando by 25 staff, bringing the headcount to 88. This should
provide a reduction in our payroll costs of about $0.9 million during
fiscal 2008. As more of the production is shifting to Shanghai, the Orlando
facility needs to be right-sized. All areas of expense are being evaluated
for cost savings with the intent to bring the company to profitability.
The Orlando facility has twice as much space as is needed and costs
approximately $1.0 million per year. Over the next few months, we will be
evaluating other locations, as our lease expires in November 2008. We are
also working with our current landlord and others to secure appropriate and
affordable lease terms."
Also, LightPath has announced that effective September 18, 2007, its Chief
Executive Officer, Kenneth Brizel, will no longer be employed by the
company. The company has engaged an Executive Search firm to conduct a
search for a new CEO; it will include LightPath executives as well as
outside candidates. Jim Gaynor, currently Senior V.P. Global Operations,
has been appointed interim CEO. While Ken Brizel helped LightPath achieve
many successes, including the creation of new markets for the company's
technologies and establishing a manufacturing presence in China, Mr. Brizel
and LightPath have determined that it is mutually beneficial to make this
change. LightPath wishes Ken well in his future endeavors.
Mr. Robert Ripp, Chairman of LightPath, commented, "We remain very
committed to our strategy of being a diversified supplier of passive
optical components; as well as being the lowest cost producer of those
components. Our goal is to improve the execution of our strategy. The new
CEO will need to have the leadership skills to manage the company to a
sustainable level of profitability and positive cash flows by introducing
exciting new opportunities that will accelerate our revenue growth, and to
increase profit margins by continuing to pursue cost reductions
initiatives."
Mr. Ripp continued, "The priorities of qualities and experiences that we
seek in our prospective CEO are: a track record of execution/operational
success, a familiarity in managing China operations, new product
development background, and a set of relationships within the optical space
that can benefit LightPath with its suppliers and customers."
Webcast Details:
LightPath plans to release the final fiscal 2007 numbers on September 28,
2007. The company plans to hold an audio webcast at 3:00 p.m. EDT on
Friday, September 28, 2007, to discuss details regarding the company's
performance for the fourth quarter and fiscal year 2007. The session may be
accessed at www.lightpath.com. A transcript archive of the webcast will be
available for viewing or download on our web site shortly after the call is
concluded.
LightPath manufactures optical products including precision molded aspheric
optics, precision molded infrared optics, GRADIUM® glass products,
proprietary collimator assemblies, isolators utilizing proprietary
automation technology, higher-level assemblies and packing solutions.
LightPath has a strong patent portfolio that has been granted or licensed
to us in these fields. LightPath common stock trades on the NASDAQ Capital
Market under the symbol "LPTH." Investors are encouraged to go to
LightPath's website for additional financial information.
This news release includes statements that constitute forward-looking
statements made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. This information may involve
risks and uncertainties that could cause actual results to differ
materially from such forward-looking statements. Factors that could cause
or contribute to such differences include, but are not limited to, factors
detailed by LightPath Technologies, Inc. in its public filings with the
Securities and Exchange Commission.