LightPath Technologies, Inc. · NASDAQ:LPTH
LightPath Technologies — Investor Presentation (December 2020)
33 slides from LightPath Technologies's investor presentation, Dec 1, 2020
Slide 1: Investor Presentation December 1, 2020
INVESTOR PRESENTATION DECEMBER 1, 2020 GLOBAL LEADER IN OPTICAL TECHNOLOGY
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategie
Slide 3: Optics & Photonics Enabling Technologies
Optics & Photonics Enabling Technologies “Although the study of light has been underway for centuries, it is only in the last 40 years that optics and photonics has become a dominant field, with impact in almost every aspect of our lives, from entertainment, to manufacturing, to medicine, to public
Slide 4: Overview
Overview ❖ Leading global provider of OEM optical solutions for over ❖ Expertise in cost-efficient fabrication for high-volume 30 years applications ❖ Large and growing portfolio of precision molded visible and ❖ Diversified end markets include industrial, commercial, infrared optics medical, defens
Slide 5: What We Make
What We Make ❖Precision Molded Lenses ❖Infrared Optics ❖Specialty Products ❖ 30 years of innovation, proprietary ❖ Since 2005; significantly augmented with ❖ Assemblies and integrated products equipment built-in house, numerous acquisition of ISP utilizing optics made in PMO and IR patents, trade se
Slide 6: What We Make
What We Make Thermal Imaging Assemblies Aspheric Lenses Fused Delivery Systems Build to Print / Custom Optics 6
Slide 7: Global Operations
Global Operations Headquarters: Orlando, Florida Riga, Latvia Zhenjiang, China • Prototyping • Chalcogenide production • Infrared optics manufacturing • Molded lens volume manufacturing • R&D • Diamond turned • Diamond turned/CNC polishing • Coating • Molded lens manufacturing • Crystal growth • Cap
Slide 8: Markets We Serve
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Slide 9: Company History
Company History Rebranded, Public Offering, Start Molding Est Zhenjiang, China Acquires ISP DLC Coating Relocates to Orlando IR Lenses facility Optics For BD6 1985 2000 2013 2016 2018 1996 2005 2014 2017 2020 Founded as Solar Acquires Geltech and Start Making Own IR Developed Germanium Developed Tec
Slide 10: Innovation Milestones
Innovation Milestones Corning sells its PGM business to Geltech 1994 Geltech for molding 2000 oxide glasses for visible/NIR Invests in wholly-owned China facility for high-volume manufacturing demand 2005 Acquires ISP Optics to 2016 expand manufacturing capabilities in the IR Fabrication of BD6™ cha
Slide 11: Complete Vertical Integration
Complete Vertical Integration 1 2 3 Raw Materials Glass Boule Production Glass Preform 4 5 6 Lens Molding Coating Final Assembly 11
Slide 12: Material Manufacturing
Chalcogenide Glass and Optical Salt Crystals Material Manufacturing 180 10,000 180 ChG kg. / week ChG kg Produced in ChGinkg. USA/ week USA in USA 2 Thermal Imaging and 2 Locations FT-IR Locations 12
Slide 13: Comprehensive Capabilities
Comprehensive Capabilities • Precision Molded Lenses • Diamond Turned Lenses • Coating • Classical Polish • Glass Manufacturing • Crystal Growth • CNC Polishing • Mechanical Assemblies • Fiber Fusion 13
Slide 14: Diamond Turning
Freeforms, Diffractives, Aspheres, Arrays, Off-Axis Parabolas, Cylinders, Lenses, Mirrors, Molds & More Diamond Turning 150k 20 Lenses per Year Machines 222 U.S. & International Locations Pioneer in Locations Locations DT BaF2, CaF2, Ge, Si, ZnS, ZnSe, GaAs, CdTe, KRS-5, Chalcogenides, BD6, Al, Plas
Slide 15: Precision Glass Molding
Lenses, Freeforms, Diffractives, Arrays, Off-Axis Parabolas, Cylinders & More Precision Glass Molding 3M Factory Factory Proprietary Floors of Floors of Molding Lenses per Proprietary Proprietary Machines Year Molding Molding Machines Machines 22 132 Standard Locations Lens Designs Locations DZK-3,
Slide 16: High Volume Manufacturing
High Volume Manufacturing Computer controlled press stations manage the time, temperature, and pressure of the molding process to ensure predicable results and consistent uniformity 16
Slide 17: Optical Coatings
Optical Coatings A variety of standard multilayer coatings as well as custom capabilities Diamond Like Carbon (DLC) coating production capability for wear resistant protection introduced for proprietary BD6 lenses in 2019 17
Slide 18: Expanded Manufacturing Capacity
Expanded Manufacturing Capacity LightPath Investments Multi-year Growth • Diamond Turning Capacity Revenue: • Optical Coating Capacity • Eight consecutive years of growth • Material Polishing Capability • Current High Value Programs (F20 vs. F19) o IR Molded up 64% - driven by BD6 • Glass Melting Ca
Slide 19: PMO Growth – 5G Telecom
PMO Growth – 5G Telecom • Lightpath molded lenses are used in telecom equipment in interfaces of light in and out of fibers, detectors and lasers • 5G network architecture requires closer together network access points, leading to higher demand of lenses Transceiver demand by speed: (quantity of tra
Slide 20: Infrared Optics Growth
Infrared Optics Growth • Infrared lenses market is projected to grow to $750M by 2024, with Chalcogenide growing to 65% of the market • Chalcogenide molded lenses offer significant savings to enable new uses for infrared imaging • LightPath’s ability to mold large size BD6 lenses extends the use of
Slide 21: Infrared Growth
Infrared Growth LPTH REVENUE IR DT & MOLDED $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 2016 2017 2018 2019 2020 IR - DT IR Molded 21
Slide 22: Fire Fighting World Market
Fire Fighting World Market The Worldwide Market Leader in Infrared Optics for Fire Fighting 6 56% of Available Standard Supplier Market Share Products to the top 3 of 5 Market Leaders *Data Source: MAXTECH 2018 22
Slide 23: Worldwide Market Leader in Infrared Sporting Optics
Commercial The Worldwide Market Leader Sporting Optics in Infrared Sporting Optics World Market Over 100,000 Supplier Lenses Per to the top Year 4 of 5 Market Leaders 48% Available Market Share $600M Market Size 23
Slide 24: FY2019/20 Transitional Period
FY2019/20 Transitional Period… ❖ IR business growing rapidly led by new BD6 products ❖ PMO demand in 5G and other areas ❖ 3 consecutive years of backlog growth of approximately 30% ❖ Establishment of Product Management ❖ Cost reduction initiatives, including closing of NY location ❖ Sufficient cash
Slide 25: Improvements Amid COVID-19 and Capacity Constraints in Fiscal 2020/2021
Improvements Amid COVID-19 and Capacity Constraints in Fiscal Years 2020/2021 (FY ends June 30) Fiscal 2020 Highlights (versus prior period or as noted): • COVID-19 challenges impact management of customer requirements for delivery of finished lenses, with variations depending on the ability of cust
Slide 26: Experienced Management Team
Experienced Management Team Appointed President, CEO and to the Board of Directors in 2020, he most recently was General Manager at Thorlabs Inc. where he was responsible for the Imaging Systems Division, a standalone organization with its own sales and marketing. At Thorlabs, Mr. Rubin had global r
Slide 27: Strategic Review – September 2020
Strategic Review – September 2020 ❖ Capitalizing on optics as an enabling technology that is increasingly pervasive among various industries and markets ❖ Prioritizing our key differentiators, including our deep design and manufacturing expertise, coupled with key optical technologies and low cost,
Slide 28: Investment Highlights
Investment Highlights NASDAQ: LPTH • Business transition initiatives provide for visibility into more sustainable growth and higher profitability and cash flow • Core markets are diversified and experiencing solid growth • Catalysts include engagement in exciting, high volume potential market trends
Slide 29: Thank You
NASDAQ: LPTH THANK YOU. For more information on LightPath and its businesses, please visit www.lightpath.com. For investor relations questions, please contact: Jordan Darrow Darrow Associates 512-551-9296 jdarrow@darrowir.com 29
Slide 30: Appendix
LightPath’ Appendix 30
Slide 31: Balance Sheet
LIGHTPATH TECHNOLOGIES, INC. Condensed Consolidated Balance Sheets Current assets: Assets (unaudited) September 30, 2020 June 30, 2020 Balance Sheet Cash and cash equivalents $ 5,386,587 $ 5,387,388 Trade accounts receivable, net of allowance of $10,153 and $9,917 6,258,927 6,188,726 Inventories, ne
Slide 32: Income Statement
LIGHTPATH TECHNOLOGIES, INC. Income Statement Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) Three Months Ended September 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, g
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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 provi
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