24 slides from Lightpath Technologies's shareholder meeting presentation, Jan 30, 2015
Slide 1: LightPath Technologies Annual Shareholder Meeting January 29, 2015
L IGHT P ATH T ECHNOLOGIES , I NC . (NASDAQ: LPTH) A NNUAL S HAREHOLDER M EETING J ANUARY 29, 2015
Slide 2: Safe Harbor Statement
Leaders in optical and infrared solutions S AFE H ARBOR S TATEMENT This presentation contains forward - looking statements . All statements in this presentation, other than statements of historical facts, which address activities, events or developments that we expect or anticipate will or may occur
Slide 3: Company Overview
Leaders in optical and infrared solutions C OMPANY O VERVIEW Corporate HQ - Orlando, FL China Facility – Jiading Shanghai LightPath Manages Light LightPath Technologies designs, develops and manufactures high volume, mid to low cost laser optics, custom optical modules and thermal imaging assemblies
Slide 4: Business Overview
Leaders in optical and infrared solutions 100% 6 151 Business Overview NASDAQ: LPTH Revenue Employees Markets Served 27% 13% 29% 16% 5% 10% Distributor/Catalog Laser Industrial Instrumentation Telecommunications Defense Orlando Shanghai Zhenjiang 4
Slide 5: Company Product Lines
Leaders in optical and infrared solutions Company Product Lines NASDAQ: LPTH Molded Aspheric Lenses Molded Infrared Aspheric Lenses Fiber Optic Collimators Gradium Lenses 5
Slide 6: Core Technology Leverage
Leaders in optical and infrared solutions Core Technology Leverage NASDAQ: LPTH 6 Smallest Optics Available Low Cost Aspheres High Volume Manufacturing Low Cost Manufacturing
Slide 7: Global Blue-Chip Customers
Leaders in optical and infrared solutions G LOBAL B LUE - C HIP C USTOMERS NASDAQ: LPTH 7
Slide 8: Growth Catalysts for 2015
Leaders in optical and infrared solutions Growth Catalysts for 2015 Visible Lens Business • Optical Network Growth – Bandwidth Demand: Huawei of China, EMCOR • Internet & Mobility: Mobile Device Growth, Video, Cloud Computing, M - 2 - M, Internet - of - Things • Adoption of Digital Technology for Vi
Slide 9: Infrared Target Markets
Leaders in optical and infrared solutions Infrared Target Markets NASDAQ: LPTH 9 Homeland Security & Border Patrol EVS ( Enhanced Vision System) Police & Surveillance Commercial - Site Security Commercial - Fire “Dumb” Sensors – Utilities Medical Automotive – Driver’s Vision
Slide 10: Aspheric Lens Market Growth
Leaders in optical and infrared solutions Aspheric Lens Market Growth • LightPath uses three market growth models • The overall market is growing with 5 year averages from 2.2% to 5.8%. • Models used: – Model A: Growth as presented in purchased aspheric lens market study – Model B: Growth based upon
Slide 11: LightPath Growth vs Aspheric Lens Market Growth 2010-14
Leaders in optical and infrared solutions LightPath Growth* vs Aspheric Lens Market Growth 2010 - 2014 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 2010-2014 Model A Model B Model C LightPath *Excludes Infrared 11 NASDAQ: LPTH
Slide 12: LightPath Revenue Growth
Leaders in optical and infrared solutions LightPath Revenue Growth (Excludes Infrared and DARPA) $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2009 2010 2011 2012 2013 2014 FY2009 – FY2014 CAGR 9.79% / year NASDAQ: LPTH 12
Slide 13: Growth in Production & Profitability
Leaders in optical and infrared solutions Growth in Production & Profitability Years Average Number of Lenses Sold per Year Average Gross Margin per Year Key Events 2006 - 2008 366,000 18% Opened Shanghai Plant 2009 - 2011 957,000 38% Introduced ceramic tooling and new glasses; developed 2 nd genera
Slide 14: Demand Creation Case Study for Visible Molded Lens
Leaders in optical and infrared solutions Demand Creation Case Study for Visible Molded Lens HDEOI - Laser Component and Equip Manufacturer • LightPath benefiting from market growth and unique lens capabilities • Feb. 2014 order for approximately 500,000 molded aspheric lenses delivered over a 12 -
Slide 15: Demand Creation Case Study for Infrared Molded Lens
Leaders in optical and infrared solutions Demand Creation Case Study for Infrared Molded Lens FLIR Sweden - Thermal Imaging Application • Lightpath benefiting from market commercialization and unique lens capability • Received orders for 9000 molded infrared aspheric lenses for delivery over next 6
Slide 16: Project Prime Objectives
Leaders in optical and infrared solutions Project Prime OBJECTIVES • Re - organize the company to better prepare or ‘prime’ the company for growth. • Areas of Major Emphasis – Sales Strategy – Technical vs. Traditional – Visible / Infrared Organization Combined • Reinforce Cultural Change – Align th
Slide 17: Project Prime: Why Re-Structure
Leaders in optical and infrared solutions Project Prime Why Re - Structure • Investments Have Been Made – Capacity – Infrared Production – Coating Technology – Engineering Organization • Organization Changes – Take full advantage of investments – Improve Efficiency – Get closer to Customer – Reinfor
Slide 18: Project Prime: Executive Structure
Leaders in optical and infrared solutions Project Prime • Executive Structure – 3 Direct R eports to CEO • Allows CEO to focus on Long Term Strategy, Acquisitions, Global Focus and Investor Relations • Structures company to integrate acquisitions Jim Gaynor CEO / President Alan Symmons Executive VP
Slide 19: Project Prime: Executive Vice President Operations
Leaders in optical and infrared solutions Project Prime • Executive Vice President – Operations – New Position – Four primary responsibilities – Creates Close tie between Sales and Engineering – Operations Manager Position to be filled as needed Executive Vice President Operations Alan Symmons Engin
Slide 20: Sales Restructured to Accelerate Growth
Leaders in optical and infrared solutions Sales Sales is restructured to Accelerate Growth 1. Current Sales Model and Vision no longer compatible with current business model. 1. Change Sales focus to a true Technical Sales Model Emulate the IR Technical OEM Sales Focus in Visible Focus on Target acc
Slide 21: Executive Director Sales & Marketing
Leaders in optical and infrared solutions Executive Director Sales & Marketing Glenn Breeze Marketing Customer Service Sales Engineering Western Region Sales Eastern Region Sales / Distribution Sales Sales NASDAQ: LPTH 21
Slide 22: Engineering Re-organized
Leaders in optical and infrared solutions Engineering Manager OPEN Opto - Mech Engineering Dept. Optical Design Engineering Dept. Manufacturing Engineering Dept. Engineering Engineering is re - organized Engineering Manager position created, to be filled as needed Opto - Mech. Manager Optical Engine
Slide 23: CFO/Admin Officer Organization
Leaders in optical and infrared solutions CFO/Admin Officer Dorothy Cipolla Controller Accounting Manager Human Resources Purchasing / Facilities Systems Engineer Sales Finance Administrative Responsibilities Added Purchasing and Facilities added. Systems / IT Responsibility added NASDAQ: LPTH 23
Slide 24: Company Highlights
Leaders in optical and infrared solutions Company Highlights • Public Company (NASDAQ: LPTH) – Strong Balance Sheet – Investments made in Capacity Increases and New Products • Strategically Located Manufacturing Facilities – Orlando, FL; Shanghai and Zhenjiang, China – Direct Access to Asian Markets