LightPath Technologies, Inc. · NASDAQ:LPTH
LightPath Technologies — Investor Presentation (September 2020)
31 slides from LightPath Technologies's investor presentation, September 2020
Slide 1: Investor Presentation September 2020
INVESTOR PRESENTATION SEPTEMBER 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: Overview
Overview Provider of OEM optical components, differentiated Deep expertise in cost-efficient fabrication of by proprietary manufacturing techniques and lenses using high-volume molding techniques vertical integration Vertically integrated low cost/high volume Diversified end markets include i
Slide 4: 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 5: What We Make
What We Make Thermal Imaging Assemblies Aspheric Lenses Fused Delivery Systems Build to Print / Custom Optics 5
Slide 6: 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 7: Markets We Serve
O) > a oO Y = ”n @ Y ra (ar) = LightPath’
Slide 8: 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 9: 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 10: 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
Slide 11: Comprehensive Capabilities
Comprehensive Capabilities • Precision Molded Lenses • Diamond Turned Lenses • Coating • Classical Polish • Glass Manufacturing • Crystal Growth • CNC Polishing • Mechanical Assemblies • Fiber Fusion
Slide 12: 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 13: 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 14: 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
Slide 15: 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
Slide 16: Expanded Manufacturing Capacity
Expanded Manufacturing Capacity LightPath Investments Multi-year Growth • Diamond Turning Capacity Significant Revenue Growth: FY19 vs. FY18 • Optical Coating Capacity • IR Molded up 159% - BD6 • Telecom Sector up 60% - 5G • Material Polishing Capability • Glass Melting Capacity Backlog Increases: •
Slide 17: 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 Tra nsceiver dem a nd by speed: (quantity of
Slide 18: 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 19: Infrared Growth LPTH
LightPath © © © TECHNOLOGIES Infrared Growth LPTH REVENUE IR DT & MOLDED 2016 2017 2018 m= IR-DT @ IRMOLDED 2019
Slide 20: Fire Fighting World Market
Fire Fighting World Market The Worldwide Market Leader in Infrared Optics for Fire Fighting 6 58% of Available Standard Supplier Market Share Products to the top 3 of 5 Market Leaders *Data Source: MAXTECH 2018
Slide 21: 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
Slide 22: 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 23: Improvements Amid COVID-19 and Capacity Constraints in Fiscal Year 2020
Improvements Amid COVID-19 and Capacity Constraints in Fiscal Year 2020 (FY ends June 30, 2020) Preliminary 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 abi
Slide 24: 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 25: 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 26: 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 26
Slide 27: Appendix
LightPath’ Appendix
Slide 28: Results for Fiscal 2019
Results for FY Fiscal 2019 (Fiscal year ended 6/30/19) Revenue for the full year was $33.7 million for fiscal 2019, an increase of 4%, as compared to $32.5 million in fiscal 2018. 12-month backlog was $17.1 million at June 30, 2019, an increase of 33%, as compared to $12.8 million at June 30, 20
Slide 29: Balance Sheet
LightPath _ wean Balance Sheet (anaudited) June 30, Tune 30, Assets 2019 2018 Cunent assets: Cash and cash equivalents s 4,604,701 5,508,620 Restricted cash - 1,000,000 Trade accounts receivable, net of allowance of $29.406 and S13.364 6210831 5,370,508, Inventories, net 1.684.527 6.404.741 Other re
Slide 30: Income Statement
LightPath Income Statement LIGHTPATH TECHNOLOGIES, INC. Consolidated Statements of Comprehensive Income (Loss) (unaudited ‘Three Months Ended June 30, Years Ended June 30. 2019 2018 2019 2018 Revenue, net S$ 8,745,278 $ 8,088,377 S$ 33,749,088 S 32,525,471 Cost of sales 5,916,343 5,653,725 21,230,16
Slide 31: Non-GAAP Reconciliation
Light Path’ © © e TECH Non-GAAP Reconciliation LIGHTP ATH TECHNOLOGIES, INC. Reconciliation of Non-GAAP Financial Measures and Regulation G Disclosure Net income (loss) Change in fair value of warrant liability Adjusted net income (loss) % of revenue Net income (loss) Depreciation and amortization I
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