Lightpath Technologies, Inc. · NASDAQ:LPTH
Lightpath Technologies — Investor Presentation (October 2008)
30 slides from Lightpath Technologies's investor presentation, Oct 30, 2008
Slide 1: Company Overview
Exhibit 99.1 Company Overview October 2008 1 “Private & Confidential”
Slide 2: Overview
Overview Orlando Headquarters (manufacturing, engineering, direct sales) China Facility (manufacturing, engineering, direct sales) Direct sales • Publicly traded since Feb 1996 (NASDAQ: LPTH) Distributors • Presently 57 Employees USA, 110 Employees China Representatives • Headquartered in Orlando, F
Slide 3: Corporate Management
Corporate Management Our Customers Jim Gaynor President and CEO Cao XG Dorothy Cipolla Tony Lopes Michael Lancaster Al Symmons Ray Pini Rob Myers General Manager Corporate CFO Quality Assurance Director of Director of Director of Interim Director of LPTH China Manager Operations Engineering Marketin
Slide 4: Corporate Headquarters
Corporate Headquarters Orlando, Florida • Facility totals 22,500 square feet • 6,000 square feet of clean room • ISO 9001-2000 Registered • Products • Precision Glass Molded Optics • Black Diamond™ Infrared Glass Optics • Gradium® Optics • Collimators • Aspheric Glass Lens Array • Optical Imaging As
Slide 5: LPTH China
LPTH China Jiading, China LightPath Optical Instrumentation (Shanghai) Co., Ltd (Wholly owed facility of LightPath Technologies USA.) Facility Totals: 17,000 sq feet 7,000 sq feet of Clean Room 6,000 sq feet of Gray Lab ISO 9001-2000 Certified Products: Precision Molded Aspheric Optics Isolators Opt
Slide 6: China Operational Goals
China Operational Goals • Reduce manufacturing cost: – Lower wage – Lower cost for utilities and rental – Lower materials cost • Increase manufacturing capacity • Penetrate into the China/Asia market • Expand product portfolio – by outsourcing and R&D 6
Slide 7: Quality
Quality QUALITY MANAGEMENT SYSTEM • ISO 9001:2000 Re-Registered in December 2007-Orlando • ISO 9001:2000 Registered in September 2006-Shanghai • Current products in ISO System: • Precision Molded Aspheres • Gradium Lenses • Collimators • Isolators • Quality System documentation is accessible via our
Slide 8: Environmentally-Friendly Eco-Aspheres and Isolators
Environmentally-Friendly Eco-Aspheres and Isolators • “RoHS” European Union Standard that restricts the use of certain hazardous materials such as lead and mercury- compliant glass requirement went into effect July 1, 2006 (with some exceptions) • “JGPSSI” (Japan Green Procurement Survey Standardiza
Slide 9: Where we fit in Optical World
Where we fit in Optical World At the most basic component level form typical Optical systems are made up of 3 groups-- Making Light, Managing/Processing Light and Measure Light. LightPath addresses a major portion of managing light. We are experts in the optical portion of managing light-----we do n
Slide 10: Why Aspheres?
Why Aspheres? Spherical vs. Aspheric Lenses A single aspheric lens can replace a series of spherical lenses with equivalent or better performance. The solution is more compact, uses less material and is easier to align. 10
Slide 11: Aspheric Lens Manufacturing Methods
Aspheric Lens Manufacturing Methods Glass aspheric lenses are made primarily from one of three methods: • Compression Molding (LightPath method) • CNC Machines (mechanically grinding) • Diamond Turning (single point cutting) 11
Slide 12: How are Aspheric Lenses Made?
How are Aspheric Lenses Made? Glass Preform Diamond Turned Mold Aspheric Lenses Press Operation 12
Slide 13: Design Centers
Design Centers • Orlando • Service World Markets • Service High Performance Designs • Service Military & Defense • Shanghai • Service China Market • Service overload from Orlando 13
Slide 14: Key Elements for Change
Key Elements for Change Be the lowest cost producer and be price competitive New Direction Participate in higher volume/revenue segments Broaden revenue base: Laser, Imaging, Infra red, Hi-Power Collimator Leadership to implement low cost culture New CEO Operational excellence in quality and on-time
Slide 15: Three pronged approach to business strategy
LPTH USA Hi Performance Products LPTH Strategy LPTH Shanghai China LPTH Shanghai China Hi Mix Content Products Commodity Products Three pronged approach matches LightPath core business and strengths to distinct markets Synergistic technology base supports all products (aspheres, IR, collimators) Sca
Slide 16: LPTH USA & Europe and Shanghai China markets
LPTH USA & Europe Hi Performance Products & Quick Turn Custom Aspheres Automotive, Medical, Instrumentation, Micro Projection, Industrial, Defense Market & Distribution LPTH Business Strategy LPTH Shanghai China LPTH Shanghai China Commodity Products Hi Mix Content Mid volume Products Cell Phone, Di
Slide 17: Yesterday, 2008, 2009 & Beyond
Yesterday 2008 2009 & Beyond Domestic International World Wide Custom Precision Commercial Laser Focus Lens Laser Focus Lens Laser & Imaging Primarily Telecom Diversified Market Broad Market $20 M SAM $50 M SAM $ 200 M SAM Low Volume Low Volume High Volume 7% 6% 8% 12% Communications 27% Military Co
Slide 18: Cost Drivers
Cost Drivers Yesterday 2008 2009 & Beyond Labor---USA Labor---China Labor---China Press---Air & Glove Box Press---New Viper Press---New Viper Holders---Outsourced Holders---In House Holders---In House Tooling---Soft Tooling---Soft Tooling---Hard Glass---CO550 Glass---ECO550 Glass---Low Cost China Co
Slide 19: LightPath Cost savings
LightPath’ Cost savings © @ @ @ TECHNOLOGIES~ 1 Coating O Overhead/Tooling O Holders B Matenal go Labor
Slide 20: Cell Phone Cameras
Cell Phone Cameras (Imaging) • Japanese – $2-$5 per Lens Assembly • Taiwan / China $0.60 - $0.70 per Plastic Lens Assembly (VGA or 1.3 MP) 3 MegaPixels: China Manufacturers delivered 500,000 Units in 2006 Total Available Production Capacity: 200,000 per month. (GlobalSources, May 2007) 20
Slide 21: Imaging Market
Imaging Market (Other) Security & Defense Currently 50,000 commercial thermal imaging detectors sold each year Average selling price for lenses is around $125. Total market size of $6.25 Million. 2010 - Automotive applications are estimating 500,000 per year. Lens average selling price of $50 Total
Slide 22: Molded LWIR/MWIR Aspheric Lenses
Molded LWIR/MWIR Aspheric Lenses Black Diamond™ LWIR Aspheres Key Facts • Wavelength Range of glasses 1 – 14 m • Diameter up to 25mm currently • Aspheric Lenses Reduce the Lens Component Count in System • Molded Optics Improved reproducibility lens to lens • Diffractive Features for Thermal Compensa
Slide 23: Molded LWIR/MWIR Aspheric Lenses - SBIR program
Molded LWIR/MWIR Aspheric Lenses LightPath is working in conjunction with the Navy, Air Force, & Lockheed Martin to develop molding process for larger infrared lenses through the SBIR program. SBIR Topic N06-025 Molding Technology for Low-Cost Infrared Chalcogenide Glass Optical Components Phase 1 C
Slide 24: Applications
Applications Firefighting Surveillance Defense Tank level detection (industrial) 24
Slide 25: IR Custom Lens & Assembly
IR Custom Lens & Assembly 19mm, 1/1.1 25
Slide 26: Sales Growth
Sales Growth 120 100 80 IR Ind. Tool % 60 Ind. Laser 40 Other 20 0 2008 2009 2010 2011 26
Slide 27: Differentiation
Differentiation LightPath’s Strengths: Laser Industry Leader Low capitalization investment Scalable platform Brand recognition Low cost producer Molds (Inconel) for quick turns as well as (Ceramic) for higher volume Strong patent position Quick Turns—time to prototype, time to market, time to volume
Slide 28: Differentiation continued
Differentiation continued IR Imaging Competitive technology is capacity constrained Molding vs diamond turning---saving time, cost and material Proprietary molding technology Synergistic with our existing manufacturing platform Enabling technology for automotive industry and other high volume applic
Slide 29: Competitive Position
Competitive Position Hoya Largest world competitor Focus on cell phones & digital cameras Large market share LightPath Not flexible Quick to market Only designs with millions of units committed Quick to volume Good customer interface World class optical design Excellent quality Flexible process (mac
Slide 30: Summary
Summary LightPath is ready with its new business model. - New CDGM/LightPath Supply Agreement - China Manufacturing Operation - High Temperature low cost optical glass - Ceramic Molds - New enhanced LightPath Viper press - Moldable IR Glass - Power collimators for high power fiber laser market - Des
LightPath Technologies — Investor Presentation (October 2008) on 6ix