Slide 1: Annual Shareholder Presentation January 2013
L IGHT P ATH T ECHNOLOGIES , I NC . (NASDAQ: LPTH) A NNUAL SHAREHOLDER P RESENTATION J ANUARY 2013
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: An Optical Technology Company
Leaders in optical and infrared solutions A N O PTICAL T ECHNOLOGY C OMPANY • All - glass aspheric lenses • All laser systems require this type of optics • Wide - range of applications: well diversified across the photonics space Precision Molded Optics • High - volume process addresses growing dema
Slide 4: 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 5: Total Markets
Leaders in optical and infrared solutions Specialty Optics Glass Aspheres $1.2B 2014 Total Market ~$23.7B T OTAL M ARKETS Drivers: • OEM Laser Modules • Internet Mobility Specialty Optics $500M 2014 Total Market Drivers: • Custom Applications • High Power Lasers • Optical Design Infrared Systems $22
Slide 6: Markets & Applications
Leaders in optical and infrared solutions M ARKETS & A PPLICATIONS Precision Molded Optics Infrared Systems Defense / Para - Military Defense / Para - Military Industrial Medical Commercial Weapon Sights Laser Guides Chemical Identification Laser Tools Barcode Scanners Medical Devices IR Countermeas
Slide 7: Strategic Financial Growth
Leaders in optical and infrared solutions Strategic Financial Growth NASDAQ: LPTH Complete development of molded Infrared lens/assembly product line » A key enabling technology to the full development of the commercial infrared market
Slide 8: Financial Improvement FY2008-FY2012 and a Look Ahead
Leaders in optical and infrared solutions F INANCIAL IMPROVEMENT FY2008 - FY2012 A ND A L OOK A HEAD $8.8 $11.3 $0 $4 $8 $12 2008 2012 Revenues +28% 14% 36% 0% 10% 20% 30% 40% 50% 2008 2012 GM % +157% NASDAQ: LPTH Our Growth Targets Next 3 Years Revenues (ex - acquisition) $20 - $25M Gross Margins 4
Slide 9: Recent Quarterly Results
Leaders in optical and infrared solutions R ECENT QUARTERLY RESULTS Fiscal Year End: June 30 ($ in millions) Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Sales 2.672 2.775 3.104 2.891 2.917 Gross Profit 0.844 0.880 1.229 1.177 1.266 Gross Margin % 32 32 40 41 43 Operating Expenses: SG&A 1.884 1.141 0.860
Slide 10: Balance Sheet Highlights
Leaders in optical and infrared solutions B ALANCE SHEET HIGHLIGHTS Fiscal Year End: June 30 December 31, 2012 June 30 , 2012 June 30, 2011 Cash 1,777,530 2,354,087 928,900 Current Assets 6,485,385 6,250,259 4,612,404 Total Assets 8,581,518 8,271,093 7,121,476 Current Liabilities 2,980,287 1,741,204
Slide 11: Major Growth Opportunity
Leaders in optical and infrared solutions M AJOR G ROWTH O PPORTUNITY Thermography Commercial Vision Defense • Predictive maintenance • Manufacturing process control • Building inspection • Medical imaging • Gas detection • Security and surveillance • Automotive night vision • Marine applications •
Slide 12: Focus on IR Growth
Leaders in optical and infrared solutions FOCUS ON IR G ROWTH Management • IR Growth is #1 priority • Development f unding in place Sales • Focus is on Top Line Sales Growth • IR Production is ready for volume • Open Position for IR Sales Revamped Production facilities in Orlando • New Preform Proce
Slide 13: Major Growth Opportunity in Infrared
Leaders in optical and infrared solutions Material: Germanium glass as a raw material; more expensive and has a volatile price history; heavier and has poor thermal characteristics Chalcogenide glass as a raw material is less expensive, lighter weight and more thermally stable over a broader temp ra
Slide 14: LightPath's Advantage: Chalcogenide Advantages
Leaders in optical and infrared solutions Chalcogenide • Sold under many names – BD (Black Diamond), IG, AMTIR, GASIR • Wavelength Range:1 – 14 microns • Process Methods: – Moldable Glass – Diamond Turned Aspheres • Lighter Material • Chalcogenide glasses has smaller focal shift vs. temperature – Na
Slide 15: LightPath
LightPath
Slide 16: Cost Reductions
Leaders in optical and infrared solutions C OST R EDUCTIONS x Improved Preform Process • Investigating new Mold Coatings • Research into Process Improvements • Additional Economies of Scale – Preform Production – Larger Batches – Full Coating Runs $0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100 Actual C
Slide 17: Infrared Market Drivers
Leaders in optical and infrared solutions • Commercial market grew 14% in 2010 to $1.5B† • Market leader, FLIR, has a 10 year revenue CAGR of 23%, total revenues of $1.4B in 2010 • Driven by the emergence of uncooled focal plane arrays (FPAs) and dual - use systems for commercial and defense applica
Slide 18: LightPath's Infrared Competitive Advantage
Leaders in optical and infrared solutions L IGHT P ATH ’ S I NFRARED C OMPETITIVE A DVANTAGE LightPath is the only player in this space to enjoy this significant competitive advantage for defense programs. Current ITAR regulations prohibit military components from being manufactured abroad. Lower Co
Slide 19: IR Production
Leaders in optical and infrared solutions Installed capacity ready for FY2014 forecast Preforms • Invested in Preform Capacity • Easily scalable • Additional capacity from external vendors if necessary Mold Stations • Next Generation IR Press Station is undergoing testing for increased yield and low
Slide 20: Management Team
Leaders in optical and infrared solutions M ANAGEMENT T EAM Alan Symmons Vice President, Engineering Over 25 years of business and manufacturing experience in volume component manufacturing in electronics and optics industries . Prior to joining LightPath Mr . Gaynor was Director of Operations for P
Slide 21: Recent Highlights
Leaders in optical and infrared solutions R ECENT H IGHLIGHTS January 30 , 2013 LightPath Technologies announces profitable fiscal second quarter January 14 , 2013 LightPath Technologies provides quarterly update on infrared initiatives November 29 , 2012 LightPath Technologies enters into supply co
Slide 22: Company Highlights
Leaders in optical and infrared solutions Company Highlights • Public Company - NASDAQ Listing • Optics and photonics company with wholly owned manufacturing facility in China – Low cost manufacturing platform – Direct access to Asian markets – World class custom design capability • Low cost, high v