25 slides from Lightpath Technologies's shareholder meeting presentation, Feb 2, 2012
Slide 1: LightPath Technologies Company Presentation - Annual Shareholder Meeting February 2012
1 NASDAQ: LPTH L IGHT P ATH T ECHNOLOGIES , I NC . (NASDAQ: LPTH) C OMPANY P RESENTATION A NNUAL S HAREHOLDER MEETING F EBRUARY 2012
Slide 2: Safe Harbor Statement
2 NASDAQ: LPTH 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 in the future, including s
Slide 3: Corporate Overview
3 NASDAQ: LPTH CORPORATE OVERVIEW LightPath Technologies, Inc.
Slide 4: Company Overview
4 NASDAQ: LPTH C OMPANY O VERVIEW Diversified product base, multiple markets • Glass aspheric optics - visible and infrared • Collimators, isolators, mounted lenses • GRADIUM glass lenses New Business Strategy – High Volume Supplier • New Products • Infrared Optics - Thermal Imaging, Sensors, Securi
Slide 5: Management Team
5 NASDAQ: LPTH 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 Puradyn Filter Technologies
Slide 6: An Optical Technology Company
6 NASDAQ: LPTH A N O PTICAL T ECHNOLOGY C OMPANY • All - glass aspheric lenses, RoHS compliant • Diameters 200µm to 25mm Precision Molded Optics • Wavelength range of glasses 1 - 14µm • Single & multi element assembly with athermalized designs Infrared Optics • Mounted aspheres, OEM modules, shaped
Slide 7: Precision Molded Optics: Markets & Applications
7 NASDAQ: LPTH P RECISION M OLDED O PTICS : M ARKETS & A PPLICATIONS Defense/ Para - Military Industrial Medical Weapon Sights Medical Devices Laser Guides Chemical Identification Laser Tools Barcode Scanners
Slide 8: Infrared Systems: Markets & Applications
8 NASDAQ: LPTH I NFRARED S YSTEMS : M ARKETS & A PPLICATIONS Defense/ Para - Military Commercial IR Countermeasures Thermal Weapons Sights Firefighting Cameras Preventative Maintenance Quantum Cascade Lasers Night Vision Enhancement Security Cameras Gas Detection
Slide 9: Infrared Systems: Sub-Industry Markets & Applications
9 NASDAQ: LPTH I NFRARED S YSTEMS : S UB - I NDUSTRY M ARKETS & A PPLICATIONS Instrumentation & Sensors Consumer ▪ Home Security ▪ Appliances ▪ Video Game Components Commercial ▪ Quality Inspection ▪ Automated Machinery ▪ Bar Code Scanners Defense & Military Military ▪ Thermal Optics ▪ Chemical Dete
Slide 10: Financial Performance
10 NASDAQ: LPTH FINANCIAL PERFORMANCE LightPath Technologies, Inc.
Slide 11: Annual Financial Performance
11 NASDAQ: LPTH A NNUAL F INANCIAL P ERFORMANCE 2008 2009 2010 2011 FYE FYE FYE FYE Sales $8,826,471 $7,489,545 $9,250,621 $10,000,602 COGs 7,595,398 5,446,518 4,935,755 6,078,829 Gross Profit 1,231,073 2,043,027 4,314,866 3,921,773 Gross Margin % 14% 27% 47% 39% Operating Expenses: SG&A 5,440,366 3
Slide 12: Capital Structure
12 NASDAQ: LPTH C APITAL S TRUCTURE Management has demonstrated a disciplined approach to managing the company’s capital structure in a manner consistent with the underlying fundamentals of the business to balance new capital with new growth . Capital has consistently been directed toward new produc
Slide 13: Lens Cost Improvement FY2011 Compared to FY2007
13 NASDAQ: LPTH L ENS C OST I MPROVEMENT FY2011 COMPARED TO FY2007
Slide 14: Growth Strategies
14 NASDAQ: LPTH GROWTH STRATEGIES LightPath Technologies, Inc.
Slide 15: LightPath Is a Growth Company
15 NASDAQ: LPTH L IGHT P ATH IS A G ROWTH C OMPANY Phase I Refocus • 95 % of production activities moved to the Shanghai Facility • Improved tooling processes and materials • Introduced low - cost glasses • Developed new products and value added services aimed at multibillion dollar markets Phase II
Slide 16: Total Addressable Markets
16 NASDAQ: LPTH Specialty Optics Glass Aspheres $1.2B 2014 Total Market ~$5B T OTAL A DDRESSABLE M ARKETS Drivers: • OEM Laser Modules • Internet Mobility Specialty Optics $500M 2014 Total Market Drivers: • Custom Applications • High Power Lasers • Optical Design Infrared Systems $3.2B 2014 Total Ma
Slide 17: Segmented Addressable Markets
17 NASDAQ: LPTH S EGMENTED A DDRESSABLE M ARKETS • Laser Tools • Gun Sights and Targeting • Biomedical Instruments • Telecommunications subsystems Aspheric Lenses $200M SAM Share Target: 10% • Laser Line Generators • Industrial Tools, Optical Cutting/Welding • Bench Top, and Scientific Lasers • Semi
Slide 18: Precision Molded Aspheres
18 NASDAQ: LPTH P RECISION M OLDED A SPHERES PMO’s represent our historical “base” business • PMO market expected to track with growth of laser diode market (5% CAGR) Forecasting double - digit growth with our new strategy in place • Strategic shift from low volume high cost to high volume low cost
Slide 19: Strategic Financial Growth
19 NASDAQ: LPTH S TRATEGIC F INANCIAL G ROWTH • Continue penetration into high volume/low cost applications with new, low cost structure • Introduce new value - added products to grow market share and move up the “food chain” • Drive overseas expansion through Shanghai subsidiary • Continue new prod
Slide 20: Superior Growth Potential in the Infrared Systems Markets
20 NASDAQ: LPTH S UPERIOR G ROWTH P OTENTIAL IN THE I NFRARED S YSTEMS M ARKETS LightPath Technologies, Inc.
Slide 21: Major Growth Opportunity
21 NASDAQ: LPTH 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 • Law enforcement • Search a
Slide 22: Infrared Market Drivers
22 NASDAQ: LPTH I NFRARED M ARKET D RIVERS IR equipment sales are growing rapidly as system costs come down • Commercial market grew 14 % in 2010 to $ 1 . 5 B† • Market leader, FLIR, has a 10 year revenue CAGR of 23 % , total revenues of $ 1 . 4 B in 2010 • Driven by the emergence of uncooled focal
Slide 23: LightPath's Advantage: Molding Is a Disruptive Technology
23 NASDAQ: LPTH L IGHT P ATH ’ S A DVANTAGE : M OLDING IS A D ISRUPTIVE T ECHNOLOGY $0 $20 $40 $60 $80 $100 $120 $140 $160 100 1,000 10,000 100,000 Cost Per Lens Quantity of Lenses Produced Cost Comparison of Diamond Turning vs. PMO † Diamond Turning Molding † 13 mm OD molded chalcogenide lens compa
Slide 24: LightPath's Competitive Advantage
24 NASDAQ: LPTH L IGHT P ATH ’ S C OMPETITIVE A DVANTAGE Lower Cost Structure • Molded Black Diamond TM materials present an opportunity to drive 50% - 75% cost reductions. • Large volume contracts have better profit margins. • Creates high barriers to entry for any domestic competitors. Proprietary
Slide 25: Company Highlights
25 NASDAQ: LPTH C OMPANY H IGHLIGHTS Public U.S. company with wholly - owned China M anufacturing F acility • Low cost manufacturing platform • Direct access to Asian markets Low cost, high volume manufacturer of optical components Diversified product mix Strategy – low cost structure / access new m