LightPath Technologies Begins Sustained Delivery of Infrared Assemblies to European Defense Customer

Rhea-AI Summary

LightPath Technologies (NASDAQ: LPTH) has initiated sustained delivery of infrared lens assemblies to a European defense customer for FPV drone applications, following an October 2024 Letter of Intent. The company is providing custom lens assemblies using their BlackDiamond glass technology, with manufacturing localized at their Latvia facility.

The initial order comprises 1,300 assemblies, with expected follow-on orders throughout 2025 potentially generating $1.0-2.0 million in annual revenue. The company's strategic positioning, particularly amid China's recent restrictions on Germanium exports, has led to increased interest in their Germanium-alternative BlackDiamond optics from the defense sector.

Positive

• Initial order of 1,300 infrared lens assemblies secured
• Projected annual revenue of $1.0-2.0 million from this customer in 2025
• Strategic manufacturing presence in Latvia enhances supply chain stability
• Increased market demand due to China's Germanium export restrictions
• Established defense licenses in both US and EU markets

Negative

• None.

News Market Reaction

+20.82%

1 alert

+20.82% News Effect

On the day this news was published, LPTH gained 20.82%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

FPV Drone Infrared Lens Assemblies for European Defense Customer Expected to Drive $1.0-2.0 Million in Revenue in Calendar Year 2025

ORLANDO, Fla., Dec. 23, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading provider of next-generation optics and imaging systems for both defense and commercial applications, today announced that it has begun sustained delivery of infrared lens assemblies per the terms of the October 2024 Letter of Intent ("LOI") from a European defense customer for active duty use in first-person view (FPV) drone applications.

As part of the ongoing supply agreement LOI announced in October, LightPath is supplying custom lens assemblies using LightPath's BlackDiamond glass as well as the localization of its lens assembly manufacturing to LightPath's Latvia facility to ensure supply chain stability and reliability. While the initial order is for 1,300 assemblies, LightPath management expects that with several follow-on orders throughout calendar year 2025 in-line with targeted volume commitments, this customer could represent $1.0-2.0 million in annual revenue.

Sam Rubin, President and Chief Executive Officer of LightPath, commented: "As FPV drones become an increasingly prominent tool on the frontlines of modern conflict zones, LightPath is well suited to provide customized infrared imaging solutions with superior performance to address the urgent needs of the U.S. military and its allies globally. Our European defense customer for example has FPV drones in active duty use today, showcasing our ability to meet both the current and future needs of our partners globally."

"This is particularly timely as China recently announced new restrictions on Germanium exports, which have driven an incredible surge in inbound interest from the defense sector for our Germanium-alternative BlackDiamond optics and  infrared imaging systems. With the ability to provide domestic sources of production in both the U.S. and Europe – and all requisite defense licenses in place in both the U.S. and EU – we are well positioned to drive significant growth momentum in the quarters to come," concluded Rubin.

About LightPath Technologies

LightPath Technologies, Inc. (NASDAQ: LPTH) is a leading provider of next-generation optics and imaging systems for both defense and commercial applications. As a vertically integrated solutions provider with in-house engineering design support, LightPath's family of custom solutions range from proprietary BlackDiamond™ chalcogenide-based glass materials – sold under exclusive license from the U.S. Naval Research Laboratory – to complete infrared optical systems and thermal imaging assemblies. The Company's primary manufacturing footprint is located in Orlando, Florida with additional facilities in Texas, Latvia and China. To learn more, please visit www.lightpath.com.

Forward-Looking Statements

This press release includes statements that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "guidance," "plan," "estimate," "will," "would," "project," "maintain," "intend," "expect," "anticipate," "prospect," "strategy," "future," "likely," "may," "should," "believe," "continue," "opportunity," "potential," and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on information available at the time the statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the impact of varying demand for the Company products; the ability of the Company to obtain needed raw materials and components from its suppliers; actions governments, businesses, and individuals take in response to the pandemic, including restrictions on onsite commercial interactions; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; geopolitical tensions, the Russian-Ukraine conflict, and the Hamas/Israel war; the effects of steps that the Company could take to reduce operating costs; the inability of the Company to sustain profitable sales growth, convert inventory to cash, or reduce its costs to maintain competitive prices for its products; circumstances or developments that may make the Company unable to implement or realize the anticipated benefits, or that may increase the costs, of its current and planned business initiatives; and those factors detailed by LightPath Technologies, Inc. in its public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on 10-Q. Should one or more of these risks, uncertainties, or facts materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by the forward-looking statements contained herein. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

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SOURCE LightPath Technologies

FAQ

What is the expected revenue from LPTH's European defense contract in 2025?

LightPath Technologies expects to generate $1.0-2.0 million in annual revenue from this European defense customer in calendar year 2025.

How many infrared lens assemblies are included in LPTH's initial European defense order?

The initial order consists of 1,300 infrared lens assemblies for FPV drone applications.

Where will LPTH manufacture the infrared lens assemblies for the European defense contract?

LightPath will manufacture the lens assemblies at their Latvia facility to ensure supply chain stability and reliability.

How has China's Germanium export restriction affected LPTH's business?

The restriction has led to a significant increase in defense sector interest for LightPath's Germanium-alternative BlackDiamond optics and infrared imaging systems.

When did LPTH sign the Letter of Intent for the European defense contract?

The Letter of Intent (LOI) was signed in October 2024.