LightPath Technologies Granted European Defense Manufacturing License; Significantly Expands Addressable Market

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LightPath Technologies, Inc. (NASDAQ:LPTH) has been granted a European Defense manufacturing license, expanding its addressable market in the rapidly-growing $295 billion European Defense industry. The license allows LightPath to supply products directly to the European Defense market, following a significant increase in defense sales over the past three years. This strategic move positions LightPath for substantial growth in the EU defense market, leveraging its recent investments in capacity and capabilities in Latvia.

Positive

• LightPath Technologies has received a European Defense manufacturing license, enabling direct supply to the $295 billion European Defense industry.
• The EU defense market grew by 12.5% in 2023, with LightPath's defense sales increasing from 8% to 30% of total revenue over the last three years.
• The license allows LightPath to participate in EU-funded programs and collaborate with defense companies in the region.
• Recent investments in the Latvia facility have prepared LightPath for a significant increase in European defense sales.
• The European Defense license positions LightPath to capitalize on the growing defense market and engage with EU defense counterparts for future opportunities.

Negative

• None.

Market Research Analyst

The newly acquired European Defense license by LightPath Technologies presents a significant opportunity for the company to penetrate a substantial market, considering the European defense sector's valuation of nearly $295 billion. Their strategic investment in expanding the Latvia facility reflects a calculated move to leverage local manufacturing strengths within the EU and aligns with the bloc's defense industrial strategy. The transition from predominantly U.S. defense sales to a broader international portfolio could mitigate geopolitical risks and reliance on single-market revenues. The exponential growth from 8% to 30% of their revenue coming from defense sales indicates a strong shift in company focus and possibly a long-term revenue driver that may attract investor interest.

Financial Analyst

The company's announcement points to an aggressive growth trajectory in the defense sector, particularly with the significant increase in defense sales as a percentage of their total revenue. The partnership with entities like the DoD and Lockheed Martin, along with the potential revenue of over $100 million from large programs, suggests a robust order book that could enhance investor confidence. The EU license is poised to open doors to new contracts, possibly bolstering both the top and bottom lines. However, investors should remain vigilant about the capital expenditures and operational costs associated with scaling up the Latvia operations to meet potential demand. The financial health of the company and its ability to manage this growth sustainably should be monitored closely in subsequent earnings reports and investor briefings.

License Allows LightPath to Provide Products Directly Into the Rapidly-Growing $295 Billion European Defense Industry

ORLANDO, FL / ACCESSWIRE / April 17, 2024 / LightPath Technologies, Inc. (NASDAQ:LPTH) ("LightPath," the "Company," or "we"), a leading vertically integrated global manufacturer and integrator of proprietary optical and infrared technologies, has received a European Defense license, which provides the Company with the ability to supply products to the European Defense industry, one of the largest defense markets in the world.

The EU defense market grew 12.5% to a record $295 billion in 2023, and the European Union recently published its first European defense industrial strategy, which among other things encourages cooperation and purchases in defense technology development among EU members, such as Latvia.

Over the last three years, LightPath's defense sales have increased from 8% to 30% of total revenue, primarily in the U.S. defense markets. The U.S. defense markets represent the fastest growing product for the company, following the recent announcements of more than $100 million in potential revenue secured with top partners such as the DoD and Lockheed Martin in two large programs of record. Receiving the European Defense license allows LightPath to significantly expand its addressable market, and over the past year, LightPath expanded its capacity and capabilities of its Latvia operation to vertically integrate and prepare for a significant increase in European defense sales. The license awarded this week functions much like the ITAR American certification, which adds LightPath Technologies to a roster of approved military vendors.

"The European Defense Industry continues to grow and the European Union recently unveiled its first ever defense industrial strategy that encourages more cooperation between governments and defense companies," said Sam Rubin, President and Chief Executive Officer of LightPath. "Not only does this license enable us to participate in the design, engineering and application phases, but more importantly, it allows us to participate in programs that are funded by the EU, wherever an end product manufacturer would need infrared optics of an existing design and program. Our recent investment in the Latvia facility together with this new license positions us for substantial growth in the EU defense market. Our long-standing relationships with the civilian agencies of the EU will now also provide us with an opportunity to engage with their defense counterparts."

About LightPath Technologies

LightPath Technologies, Inc. (NASDAQ: LPTH) is a leading global, vertically integrated provider of optics, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries. LightPath designs and manufactures proprietary optical and infrared components including molded glass aspheric lenses and assemblies, custom molded glass freeform lenses, infrared lenses and thermal imaging assemblies, fused fiber collimators, and proprietary Black Diamond™ ("BD6") chalcogenide-based glass lenses. LightPath also offers custom optical assemblies, including full engineering design support. The Company is headquartered in Orlando, Florida, with manufacturing and sales offices in Dallas Texas, Latvia and China.

LightPath's wholly-owned subsidiary, Visimid Technologies, was acquired in July 2023, and specializes in the design and development of customized infrared cameras, for the industrial and defense industries. Such customized cameras are often sold together with customized optical assemblies from LightPath.

LightPath's wholly-owned subsidiary, ISP Optics Corporation, manufactures a full range of infrared products from high-performance MWIR and LWIR lenses and lens assemblies. ISP's infrared lens assembly product line includes athermal lens systems used in cooled and un-cooled thermal imaging cameras. Manufacturing is performed in-house to provide precision optical components including spherical, aspherical and diffractive coated infrared lenses.

For more information on LightPath and its businesses, 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.

Contact:

Brian M. Prenoveau, CFA
MZ Group - MZ North America
LPTH@mzgroup.us
+561 489 5315

SOURCE: LightPath Technologies, Inc.

View the original press release on accesswire.com

FAQ

What license has LightPath Technologies been granted?

LightPath Technologies has been granted a European Defense manufacturing license.

What is the significance of the European Defense license for LightPath Technologies?

The license allows LightPath to supply products directly to the European Defense industry, expanding its addressable market.

How has LightPath's defense sales evolved over the last three years?

LightPath's defense sales have increased from 8% to 30% of total revenue in the last three years.

What recent investments have LightPath made to prepare for European defense sales?

LightPath has expanded capacity and capabilities at its Latvia operation to vertically integrate and accommodate the growth in European defense sales.

What opportunities does the European Defense license provide for LightPath Technologies?

The license enables LightPath to participate in EU-funded programs and engage with defense companies in the region for future collaborations.