LightPath Technologies Secures $3.5 Million Follow-On Order to Supply Infrared Optics for F-35 Combat Aircraft Program

Rhea-AI Summary

LightPath Technologies (NASDAQ: LPTH) has secured a $3.5 million follow-on order to supply advanced infrared optics for the F-35 combat aircraft program. This order leverages LightPath's proprietary BlackDiamond™ BD6 Chalcogenide material, which can replace Germanium in infrared imaging systems while offering superior performance. The optical design addresses supply chain concerns related to Chinese export restrictions on Germanium.

This marks the third order from a tier-1 defense customer, following initial orders of $2.5 million in December 2022 and $3.4 million in October 2023. LightPath expects to realize this revenue over 12 months and sees significant growth potential within the F-35 program. The company's Germanium-free optics uniquely resolve geopolitical concerns and enable a superior design with lighter weight and wider thermal operating range.

Positive

• Secured $3.5 million follow-on order for F-35 combat aircraft program
• Third order from tier-1 defense customer, indicating strong relationship
• BlackDiamond™ material offers superior performance and addresses supply chain concerns
• Revenue expected to be realized over 12 months
• Significant growth potential within the F-35 program

Negative

• None.

Insights

Defense Industry Analyst

This $3.5 million follow-on order for the F-35 program is a significant win for LightPath Technologies, demonstrating the company's growing foothold in critical defense contracts. The order's value, combined with previous orders totaling $5.9 million, indicates a strong, ongoing relationship with a tier-1 defense customer.

LightPath's proprietary BlackDiamond™ BD6 Chalcogenide material is a key differentiator, offering a Germanium-free alternative that addresses supply chain vulnerabilities stemming from Chinese export restrictions. This strategic advantage positions LightPath well in the defense sector, particularly as geopolitical tensions heighten concerns over critical material sourcing.

The 12-month revenue realization period suggests a steady cash flow, while the mention of "significant growth potential" within the F-35 program alone hints at possible larger orders in the future. Investors should note the potential for expanded applications of BlackDiamond material across the defense sector, which could drive further growth.

Overall, this order represents both immediate financial impact and long-term strategic positioning in the defense optics market, making it a positive development for LightPath Technologies.

Materials Science Expert

LightPath's BlackDiamond™ BD6 Chalcogenide material represents a significant technological advancement in infrared optics. By offering a viable alternative to Germanium, which is subject to supply chain constraints, LightPath has created a competitive edge in a critical market.

The material's benefits extend beyond supply chain security. Its lighter weight and wider thermal operating range provide performance advantages important for advanced military applications like the F-35 combat aircraft. These properties can lead to improved overall system performance, potentially opening doors to additional military and commercial applications.

The successful implementation in a high-stakes program like the F-35 serves as a powerful validation of the material's capabilities. This could accelerate adoption in other defense projects and even spill over into commercial sectors where infrared imaging is critical, such as automotive or industrial inspection.

Investors should recognize that proprietary materials like BlackDiamond can create significant barriers to entry and provide long-term value, especially when integrated into critical systems with long lifecycles like military aircraft.

Proprietary Germanium-Free Advanced Infrared Optics to Supply Critical F-35 Combat Aircraft Program

ORLANDO, Fla., Sept. 24, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading global, vertically integrated provider of thermal imaging cores, custom optical assemblies, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries, today announced a $3.5 million follow-on order to provide advanced infrared optics for the F-35 combat aircraft program.

The optical design leverages the Company's BlackDiamond™ BD6 Chalcogenide material in an infrared imaging system for threat detection and situational awareness. LightPath's proprietary BlackDiamond material can uniquely be used instead of Germanium in infrared imaging systems while concurrently offering superior performance, which addresses end-customer supply chain concerns given Chinese export restrictions on Germanium. China, along with Russia, control a significant portion of the global market for Germanium.

Sam Rubin, President & CEO of LightPath, said: "This third order from a tier-1 defense customer follows an initial order of $2.5 million in December 2022 and a follow-on order of $3.4 million in October 2023 – validating our capability to meet intensive qualification standards and deliver a unique value proposition to critical military programs. We expect to realize this revenue over the course of 12 months and believe there remains significant growth potential within the F-35 program alone.

"This program for infrared components is a successful example of a customer that designed its system to have no Germanium optics in it, allowing LightPath to uniquely resolve geopolitical concerns within the supply chain of a critical military combat aircraft program and enable a superior design given its lighter weight and wider thermal operating range.

"As we look ahead over the coming several quarters, we continue to see exciting prospective applications for our BlackDiamond material. We will continue to aggressively engage with prospective customers within the defense sector to evaluate, design-in and ultimately ship next-generation Germanium-free optics to the United States and its allies," concluded Rubin.

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™ ("BD") 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 a thermal 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.

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SOURCE LightPath Technologies

FAQ

What is the value of LightPath Technologies' (LPTH) recent order for the F-35 program?

LightPath Technologies (LPTH) secured a $3.5 million follow-on order to supply advanced infrared optics for the F-35 combat aircraft program.

How does LightPath's BlackDiamond™ material benefit the F-35 program?

LightPath's BlackDiamond™ BD6 Chalcogenide material replaces Germanium in infrared imaging systems, offering superior performance, lighter weight, and a wider thermal operating range while addressing supply chain concerns related to Chinese export restrictions on Germanium.

What is the significance of this order for LightPath Technologies (LPTH)?

This order is the third from a tier-1 defense customer, validating LightPath's capability to meet intensive qualification standards and deliver unique value to critical military programs. It also demonstrates the company's ability to address geopolitical supply chain concerns in the defense sector.

When does LightPath Technologies (LPTH) expect to realize revenue from this $3.5 million order?

LightPath Technologies expects to realize the revenue from this $3.5 million order over the course of 12 months.