. . . . . . . LIGHTPATH HIGHLIGHTS. . . . . . Expanding 4 times in the year 2000 to keep up with demand. . .Manufacturing capacity to triple this year. . . .Added 3 new Sales Directors yesterday. . .[1 from Lucent, 1 from Motorola and 1 30 year vet to focus on Asian sales]. . . . company finally admits to having 3 major OEM deals. . . . company clues shareholders of "significant increases" in orders over the past 4 months. . . .company admits that all components are built under "automated assembly methodologies" . . . . .
From today's press release. . . .
This expansion will be part of a $15 million investment, which will, in effect, triple overall capacity. The number of employees is also expected to double from the current level of approximately 80 to over 160 during the next twelve-month period.
The Company's products have all been built and designed around proprietary automated manufacturing technologies that are targeted toward the traditionally labor intensive telecommunications equipment component marketplace.
Don Lawson, President and CEO of LightPath commented, "The demand for optical components continues to grow at unprecedented rates. Since the beginning of the year, we have experienced OEM acceptance of our optical components as the rigorous testing requirements have been satisfactorily completed. While we are now qualified with three major OEMs, the numbers of new customers buying and qualifying our products continues to grow rapidly. Our components, which have all been built around automated assembly methodologies, meet our customer's specifications and are being designed into their specific modules and sub-systems. This has led to significant increases in our sales bookings over the past four months and has prompted this action to aggressively expand our capacity beyond that previously announced. We will complete the expansion in two phases, both of which are already underway. Phase I will be in Albuquerque, NM and is scheduled for completion in June 2000. Phase 2 will be in Walnut, CA and is scheduled for completion in September 2000."
Previously in February 2000, the Company had announced an expansion of its strategic alliance with Hikari Glass Company of Japan. Under the terms of this agreement, Hikari agreed to invest $5 million in their own operations in Asia to procure production equipment necessary to build out a second facility for GRADIUM(R) glass materials and other products. During the same month, the Company also announced the establishment of a facility in Warren, NJ for the specific purpose of the development of an optical component enabling future optical cross connect products. Both of these expansion related projects continue to move forward on schedule.
The Company has 22 U.S. patents, plus 4 more pending, associated with its optical technologies. In addition, various foreign countries have issued a total of 8 patents with 9 patents pending.
In my opinion, this is the most significant press release by this company since the signing of CEO Robert Rupp from AMP. . . and further explains why those Lucent sales executives jumped ship to join LightPath. I also believe that this is the news that will finally attract brokerage coverage. . .and will eventually include the company in common sector lists of fibre optic component manufacturers.
NOTE: These are my opinions. . . do your own due diligence. . .choose your own stocks. . . I hold shares in LightPath and Lucent. . . all long . . .none short.
Link to Sales Director Appointments: Message 13567315
Link to Expansion Announcement: biz.yahoo.com
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