LightPath Technologies Inc. Reports 35% Increase In Revenues During First Fiscal 1998 Quarter Ended September 30
ALBUQUERQUE, N.M.--LightPath Technologies, Inc. (NASDAQ:LPTHA/LPTHU) today reported a 35% increase in revenues and a twelve-fold increase in sales of GRADIUM(R) lenses during its first fiscal 1998 quarter ended September 30, 1997.
Led by sales of GRADIUM lenses for lasers and wafer chip inspection equipment, as well as sales to distributors, revenues were $166,119 in the first fiscal quarter, compared with $123,470 in the prior-year quarter.
Net loss for the quarter was $912,599, or 34 cents a share, before an imputed deemed dividend of 8 cents per share arising out of the issuance of convertible preferred stock, compared with $757,129, or 28 cents a share, in the prior-year quarter. The widened loss primarily reflected an 18% increase in costs and expenses to $1,086,881, as the Company continued to build its sales and marketing and administrative capacity. Reduced investment income also affected operating results in the quarter.
In addition, during the quarter the Company completed private placements of convertible preferred stock which yielded the Company $4.1 million.
"The shift in LightPath's revenue mix from product development fees to sales of GRADIUM lenses reflects the growing acceptance of GRADIUM technology in our targeted markets," said Leslie A. Danziger, Chairman and Chief Executive Officer. "In the corresponding prior-year quarter, 70% of LightPath's revenues were development fees. We expect to see a continuing shift to sales of GRADIUM lenses as production orders follow customer trials of prototype lenses."
Ms. Danziger noted in particular that the ability of GRADIUM lenses to increase the power of YAG (industrial) laser beams had received increased market attention. She also noted that during the quarter the Company added a new Vice President for Sales & Marketing, Mark Fitch, who is charged with building a sales team to speed the commercialization of GRADIUM glass products.
Completion of two government contracts in solar energy and wavelength division multiplexing (WDM) during fiscal 1997 reduced product development fees from $111,347 to $18,400 in the fiscal 1998 first quarter. However, the Company said an amendment to the original solar project agreement will allow an additional $68,000 in services to be provided in fiscal 1998.
Cost of goods sold, reflecting orders for GRADIUM lenses, rose five-fold to $83,442 but were sharply lower as a percentage of revenues than in the prior-year quarter, when cost of sales equaled product sales.
Administrative costs increased 28% to $849,799 with the addition of staff in sales and marketing, administration and operations. Non-recurring research and development costs in the fiscal 1997 quarter related to a process analysis study reduced research and development costs from $246,943 to $153,640 in the current quarter.
Other income decreased a net of $33,618 due to reduced interest income on cash investment and LightPath's portion of the first quarter loss of LightChip, Inc., a joint venture with Invention Machine, a private company.
LightChip, majority owned by LightPath, was established in July 1997 to develop WDM devices for telecommunications based on GRADIUM technology.
GRADIUM glass is the only material that can precisely "steer" light internally, collect and concentrate energy, separate wavelengths of high-speed data and be manufactured cost-effectively, in all sizes and volumes. LightPath Technologies, Inc. manufactures GRADIUM materials at its headquarters in Albuquerque. The Company has 13 patents associated with the process to manufacture GRADIUM glass. LightPath common stock trades under the NASDAQ stock symbol LPTHA. LightPath units, comprised of common stock and warrants, trade under the NASDAQ stock symbol LPTHU.
CONTACT: Frank Sommerfield Communications, Inc.
212/255-8386
mail@sommerfield.com
-OR-
LightPath Technologies, Inc.
505/342-1100
LightPath Web site: light.net
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