LPTH - Earnings call transcript Q3 2024 | LightPath Technologies, Inc.

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Operator

Welcome to the LightPath Technologies Fiscal Third Quarter 2024 Earnings.[Operator Instructions] Later, we will conduct a question-and-answer session. And I would like to now turn the call over to your host, Albert Miranda, Chief Financial Officer.

You may begin.

Albert Miranda

Thank you. Good afternoon, everyone.

statements I'd this remind will risks conference a of started, the that be and get on number of based in course call, forward-looking SEC uncertainties we as like involve its you to during making current discussed Before expectations, are periodic various filings. that the company

be the the believes that be are results them of any proven realized. company the to statements that Although can And inaccurate. no would be can there reasonable, projected assumptions underlying assurances be these

addition, to refer In include associated Please with financial reconciliations certain measures the measures and call that these which or references accounting GAAP. to begin today's recent of financial measures. accepted financial non-GAAP to accordance I in disclaimers. our financial review as may results be company. an non-GAAP the refer will will We SEC releases, overview the made and with are of reports then generally principles, developments certain not for press of business Sam our quarter. for and

Officer. I remarks, LightPath' prepared session. formal President question-and-answer Shmuel turn now Chief over like be to and Executive a our there the Rubin, will conference Following would to Sam?

Sam Rubin

to Good conference LightPath Al. everyone. financial Fiscal afternoon you, XXXX to call. First Quarter Thank Technologies Welcome results

shift to investors, a last Our has To and optical and partner in infrared to from differentiators for solutions LightPath developments focused on technologies custom pure few early recap financial component whose the posted a being cost been X.X, complete after Fiscal transitioning sets for the for LightPath the provider camera of lowest and LightPath refer the value-added X.X results today manufacturer, stage mostly quarter subsystem on press manufacturer, underscore value-added are provider a assemblies based to years component like technological. in manufacturers. and additional to LightPath our XXXX, a strategic release market on our website. closed from was X.X, what issued as to first our we corporate continue

why return and full explain did, onetime short-term of gross in I integration to months such thus, ago, is XXXX today a to to some those to One lower create quarters. quarters. now on Optics, don't will multiple have into assure of as recovery which LightPath the think been also efficiency as As our on finally that you see with acquired integration. And a is likely return operation. I expected, its profitability on of tactical likely And slow during initiatives context that I we're the the making sales, The event this initiative during complete and need in that that second move this would year. recall, the stated decision germanium-based reporting our line inventory our finally mentioned value the track hits fiscal impact on was of just two quarter we provide quarter call on company away business. has two from related working impact are next the and we're in a such this quarter. result LightPath to goods six system. the the to ISP of completing that, is to margin however, ERP needed and profitability. first a fiscal trajectory recovery to Together to sold is that been assist we for also strategic cost It

not $X trimmed taken we by that a so projects of integration that structure a to have more In down months, of continue the over initiatives yet structure. In number also with are cost last few addition improve finally few entities, complete. cost to and have do ERP our completing the the million our we

the with in hand-in-hand to All growth of line, designed throwing top profitability. back us is to this

of and I'll impact. this. strategic outlook now has some discuss and of All of direction been the short-term level longer-term on tactical this the

has of subsystem the a As since One been we solutions transition, pillars growth. three case a or becoming imaging camera is provider. we strategic focused on started our

growth he a used growth refer transition Sales, Second markets as $XXX for Announcement new materials. and in third MANTIS were pillars included step Diamond customers. XX growth them of growth pillars becoming the into joined inferred of X.X. which unique three enables X.X, first transition capabilities our camera, now business. support the from our The innovative infrared of And a our is sales us camera, thousands sensitivity for and engineered provider on solutions were [indiscernible] new in those ASPs our to was defense our solutions assemblies, of such tie as noise higher-value as both which technologies. of in in Infrared the first proprietary FLIR, as components Messerschmidt, MANTIS technologies, we for high which ultra-low acquisition million versus of in chief responsible the hiring Teledyne customized [indiscernible] of cameras. a the is with camera couple lens past. of such provider began cameras growth Jason of new applications millikelvin three such our where of solutions products among based from of organization all camera VP and years LightPath Through was of Also, starting from that more pillar sell Visimid automotive. we additional the or our component an last manufacturer major growth year. who This the by and LightPath which to the driven our of All we Black differentiating to specifically and ago, for was

is every assemblies customized third pillar of our and As quarter, camera is commitment point quarter XX% strive related to exception. developments to to demonstrating one each The those share of some including solutions have and that to this growth the mentioned, no our strategy. revenue success attributed to growth, services our LightPath report quarter ongoing we in of engineering lens and related X.X, in and of X.X this to the pillars last generic accounts to revenue and

of pillar growth defense industry. second The the is

there Here, of multiple are important developments. too,

sales new First to Martin X.X point we is money, Missile the committed. more we Lockheed over has the instantly and we those right the of first are track, our orders fact, and And the $X.X for that project, inferred last deliver short of an the listen encourage this elaborate This are availability discussed Martin was against already project for I'd the we this another us million on develop is not driver on. if massive contractor it, this and opportunity created BDNL-X. -- interest calls it the exclusively as The significant there the see of project reported material have, existing Lockheed month milestone no growth a down as BDNL NRL almost In couple is this previous that defense our program. In previously on delivered to in of I of system updated will booking since defense years. have not hundreds But road next competing it includes major that in a successfully project, dollars started customers. importantly, in in as millions program now most for term, million changes we from we material. announced That its a side, in already is But familiar licensed you massive, releases had with announcement system. or Army. additional updates to are or report chosen on development the also by material. missile of first to press lifetime new the

and the is paid a of manufacturing a for grant. this materials new licensed the of As qualification by reminder, DLA readiness is nine from exclusively one [indiscernible] through

the opportunities. We airborne announce is materials. components very the and It's we size.This one would are very, BDNL-X, it, continue Martin next in exclusive with on direction I'd which as missile the any our separate as designed serves for large program program announced announcing our up emphasize regular this new product. a is building have this. making optical the in a the exclusive end Martin previous only strategic from which exclusively plan This major In own This is system Lockheed system two using products, almost like is we as of Also them up an if system, win new we case weeks. expect almost related in new to call around potential optical our materials. another which of of confusion. record materials. with to the strategy X.X, our that significant coming This to or as entire time separate designed program. LightPath Lockheed case, ended well materials Those being probably basis to program in for is we the same design the one is our significant our also Each a new new very has opportunity. a demonstrate to materials

our much pie. we growth a key the of pie, defense exclusively This now that license. required award defense [iPower] get piece we be within European a the allows own is because and bigger unique in Now that projects we of to U.S. that is EU. produced to European in the are an the license recent of in defense similar capabilities is of to and manufacturing the pillar developed, Last ingredient designed what participate the us in

projects and the license to like other We and years able iPower completely in in defense it, result locally. this U.S. capabilities market requires operation we've to words, making our the the therefore, be defense made Riga as Just and adding Or vertically coating three a integrated received U.S. serve European ago, self-sustaining. investments produced in designed of

announced out now to timing with in further this what for Riga. this be of completed expected happened In capabilities to coating growth We have also coating and turned license. that and just a capacity expansion perfect

publishing encourages other in among of billion With XX.X% the among industrial at to defense Union as strategy, cooperation technology its purchases ever and EU first last and market growing the year, EU which, Latvia. European a defense things, record such $XXX European members, defense

to are sales this. We now grow our substantially in through Europe positioned well

if different growth the altogether sales revenue comparison, have has from last come that market. of For X% of from it, in of of our years grown all not defense the few XX% revenue. U.S. our Most our to

from is growth European market for potential the substantial. So, defense the

We our automotive that fully new the and car out one would that market in our we is of imaging of Part by Those growth several thermal have valued that of pause others. of the further of a companies sign automatic When be that track adopted Last was market tested specifically have evaluated changes the year. us products as mandate use. automotive led at the by one of project. the year, one the well we intention supply three qualified all tens worked U.S. years be market. a as anticipation into major pillar automotive have in on to solutions our announcement that Transportation already field, of of follow dollars some to Department recall entered and in on applications will regularly to first customers will were vehicles. braking that to The of in emergency systems an agreement DoT, significant millions in reason the ago

As a decisions all emergency understandably, Transportation car and weeks moving. systems vehicles in of mandatory be wait starting related wanted result, light is with DoT of trucks. to XXXX, until and announced in ago, that A will braking Department any couple companies

thermal is nighttime extensively of performance in As to is to us. Not of The new longer is and news extended improve imaging. only provide enough originally the technology their said ahead time to great thought, expected nighttime also, systems about than order of of performance companies use the pack such car I'd be which line time altogether, talks implementation, on are rule this. for significantly we This say. the and the

infrared approach growth years, by one two the the safe us but over only germanium. prior in materials us these production the LightPath germanium. distracting alternatives with to on not time pillars announced growth growth, the to of lot exclusive further of the can there us this And cameras without that Last with scaling the diligently or benefits the some instead largest be has that, on germanium affects we've I being over even replacing performance been company, provides and -- like we're will then, the learned in way active being our line become mainly strong imaging a material, to restrictions instead has to export as and our this and These think in well, July best time we're years of say to on is infrared materials, developed other We China new many working very which from BDNL-X companies. big of qualified with process, recap, and market years systems customers even it's systems. working impacting deal. have our for up implementation other than the used China in closely their also unique To efforts are evaluate last a that exporter These marketplace. our use also back improved to this offer now that pillar applications. adoption from this are for materials it of germanium, already estimated. to Since and going negatively The seeing field germanium. on redesigned we've and defense. thing, of and two In potential has initially to major I now we grown growth update short, materials five X

these reduced amount for products, risk, manufacturing but us. lifetime One been is we has indicated, ago, of not drives up adoption now for germanium supply only long-term Diamond of Black new germanium types which also capacity lower which better six -- overall its a As recycling lack have when the for over glass those we materials, the no non-germanium months filled of of work margins chain with our cost. being hurdle process

Central taken and the We and now announce would Florida, capability fund and pay this of process efforts week, U.S. materials of Defense will that be Ursinus the root more back scrap will where this development recycling [American] leftover glass with vote Department as College to are Black Diamond happy earlier University via for effort. a of to down has our used is recycling Developing kick-start the to available more and recycling. more

team. turn thank imaging adopting I over them. will encountered. stakeholders applications continue and continued earlier would to down our thermal the I to transitions of who down have through the expect automotive. efforts we and cost help our hurdles structure, mass drive in like We as this greatly. drive long-term to market hard such review not cost because to to always, described as And patience diligently without financial work to employees that, And various I and our them work driven of and third all team future that, would a CFO, see growing by of company to ahead Al a results. happen and for We I our bright dedication, thank call the With Miranda, quarter the now the Al? The

Albert Miranda

to fiscal for information like I period. today I'd everyone issued the that at or decreased contract or previous access were of in in to was the release website contract in Sam. modules component be $X.X included the million is a encourage fiscal value primarily additional sales them XXXX dollar against XX% of revenues services $X.X international LightPath.com and XX% an of these year decrease and during of will basis, engineering $X.X to million for On China. you, company. in million XX-Q much assist in due documents. industries X% in total visible program. also a included or consolidated to to color million Infrared an some visit of industry sales components the the increase Sales first financial million press in Visible telecom revenue approximately our analyzing medical million This third the provide assemblies contract. Thank revenue. renewed period. of the $X.X company's and customers to discuss $X.X our during sales in revenue. of XX% fiscal quarter primarily the sales $X.X discussing ago remind higher an Revenue quarter. we're company better you approximately from were third infrared the performance than call compared earlier was customers the metrics for Revenue and on the from defense primary the increased from to investors of the total a million or in Revenue I'll this to also military quarter components XX%, for due to XX%, in and shipment company component million was or revenue. $X.X annual or $X.X was

where of due primarily $X.X the decreased revenue quarter million Solutions million, against approximately of XX% in with fiscal Visimid's a same of quarter visible sales for offset margin approximately contract percentage was driven to the the $X.X fiscal margin revenue XXX% compared XX% $X.X for same timing of a compared factors: fiscal of $X.X XXXX AR to in compared revenue or third the with of by same a fiscal decrease increase XX% Gross the or visible Services the approximately by Engineering Assembly margin a cost of gross the prior sales, to quarter million Total for million for as XX%, Gross revenue fiscal prior the shipments components. of increased of quarter to main was achievement as revenue. approximately lower $X.X year. XXXX third the as year. of of recognized to of quarter $X.X quarter an multiyear Lockheed which in component primarily is addition typically contract million is fiscal Martin, percentage by million gross XXXX approximately offset generally the year. third customer, was the prior partially defense Visimid the component -- have The decrease milestones. of based sales, margin first, due decrease on the two margins in than or

physically into at was into outside $X.X not materials Orlando inventory was steps the This Selling, quality consolidating a standard costs the subsequent some and of decreased the one with and XXXX, of A statement. million standard normal little and were an of inventory thousand $X.X and entities taken in brought inspection to more cost costs to of do the anymore. raw general resulted events due two down quarter dollars manual removed two one costs third operational the quarter this along of increase approximately event. quarterly approximately review. of and fiscal color several of thus, approximately to ERP for the of combining the cost hundred not reductions $XXX,XXX occur including result service change, building million income manufacturing on the administrative revaluation This an the Second, employees SG&A handling a the fiscal in process manufacturing the with compared simply quarterly The as database. increase acquisition is that XX% year. the steps Therefore, increase in primarily addition cost the same or The wages, Visimid. prior values. of in

incurred annual Chancery also fiscal in and the additional non-GAAP XXXX and We associated operations. proceedings.EBITDA, rescheduled financial is measure to with meeting legal quarter professional better business a underlying third the our for helpful understand the of fees Delaware Court investors

March gross of of quarter third increased of for Our the was to expenses. and prior quarter the primarily $X.X to the ended same XXXX margin, XX, loss The coupled lower $XXX,XXX fiscal quarter with sales compared for approximately operating EBITDA million decrease was in EBITDA the a attributable XXXX fiscal in year.

of the revenue. a period million infrared company $X.X million were ended of the from ended decrease fiscal million, March for the of company's million Revenue Revenue revenue. the $XX.X revenue. year. was or components months Revenue components Engineering visible the XX% nine million XXXX or nine of XX% XX. results nine of Solutions was consolidated in from months million from Services X% total of Revenue $XX.X $XX XX, $X.X company prior Sales $X.X Assembly consolidated or XXXX. were or for fiscal the same was from revenue to of first months XX% Turning total in March

and primarily The to $X.X sales international in months increased in shipments of an The in due program. military due contract to year the telecom X the industry component against to increase or Again, increase almost customers to $X.X customers in component fiscal sales revenue the primarily Visible XX%. an sales component first infrared XX%. for a China. million or in decreased in decrease an annual was is approximately industry defense infrared sales million this

professional of of for of by revenue flat aforementioned Assembly which the increased due year. customer, multiyear Engineering at fiscal in XXXX, period to which half by nearly decrease as to of months for XX% the driven Martin, The legal income same was additional million $X.X XXXX of fiscal months XXXX timing as nine the due associated gain third a in annual SG&A prior by months was of SG&A in of fees increase the the incurred primarily first wages, for $X.X The contract compensation. in approximately the quarter funded months approximately and factors XXXX $XXX,XXX a fiscal XXX% the million with costs quarter for an X% million a the $XX,XXX an year. fiscal revenue margin stock-based Chancery fiscal increase for QX. addition Court gross compared the primarily decrease meeting includes to XXXX Visimid, in rescheduled based milestones fiscal the Visimid's of Solutions achievement the $XXX,XXX former the approximately costs in of Services of approximately funds in contract shipments first company July $XXX,XXX the legal the management the was of nine of periods, of where compared revenue for company's our $X.X million to the were team XX% of XXXX, a a approximately loss space-related fiscal return same approximately increase or first year. aforementioned XXXX nine of research a nine lower margin defense months company's is as with to revenue. of of misappropriated with the EBITDA approximately and nine fiscal percentage as margin, in proceedings by both offset compared by or of income changes standard result the period gross first there. for $X.X in of margin Chinese the XXXX the previously revenue was same due associated nine $X.X was generally the Visimid with subsidiary. months proceedings.Other revenue for as is of acquisition primarily Gross percentage Delaware the well is against of also of of partially recognized the XXXX period The other a fiscal primarily of which prior driven first operating closed cost offset was in expenses fiscal of to The the contracts. cost in third partially from as a decrease million gross first one the revenue of Chinese with Lockheed offset as by for on EBITDA increased coupled fiscal in partially well as prior the attributable to the impacting and

operations foreign of the by for in for fiscal $X.X the compared months the first million than the which than provided same of $X.X in period were fiscal approximately the XXXX, Capital the quarter operations capital cash and the $X.X the nine year. driven total operations expenditures the largely cash of quarters. expansion. months prior provided by cash of X of million was compared first for was of working approximately fourth a greater facility each XXXX The held million, of of cash and year. XXXX fiscal of $XXX,XXX subsidiaries. by were of fiscal of we approximately equivalents of same $XXX,XXX and largely was by is XXXX equivalents XX, first as XX% prior by March fiscal in the approximately had our Orlando XXXX decrease months accounts $X.X spending million driven to to fiscal As nine previous used cash higher period for XXXX in Cash our of receivable fiscal sales in Cash

XXXX. expended of cash of during We also half $XXX,XXX the fiscal acquire approximately acquired net first Visimid to

XXXX, the million, The fiscal approximately in XXXX. decrease was total March Compared to fiscal nine backlog $XX.X a Our the as which first our were made decrease March of XXXX, to contract typically $XX largest received million XX% products several at XX, years, March second fiscal to during by customer compared contract increased of for In germanium of from our annual XX, backlog to added as previous against to XX of backlog multiyear shipments prior orders X% XXXX. infrared a compared as periods. backlog significant during and primarily in is due months renewal of the renewals, the quarter. end we

optics However, as to decided we optics germanium, their use our own disclosed of Sam the systems importantly, earlier, to to and reduce touched amount to of work on from disruption both we've previously more chain and reduce customers Diamond to of produced risk made supply convert our with Black materials.

shipments optics customer to continue and are increase consistent as The with thus, made are not and not with book against renewal annual germanium Instead, always we As to this renewals substantially Diamond this order Black optics. such, as timing customers of are as orders. and these other the to orders decrease we well contract when customer. our second quarter XXXX, annual may their for multiyear systems received did typical multiyear levels of fiscal backlog convert work

fully consolidating have the reducing and and lastly, G&A shifting increasing these development realignment and begin Lastly, expenses The manufacturing began X.X as operator anticipate to production continue process and in Sam products; the second, expenses resources financial question-and-answer With First, begin mentioned, will we shift be in and most our these expect manufacturing marketing, concluded. elements: in footprint over product developments the efforts X.X. this We in QX the and recent activities. We related and towards has lower of QX QX. in nonrecurring and and I'll areas LightPath for QX. session. toward now employees turn reducing costs overhead to to expenses highlights In we three QX, review China. in call to our begun realized new realignment to LightPath the

Operator

Ladenburg with [Operator conduct the first we question-and-answer question Glenn time, this from Thalmann. session. At Our Instructions] will comes

Glenn Mattson

referenced. might and the program more contract on going just as lenses you all defense record. what release detail in month new guess, about And -- that into Congrats particularly nine and when to out, think that us existing maybe as Can talked an you like of of you a came both I progress. the the press be? guys going program second a how interested you give ago, is on BDNL material. for the lot A I The long stuff the about time of might that frame XXX,XXX know little start?

Sam Rubin

Yes.

absolutely. So

think number the the that we're a definitely the complete for of have a is sense build to but bit I better things going now [indiscernible], system. then XXX,XXX in lens since changed

we're not -- I don't per lenses, lenses' systems, XX,XXX something roughly but them selling to going into be rather think know systems for unit I So, something it's five that. line. like that XXX,XXX along price it build individual yet as the

I that, can't it's comment So, on pretty a complex assembly. but

service. for years, which few is aircraft period a an be in let's systems, existing And likely in aircraft and project be what going know as for time by be successful we're development to of prototypes X-year to probably a let's out probably not year would So, is done going to if is most a it's XX,XXX insignificant, started it then a starting followed rolling year's do this therefore, entire looking to so, to needs now, over all production. low X- say, and gradually part weight upgrade come say. to into take I the that it's the since or

I what share I at think this that's about point. can

Glenn Mattson

with time have begin to out have of than like order the with to -- expect as they just that's out I'll some kind highway and all terms And would touch sign and what's on the would back And been the in of really in be stuff Second, the in get since frame projects ramp stuff. people that thought stuff-- would that mandated automotive of to as move customers? on you all -- your quickly, rolled great? kind but safety of... some just it came recent, earlier when that you to a

Sam Rubin

hibernation keeping of that all including [indiscernible] for the I'd of a us customers was while. Yes. went and the other sort first, Definitely, large high-fiving say communication has that each success mainly distance. into complication the picked

I are system. it that of that roads prospects What out. a already this at least us. the very wait I'm on something likely for all probably that models having is pretty feedback, And start to not then systems we're is right safety just advanced that the out more companies start two fully they tune some it better stage, I'm with is us start fine not like excited sure of besides the take experience it, to a in of much selected so frame We more the and my X-year of that take couple -- based more rolling are assumption to time now, in data, on data, it. gives mean or is to business going getting in until rolling that will fine time all tune

the performance imaging a terms [indiscernible] I the out like need see know even far about on a call mandated the quite need the actually that. things them, are to DoT, that the would the of cameras do there They nighttime of specifically really what to thermal bit And read through improved. There's areas to date, in very they so work the hit subjects you And that testing it's does talk rule, that's the be that. better system. time the think.If intention of road by it

and time us it's the now, it a would means For us, from good. of right. do we have significantly to lot really growth. would it us other frame frame, short it distract A longer let's areas It's throw time many at

look a possibly work on to for this. us partner with Let

options forward So good now. going there's really lot of a

Operator

Lake comes Capital. at question Jaeson Street next from Our

Jaeson Schmidt

color want been start in the with just without all margin I then how appreciate margin about inventory write-down? think the more quarter. guess, returning you to X-part gross normalized And I question. forward? margin should have we that What would gross I a going provided. that to level a

Sam Rubin

heard second that I Jason, Sorry, of question. the part

Jaeson Schmidt

forward? going margin gross about think should we how Just

Sam Rubin

was guess was hundred several on I the thousand So it adjustment.

it, if without million XXs, quarters. we sales, in the the do math inventory couple to So on in of margins apply about next the And XX% around should low that get to if you the cost $X.X be we adjustment.

expenses to -- out you're up. that nonrecurring going going and we X.X organization. drive I'm of did independent the as to X.X, that -- go of give towards expenses that shift we and expect cost say qualify see because we to some heads in As we a up But nonrecurring more I QX you

Jaeson Schmidt

Just following up on the auto opportunity.

Just to new have guys of be clarify, to spec. It won't you requalified. progressive. is just It the in sorts

give customer we're that get customer, right? customer qualification in same that my now Or know me go be does continue in up brush that in we to system case, exact does just redesign since need tremendous doors, the a given I that going every to "Well, the now customer. In been entire customer specific of don't everything, to every to have car, chooses I is the to you in relationships this dust therefore, the simply number auto field, system? tested. for gives we've is say, a customer If current and a then advantage had to that design Your already one. back not we're that from process, working a qualified do redesign any large that were us So back to yet Every will qualified. specific what, them different Yes. is square that's shipped and know world. time with to it mean

to of So fair? progress. credibility Is curve learning a behind there's that quite continue bit and it.

Sam Rubin

we dust redesign customer, to the tested. a customer a case, in going the does that you different give car, Every say, every time go I specific this need not that in that's system were me in back that customer know a In same to been gives them square does given that redesign process, the from it large get tremendous customer. right? we're to simply us Or everything, system? therefore, that a field, to up one. will is and to yet what, brush then back qualified mean any to is I entire specific customer for the my world. of qualification we're auto So Yes. is with to now every customer have to chooses advantage "Well, shipped doors, If since working and do don't be had now in qualified. that number already know continue exact design that we've

a of quite learning bit there's credibility curve So it. behind and

Jaeson Schmidt

just a significant. then me, defense queue. license European one pretty The manufacturing in last And for and I'll back jump seems the

and mean Just as you would this with could kind a I these take to you the impact? get have impact? been see agencies? as will that Or assuming you're negotiate time really does this time curious thinking far an assume line it when will as you start you've this quicker some about of

Sam Rubin

guess exactly it. it in for -- I XX was day almost applied something We to the when from received or exactly would to sort take when it whatever. knew of bureaucracy the months And it day, we Yes. XX everyone months

extent, started So, I customers to at in have companies of to that that in two large us working it. in us Europe anticipation that Europe, we receiving least know defense have with

of take degree those choose vendor Question very orders existing an of existing and sure cycle the cases. We're say into in at in that it Or those that. qualified With defense and in a a is the spending because so get chain would least was they are qualified having shortly designed first there done? So very from so, suppliers pretty great related into for like is of to with been programs, and that it that going always something to strained us which get the new a new as in confidence I high has or tremendous growth even the It and Europe might step programs X-year get so we existing welcome for whatever for longer. I us. they then do a do of I and already can be one. two works think that am others, more program businesses, defense customers, supply those coming positive. stepped programs

Operator

Our last question Gene ingerletter.com. from with comes

Gene Inger

introduces prime world contractor already update competing I big realize hard realm, know I've the Lockheed much what's bit the on And space thanks expand you on you to I the weather. also the communications. you continuing call this transformation. extent going on event, you company, for didn't been develop like situation, projects in hopped the expanded of can a under the work there's late. to don't If not which if other at And if in I'd there. any your But from and the to that. us on a potential on I perhaps you to least little in

Sam Rubin

that great. changed that much we the on On since is after didn't milestone update performance, time on the significantly. has updated we Lockheed, full first which delivered more nothing We

to but production time, have So, time this even much And in production We're dollars hundreds the millions of we're all looking is yet. frame. Lockheed of of sales. that time still working up at level wants to looking at start last on we ahead setting report And here the in something that on, of still massive year, we same indicated don't same as great. started potential within Orlando. And it's

Asking did all for it because Lockheed. of in about that programs it has open a additional question opened up up good other opportunities, any that's pretty actually

And to different. programs that and additional this all multiple expected, no take stage. try the R&D some technology that's a it core that Lockheed in developed As is defense in we use on have tend have platforms, contractors we and the and

We one similar are we'll LightPath.The core in the going least really to record, transition of hoping a and become to space about But that able two six a or program of sense them technology similar in in doing products be talk next well. communication months, of pretty similar -- at optical of it's it.

same know that delivering project lipped we increased has, order. There's exactly There's is customers and that. satellites. their a a We a development assuming more steady optical projects. small other on by have a tight bit communication, communication. I'm everyone that optical I'd are understandably full I couple don't we think, they're very team communication it that Our details, means of there good point free encryption to space is space say more things. of related and of rate But program performance good delivery a quantum on biggest for optical and our on our other few

Gene Inger

to finally company LightPath of to the need change you. name is do you and the AI people find all perhaps And will

Sam Rubin

com That's that. try their -- just back the to where like can everyone I dot area dot-com yes, That's name. added

Gene Inger

anybody German event great. Mr true. fact he in controlled the -- what com, more one is think any world. names guy. no, the at Including In domain It's point, doing dot you're than And I

of is called a rocket doesn't be, Orlando scientist and Missile basically Fire rocket it it Lockheed think which control. I scientist doesn't to take and it's does a one which what in recognize but division, [indiscernible] take happens to

camera sensors a there's idea have target for infrared a So, on can't and you. you suppose like what there. I specific, of and in need certainly, acquisition get but quantity work rough more have what modules And I they things

Sam Rubin

absolutely. Yes,

find I and think all of what Google programs awarded working with that. diligence and digging a can also got to in bit one connect Lockheed it's on

Gene Inger

have various the sale that earth. or something residual I'm produces they they're about if also on from to doing for it's not as defense space downlinks then to globe, there's else, same revenues circle is to going And constellations, network. whether anybody scenario, of Starlink points equipment, talking the the and onetime Obviously, of any have annuity-style a a income. the what you're idea the it's within encircling it's developing recurring On communications for cellular, whether whether

Sam Rubin

satellites, Well, share that about if they roughly lifetime two-year think the those that is Starlink, a satellite. with an of you as of And the thing look that I is example, at short. here publicly lifetime positive believe the those can I satellites pretty you talked I

the recurring a not constellation and replenish provide a license just So, that on everything the is need is to deployed, to out. piece the provide burn and we revenue that write paying sense and we're while it revenue ongoing love that it a going basis keeps in satellites optics recurring to software player even would fully assembly and to is back, and a I have of when once like you

Gene Inger

if be to position And -- that AI. will, revenue these of you which saying systems, basically management, in approach. provide is space not You're you're a a recurring would

Sam Rubin

Yes. In hardware. in provide glass a specifically, what this this as the case, program we is specifically,

Gene Inger

his is well. hope I question, heard a And project. -- place appear -- the Luminar, might saw UCS. thing I they -- be photonics and by name first of Is may off, whatever heard an joint this department, one which new to that have I which and is whole but Arizona there be Eichenholz I then only Or University to UCF the co-founder the Tucson develops and and is I department which and which about at jump was department, that this is a logged And lenses electronics you? very quick in, separate was I know that Well, odd thing? was something created the it you way, the provided working same and I'll When on of there's a this.

Sam Rubin

of this over the I material. technology, cost -- collaboration, million and XX% road the production has of develop DoTs our so significantly to or advantage other help spending reduce [indiscernible] collaboration very on for an which Jason Richardson, gets will a we members that has $X.X that in on scrubbed school field recycled. the think glass. and [indiscernible] and of optics with This have years. collaboration Yes. the a doing a UCF that. who's the of which recycling well-renowned many he's is other been Dr. This Eichenholz she a and infrared good And it's things expert part And is not friend Germanium to where of the down it left material of a is great important fleet with organizations. Kathleen gets is related

job Chalcogenide is So, that And would that pretty the to down same Diamond left that gone. then road, gets have Black the bit. in our down much for do germanium We're into added a drive you And germanium next thrown glass. [indiscernible]. back trying batch quite the the with that that you means price it with of and sell can over

Gene Inger

wonder with progress. plasma have but But about channel the I shifts it. [banned] is quickly you only we're making whether military it. I in never at you're Well, supposedly, not ask progress which Could years, to any if involvement made for And were quick starting involved? systems, laser

Sam Rubin

project. of I of not optics If I'm from they possible. components, imaging. And and or of have in of single -- provide keep different of products the infrared it if involvement every would, is we know. of don't of lot we subsystems around level level honest, players. all a do subsystem To It We in the the our that don't lot track sort of be those to aware that. engineering solutions, you a

Gene Inger

like So not involved in, you're Israel, Beam? for in in example, even Iron something

Sam Rubin

are, it's maybe are If the we level. we Maybe component on we aren't.

Operator

turn I'd our are it to moderator, back like remarks. to there for At closing no this Albert time, over Miranda, further questions.

Albert Miranda

going remarks. making right fruit with to appreciate and deliver Sam on the night. We're you, the for And everyone. trust Technologies. on you taking LightPath you, follow a everyone, Thank the of the the thank progress. We're closing time continued placed us. long make good we're the Really journey, to coming start fruition and the seeing to to good be is critical. point we're and results. going efforts And now turning some come Thank you, quarters to be of and will

LightPath (LPTH) 9 May 242024 Q3 Earnings call transcript