LPTH - Earnings call transcript Q4 2024 | LightPath Technologies, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and welcome to the LightPath Technologies Fiscal Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Albert Miranda, Chief Financial Officer. Please go ahead.

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 could there reasonable, projected assumptions underlying assurances be these

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

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

Sam Rubin

to Fourth afternoon XXXX Good welcome Albert. Technologies and Fiscal you, Thank Results Conference LightPath Quarter to Year Full and everyone, Financial Call.

results see to lines. new was the and starting supplier important component contracts an year As by provider, after growth the transformation was website. Fiscal XXXX a new to driven these system financial release pure year always, market our new posted delivering issued in press corporate to closed today product products, our and a from during our

taking supplier from a on systems set solutions to being provider. new we a ago, strategic new a years component three course over or a pure with us direction, Just

component shift, over had familiar with classic optical a for has the been XX What crowded this marketplace, was a molded greater LightPath and this, a the optics, many become going For technology, to unique commoditization. years, ago those part I an of provider. through years overview. the provide Prior brief will not years, transformation

unit margins business and new core of course of solutions subsystems been two In LightPath's that them on decreasing important industry. to prices XXXX, was just with one our technologies components. Aiding such, system-level key direction, deliver profits. some As leverages strategic eroding, instead in this and our we set happening a a shifts and in have

provide as solution First, those a a not, applications use seek need used photonics rather whole optical more being to will in technology starting generally new components in optics more complete and industries. build they than is or the More a times customers and would more that partner than themselves. to

we revenue the an So, fiscal existed opening industry began supply before LightPath the And opportunity This path. to for in become been transformation XX% our for of activities. This company type provider. has creating of chain came changing, essentially, year, we is a of this going like solutions this our an very or structure successful. those that reported revenue a hardly down of

fast us and rate, of The around their into which evolving number a finding has the been technologies, happening imaging expanding second uses total been have change way at enabled growing market. TAM, a addressable infrared that therefore,

we outcome around in in components this developed more importantly, owned been business seen. Today, coming be we have leader legacy world. And of in license ourselves as both at looking conclusion replacing differentiators high field for and germanium, we growth XXXX With market Department to by significant of ourselves the applications, seeing the all-time business now discussions PMO the a of technologies, the see our a legacy overall through and in year, fiscal acquisitions germanium the DoD business the precision developed and we're at those only last revenue partnership exponential important down XX% that we partner precision has optics create Our decline of or earned infrared from at areas everyone defense at outcomes to an the of our but internally table new positioned molded the the Defense all overtaking Logistics technologies, [indiscernible]. the optics. in our our to are way, the differentiating have road most in of the growth we've in growth core the as that infrared positive of Defense, drastic Both year, now. us that that technologies, that. Through as and our result around phase are through more sales in the some can licensing offset materials a commercialize fiscal are in than an of defense as out allowing centered of go-to in exclusive seat fast-growing already space. The well not government of to NRL molded this also projects investment shift with Agency our right imaging

source programs share due to share, as new are we're years but what being congressional source millions we're not we those of in but only funded also source program, of of Enavel. April, try in the this example, we programs glass a of are those our we And of such only This the way, design year sole first bring is defense future. could years one several item a and the of of it. is For In the into limited sole could just are it we winning of part much expect means materials we now. Exclusive a multiple for key imaging which to a revenues in for a And this since in is bit which program, we new from by key our a dollars a of materials program record, dream production. Four win all have a naturally, exclusivity. system, part announced tens one ago, infrared program we us of of being record, as programs, all being of for in line can which can. position in in sole a budget

system-level a $X to entry investment our in this. With billion to to the over share years, enable as strong couple market of built new now and of we into of differentiators, into created us curve rapidly. technologies, product TAM and acquisition last a our out cameras important differentiating that camera for our thermal be market in of have portfolio invested we also Visimid a estimated the ago, point us development of and a a a in Technologies unique well which and further addition as other fed growing as technologies technologies those materials In year materials unique leveraging have

positioning camera in that draw and NOL. Mantis camera a introducing door started and to to camera customers. the a efforts first manufacturer, conversations multispectral innovative served purely as or entrant with Our product enabled as broadband innovative its by innovative kind us as unique opened the an is attention business perfect new us our materials Mantis, an a of to important for infrared with

completely is has business prior Technologies, already Martin, technology of system. Due the year, mills that but Missile going dollars. This ago, or anything result than next and is market. tag begin can we of a only ASPs units qualification customer we to the that program. Under on few our tens record, one in As needs, for selling has of and model. Similar Visimid is we unique for tests, which the potentially the Martin of it selling competing became working that has this more supplier, over unit, differentiator selling only the line to not thousands cameras, leading very U.S. their Raytheon, business a materials the for us which LightPath's request dollars already needed thermal driven program we of future products the by with those are different represents started Army, that, camera have is Not This just recently, furnaces price us transformation subsystem exactly to wins our will Lockheed in includes cameras has than new lenses missile customers us. Lockheed which program in into as be of be transformative transform a gas of with pressing mills, only to cameras selling technologies gone such Though accelerated or tens strategy, we new the for camera completely differentiators of landed per program, vehicle to used against its our and for Martin unique last math from a well part of the performance dollars for of of high-sensitivity against. plants, LightPath. system our subsidiary, year applications growth targeting this it $XX,XXX a $XX,XXX XXX most do for harsh power lenses a of type program that camera can each product the but are a they steel on proud size cameras new our flight achieved better customer, growth shipping and detection, best more. We're else paper the acquired of what now company thousands developing of of the as of from Lockheed system is camera now inspecting environments, at to company were landed in especially because to optimizing course, significant, line. time top the opportunity months. The which at the are go through cameras started a and needs

still $XX project be next and in start this which for seeing we last are are already full up to million looking progress to customer year setting in the production. low-rate so before fast production. We production is step a million initial LRIP, between development, the that Though expect Lockheed once full of year, revenues the is to $XXX

that by is additional Visimid the acquisition of million size, is this million Lockheed summer. be Raytheon, completely the is prior moved $XXX transform technology we at For or least shortly there R&D to it record by our a that $XX know so X And to we the was way, can Visimid from after possibility into about contract last so not win technology, already customer we developed a integrating against same a and $X developed in $XX this into revenue, that company program this although for will like million transformative and us. that million could acquired important programs. This

case until technology. tasks the now be are many their required in the the use of impact on do leverage trained area AI to camera where important neural to those is looking and many an technology is our own One advancements is customers and evolved AI on operator. that vision, for human for in development many play technology front has areas technology or some exciting of networks a AI Another making in ways application. can users

production line, intruder so someone entering a on such or drone, space items a a identifying an as inspecting an object example, For of into and on.

growing do rather and life other in In centers and wanting it. fact, or data to a vision on much and ideas GPU challenge but of AI are installing done and system. do options, with an conversations the X X such these so using for work how trained to much Module, customers, to an Currently, modules has NVIDIA learned been applications Module GPU or AWS we not implement what is virtual abundant or real equivalent service has of an rapidly. In that AI so use with AI anyone that as

cybersecurity not one allow clogs in images. of the and, in first online other Not that their requires services streaming, which big to do times, or many using bandwidth to due mention delays latency AWS facilities constraint. The

and limiting at in NVIDIA option others and power, as the very AI can to a has high-power only with cost latency of ownership, by in consumption or chip using in no second standard GPU would, and that solutions modules integrated tops usefulness high AI make GPU if in most focus of AI an possible are very second. This XX high and our it to The on costs, customers industry. letting good AI-ready implement field the driven or powerful so-called have also you talk of In AI or making power projects those value already camera and very and working have AI of by implement at interest neural customers a significant formats ourselves a operations are a now with generated customers. the affordable we but its use this developing a need and what power upfront we this camera, hardware And very applications. To Israeli they focus camera. This requires values: in run that not tera overcome our and as the the the for and so offering almost good on. Taking friendly an implementation of focusing approach and TensorFlow such that device not pipeline total X ONNX some AI video consumption low interesting of to Hailo we hardware focusing such in core has into made camera's is AI our case, a neural only accept it accelerator per chip case, computational creation. and is in networks on value cost the on network what creation this are and advanced easier

Okay. give automotive. of growth, a overview third update our quick known pillars growth X one, about X of I'll After those the of talking out and about pillars

XXXX, an opportunity. bigger Xs qualify going that, track larger the further car. be in solution we going in a Tier develop hoped that of know, systems, impacted today several achieve some for the in negatively and this auto significantly According ADAS. Though rule, to new into challenges addressable we a will camera solutions As Administration, mandate Safety which been certain in our National will that can sitting of thermal of the scenarios, first, already both that the car. though windshield include industry first. From adopted turn, This, is LightPath the a follow the of much, see new than use it the units or installed thermal module, for a implementation new terms the cameras at to short allow and that X behind camera emergency is braking even industry, imaging in use environment time the than an simplify for location of faced those car cars estimated much in looks were with conversations on believe to shifted us is at automotive and has our to LightPath the incoming means out set The world the be thermal to to in auto to outside Highway develop those will solutions market like our long-term our is prior will us, continue delivering NHTSA, imaging in should To to to still term, we by begin of behind years to working OEM but we we Traffic in in start volume work has ramp the a much distance. all compared a new conversations. According system the pedestrians from for all very those windshield, prior see, created identify to conditions pitch-dark by car shipments to with what volumes couple continue further to opportunity XXXX. significant the customers. and on currently ship though we up and Tier lower fiscal than has timeline

Al. results. CFO, Okay. Al about to Go quarter will our full-year call fourth ahead, and this turn Miranda, in numbers the talk I now to

Albert Miranda

were or consolidated that a of million issued from encourage revenue. Revenue I'd from million or visit Thank which $XX to also modules XX-K sales XX%. renewed access $X.X fourth the during million annual or press was was discussing or the company. consolidated I year products, of this in of decreased due primarily financial contract and and in you, included the million for large quarter provide website revenue. XX% approximately earlier component we're call in assist a be XX%. Infrared services $X to some engineering basis, included million million of were assemblies visible period. will fiscal from or company like and $X.X Revenue Sales $X much release XX%, against on $X.X components analyzing you color was to decrease the discuss investors quarter documents. XXXX. second performance our in in the to a $X.X Sam. the to year-ago our Revenue information sales is remind not the the fiscal infrared were them the will consolidated germanium-based for of compared of for in XX% components these period. I revenues primary additional today On better to everyone metrics million

both to approximately U.S. industry, As there we more in reduce customers of quarter work and were an channels. comparison a with risk or optics increase materials. we our amount reduce $X.X of fiscal sales germanium, year. prior decrease the supply convert to component for to importantly, million to to in optics of in flat to of catalog the sales same use timing By to to the sales due and and chain made of decided produce their disruption defense distribution from was customers our orders Diamond Black systems Visible

of fiscal modules the this services same fiscal year. million to consistent medical percentage of fiscal is customer recognized the million to improved as we've fiscal decrease the manufacturing revenue for year. contribution XXXX. In the the $X.X contract for past number quarter our quarter. XXX%, approximately due decrease compared XX% fiscal the quarter partially based of $X.X going revaluation, increase Selling, for sales the the or milestones. Gross fiscal increase primarily same lower which for general, prior quarter. achievement to where XX%, million fiscal margin compared XX% increased of decreased The visible sales was XXXX fourth customer of for business that year. lower margin to XXXX of XX% $X.X to by of an we million, from is primarily XXXX of have a in on approximately Gross revenue, and SG&A prior revenue same quarter $X.X or of of or fiscal generally quarter prior was primarily revenue. quarter and the as on year. approximately to in the of executive XX% to nonrecurring or approximately fourth fourth severance order fourth of the assembly the Visimid's requested an which year Assemblies in prior administrative with fixed Lockheed in million for XXXX backlog of compared million quarter cost a fiscal for The quarter to to addition impacted the an fiscal were the of the the $X.X a as costs. Sequentially, consulting as compared Total an driven by due certain costs development primarily gross decrease initiatives. including Engineering revenue $X.X move each was fourth $X.X approximately same Martin, as million a units quarter of approximately quarter of fees in end-of-life XXXX whereas margin shipped, inventory to but revenue fiscal fiscal of of resulting lens costs related Visimid the quarter XX% fiscal more margin quarter wages, is a fourth due XXXX, overall we legal $X.X XXXX, percentage third a custom increase million amount of a and and was year in XXXX, in the shipped of offset the gross This decrease greater in increase in into approximately

of loss $X.XX XXXX for same incurred also other was per the $X.X period of the fiscal compared compared amortization for associated to million million $X.X of gross decrease margin, Delaware year fiscal fourth million same per basic of a fiscal the the revenue of coupled same the loss compared million of ended operating and decrease of of share quarter prior of million intangibles. EBITDA to quarter approximately the previously prior to of in nonrecurring with $X.X or quarter year primarily was in margin, XXXX the related expenses, for prior the proceedings. increased $X.XX diluted quarter to and quarter increases coupled $X.X gross SG&A approximately and net additional with the fiscal professional The year. $X.X Chancery basic Net was in loss quarter fourth approximately XX, for attributable and which increase to in year. were primarily fiscal the attributable the to with loss was The items. share XXXX, in expenses, and as decrease EBITDA in primarily including for income Court We or June the legal XXXX loss fees fiscal a fourth disclosed diluted

$XX.X was of Sales in year million Turning XX. Revenue year. revenue to or the prior million, was for for XXXX. infrared million year million the consolidated was renewed. from XXXX, Revenue XX% from that and XX% XXXX million engineering fiscal June was were related components mentioned June assemblies the or fiscal the ended the results XX, company's were decreased of company ended $XX.X of Revenue or sales X% a company consolidated million $XX.X million revenue. In in contract $XX.X of of solutions components in is Revenue decrease visible revenue. fiscal or infrared not $X.X X%. $X from total revenue. $X.X revenue The or annual total XX% services previously decrease germanium-based from the to

contract. Visible to or year, decrease approximately in industry telecommunication fiscal higher the $X.X contract for the to against well as customers through for sales increase a the an customers as component decrease was decreased. The this shipments decrease military mostly quarter in This distribution the international the offset value in million during the annual primarily U.S. by previous XX%. in in to industry dollar and program. in an China XXXX due a revenue During and also in Europe. Sales catalog of in is than sales an a decreased channels fiscal renewed first defense was revenue contract decrease

revenue Engineering against Assembly the defense assemblies increase to or customers sales XXX%. due since by Visimid a decrease contract as which of and was well by $X.X of with both orders industrial China is XXXX, to decreases $X.X of services remaining increased cores. million customer or for million from contract U.S., Visimid's been Solutions costs approximately the an increase were funded as have approximately of space-related by increase partially fiscal decreasing one sales our driven primarily the driven research offset camera addition Lockheed contracts. SG&A revenue to The both the compared peak or in for fiscal decreases multiyear infrared in are fiscal due as timing in shipments an decrease This due prior to SG&A costs increase million increases wages, of executive and compensation. steadily decreased a from primarily of a XXXX increase were in stock-based million is X%, The development with revenue an business including approximately offset in nonrecurring initiatives. partially Martin. by customers primarily infrared X% $XX.X in to increase the approximately year. the $X.X severance of in COVID-XX. These These

additional XXXX Chancery in also We rescheduled Stockholder Meeting and our incurred court fees Delaware professional proceedings. and previously Annual with disclosed legal associated fiscal

increased XXXX. The loss approximately quarters million, lower costs in for as $X.XX to previously operating diluted increases costs included loss approximately with elevated expect million compared operating SG&A increased gross and business decrease due expense. mentioned We expenses or basic and partially fiscal loss or initiatives. Net next $X product and SG&A per XXXX as is was to we $X.XX amortization interest development for as certain well the in increase loss diluted was by million remain and to as million decrease approximately few fiscal nonrecurring increase for attributed to the approximately share in revenue loss offset $X intangibles development the items $X.X basic from increase and expenses. Operating $X.X resulting in the $X.X compared fiscal expense, margin million new to net operating continue share per loss for the other the XXXX in Visimid fiscal XXXX a of primarily from increase resulting acquisition. This

favorable a expenses, was increased compared with taxes coupled million lower was to XXXX. for $X.X is income $X.X revenue for there difference attributable of approximately primarily in The including to XXXX XXXX. EBITDA in new margin, development. a loss decrease for million for operating EBITDA and approximately provision for fiscal gross SG&A of $X.X fiscal the addition, fiscal product In million XXXX fiscal

to particularly As we for of mentioned, XXXX as items, includes business a initiatives. SG&A fiscal related number development nonrecurring

approximately $X.X approximately cash of The cash foreign capital are prior cash increase equivalents of operations $X.X subsidiaries. Cash XX, million, and provided As to XXXX, for which had in XXXX held year. working June of of for the million by $X.X of $X.X and used our cash in was of by total we XX% less million compared equivalents than million approximately our cash approximately fiscal and operations fiscal flow cash primarily were fiscal as decreases to Visimid receivable fiscal accounts million for prior expended acquired $X.X during from due approximately of expenditures operations fiscal approximately due net XXXX in is inventory year million $X.X $X.X and compared revenue XXXX. Capital year year XXXX lower to in to compared fiscal fiscal cash the XXXX. XXXX year. The approximately in fiscal company acquire million also to during to

Orlando funded capital and improvement to 'XX purpose $X.X fiscal completed years year cash of which and to the company the tenant the The facility, we XXXX, in more for million improvements note. related business expenditures in approximately initiatives our of the XXXX lease 'XX. need in continuing the into expansion fiscal of the excess balance facility. In a August During $X in fiscal minute. entered the I'll provided In on million X-year development million is certain construction $X.X were note the and CapEx cost plan allowances. We over add CapEx it. August, of content Orlando should of we of a our tenant XXXX tenant and XXXX, of primarily subject years landlord for improvement

infrared backlog the $XX.X decrease fiscal of against to shipments in June was total annual compared during for XXXX Our to of received are of contract a which period approximately second XXXX, multiyear XX, several years, not XX% is made XX, we XXXX. timing decrease customer fiscal renewal at our backlog during the the from always largest as a backlog The million, have consistent. In products under previous germanium significant $XX.X quarter. primarily due June contract of million and as typically prior renewals,

supply the of from made optics previously amount importantly, systems to the to reduce with to decided risk work of our disclosed, Black both as use their chain we materials. own However, disruption to convert of germanium, our to optics customer and more produce Diamond we reduce

system XXXX, Visimid this to fiscal advanced results we the like a optics of and the Black facilities moment for entity of the reducing we and with finally put convert into an our of continue their a take China, world. In of as EU in In ambitious to more by was X legal reduction of consolidation December the the a We there set up in for fiscal authorized significant infrared footprint, other a organization partially we continued locations use XXXX China. completed in customers business in X these to Martin to during in work to NATO into finished alignment In renewal the XXXX coating well far one production critical for contract and merged Lockheed and contract and program result XXXX. I'd in fiscal for work scale. existing authorized around work. The expansion context. the capabilities, presence particular, military Latvia, shipments international defense customer U.S. were offset backlog as Diamond as optics. The significant awarded by

significant of required. clean two buildings, months, the prepping room entities, legal XX with we it, and by two consolidated factor last for two increased also minimum investments the the of modernized it a Over the operations consolidated future growth

a our In globally we now and restructuring LightPath addition, employees the remove the future. significant complexity for accomplishment it have removed integrated Lockheed XXXX, towards reporting structures and milestone, redeployed were good the and The also Visimid, we is to areas. layers, restructured acquired flight event contract is already reached awarded by the growth itself. In of Martin and and organization

cost, with can were and see come a and you All the do net income executed in do They with the of well. come these benefit. cash activities flow. They that very

removed that forward. fix in this of we've organization going are sets explain estimates work, million for past, costs some will world-class of to for rather give Our XXXX. are that fiscal us problems the stage unrecognized done. roughly all The to be $X.X year a credit but build this out not the largely structural how permanent pointing I'm effort

levels two not Going we past anywhere CapEx of the forward, the will in invest years. near

question-and-answer XXXX, and a potential execute. of growth. to initiatives, we the things. The to these should potential all I includes year. begin turn product assemblies review stage concluded, set. I'll mentioned developments has you will towards we development, their amongst our been of development high-tech over resources to the all of now geared thank front other support. With which the to have be capitalize of the in Sam and Now, this the In company, marketing, comments the and opportunities, will us. all To be on sales, It opportunities editorial our of cash ability turn IR efforts the business have call highlights, and for my session. recent operator financial exciting your very sincerely people

Operator

with question Partners. Alliance from [Operator Instructions] Global Brian The Kinstlinger first comes

Brian Kinstlinger

about depressed? seasonality? this I do A How Based expect customer, a you begun of year year your a they year discussed, think you've fiscal double-digit to terms lot just information largest from we Do of you unclear, to Diamond this pipeline level? in And backlog as XXXX a things your unpack. have lot growth how and should of order given your high on Black Optics? was of and was past about or think revenue

Sam Rubin

growth we Hi, as end year. low that Brian, for our next fiscal answer the first expectation the growth double-digit is take would of for the

Brian Kinstlinger

customer? seasonality your And in largest

Sam Rubin

of stage largest everything to volume customer up Diamond. We've the on that started has expect not we able to in needed made. delivered side. their once yet The but ramp be evaluation the is quickly them for It's taking delivery Black decision still

Brian Kinstlinger

projects without line time Given them?

Sam Rubin

feel part reason mean, same we that that with capacity some for I that Europe, of the know defense Yes. cases. lucrative use in we more for Yes. decision the defense can business in was and license the

but in away because germanium, so, of say, have European Latvia a from where about only we suppliers license, compared cost germanium us germanium basis talking not most of it's because comparing very Europe, when we're the commercial it's per companies. other the from Sight we se, competing is this when be company, moving still to against low like not even in can business And customer Asia, Gun to in defense is European companies. And that let's once our we're

customers not at force as are was capacity us. business I customer back, want this to would capacity what was that the we it starting honestly full defense it new at same and more comes simply levels the expect we're that when of can So, even to be of in we that much when the as for from Europe. in germanium already better because lucrative land for leverage

Albert Miranda

Brian, lower. in can the that companies their U.S. the Appian can there's position, many the And use And, considering too we as cost U.S. facility go defense for ITAR not in work well.

Brian Kinstlinger

And Raytheon the competitor then mentioned Lockheed's missile system. is for new you

and do resolutions, especially yet down received expect there start have when Assuming a Lockheed with procurements, there constant award, might And like standing? was are more enter feedback we as right away? as process most going which then to it you far started as continuing an reasonably be competitors, select you

Sam Rubin

Yes.

first select has already So, the all, down of happened.

done, all a is vendors. fund Army something that The included unique The take to the and way first never and very almost to round fully more chose that to Raytheon approach, gets then end. Lockheed the

for deliver are is funded this. of And them improving around So, accelerate they run not geopolitics, out fully of to running simply really time. haven't world. is because They're yet the that they unfortunately, and missiles ready want out prime to both they missiles

which have end And by done Raytheon missile which is about. the in Single incumbent. this in accelerated But it know is ready these incumbent an to their it, time. We the is course the solution preferred advantages, on so, cannot first-generation are Martin at and companies of that a both is all the designed we Lockheed same since the paper product going made all talk on and Raytheon player. this provides significant years

some a we So, in of now, the of decision November far earliest XXXX The advantages possibility built-in we a case. a superior expect technology now. though Lockheed, is it even believe, September as obviously, this right year from have or stands is as

Brian Kinstlinger

And and have which you then is that, again, a for this potential system. assuming of you an I'm the win, revenue. you dollars of sounds your quarter of design opportunity millions means like program annual mentioned and airborne tens it's second this thought I have mentioned record, It I and of last a quarter program. If

estimate if And an for it's understand? First is this? will difficult why won? it when just begin already to of all, it potential Is production you've

Sam Rubin

my is something lawyer me taught to say Well, in potential sentence. every

we beat if will prime That that Apache death helicopters, for say definitive. system. on me is that But are the system to building he the So, the sole is I the source by anything way. go going to

awarded be maybe calendar end goes less, prototypes year, We of we obviously initial expect for Right the calendar the a we more point, building is next X similar for first Lockheed and effort. the it, the development we are will the which it the production. contract. award immediately the award so, have. awarded yet low-rate If of to already don't have We by year. At have beginning would, this well, LRIPs, or we to deliver now, the prototypes if we would the

Brian Kinstlinger

award Does just anyone for a have else your prototypes development or team?

Sam Rubin

us. Just

Albert Miranda

Diamond It's Black using material.

Sam Rubin

it Yes, the materials. uses NOL

by we source. default, So, the sole are

Albert Miranda

them You it. can't get That's anywhere else, Brian.

Brian Kinstlinger

My question greenhouse the camera gas your for Mantage last announced is, of new you launch emissions.

you know can also XX customers of out to say, the do available about think readily it concept? the pipeline, sale or First you mean quantify for of still put sales prototyping then all but or the does you how And in months? TAM, I the proof next is all, that cycle? And in

Sam Rubin

Yes.

we So, we thought the have in press we first have said if of release, all, not, should shipped. it emphasized, I already

amount wish I that or I doubt what but fast of units price be, shipping doubt I'm the would it XXX would I we're get year, have immediate. $XX,XXX being be is X-digit being other units, the there's market unit. it those therefore, sort power in there. burners inside TAM range a right existing up reasonable market not numbers. how now, of would of to think are to technology. What more we'll and the I per looking where sure go furnaces, so, our based market their serviceable XXX, on solutions inside it we that's of and that. The customers I it those but say to happen But started the plants. we enabling a we think orders with terms would hope market or So, And at would and And be, do compared think market addressable currently. might the we gives And, I'd the be grow. in size that cameras in will with just of is optimization to

Albert Miranda

building Yes. forecast. but is to a application-specific, standard is And, thing almost. of this a product, actually means sort it other Brian, standard of sort which like is product the It is we're

to backlog not we're going that So, see anymore.

the on to cameras one in cameras to relied like. be future going then that's detection before really for the that things in be so, That's of that terms and very for what we And of case sit definitive camera backlog that family. looks of gas the sort same related not the

Operator

next The Lake with question comes with Jaeson Schmidt Street.

Jaeson Schmidt

addressed kind the of it's on asking things this one. have there this was your market. up in last customer some camera next-gen But if market. question that this if for on of new customers features follow more I Mantis specifically were were theoretically in on to sense specific want kind targeted just market of I new this demand end Mantis. know this could features to a kind version for for. that previous curious that of I But the the know just just get trying

Sam Rubin

you This I think right. hit Mantis out a of very conversations spot. version really Now, of And customers. with detailed you're absolutely important came at the

understand recruits that management I are mean, they an because the them customers, have that the things couple sales, business in just us the experience industry. some with other conversation them a from oil along of even didn't because know Messerschmidt of new had and we the side before with we FLIR, now. Jaeson joined team Some possible. of product extensive development, they of with come in gas

So, great like technology, a all with these could amount of what enormous last the joined point that it we it fine-tune felt able team help, They members is few their to with we've that okay, us thing. a months, new of in to can Mantis do fine-tune pure it's view, things. and AB,C, take do an technical able saying, we great into from were been

like things Realistically, heat Let's distribution, the be. the switching the at same. in the theory, which furnace, driving way just COX, looking doing looking at flames is to this it looking a that. In focus side should on it's down is it, it the between the emissions application at now honestly COX

Jaeson Schmidt

XXXX. OpEx, out million $X.X just taking Al, And costs you looking then at I in mentioned know, of

how about level we sort of the should think new Just forward? curious going SG&A of

Albert Miranda

Yes.

So, our and overall benefit. That in. really around then in restructuring the But in reduce we money XXXX in the QX. business in restructuring. development QX get full initiatives. said, sort things fully did does cost being It year the QX, reorganizing activities doesn't so we structural QX, did into with more of we plowing we efforts to that are in now of changed we kick And sort back

the and So, the we're $X.X that cost it spend year, reduction going million some elsewhere, to entire and for structural not probably of take but year. for

have Some of into nice the sell dovetails question kind you things but have it's of last I your to camera, nice to them. a -- mean,

we're to effort of a amount tremendous spend So, on going that side.

Jaeson Schmidt

then And I'll jump me, and the queue. just last for the one in back

couple the future? still a years the it windshield. I of opportunity, has you just sort in the mentioned thinking level, is at about you know auto behind opportunity of kind at Looking are Or thermal guys high changed? the this of that imaging But timetable a

Sam Rubin

Yes.

definitely because behind there's scale. a the the to deliveries be year of think the I windshield, goal or X next be industry in to are desire in or a going small

that I going key we to And so. volume of already start scaling or to and is delivering that's a for the to be customer. one auto implement adopt in not to those thousands XXXX the industry and that the configuration be numbers. We're units be the car up that is going hundreds no now different going think very high hoping, units. the were It's in we expecting to go going in year thousands to of XX,XXX a were simply So, wants in to it in in because be configuration than

going windshield by developed, Xs, to not going once real side. familiar some windshield with low on imaging, be industry the imaging to new for to next test new that the And companies, the that's years, get it see X thermal the on volumes. work the thermal to volume volumes and will on extensive X years start so, solution the side, in is But next we're OEMs starting requires so, auto Tier the

Operator

comes question with from Wainwright. next Buck H.C. The Scott

Scott Buck

months want one agreement XX after how I is that Brian's so, questions, is decision I or X that decision out on Is that months? mean, process? or made that X What quickly Sam. to Missile First, the a of production program is If then that Lockheed move on up to that follow does made? is months?

Sam Rubin

are having Orlando. in production a infrastructure up for Yes. The indicating up in we're calendar the year still bit That's the still next conversations that will setting air. we be

go that decision we that after So, part could, is the that the parts business, the of means rest but into our least, made. their about Lockheed our that's at I shipping X months theory, part, the don't about Missile know in within start

Scott Buck

the coming the to how higher? services, over XX be next ratio gross dynamics us to And continues as shift months about with we the can work should thinking from revenue and margin and in XX that remind you more then, move engineering things how assemblies given Al,

Albert Miranda

had LightPath margins on I've years assemblies The in last has the X higher that been higher, here. and X than or are modules

XX%. north of those So, we for products should be

Scott Buck

want thing, cash about last I ask balance. to then And just

You the, cash-wise? loan mentioned out But to business $X run insurance. the kind million August what, you took in do of generally, what you as need

Albert Miranda

Well, we're being flow cash projecting operating positive.

and that X say that of development So, numbers amounts. tried any decide it's spend investments. Not sort the what above feel we initiatives years. huge that not we in business we to prior to big whatever cash CapEx require anymore I like need is in other

Sam Rubin

me spend saying. allow he's what doesn't anything is He to

Operator

question with with Ladenburg. Glenn comes Mattson next The

Glenn Mattson

are Most you say things setting need to But X ready an be for already. Or have quick is LRIP Lockheed. for that? you for do get that? you next me. you mentioned related expense to up just there that? to for could there you answered Can year is Just ones Or been of that anything prepared with

Sam Rubin

is so, Specific to by customer. Orlando it money that capital the there. that equipment, that, facility be layout infrastructure we still physically, equipment needed, into was expect for would the With went the paid be

Glenn Mattson

systems to kind that and lot the I curious jammed last me, that the defense guess just people are could lot is things and do, ability on vision then in And to that through area side, the navigate because a looking just they I'm space, growth technology. in things. you a see an UAV camera can be about envision of the it There's space. networks don't especially curious, to of want of be? who that AI rely that for

Sam Rubin

so in most at do first in definitely. and is so That's right the drone it's There's that area far are on. in a tracking the the as But and seeing moving with direction, pointing of more we're a that. thing. applications touch we that, interesting target some we're know definitely There as X very acquisition, least target basic much companies

Operator

comes Hirschman Investment The AIGH Partners. question next with Orin from

Orin Hirschman

It's AIGH. from Orin Hirschman

terms I a Do commercial, it's already? if missile, feedback In know they're have give to of they've you portion, commercial to that you missiles of that's need version fire live something or give feedback. a the actual going that pre-commercial they're you actually I feedback? if involved any anything idea Is the you they going in you to assume real at on your commenced give to least got delivered version and missiles. firing actually test

Sam Rubin

in Orin, competition Hi, Lockheed since answer you. to much as good as from hear is with I'll that I can Raytheon.

of company mean altogether. units definitely, on meaning back going really. and physically to and that the between to of there. that lot assume in start units receiving very certification, be forth almost go working one a worthy our whatever start I lot they they to very, as feedback. go missiles. missiles. In can heard next months, intimate workflow achieved I Once be say that down they're the it's group to just need anyone I a we're going by will a flying, a I it's So, on can Lockheed and mean if We do few shipping we're

a So, flight and work done and tweaking be data. firing lot once there'll seeing of we start

Orin Hirschman

into be How you production have it they could cetera. where really be et it's production get go lot going flight possible through to for would ready How 'XX? is and logically it though? assume in debugging, to that I of possible a testing

Sam Rubin

data are they been Let people that this many, way. they their years lot trips and have that These sleeve have it for simulation. on an in can existing do enormous say doing of many this me base up that this and and trick a amount of

you'd be some and data So, built physically not as years over this. to sophisticated of if optimize companies for that are going but firing it's have very systems missiles to that these they're be the very, the collect There's amazed, used thousands this.

Orin Hirschman

deliverables significant Is few months? there have do the a number you of that coming in to

Sam Rubin

lot them, general, much. in looking of But units I intense many many flight we're but mean, few at program of to are of Every can't week, shipping way a extent. there's different in deliverables the in the thing. next We this. along pretty its XXX many, over months is very share the that aspects

Orin Hirschman

you of not incorrect an know of I I'm alluded that. mean, to lot I if that's but millions ASP, dollars a on

Sam Rubin

and at federal that. unit can budget the look go if just missiles is built I over they Yes. that of XXX,XXX you single Gen think, can I the But those digits. at see and mean X of you even X them, and look price and

Orin Hirschman

of I'm millions LightPath, money, portion a the XXX lot for I'm units, incorrect. saying to build, just dollars of you your of if alluded for not

Sam Rubin

of part business a that yes, talked that's now. that Lockheed with about. And we're million $X.X NOV, bit Well, we doing definitely, quite that's, of that

Orin Hirschman

me, Last just Is in alluded the for that infrared just using camera? regular terms you question of, AI. camera for to or an

Sam Rubin

in is focusing I do we the not we having an infrared started But for and We're we're are company. interesting only many right? a Again, We that's on thin. of So, what moment things. conversations can't a that, also large cameras. visible. So, focus, too people lot too believe about started point. seen asking at strongly talking can't we've spread We

So, the together, company great a and X things we're in. incredible that a working partner feed us is doing Mantis with to actually technology, developed version to have, has Israel, which we're allows in cameras

infrared. Again, any can very visible camera thin. money can't We R&D and we systems a theory, I'm very, our dual too spread in and into of our would cautious. development that make both be So,

once next we start generating or and we more look revenue capabilities. versions there, steps from at adding more So, real can

Orin Hirschman

by is public to AI of security quarters here's And what's question of security a reasons I lot in this camera even call. this that last is really intelligence as industry, business more for call Part intelligence edge cameras it is not the have today, everybody and your in have the can like on forum the just X with Motorola's of intelligence does wanted booming I the business heard, be ask in a X, the evidenced booming. for just on high-end at outlined an going where wants more infrared camera? insights and development anybody the and whole I need in the you built

Sam Rubin

Yes.

AI surprise what that computational security So, facility right and for to perimeter that players detection, there. are companies you're out And many connect go actually, connect our infrastructure Internet nasty on there's a online once touching the couple are most let are stream. activities the now on. There you of field, services. no now in so because a intruder and cameras streaming to or they're HIR exactly to wrongfully around just detection will with that But on of and again, relying hearing of our in they using so on a system the we're one significant right

So, we're exactly yes. this playing, where is

Orin Hirschman

maybe of And packaged into can isn't Basically, is, to into although my need players guess they the don't what have very be to always you're the a OEM your of few own players. goal? that's AI in market you you a is have like dominated specialized question by where few and their doing it, and as major a say, Motorola, think get really assembly demo? I Motorola the you a don't capability is terms well, you That infrared expertise and fully want other AI that player

Sam Rubin

That's be. exactly to where we want

a to working on One it. camera out the So, so they easier camera that what our and the us it developing have make the the we're software OEMs working compatible selling that is such And front focused only software. And portfolio integrate that where with And X and of, like companies software. their it on a call buy use for for software, Motorola front to fronts. make we're ecosystem we for huge that we're another customers to working actually them developed can is product the partner and we field. they them have in know the going into challenges with currently much AI say,

parallel. in fronts X So,

Operator

over to management conference like the back to any for remarks. closing session. I This concludes the would turn question-and-answer

Sam Rubin

everyone, to again for been our bit quite follow to Thank the you, LightPath. us a taking on. employees time on stakeholders. The I'd have and going X thank years like last all

have had many, things do, We now. we to we're many there but different

thanks opportunities that won we the some have continue work We incredible and hard of win, to the to team.

pretty done have the we're most of cleanup. with us, future We ahead much the of and

questions. I other and you, can look we really any needs to for on good the hearing available always, on focus now forward and everyone So, anyone way any in growth. as And, night. future or future on that directly calls. Thank I'm in the website

Operator

today's presentation. concluded. you Thank now has for conference attending The

disconnect. You may now

LightPath (LPTH) 19 Sep 242024 Q4 Earnings call transcript