Company to Begin Delivering Advanced Thermal Camera Systems for Initial Test Units; Represents Initial Revenues of $50 to $100 Million for LightPath if Selected into Program
ORLANDO, FL / ACCESSWIRE / July 31, 2024 / LightPath Technologies, Inc. (NASDAQ:LPTH) ("LightPath," the "Company," or "we"), a leading vertically integrated global manufacturer and integrator of proprietary optical and infrared technologies, has received qualification of its advanced thermal camera system by Lockheed Martin as part of its bid to produce a design of a major missile program for the US Army (the "Program"). LightPath will now start delivering flightworthy hardware for implementation into Lockheed Martin's initial live test units.
Lightpath's participation in the Program and selection from Lockheed Martin was originally announced in September 2023, whereby LightPath would receive up to $7.5 million for design and development in several stages over the next three years. In December 2023, LightPath received $4.7 million from Lockheed Martin as part of its phase one order for development and delivery of initial prototypes, which was expected to be delivered over the following 12 to 24 months.
LightPath's qualification for its advanced thermal camera system represents a critical milestone in phase one of the agreement with Lockheed Martin and will now begin delivering flightworthy advanced thermal camera system hardware for implementation into Lockheed Martin units. The next anticipated milestone for the LightPath System will occur during live test flights. When the Company enters full production, these systems will be done in the Company's newly expanded Orlando manufacturing facility. Continued positive results of the phase one development will result in a phase two order valued at approximately $3 million.
Initially, it was expected that the U.S. Army would make a selection on a final solution for the Program and move into production with 10,000 units by 2028; however, it has been announced that a decision to move the Program into production is now expected by 2026.
The U.S. Army is evaluating two competing solutions for the Program, which will represent an initial order of 10,000 systems. Based on legacy Programs, the Company estimates that follow on orders could reach up to 10,000 systems per year. If Lockheed Martin is selected, the advanced thermal camera technology that LightPath is delivering would generate between $5,000 and $10,000 per system, representing $50 million to $100 million in revenue for the initial order in 2026. Collectively, the Company believes this represents a revenue opportunity of between $500 million and $1 billion over the life of the program, based on volumes from legacy programs implemented by the U.S. Army.
"Passing qualification for the U.S. Army program is a crucial step in our agreement that allows us to begin shipping our advanced thermal camera systems to be included in Lockheed Martin's initial live test units," said Sam Rubin, CEO of LightPath. "The Army's accelerated timeline and sheer volume of initial production of units in 2026 is particularly encouraging as it represents a significant financial opportunity for our Company. If Lockheed's system is selected, we would expect to generate revenue that is transformative to our business from the initial order and LightPath would continue to participate in a government program that could generate between $500 million to $1 billion in revenue potential over the life of the Program based on volumes from legacy programs implemented by the U.S. Army."
About LightPath Technologies
LightPath Technologies, Inc. (NASDAQ:LPTH) is a leading global, vertically integrated provider of optics, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries. LightPath designs and manufactures proprietary optical and infrared components including molded glass aspheric lenses and assemblies, custom molded glass freeform lenses, infrared lenses and thermal imaging assemblies, fused fiber collimators, and proprietary Black Diamond™ ("BD") chalcogenide-based glass lenses. LightPath also offers custom optical assemblies, including full engineering design support. The Company is headquartered in Orlando, Florida, with manufacturing and sales offices in Dallas Texas, Latvia and China.
LightPath's wholly-owned subsidiary, Visimid Technologies, was acquired in July 2023, and specializes in the design and development of customized infrared cameras, for the industrial and defense industries. Such customized cameras are often sold together with customized optical assemblies from LightPath.
LightPath's wholly-owned subsidiary, ISP Optics Corporation, manufactures a full range of infrared products from high-performance MWIR and LWIR lenses and lens assemblies. ISP's infrared lens assembly product line includes athermal lens systems used in cooled and un-cooled thermal imaging cameras. Manufacturing is performed in-house to provide precision optical components including spherical, aspherical and diffractive coated infrared lenses.
For more information on LightPath and its businesses, please visit www.lightpath.com.
Forward-Looking Statements
This press release includes statements that constitute forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "forecast," "guidance," "plan," "estimate," "will," "would," "project," "maintain," "intend," "expect," "anticipate," "prospect," "strategy," "future," "likely," "may," "should," "believe," "continue," "opportunity," "potential," and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements are based on information available at the time the statements are made and/or management's good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the impact of varying demand for the Company products; the ability of the Company to obtain needed raw materials and components from its suppliers; actions governments, businesses, and individuals take in response to the pandemic, including restrictions on onsite commercial interactions; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; geopolitical tensions, the Russian-Ukraine conflict, and the Hamas/Israel war; the effects of steps that the Company could take to reduce operating costs; the inability of the Company to sustain profitable sales growth, convert inventory to cash, or reduce its costs to maintain competitive prices for its products; circumstances or developments that may make the Company unable to implement or realize the anticipated benefits, or that may increase the costs, of its current and planned business initiatives; and those factors detailed by LightPath Technologies, Inc. in its public filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on 10-Q. Should one or more of these risks, uncertainties, or facts materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by the forward-looking statements contained herein. Accordingly, you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date they are made. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Except as required under the federal securities laws and the rules and regulations of the Securities and Exchange Commission, we do not have any intention or obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact:
Brian M. Prenoveau, CFA
MZ Group - MZ North America
LPTH@mzgroup.us
+561 489 5315
SOURCE: LightPath Technologies, Inc.
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