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LPTH Nasdaq· LightPath Technologies Inc.
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LPTH Nasdaq· LightPath Technologies Inc.
Earnings report Q4 2023

LPTH Reports Decrease in Revenue for Q2 Fiscal 2024

Segments of Revenue

  • Revenue from visible components product group: $2.7 million, a decrease of 31% compared to the same quarter of the prior fiscal year. The decline is primarily attributed to decreased sales in the defense industry, as well as reduced sales through catalog and distribution channels in the U.S. and Europe. Sales to customers in the telecommunications industry in China also declined.
  • Revenue from assemblies and modules: Decreased by 20% for Q2 Fiscal 2024 compared to the same quarter of the prior fiscal year. The decline is mainly due to timing of shipments against a multi-year contract with a defense customer. However, this decrease was partially offset by the addition of Visimid revenue of approximately $146,000.
  • Revenue from engineering services: Remained flat for Q2 Fiscal 2024 compared to the same period of the prior fiscal year.

Strengths

  • Despite the overall decrease in revenue, LPTH experienced an increase in revenue from the infrared components product group for the first half of Fiscal 2024. Revenue generated by this segment was $7.4 million, representing a 14% increase compared to the same period of the prior fiscal year. This growth can be attributed to increased sales to customers in the defense industry, including higher shipments against an annual contract for an international military program. The renewal of this contract during the first quarter of Fiscal 2024 also contributed to the higher revenue.

Challenges

  • LPTH faced a decline in revenue for Q2 Fiscal 2024, primarily driven by decreased sales in the defense industry, as well as reduced sales through catalog and distribution channels in the U.S. and Europe. Sales to customers in the telecommunications industry in China also declined. Additionally, revenue from assemblies and modules decreased due to the timing of shipments against a multi-year contract with a defense customer.

Noteworthy

  • LPTH's revenue from engineering services remained flat for Q2 Fiscal 2024 compared to the same period of the prior fiscal year. However, the company experienced an increase in revenue from engineering services for the six months ended December 31, 2023, primarily due to the addition of Visimid revenue and revenue from one of their space-related funded research contracts.

Summary

LPTH reported a decrease in revenue for Q2 Fiscal 2024, primarily driven by lower sales in the defense industry, reduced sales through catalog and distribution channels in the U.S. and Europe, and a decline in sales to customers in the telecommunications industry in China. However, the company demonstrated strength in the infrared components product group, with increased revenue for the first half of Fiscal 2024, attributed to higher sales in the defense industry and the renewal of a significant contract. LPTH's revenue from engineering services remained stable for Q2 Fiscal 2024, but showed growth for the six months ended December 31, 2023, due to the addition of Visimid revenue and a space-related funded research contract.

Source documents

Form 10-Q  filed on Feb 08, 2024
95 pages scanned

Reference data

Company financials Q4 revenue 7.3M
Analyst estimates Q4 EPS beat by 66.67%
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