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Technology Stocks : Lightpath Technologies: LPTH New WDM player
LPTH 1.320+2.3%12:09 PM EDT

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To: Carolyn who wrote (1214)7/13/2001 2:51:58 PM
From: Carolyn   of 1218
 
LightPath Technologies, Inc. Reports on Projected Results For the Fourth Quarter of Fiscal 2001
ALBUQUERQUE, N.M., Jun 29, 2001 /PRNewswire via COMTEX/ -- LightPath Technologies, Inc. (Nasdaq: LPTH chart, msgs) today announced its sales for the fourth quarter of fiscal 2001 are projected to be approximately $5 million, which is 260% over last year's fourth quarter but down sequentially from the third quarter. Sales for the fiscal year 2001 are projected to be approximately $26 million. On a pro forma basis, fiscal year 2001 sales are projected at $28.6 million versus pro forma fiscal year 2000 sales of $11.6 million, an increase of 146%. Don Lawson, President and Chief Executive Officer of LightPath, stated "We believe this decline in sales is reflective of the state of the telecommunication industry as it works to correct its excess inventory. Our sales backlog has remained at approximately $17 million during our fiscal fourth quarter, which reflects customers deferring their purchases as they work down their current inventory. While the near term outlook is not robust, LightPath expects to grow its fiscal 2002 revenue sequentially from the fourth quarter of fiscal 2001 and exceed last year's first half revenues of $10.8 million."

"The Company has taken a hard look at all aspects of business to position ourselves to weather the current economic conditions in the telecom industry and insure our participation in the recovery when it occurs. The Company has been rightsizing its manufacturing over the past two quarters and currently does not anticipate taking a manufacturing restructuring charge. We are evaluating non-cash adjustments of approximately $12 million to $15 million primarily for potential asset impairments along with a review of our finished goods inventory. The potential asset impairment relates to the recoverability of the values assigned to certain intangible assets in connection with our acquisitions including a long-term customer supply contract and related goodwill. The value assigned to the customer supply contract may not be recoverable given reduced revenue forecasts as purchases are being deferred by the customer."

"During the fourth quarter, we believe LightPath has strengthened its product position by qualification of our newest version of single mode fiber collimator to meet all Belcore reliability testing requirements to provide our customers with a more robust product, introduction of new isolator platforms, shipment of our first collimator arrays and expansion of our diffraction grating offerings. We delivered our first modules during the period that contain different combinations of isolators, aspheric lenses and collimators while we continue to invest in switch development, consistent with our long term growth prospects. We have also placed heavy emphasis on extracting more cost savings out of the assembly of our components, as we see pricing pressures from customers. All of these activities led to continued design wins in next generation systems during the period, which is a trend we expect to continue."

Mr. Lawson continued, "It is difficult to provide guidance for fiscal 2002 because our customers are not able to provide us with more than short term forecasts. However, with our efforts to broaden our customer base and given a reasonable improvement in the general economy, we expect to be able to achieve sales of $35 million, with good prospects for achieving $55 million in sales, for fiscal 2002. This represents projected sales growth of 34% to 132% over fiscal 2001. This minimum level of activity assumes that no customer contributes more than 25% of sales and provides for continued research and development while forecasting a positive operational cash flow for the fourth quarter of fiscal 2002. With the Company's strong balance sheet, reflecting no debt and approximately $30 million of cash on hand, we believe LightPath will be able to weather this inventory correction cycle and to sustain its momentum going forward."

LightPath will formally announce its fiscal 2001 financial results before the market opens on August 2, 2001, followed by a conference call at 8:00 a.m. MDT or 10:00 a.m. EDT.

LightPath manufactures proprietary collimator assemblies, GRADIUM(R) glass products and other optical telecommunications products at its headquarters in Albuquerque. The Company's subsidiaries, Horizon Photonics and Geltech, manufacture isolator products utilizing proprietary automation technology in Walnut, California, and precision molded aspherical optics used in the active telecom components market in Orlando, Florida and Auburn, California. Additionally, Geltech has a unique and proprietary line of all-glass diffraction gratings (StableSil(R)) for telecom applications as well as a product family of Sol-Gel based waveguides. The Company also has an office in Warren, New Jersey for the purpose of developing various optical switch products. The Company has 46 U.S. patents, plus 8 more pending, associated with its optical technologies. In addition, various foreign countries have issued a total of 18 patents with 28 patents pending. LightPath common stock trades on the Nasdaq National Market under the stock symbol LPTH
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