Momentum Stock in Focus: LightPath Technologies, Inc. (NASDAQ:LPTH)

On 17 Sep 2019, LightPath Technologies, Inc. (NASDAQ:LPTH) ended the last transaction at $0.8100, with a change of +2.29% or +0.0181points. The daily volume was calculated at 188,951. The company has a market worth of $20.92M. It holds an average volume of 176,835 shares. In recent session, the stock hit the peak level of $0.8251 and touched to lowest level of $0.7801.

LightPath Technologies, Inc. (LPTH) recently reported financial results for its fourth quarter and fiscal year ended June 30, 2019.

Fiscal 2019 Fourth Quarter and Full Year Highlights:

  • Revenue for the fourth quarter of fiscal 2019 was $8.7M, a raise of 8%, as contrast to $8.1M in the fourth quarter of fiscal 2018. Revenue for the full year was $33.7M for fiscal 2019, a raise of 4%, as contrast to $32.5M in fiscal 2018.
  • 12-month backlog was $17.1M at June 30, 2019, a raise of 33%, as contrast to $12.8M at June 30, 2018.
  • Net loss for the fourth quarter of fiscal 2019 was $1.8M, contrast to a net loss of $807,000 for the fourth quarter of fiscal 2018. The fiscal 2019 period includes non-recurring charges of $845,000 relating to the relocation of our New York facility (the “Irvington Facility”) and a non-cash reversal of $406,000 of income tax benefits recorded in the first half of fiscal 2019,Because of a change in the Company’s estimated utilization of net operating loss (“NOL”) carry forward benefits for fiscal 2019.
  • EBITDA* loss for the fourth quarter of fiscal 2019 was $219,000, contrast to an EBITDA loss of $269,000 in the fourth quarter of fiscal 2018.
  • Capital expenditures, including equipment financed through capital leases, totaled $2.5M for fiscal 2019, a decrease of 25%, as contrast to $3.3M in the previous fiscal year. Capital projects continue to support global growth initiatives and product development, including improved capacity for infrared (“IR”) products.
  • Total debt, including capital leases, was $6.6M at June 30, 2019, a decrease of 11% as contrast to $7.4M at June 30, 2018.
  • Cash and cash equivalents were $4.6M at June 30, 2019, contrast to $6.5M at June 30, 2018. The decrease in cash of $1.9M, or 29%, from the previousyear end is primarily related to capital expenditures and debt reduction.

Gross margin in the fourth quarter of fiscal 2019 was about $2.8M, a raise of 16%, as contrast to about $2.4M in the same quarter of the previous fiscal year. Gross margin as a percentage of revenue was 32% for the fourth quarter of fiscal 2019, as contrast to 30% for the same period of the previous fiscal year. Total cost of sales was about $5.9M for the fourth quarter of fiscal 2019, a raise of about 5%, and contrast to $5.7 M for the same period of the previous fiscal year. The increase is driven by higher sales, coupled with certain cost increases, such as elevated costs including labor costs, manufacturing inefficiencies, and increased overhead expenses associated with the relocation of the Company’s the Irvington Facility, which are non-recurring. Although the Company predictable to have higher costs for fiscal 2019Because of this relocation, management expects costs to improve starting in fiscal 2020, as the facility relocation was complete as of June 30, 2019. In addition, cost of sales for the fourth quarter was negatively influenced by higher duties and freight charges resulting from newly effective tariffs. The Company is evaluating and implementing a number of strategies to mitigate the current and future impact of tariffs.

During the fourth quarter of fiscal 2019, total operating costs and expenses were about $3.9M, a raise of about $976,000, as contrast to the same period of the previous fiscal year. Selling, general and administrative (“SG&A”) costs increased by about $921,000, primarily Because of about $845,000 of non-recurring expenses related to the relocation of the Irvington Facility. Management predictable SG&A costs to be elevated for fiscal 2019 as part of this facility relocation. On a long-term basis, the consolidation of the Company’s manufacturing facilities is predictable to reduce operating and overhead costs. New product development costs increased by about $82,000, or 19%, Because of increased wages related to additional engineering employees to handle the higher level of product development work, particularly for new BD6 lenses. The increases in new product development and SG&A costs were offset by decreases in the amortization of intangibles, and gains on disposals of equipment.

LPTH net profit margin of the firm was recorded at -8.10% and operating profit margin was calculated at -3.90% while gross profit margin was measured as 36.60%. Beta factor, which measures the riskiness of the security, was registered at 0.10.

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