– From Vassalotti’s View, by Gary Vassalotti, LIFA –

LightPath Technologies (NASDAQ: LPTH) recently announced the addition of “thermal imaging lens assemblies.”

OK. Maybe you’re saying, “that’s a mouthful.” And maybe you’re thinking it sounds boring. Or maybe you’re wondering what (if anything) it means to you.

Well, yes, it is a mouthful, and it may even sound a bit boring, but then, boring can be a money-making product for LightPath and a cost-saving product for its customers. And, if you hold LightPath stock, when LightPath makes money you should also see the value of your stock move up. And suddenly it is not so boring, after all. [entire post]

– From “Vassalotti’s View”, by Gary Vassalotti, LIFA –

LightPath Technologies (NASDAQ: LPTH) has continued to grow its EPS numbers and the third quarter of 2010 is no exception: the company projected in a pre-release of quarterly earnings that EPS grew 58.82% versus the same quarter of last year.

Since LPTH has not formally reported its results yet, the numbers are ‘projected,’ but should be reasonably close to actual results. In the release, revenues for the quarter totaled $2.7 million versus $1.7 million for the comparable quarter of FY2009. That strong showing was the result of strength in Telecom and the Industrial Tool market sector. Indeed, it went on to report that backlog (an important indicator of continued future sales) grew by $501,000 to $3.9 million. Supporting the backlog growth was a 10% growth in price quotes that were requested by potential customers. [entire post]

– From “Vassalotti’s View”, by Gary Vassalotti, LIFA —  

Based on today’s FirstAlert(tm) Money Index combined NYSE-NASDAQ-AMEX closing summary charts (http://www.investrend.com/fa-index_100305), we saw large gains for several NASDAQ listed equities. Many times investors see such large gains and wonder: why are the gains are happening? But, more importantly, who or what is driving the share prices up?

The answer to the first question is usually not too difficult to find or discern, based simply on current events. The second question, however, can be more difficult to determine.

With the StreetIntel™ brief that was posted today (at http://www.investrend.com/intel-brief_100304) we can at least see the largest long-position holders of the three investments, which provides some insight into the firms that have an interest in those securities, as well as a general interest in the company’s industry as a whole.

Now, to get some answers on the first, general question about why the gains occurred: [entire post]

– From “Vassalotti’s View”, by Gary Vassalotti, LIFA –

This Tuesday, February 16th, LightPath Technologies, Inc. (NASDAQ: LPTH) filed an 8-K with the SEC detailing a press release about its order experience with its line of asphere of lenses. The company had been optimistic about the prospects for market growth and sales growth for the product line itself, however, the press release mentioned that open orders total $1.8mm and that they are expected to grow 25% over the next few quarters — exceeding previous projections

Jim Gaynor, LightPath CEO, mentioned that the company has experienced a year of volume growth, as the manufacturers have seen the value of the asphereic molded lenses over the standard multiple lens setup currently dominating the industry. The company is currently providing lenses to four manufacturers, and has qualified to supply a fifth.

For a small firm such as LightPath this type of sales and market growth, when properly managed, can have a huge impact on the bottom line and stock price. [entire post]

 – From “Vassalotti’s View”, by Gary Vassalotti, LIFA –

LightPath Technologies, Inc.’s (NASDAQ: LPTH) strategy of lowering product manufacturing costs and increasing sales volume has resulted in an increase in its gross margins to 27% (9/30/08) vs. 10% (9/30/07). That dramatic increase was achieved with an increase in sales, which went from $2.308 mm (9/07) to $2.337 mm (9/08), an increase of over 25%.

In my prior post (http://www.investrendweblogs.net/vassalotti/2010/02/03/lightpath-specific-products-few-specific-competitors/) we briefly discussed markets. I estimated that the market for LPTH’s lens product was close to the $77 million dollar Electrical Equipment Supplies subcategory.

During the company’s Q2 ’10 results conference call (at http://www.investorcalendar.com/IC/ClientPage.asp?ID=154437), however, LPTH estimated its market segment for Asphere lenses to grow to $1.5 billion over the next five years. This is a much bigger pond to play in, and, if the projections are accurate, should allow the company to generate future sales growth. The Asphere market’s growth was broken-down as 50% in the cell phone arena, 40% from digital still cameras, and 105% growth in the laser projector and thermal imaging segment. Furthermore, LPTH’s growth in those markets should not cause as significant an increase in costs, because their China factory is currently running at only 25% of capacity. [entire post]

– From “Vassalotti’s View”, by Gary Vassalotti, LIFA –

The other day I mentioned Lightpath Technologies, Inc. (NASDAQ: LPTH), a company that makes lenses and other light bending items, which is a highly specialized segment of the market. But what market? And what size is the market?

Looking at a particular type of the Lightpath’s products, thermal imaging lenses, brings us to NAIC code 334511: “Search, detection, navigation, & guidance instrument mfg.”  The 1997 Economic Census estimates that broad market category to be a $32 billion segment. However, realistically, the market for imaging lenses is going to be closer to the sub-category: “Electrical equipment & supplies, n.e.c. (pt),” which is a $77 million segment.

Note that LightPath is listed in the technology sector, under semiconductor equipment and materials Industry. The semiconductor equipment segment is, of course, a much broader category, and represents a much larger market segment — and, indeed, LPTH’s optical isolator product line does definitely fit under that broader category. But I believe that the specialized properties of LightPath’s products, and the fact that most of those products are lenses, leads us to look at the smaller-sized market segment: A segment with far fewer competitors. [entire post]

– From “Vassalotti’s View”, by Gary Vassalotti, LIFA –

Light. It is an amazing thing. It exists in an infinite variety of colors, and has some physical attributes with photons. We sense it with our eyes allowing us to interact with our environment.

Light is everywhere and commonplace, but working with light is anything but low-tech. LightPath Technologies, Inc. (NASDAQ: LPTH) takes the commonplace and bends it, focuses it, delivers it, and harnesses its power with advanced optics to meet many of today’s demanding requirements.

Utilizing its “Geltech Aspheres” it eliminates spherical aberrations in laser light applications. Those lenses are used in laser levels, gun sighting systems, and telecommunication systems. And the market has noticed LightPath’s advanced products — as LightPath experienced a 35% increase in order volume (backlog) during its first quarter of FY2010. The increase in volume was used to offset the company’s strategy of producing higher volumes at lower prices. [entire post]