– 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.

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