– 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.

You must be logged in to view the rest of this article. If you do not have an Investrend Weblogs account, it is free to register.