LightPath Technologies, a global manufacturer, distributor and integrator of optical and infrared components, has experienced dramatic increases in its revenue over the last quarter due to its recent successful acquisition of ISP Optics, a manufacturer of high performance MWIR and LWIR lens assemblies and custom infrared optical elements.
LightPath’s revenues for the third quarter of fiscal 2017 increased by 106 per cent year-over-year to $8.5 million, primarily as a result of the acquisition. In particular, the takeover brought with it increased infrared product revenues of 893 per cent, equating to $3.5 million of additional revenue.
Jim Gaynor, president and CEO of LightPath, commented: ‘We believe that the acquisition of ISP Optics Corporation, which was completed last quarter, better positions us for accelerated revenue and profitability growth. We believe that the 106 per cent revenue growth, which is partially attributable to ISP, reflects our ability to diversify our product lines and end markets, which we believe is one of our competitive strengths.’
During the quarter, total costs and expenses for the company were $2.9 million, an increase of $932,000 compared to the same period of the prior fiscal year. The increase was primarily due to a $406,000 increase in wages and a $305,000 increase in the amortisation of intangibles due to the ISP acquisition. The company also increased its research and development expenses by 87 per cent year-over-year throughout the quarter to $308,000 as part of its growth strategy.
Net income for the third quarter of fiscal 2017 was $101,000, compared to $776,000 for the same period in 2016. The adjusted net income, which excludes the non-cash income or expense related to the change in fair value of the company’s warrant liability, was $849,000, compared to $114,000 the previous year.
‘The true underlying performance has been overall better than our expectations,’ remarked Gaynor. ‘Our financial results for the third quarter of fiscal 2017 reflect successful implementation of our growth strategies.
‘With the acquisition of ISP, we made significant progress in setting the stage for continued growth in the infrared market, which is a market growing both larger and faster than the market for our moulded optical lens. Across the board we are experiencing strong demand for our products and believe we have the technology and the personnel to capitalise on these opportunities.’