LightPath Technologies, Inc. (NASDAQ:LPTH) Q2 2019 Earnings Conference Call Transcript

Feb 07, 2019 • 04:30 pm ET


LightPath Technologies, Inc. (NASDAQ:LPTH) Q2 2019 Earnings Conference Call Transcript


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Good day and welcome to the LightPath Technologies Fiscal 2019 Second Quarter Financial Results Conference Call and Webcast. All participants will be in listen-only mode. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Mr. Donald Retreage, Chief Financial Officer. Please go ahead.

Donald Retreage

Good afternoon. Before we get started, I'd like to remind you that during the course of this conference call, the company will be making a number of forward-looking statements that are based on current expectations and involve various risk, and uncertainties that are discussed in the periodic SEC filings. Although the company believes that the assumptions underlying these statements are reasonable any of them can prove to be inaccurate and there can be no assurance that the results will be realized.

In addition references may be made to certain non-generally accepted accounting principles or non-GAAP measures, for which you should refer to the appropriate disclaimers and reconciliations in the company's SEC filings and press releases. Following management's discussion, there will be a formal Q&A session open to participants on the call.

I would now like to turn the conference over to Jim Gaynor, LifePath's, President and Chief Executive Officer. Jim, please go ahead.

Jim Gaynor

Thank you and good afternoon. Welcome to LightPath Technologies fiscal 2019 second quarter financial results conference call. Our financial results press release was issued after the market closed today and posted to our corporate website. Following my remarks, our CFO Donald Retreage, will further review our financial results and provide more perspective on some key areas. We'll then conduct a Q&A session and now onto my remarks.

Fiscal second quarter continues to ascent we began to experience in the first quarter. We're very pleased with the progress made year-to-date for putting LightPath on a path for sustainable improvements in long-term revenue performance, profitability and cash flow.

Among our key performance indicators in the second quarter, bookings in the second quarter of fiscal 2019 increased to $14 million setting a new quarterly record for the company. Also setting a record for the second quarter in a row was our 12-month backlog, which stood at approximately $18.1 million at December 31, 2018.

Revenue and gross profit growth in the second quarter were relatively subdued as compared to our order flow due to the timing of certain contract fulfillment and our ongoing transition out of New York, which is adding some cost and production inefficiencies. It is important to consider these factors when reviewing our performance, progress, and growth prospects.

The operational and financial performance areas we're most focused on are; our presence in the markets, in which we operate; revenue growth and margins profit and cash flow. We attribute our progress in the second quarter and the first half of the year to our focus on end markets and customers.

You may recall on last quarter earnings update when we announced that as of the start of fiscal 2019, we had organized our business with the goals