What to expect from LightPath Technologies Q4 earnings

LightPath Technologies Inc. (NASDAQ: LPTH) is set to release its fourth-quarter earnings results on Thursday after the market closes. The top line of the optical components maker will be benefited by the technologies development such as 5G, autonomous vehicles and the Internet of Things (IoT) while the bottom line will be hurt by higher costs and expenses.

The company will experience meaningful progress on initiatives towards delivering sustainable improvements in long-term revenue performance, profitability, and cash flow. The results will be driven by broader economic conservatism and changing product mix as it expands into stronger growth markets amid a competitive pricing environment for legacy products.

Over the past several years, the company has broadened its capabilities to include additional glass types and the ability to make much larger lenses, providing long-term opportunities for its technology roadmap and market share expansion. Based on backlog and quote activity, the company expects increases in revenue from sales of both molded and turned infrared products for the remainder of fiscal 2019.

Analysts expect the company to report a loss of $0.04 per share on revenue of $8.5 million for the fourth quarter. In comparison, during the previous year quarter, LightPath posted a loss of $0.03 per share on revenue of $8.09 million. The company has reported in-line results thrice in the past four quarters.

For the third quarter, LightPath slipped to a loss from a profit last year as broader economic conservatism as well as changing product mix dragged revenues down by 7% amid a competitive pricing environment for legacy products.

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For the fourth quarter, the company expects total revenue in the range of $8.4 million to $8.7 million. For fiscal 2019, total revenues are anticipated to be in the range of $33.4 million to $33.7 million. The company expects the twelve-month backlog of $16.8 million to $17.1 million at June 30, 2019.

Total debt, including capital leases, is predicted to be about $6.6 million as of June 30, 2019, a decrease of 11% as compared to $7.4 million at June 30, 2018. Capital expenditures, including equipment financed through capital leases, is expected to be about $2.4 million for fiscal 2019. The investments and organizational changes are expected to reduce total operating expenses by about 7% beginning in July 2019.

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