IMO, the quarterly results reported today are the last showing softness or decline. From now on the comparisons will be positive, maybe dramatic. Look at the 23% increase in backlog. What will the stock do if a large order or strategic alliance is announced with a Chinese corporation? LPTH's huge investment in intellectual property, production capacity, and marketing infrastructure is about to pay off.
I believe Gaynor said on a conference call that all production is to fulfill orders. Lenses are not produced for inventory. The record 468,000 lenses in three months indicates lpth is executing its new business plan: high volume at low cost.
As you know from the Brizel days, you can not direct questions through their website via email. They will simply not address the tough issues. The only way to get an answer is to participate in the Q and A at the end of the conference call. The Kern Brothers knew how to play that game.
Any of you that plan on participating on the call, don't wing it. Think out your questions well in advance and phrase them in such a manner that Gaynor can't dodge the issue. If he does, then you have your answer.
Imho yields must be addressed and what will the new machines bring to the bottom line based on those yields.
To be honest with you, I don't think you will be pleased with his answers.
If they can build in excess of current orders (inventory), then doubling press equipment seems to be a poor use of existing cash. Their backlog simply doesn't support this level of demand.
It is more likely that their record volume and reduced revenue is associated with the significant decrease in average selling price. Remember, they used to sell these lenses for $15-20 each. Also, it would not surprise me if the "record" volume was an un-yielded number.
Don't confuse production output with revenue for the quarter. As noted, record output did not reflect in revenue for the quarter which means a build in inventory. Seems they did plan for known holidays but certainly can not control the schedule of customers.
lighting also understands. this should be a nice turn-around situation. here's what was said:
Olil and Calb are understanding exactly what the recent buyer of all that stock understands the co. is on the verge of a breakout in Revenue and Earnings which makes the current valuation look extremely low. It is Lightning in a Bottle!!!! The bottle is about to break and the patient longs should be rewarded big time!!! Look out the NEXT RUN is coming and should take us to the highest price level seen in years."