LightPath Technologies, Inc. (NASDAQ:LPTH) Q2 2023 Earnings Call Transcript

Sam Rubin: I think the positive thing I’m taking from the gross margin and hopefully I was noticing too, is a consistent improvement and no longer the big swings that the company had experienced in the past. So I see it continuing to improve. We’re not vesting back and feeling that 38% is good and weaken. Kick back and open a beer or something. So there’s more for us to improve there and we expect over the next few quarters is really we’re starting to see revenue scale, we’re starting to see a lot of the improvements we did both in cost of goods sold and in SG&A, take more and more plays. We’re very positive about what we would be seeing.

Aaron Martin: Okay, thank you. Congratulations on the progress and look forward to speaking to you.

Operator: The next question comes from Gene Inger of ingerletter.com. Please go ahead.

Gene Inger: Hi, Sam and Al. The call dropped just as I started to ask about how many employees you had in China. Maybe there was a balloon over Orlando. Am reading.

Albert Miranda: Too much news, Gene. Yeah, no kidding. I don’t know the exact number Gene. It’s around 70 in terms of headcount.

Gene Inger: And what is the head count, if I may ask roughly in Riga, Al as well, Orlando. And did you mention something about the Philippine?

Sam Rubin: No, I didn’t mention it. Riga is creeping up on 100. They’re just shy of 100. We’re about 120 here in Orlando. Okay. Well, first of all, I think you guys are working hard and doing a good job. I know it’s tough. I got back on the call. I don’t know what happened, and I heard the word automotive, and I assume you were talking about the braking aspect that Sam has alluded to rather than infrared nice driving. Or some of which are products that BMW and others discontinued, for reasons you might know. I don’t know why, because it seemed like a pretty good idea. Or maybe this is all reflected by LiDAR. Yes. I mean, we’re definitely talking about the braking system and trying to say in my comments, I think we’re feeling far more confident talking about that and talking than any conversation we had about LiDAR, for example, in the past.

Simply because it’s sort of a known beast or understandable for the automotive companies much easier. It’s not a computer that now downloads an enormous amount of data that you need to figure out how to use it and what to do. It’s not giving the customer, the driver, any sophisticated display that might be confusing or might positive. It is simply adding another yes no sensor like binary black and white kind of to the automatic braking system. These systems have been already field implemented for years or pretty well known. I think most new cars have them. So we think that would be something that has a much higher potential of actually rolling out into production.

Gene Inger: I can appreciate that having just been rear ended a month ago and my car could not defend against getting hit. Thank you. Speaking of computing, you have Mr. Quantum Computer and LiDAR as your chairman of the board now. And I wonder whether since Scott Ferris at one of his roles had to do with the start-up of quantum computing company, whether there is a linkage between all three of these areas, lighter quantum computing and your infrared work and so on.