Jim Gaynor, President and Chief Executive Officer of LightPath, stated, "We are very pleased with our fiscal 2020 second quarter results. Our performance reflects a rebound from the last several quarters during which time we implemented several transitional strategies. Second quarter fiscal 2020 revenue reached a record level for the Company for any quarter. In the previous quarter, we mentioned that some shipments had been delayed by a customer due to a supply issue with another component for the assemblies that our products go into. Approximately $500,000 of the previously delayed shipments were completed in the second quarter. Even after adjusting for the revenue generated from this previously delayed order, sales in the fiscal 2020 second quarter still reached a record level. Revenue for the first half of fiscal 2020 was ahead of the first half of fiscal 2019, and our backlog has continued to grow. Backlog reached a record $19.1 million at the end of the second quarter, up from $17.1 million at the beginning of the fiscal year."
"We also saw significant gross margin improvement in comparison to the first quarter of fiscal 2020, as the issues that were negatively impacting our gross margin were largely mitigated in the second quarter. This includes, in part, the mitigation of the increase in tariffs, the resolution of the Black DiamondTM ("BD6") annealing yields, and increases in capacity for our BD6 processes. These improvements, coupled with continued management of operating expenses, resulted in EBITDA of 21% of revenue in the second quarter of fiscal 2020, which demonstrates the improved leverage in our business when compared to 11% in the prior year period."
"Unit volumes sold were up 35% as compared to the first quarter of fiscal 2020, and 23% as compared to the second quarter of the prior fiscal year. Growth in precision molded optics ("PMO") products continues to be driven by 5G demand. Although our average selling price for the PMO product group is lower in comparison to prior periods, this is really driven by the volume increase in lower price point products. In fact, we did not experience price erosion for any product group in the second quarter, with the change in average selling prices solely reflecting revenue product mix, which shifts from quarter to quarter."
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