August 6, 2010 (FinancialWire) (Investrend Forums Syndicate) (By Gary Vassalotti, LIFA) — In earlier posts, we mentioned LightPath's (LPTH) lenses that are made for the biomedical device industry. And we mentioned the estimated $93 million size of the biomedical industry for 2009.

Now let’s take a look at some specific products and some projected sales data.

First we have items commonly used by consumers such as cell phones, digital cameras, and video equipment. LightPath's target sales (with its partner in China) is one million lenses per month. These mass-produced items are constantly upgraded by consumers and should be able to hit the target. I know that I replace the cell phones my family uses about every 2 years, and we also upgrade our digital cameras and digital video equipment every few years, as well. Thus, it’s fair to surmise that the market for these products (and the lenses that go into them) renews itself every 2-4 years. Even a relatively small market can be profitable if your customers keep upgrading.

Many products in which lasers are utilized are slowly migrating to the green light spectrum. However, getting there will take more time and research, in order to get the cost of the green wavelength lasers down. In the meantime, blue light lasers are used in many devices, and LightPath's new family of lenses address the current market needs of manufacturers.

Data Storage and communication devices make up 55.2% of the photo-optics market, according to a Laser Focus World article (at http://www.optoiq.com/index/photonics-technologies-applications/lfw-display/lfw-article-display/5854101196/articles/optoiq2/photonics-technologies/business-center/features/2010/1/laser-marketplace.html). That market was $5.32 billion in size at the time of that article. The article discussed the market outlook and how modest growth was expected for 2010.

However, after discussing shipping data with a worker of a small factory that makes parts and consumables for the construction industry, I wonder if many economic forecasts are not a bit on the low side. He told me that he has had the best shipping volume since 2007, and then we hear that Caterpillar (NYSE: CAT) announced that many analysts are underestimating sales — perhaps in the billions. If that is true, it could mean a significant boost for LightPath's sales in that segment.

Source: Investrend Weblogs (http://www.investrendweblogs.net/vassalotti/).

Note: Professional analysis and equity research reports on LPTH and the Photo Optical Equipment Industry are available via ValuEngine (at http://www.valuengine.com/rep/searchsrep?pid=42&srchfor=LPTH). In addition, Streaming (real-time, dynamically-updating research is available via Stock Smart (at http://investrend.stocksmart.com/ri/toc?tid=10234).

Additional information on LightPath is available via Investrend syndications (at http://www.investrend.com/synd0003).

Additional equity research on LightPath may be requested via Investrend Research Syndicate affiliate-provider, The Matterhorn Group, which specializes in tech company research (at http://www.investrend.com/matterhorn-request).

Gary Vassalotti, LIFA, is president of Vimcor, an equity analysis and portfolio management practice, as well as a contributing equity research analyst for Investrend Research. He previously worked with First American Bank, NA, First Union National Bank, and Montag Management, and has an overall interest in global markets. Mr. Vassalotti is a member of the North Carolina Society of Financial Analysts, the CFA Institute, and the North Carolina Investment Advisors Association (and was a former board member). Mr. Vassalotti has a B.S. in Finance with an emphasis in Economics from The Pennsylvania State University.

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