By Connor Hart

Shares of LightPath Technologies hit their highest level in more than three years after the company said it has begun sustained delivery of its infrared lens assemblies to a European defense customer, and is set to benefit from China's recent restrictions on Germanium export.

The stock, on pace for its largest percentage increase since July 2023, rose 17%, to $3.16, in midday trading Monday. Shares have more than doubled since the beginning of the year, up about 150%.

The Orlando, Fla., company, which provides optics and imaging systems, said the customer will use the custom infrared assemblies for active-duty use in first-person view drone applications. The delivery of these lens assemblies follows a letter of intent between the companies, signed in October.

The initial order is for 1,300 assemblies, though LightPath said it expects several follow-up orders next year, resulting in this customer representing between $1 million and $2 million in annual revenue.

Chief Executive Sam Rubin said the company is well suited to provide customized infrared-imaging solutions as first-person view drones become an increasingly prominent tool on the frontlines of modern conflict zones.

LightPath will further benefit from China's recent restrictions on Germanium exports, Rubin added, given the company's Germanium-alternative BlackDiamond optics and infrared imaging systems. "With the ability to provide domestic sources of production in both the U.S. and Europe--and all requisite defense licenses in place in both the U.S. and EU--we are well positioned to drive significant growth momentum in the quarters to come," he said.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

December 23, 2024 12:31 ET (17:31 GMT)

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