Laser Photonics Strengthens Market Position Through Strategic Vertical Integration and Acquisition of Recession-Resistant Assets

By: Laser Photonics Corporation via Business Wire

April 10, 2025 at 07:08 AM EDT

Laser Photonics Corporation (LPC) (NASDAQ: LASE), a leading developer of laser systems for cleaning and other material processing applications, today announced an update on its strategic direction, which will be more focused on vertical integration and targeted acquisitions with the goal of positioning the company for sustainable growth regardless of potential market disruptions from tariffs and policy changes.

"Our strategic evolution toward vertical integration represents a fundamental shift in how we approach manufacturing and innovation," said John Armstrong, Executive Vice President of Laser Photonics. "By bringing more of our production capabilities in-house and acquiring complementary businesses like CMS with recession-resistant product lines, we're building a more resilient operation that can adapt quickly to changing market conditions while maintaining our competitive edge in quality and performance."

The company's vertical integration strategy is aimed at reducing dependency on external suppliers to decrease production costs and provide greater control over quality assurance and production timelines. This approach is expected to help streamline operations and improve margins over time.

The acquisition of Control MicroSystems' assets further enhanced LPC’s portfolio with recession-resistant product lines that serve essential industries such as pharmaceuticals, which have historically maintained demand even during economic downturns, providing LPC with more stable revenue streams and reduced vulnerability to cyclical market fluctuations.

Navigating Trade Policy and Tariff Impacts

LPC management believes currently proposed U.S. trade policies could benefit domestic laser technology manufacturers by limiting the influx of low-cost, unregulated Chinese products that have previously found their way into the lower end of the market. As these policies evolve, the company's domestic manufacturing capabilities position it to capitalize on potential shifts in supply chains and customer preferences for American-made industrial laser systems.

Armstrong added, “While trade policies and tariffs create uncertainty for many in our industry, especially over the near-term, our strategic positioning will ideally enable us to view these changes as potential opportunities. Our commitment to American manufacturing excellence, combined with our expanded capabilities through vertical integration, means we will be able to offer customers high quality products with consistency."

The company's investment in domestic production capabilities also aligns with growing customer preferences for shorter supply chains and reduced geopolitical risk, trends that have accelerated following recent global supply chain disruptions and U.S. policy changes.

Long-Term Growth Outlook

LPC expects its strategic initiatives to drive sustainable growth regardless of macroeconomic conditions. The Company projects that its expanded product portfolio, enhanced by the CMS acquisition, has increased its total addressable market to around $45 billion while providing greater diversification across customer segments and industries.

Armstrong concluded, "We're building a company that's designed to thrive in both favorable and challenging economic environments. Our strategy isn't just about weathering potential storms…it’s about positioning LPC to capitalize on opportunities that emerge from market disruptions while delivering consistent value to our customers and shareholders."

About Laser Photonics Corporation

Laser Photonics is a vertically integrated manufacturer and R&D Center of Excellence for industrial laser technologies and systems. Laser Photonics seeks to disrupt the centuries-old sand and abrasives blasting markets, focusing on surface cleaning, rust removal, corrosion control, de-painting and other laser-based industrial applications. As a result, Laser Photonics has gained a reputation as a leader in industrial laser systems with a brand that stands for quality, technology and product innovation. Currently, world-renowned and Fortune 1000 manufacturers in the aviation, automotive, medical, defense, energy, maritime, nuclear and space industries are using Laser Photonics’ “unique-to-industry” systems. For more information, visit https://www.laserphotonics.com.

Cautionary Note Concerning Forward-Looking Statements

This press release contains "forward-looking statements" (within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended), including statements regarding the Company's plans, prospects, potential results and use of proceeds. These statements are based on current expectations as of the date of this press release and involve a number of risks and uncertainties, which may cause results and uses of proceeds to differ materially from those indicated by these forward-looking statements. These risks include, without limitation, those described under the caption "Risk Factors" in the Registration Statement. Any reader of this press release is cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this press release except as required by applicable laws or regulations.