LASR nLIGHT Inc

Revenues of $44.5 million for the first quarter of 2024

nLIGHT, Inc. (Nasdaq: LASR), a leading provider of high-power semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets, today reported financial results for the first quarter of 2024.

“With total revenue of $44.5 million, Q1 results were within the range of our guidance, and we continue to believe that Q1 is our trough revenue quarter,” commented Scott Keeney, nLIGHT’s President and Chief Executive Officer. “We expect sequential revenue growth in the second quarter, and for the second half of the year to be stronger than the first half of 2024, with increasing visibility for continued growth next year primarily driven by our aerospace and defense business."

Mr. Keeney continued, “Although revenue from our commercial end markets declined in the first quarter, continued development of innovative products for fast-growing opportunities such as additive manufacturing and a deeper presence in aerospace and defense position us well for long-term growth.”

“We ended the quarter with $121 million of cash, cash equivalents and marketable securities with no outstanding debt, which is enabling us to continue to invest for long-term growth and profitability. With the majority of our operational initiatives behind us and our revenue pipeline continuing to strengthen, I remain optimistic for growth in 2024 and for our renewed momentum to carry into the next year and beyond.”

First Quarter 2024 Financial Highlights

 

Three Months Ended March 31,

 

 

(In thousands, except percentages)

 

2024

 

 

 

2023

 

 

% Change

Revenues

$

44,527

 

 

$

54,091

 

 

(17.7

)%

Gross margin

 

16.8

%

 

 

26.4

%

 

 

Loss from operations

$

(14,718

)

 

$

(8,207

)

 

(79.3

)%

Operating margin

 

(33.1

)%

 

 

(15.2

)%

 

 

Net loss

$

(13,766

)

 

$

(7,730

)

 

(78.1

)%

Adjusted EBITDA(1)

$

(4,894

)

 

$

1,273

 

 

(484.4

)%

Adjusted EBITDA, as a percentage of revenues

 

(11.0

)%

 

 

2.4

%

 

 

(1) A reconciliation of the non-GAAP metrics presented here to the most directly comparable GAAP metric has been provided in the tables included at the end of this release.

Revenues of $44.5 million for the first quarter of 2024 were down 17.7% compared to $54.1 million for the first quarter of 2023. Gross margin was 16.8% for the first quarter of 2024 compared to 26.4% for the first quarter of 2023. GAAP net loss for the first quarter of 2024 was $13.8 million, or $0.29 per diluted share, compared to net loss of $7.7 million, or $0.17 per diluted share, for the first quarter of 2023. Non-GAAP net loss for the first quarter of 2024 was $8.2 million, or $0.17 per diluted share, compared to non-GAAP net loss of $1.8 million, or $0.04 per diluted share, for the first quarter of 2023. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metric have been provided in the tables included at the end of this release.

Outlook

For the second quarter of 2024, nLIGHT expects revenues to be in the range of $47 million to $51 million. The midpoint of $49 million includes Laser Products revenue of approximately $34 million and Advanced Development revenue of approximately $15 million. nLIGHT expects overall gross margin to be in the range of 18% to 22%, with Laser Products gross margin in the range of 23% to 27% and Advanced Development gross margin of approximately 8%. nLIGHT expects Adjusted EBITDA to be in the range of ($1) million to ($5) million.

We have not reconciled our outlook for Adjusted EBITDA because unrealized and realized foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Investor Conference Call at 2:00 p.m. Pacific Time, Thursday, May 2, 2024

Parties interested in listening to nLIGHT’s quarterly conference call may do so by dialing 1-844-282-4705 (U.S., toll-free) or +1-412-317-5625 (international and toll), with the conference title: nLIGHT First Quarter 2024 Earnings. The call can also be accessed via the web by going to nLIGHT’s Investor Relations page at http://investors.nlight.net.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release contains non-GAAP financial results, including Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted. We use Adjusted EBITDA to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA is a meaningful measure of performance as it is commonly utilized by us and the investment community to analyze operating performance in our industry. Similarly, we believe that providing non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted, is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of stock-based compensation expense and other non-recurring items. However, the non-GAAP metrics presented herein are specific to us and may not be comparable to similar metrics disclosed by other companies because of differing methods used by other companies in calculating them.

We define Adjusted EBITDA as net income (loss) adjusted for income tax expense (benefit), other non-operating income or expense, interest income or expense, depreciation and amortization, stock-based compensation, acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) as GAAP net income (loss) adjusted for stock-based compensation, amortization of purchased intangibles, acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) per share, basic and diluted, as non-GAAP net income (loss) divided by the weighted-average number of shares outstanding during the respective period plus the dilutive effect of any common stock equivalents during the period in the case of non-GAAP net income (loss) per share, diluted.

Tables presenting the reconciliation of net loss to Adjusted EBITDA, as well as the reconciliation of GAAP to non-GAAP net income (loss) and GAAP to non-GAAP net income (loss) per share, basic and diluted, are included at the end of this press release.

Safe Harbor Statement

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as “outlook,” “guidance,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions may identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected revenues, gross margin, and Adjusted EBITDA, and our business strategy and ability to profitably grow our business, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements, including but not limited to our ability to compete successfully in the markets for our products; changes in the markets we serve or in the global economy; our ability to increase our volumes and decrease our costs to offset potential declines in the average selling prices of our products; rapid technological changes in the markets that we participate in; our ability to develop and maintain products that can achieve market acceptance; our ability to generate sufficient revenues to achieve or maintain profitability in the future; our high levels of fixed costs and inventory and their effect on our gross profits and results of operations if demand for our products declines or we maintain excess inventory levels; our ability to manage growth and spending during economic downturns; our manufacturing capacity and operations and their suitability for future levels of demand; our reliance on third parties to manufacture certain of our products and product components; our reliance on a small number of customers for a significant portion of our revenues; our ability to manage risks associated with international customers and operations; the effect of government export and import controls on our ability to compete in international markets; our ability to protect our proprietary technology and intellectual property rights; fluctuations in our quarterly results of operations and other operating measures; and the effect on our business of claims, lawsuits, government investigations, other legal or regulatory proceedings, or commercial or contractual disputes that we are or may become involved in. Additional information concerning these and other factors can be found in nLIGHT's filings with the Securities and Exchange Commission (the “SEC”), including other risks, relevant factors and uncertainties identified in the “Risk Factors” section of nLIGHT's most recent Annual Report on Form 10-K or subsequent filings with the SEC. nLIGHT undertakes no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

The nLIGHT logo and “nLIGHT” are registered trademarks or trademarks of nLIGHT, Inc. in various jurisdictions.

About nLIGHT

nLIGHT, Inc. is a leading provider of high-power semiconductor and fiber lasers for industrial, microfabrication, aerospace and defense applications. Our lasers are changing not only the way things are made but also the things that can be made. Headquartered in Camas, Washington, nLIGHT employs over 900 people with operations in the U.S., China, Finland, Korea and Italy. For more information, please visit www.nlight.net.

nLIGHT, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Revenue:

 

 

 

Products

$

29,370

 

 

$

41,107

 

Development

 

15,157

 

 

 

12,984

 

Total revenue

 

44,527

 

 

 

54,091

 

Cost of revenue:

 

 

 

Products

 

23,231

 

 

 

27,526

 

Development

 

13,808

 

 

 

12,302

 

Total cost of revenue(1)

 

37,039

 

 

 

39,828

 

Gross profit

 

7,488

 

 

 

14,263

 

Operating expenses:

 

 

 

Research and development(1)

 

10,659

 

 

 

11,301

 

Sales, general, and administrative(1)

 

11,547

 

 

 

11,169

 

Total operating expenses

 

22,206

 

 

 

22,470

 

Loss from operations

 

(14,718

)

 

 

(8,207

)

Other income:

 

 

 

Interest income, net

 

455

 

 

 

337

 

Other income, net

 

641

 

 

 

404

 

Loss before income taxes

 

(13,622

)

 

 

(7,466

)

Income tax expense

 

144

 

 

 

264

 

Net loss

$

(13,766

)

 

$

(7,730

)

Net loss per share, basic

$

(0.29

)

 

$

(0.17

)

Net loss per share, diluted

$

(0.29

)

 

$

(0.17

)

Shares used in per share calculations:

 

 

 

Basic

 

47,242

 

 

 

45,706

 

Diluted

 

47,242

 

 

 

45,706

 

(1)Includes stock-based compensation as follows:

 

 

 

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Cost of revenues

$

541

 

$

700

Research and development

 

1,613

 

 

 

2,098

 

Sales, general, and administrative

 

3,277

 

 

 

2,705

 

 

$

5,431

 

 

$

5,503

 

nLIGHT, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

As of

 

March 31, 2024

 

December 31, 2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

61,306

 

 

$

53,210

 

Marketable Securities

 

59,775

 

 

 

59,672

 

Accounts receivable, net

 

27,545

 

 

 

39,585

 

Inventory

 

53,013

 

 

 

52,160

 

Prepaid expenses and other current assets

 

17,564

 

 

 

15,927

 

Total current assets

 

219,203

 

 

 

220,554

 

Restricted cash

 

257

 

 

 

256

 

Lease right-of-use assets

 

12,675

 

 

 

12,616

 

Property, plant and equipment, net

 

50,290

 

 

 

52,300

 

Intangible assets, net

 

1,278

 

 

 

1,652

 

Goodwill

 

12,382

 

 

 

12,399

 

Other assets, net

 

6,746

 

 

 

7,026

 

Total assets

$

302,831

 

 

$

306,803

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

13,911

 

 

$

12,166

 

Accrued liabilities

 

13,599

 

 

 

12,556

 

Deferred revenue

 

7,583

 

 

 

4,849

 

Current portion of lease liabilities

 

3,171

 

 

 

3,181

 

Total current liabilities

 

38,264

 

 

 

32,752

 

Non-current income taxes payable

 

5,485

 

 

 

5,391

 

Long-term lease liabilities

 

10,993

 

 

 

10,978

 

Other long-term liabilities

 

3,732

 

 

 

3,263

 

Total liabilities

 

58,474

 

 

 

52,384

 

Stockholders' equity:

 

 

 

Common stock - par value

 

16

 

 

 

16

 

Additional paid-in capital

 

525,000

 

 

 

521,184

 

Accumulated other comprehensive loss

 

(2,589

)

 

 

(2,477

)

Accumulated deficit

 

(278,070

)

 

 

(264,304

)

Total stockholders’ equity

 

244,357

 

 

 

254,419

 

Total liabilities and stockholders’ equity

$

302,831

 

 

$

306,803

 

nLIGHT, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Cash flows from operating activities:

 

 

 

Net loss

$

(13,766

)

 

$

(7,730

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation

 

3,135

 

 

 

3,105

 

Amortization

 

1,258

 

 

 

872

 

(Increase) reduction in carrying amount of right-of-use assets

 

(70

)

 

 

6

 

Provision for losses on (recoveries of) accounts receivable

 

95

 

 

 

(2

)

Stock-based compensation

 

5,431

 

 

 

5,503

 

Loss on disposal of property, plant and equipment

 

35

 

 

 

—

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

11,892

 

 

 

1,905

 

Inventory

 

(888

)

 

 

662

 

Prepaid expenses and other current assets

 

(1,646

)

 

 

(4,549

)

Other assets, net

 

(616

)

 

 

(540

)

Accounts payable

 

2,099

 

 

 

(411

)

Accrued and other long-term liabilities

 

1,555

 

 

 

1,855

 

Deferred revenues

 

2,745

 

 

 

(142

)

Lease liabilities

 

15

 

 

 

(45

)

Non-current income taxes payable

 

101

 

 

 

155

 

Net cash provided by operating activities

 

11,375

 

 

 

644

 

Cash flows from investing activities:

 

 

 

Purchases of property, plant and equipment

 

(1,556

)

 

 

(684

)

Purchase of marketable securities

 

(24,357

)

 

 

(34,359

)

Proceeds from maturities and sales of marketable securities

 

24,365

 

 

 

24,998

 

Net cash used in investing activities

 

(1,548

)

 

 

(10,045

)

Cash flows from financing activities:

 

 

 

Proceeds from stock option exercises

 

10

 

 

 

143

 

Tax payments related to stock award issuances

 

(1,625

)

 

 

(182

)

Net cash used in financing activities

 

(1,615

)

 

 

(39

)

Effect of exchange rate changes on cash

 

(115

)

 

 

17

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

8,097

 

 

 

(9,423

)

Cash, cash equivalents and restricted cash, beginning of period

 

53,466

 

 

 

58,078

 

Cash, cash equivalents and restricted cash, end of period

$

61,563

 

 

$

48,655

 

Supplemental disclosures:

 

 

 

Cash paid for income taxes

 

210

 

 

 

144

 

Operating cash outflows from operating leases

 

1,034

 

 

 

923

 

Right-of-use assets obtained in exchange for lease liabilities

 

831

 

 

 

731

 

Accrued purchases of property, equipment and patents

 

422

 

 

 

697

 

nLIGHT, Inc.

Reconciliation of GAAP Financial Metrics to Non-GAAP

(In thousands, except per share data)

(Unaudited)

 

Reconciliation of Net Loss to Adjusted EBITDA

 

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Net loss

$

(13,766

)

 

$

(7,730

)

Income tax expense

 

144

 

 

 

264

 

Other income, net

 

(641

)

 

 

(404

)

Interest income, net

 

(455

)

 

 

(337

)

Depreciation and amortization

 

4,393

 

 

 

3,977

 

Stock-based compensation

 

5,431

 

 

 

5,503

 

Adjusted EBITDA

$

(4,894

)

 

$

1,273

 

Reconciliation of GAAP to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share, Basic and Diluted

 

 

Three Months Ended March 31,

 

 

2024

 

 

 

2023

 

Net loss

$

(13,766

)

 

$

(7,730

)

Add back:

 

 

 

Stock-based compensation(1)

 

5,431

 

 

 

5,503

 

Amortization of purchased intangibles(1)

 

149

 

 

 

435

 

Non-GAAP net loss

 

(8,186

)

 

 

(1,792

)

 

 

 

 

GAAP weighted-average shares outstanding

 

47,242

 

 

 

45,706

 

Participating securities

 

—

 

 

 

—

 

Non-GAAP weighted-average number of shares, basic

 

47,242

 

 

 

45,706

 

Dilutive effect of common stock equivalents

 

—

 

 

 

—

 

Non-GAAP weighted-average number of shares, diluted

 

47,242

 

 

 

45,706

 

 

 

 

 

Non-GAAP net loss per share, basic and diluted

$

(0.17

)

 

$

(0.04

)

(1) There is no income tax effect related to the stock-based compensation and amortization of purchased intangibles adjustments due to the full valuation allowance in the United States.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240502418967/en/

Joseph Corso Chief Financial Officer nLIGHT, Inc. (360) 566-4460 joe.corso@nlight.net