Revenues of $56.1 million for the third 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 third quarter of 2024.
"Driven by record results in Aerospace & Defense, third
quarter revenue of $56.1 million was above the midpoint of our
guidance range and increased 11% compared to the third quarter of
2023,” commented Scott Keeney, nLIGHT’s President & Chief
Executive Officer. “Strong execution across multiple programs in
both directed energy and laser sensing resulted in record Aerospace
& Defense product revenue during the quarter, and we remain
well-positioned for near- and long-term growth in the Aerospace
& Defense market.”
Mr. Keeney continued, “A strong growth quarter in
Microfabrication coupled with higher A&D products revenue
enabled us to increase products gross margin to 29%, an improvement
of approximately 500 basis points compared to the third quarter of
2023. Our balance sheet remains strong as we ended the quarter with
approximately $107 million in cash and investments with no
debt.”
Third Quarter 2024 Financial Highlights
Three Months Ended September
30,
(In thousands, except
percentages)
2024
2023
% Change
Revenues
$
56,129
$
50,634
10.9
%
Gross margin
22.4
%
19.6
%
Loss from operations
$
(11,799
)
$
(12,531
)
5.8
%
Operating margin
(21.0
)%
(24.7
)%
Net loss
$
(10,335
)
$
(11,879
)
13.0
%
Adjusted EBITDA(1)
$
(994
)
$
(1,919
)
NM*
Adjusted EBITDA, as a percentage of
revenues
(1.8
)%
(3.8
)%
(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.
* Not meaningful
Revenues of $56.1 million for the third quarter of 2024 were up
10.9% compared to $50.6 million for the third quarter of 2023.
Gross margin was 22.4% for the third quarter of 2024 compared to
19.6% for the third quarter of 2023. GAAP net loss for the third
quarter of 2024 was $10.3 million, or $0.21 per diluted share,
compared to net loss of $11.9 million, or $0.26 per diluted share,
for the third quarter of 2023. Non-GAAP net loss for the third
quarter of 2024 was $3.7 million, or $0.08 per diluted share,
compared to non-GAAP net loss of $4.9 million, or $0.10 per diluted
share, for the third 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 fourth quarter of 2024, nLIGHT expects revenues to be in
the range of $49 million to $54 million. The midpoint of $51.5
million includes Laser Products revenue of approximately $36.5
million and Advanced Development revenue of approximately $15
million. nLIGHT expects overall gross margin to be in the range of
17% to 21%, with Laser Products gross margin in the range of 21% to
25% and Advanced Development gross margin of approximately 8%.
nLIGHT expects Adjusted EBITDA to be in the range of ($5) million
to ($2) 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,
November 7, 2024
Parties interested in listening to nLIGHT’s quarterly conference
call may do so by dialing 1-800-579-2543 (U.S., toll-free) or
+1-785-424-1789 (international and toll), with the conference
title: nLIGHT Third 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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Revenue:
Products
$
41,132
$
38,103
$
104,960
$
118,802
Development
14,997
12,531
46,207
39,227
Total revenue
56,129
50,634
151,167
158,029
Cost of revenue:
Products
29,286
29,015
76,528
84,813
Development
14,293
11,681
42,751
36,907
Total cost of revenue(1)
43,579
40,696
119,279
121,720
Gross profit
12,550
9,938
31,888
36,309
Operating expenses:
Research and development(1)
11,328
10,744
33,723
34,049
Sales, general, and administrative(1)
13,021
11,725
37,372
34,684
Total operating expenses
24,349
22,469
71,095
68,733
Loss from operations
(11,799
)
(12,531
)
(39,207
)
(32,424
)
Other income:
Interest income, net
394
303
1,308
990
Other income, net
1,331
536
2,594
1,997
Loss before income taxes
(10,074
)
(11,692
)
(35,305
)
(29,437
)
Income tax expense
261
187
525
(1,005
)
Net loss
$
(10,335
)
$
(11,879
)
$
(35,830
)
$
(28,432
)
Net loss per share, basic
$
(0.21
)
$
(0.26
)
$
(0.75
)
$
(0.62
)
Net loss per share, diluted
$
(0.21
)
$
(0.26
)
$
(0.75
)
$
(0.62
)
Shares used in per share calculations:
Basic
48,133
46,403
47,679
45,857
Diluted
48,133
46,403
47,679
45,857
(1)Includes stock-based compensation as
follows:
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Cost of revenues
$
629
$
508
$
1,829
$
1,871
Research and development
2,046
2,613
5,834
7,537
Sales, general, and administrative
3,852
3,506
11,298
10,237
$
6,527
$
6,627
$
18,961
$
19,645
nLIGHT, Inc.
Condensed Consolidated Balance
Sheets
(In thousands)
(Unaudited)
As of
September 30, 2024
December 31, 2023
Assets
Current assets:
Cash and cash equivalents
$
41,456
$
53,210
Marketable Securities
65,241
59,672
Accounts receivable, net
40,282
39,585
Inventory
48,828
52,160
Prepaid expenses and other current
assets
14,975
15,927
Total current assets
210,782
220,554
Restricted cash
258
256
Lease right-of-use assets
11,270
12,616
Property, plant and equipment, net
47,889
52,300
Intangible assets, net
981
1,652
Goodwill
12,408
12,399
Other assets, net
7,706
7,026
Total assets
$
291,294
$
306,803
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
16,467
$
12,166
Accrued liabilities
14,141
12,556
Deferred revenue
2,921
4,849
Current portion of lease liabilities
2,616
3,181
Total current liabilities
36,145
32,752
Non-current income taxes payable
5,638
5,391
Long-term lease liabilities
10,017
10,978
Other long-term liabilities
4,224
3,263
Total liabilities
56,024
52,384
Stockholders' equity:
Common stock - par value
16
16
Additional paid-in capital
537,776
521,184
Accumulated other comprehensive loss
(2,388
)
(2,477
)
Accumulated deficit
(300,134
)
(264,304
)
Total stockholders’ equity
235,270
254,419
Total liabilities and stockholders’
equity
$
291,294
$
306,803
nLIGHT, Inc.
Consolidated Statements of Cash
Flows
(In thousands)
(Unaudited)
Nine Months Ended September
30,
2024
2023
Cash flows from operating activities:
Net loss
$
(35,830
)
$
(28,432
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation
9,356
9,292
Amortization
3,403
2,697
Reduction in carrying amount of
right-of-use assets
1,367
947
Provision for losses on (recoveries of)
accounts receivable
1,489
(2
)
Stock-based compensation
18,961
19,645
Deferred income taxes
—
7
Loss on disposal of property, plant and
equipment
76
525
Changes in operating assets and
liabilities:
Accounts receivable, net
(2,119
)
2,308
Inventory
3,348
5,491
Prepaid expenses and other current
assets
954
1,358
Other assets, net
(3,351
)
(442
)
Accounts payable
4,628
(2,079
)
Accrued and other long-term
liabilities
2,511
161
Deferred revenues
(1,931
)
617
Lease liabilities
(1,546
)
(1,076
)
Non-current income taxes payable
212
(1,330
)
Net cash provided by operating
activities
1,528
9,687
Cash flows from investing activities:
Purchases of property, plant and
equipment
(5,313
)
(4,386
)
Purchase of marketable securities
(88,643
)
(103,008
)
Proceeds from maturities and sales of
marketable securities
83,033
94,231
Net cash used in investing activities
(10,923
)
(13,163
)
Cash flows from financing activities:
Proceeds from employee stock plan
purchases
1,355
1,220
Proceeds from stock option exercises
221
385
Tax payments related to stock award
issuances
(3,945
)
(3,667
)
Net cash used in financing activities
(2,369
)
(2,062
)
Effect of exchange rate changes on
cash
12
(198
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(11,752
)
(5,736
)
Cash, cash equivalents and restricted
cash, beginning of period
53,466
58,078
Cash, cash equivalents and restricted
cash, end of period
$
41,714
$
52,342
Supplemental disclosures:
Cash paid for interest, net
$
40
$
20
Cash paid for income taxes
302
270
Operating cash outflows from operating
leases
3,057
2,890
Right-of-use assets obtained in exchange
for lease liabilities
995
1,295
Accrued purchases of property, equipment
and patents
415
561
Reconciliation of cash, cash
equivalents, and restricted cash:
Cash and cash equivalents
$
41,456
$
52,087
Restricted cash
258
255
Total cash, cash equivalents, and
restricted cash
$
41,714
$
52,342
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 September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net loss
$
(10,335
)
$
(11,879
)
$
(35,830
)
$
(28,432
)
Income tax expense
261
187
525
(1,005
)
Other income, net
(1,331
)
(536
)
(2,594
)
(1,997
)
Interest income, net
(394
)
(303
)
(1,308
)
(990
)
Depreciation and amortization
4,278
3,985
12,759
11,983
Stock-based compensation
6,527
6,627
18,961
19,645
Adjusted EBITDA
$
(994
)
$
(1,919
)
$
(7,487
)
$
(796
)
Reconciliation of GAAP to Non-GAAP Net
Loss, and GAAP to Non-GAAP Net Loss per Share, Basic and
Diluted
Three Months Ended September
30,
Nine Months Ended September
30,
2024
2023
2024
2023
Net loss
$
(10,335
)
$
(11,879
)
$
(35,830
)
$
(28,432
)
Add back:
Stock-based compensation(1)
6,527
6,627
18,961
19,645
Amortization of purchased
intangibles(1)
149
383
446
1,151
Non-GAAP net loss
(3,659
)
(4,869
)
(16,423
)
(7,636
)
GAAP weighted-average shares
outstanding
48,133
46,403
47,679
45,857
Participating securities
—
—
—
—
Non-GAAP weighted-average number of
shares, basic
48,133
46,403
47,679
45,857
Dilutive effect of common stock
equivalents
—
—
—
—
Non-GAAP weighted-average number of
shares, diluted
48,133
46,403
47,679
45,857
Non-GAAP net loss per share, basic and
diluted
$
(0.08
)
$
(0.10
)
$
(0.34
)
$
(0.17
)
(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/20241107730057/en/
For more information, contact: John Marchetti Vice
President, Corporate Development & Investor Relations nLIGHT,
Inc. (360) 566-4460 john.marchetti@nlight.net
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