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13 Nov 2024
Fiber laser firm says it recently began delivering key components for high-power weapon source.
The Camas, Washington, fiber laser maker nLight has posted sales of $56.1 million for the third quarter, up 11 per cent on the same period last year.
However the company, which sells a variety of components and systems into commercial and defense applications - including for the high-profile Iron Beam laser air defense system set for deployment next year in Israel - warned of ongoing weakness in cutting and welding applications that would persist through 2025.
And despite the higher revenues, nLight still posted a pre-tax loss of $10.1 million, a slight improvement on the $11.7 million figure from a year ago.
Directed energy shipments
A major bright spot In the latest quarter related to applications in aerospace and defense, largely directed energy weapons and laser sensors, where sales jumped to $30.3 million - up 60 per cent year-on-year.
Half of that total related to developmental work, where nLight has signed a major contract with the US Department of Defense to produce a megawatt-class beam-combined laser by 2026.
The other half of the firm’s defense-related sales came from a sharp increase in product revenues, while sales into traditional industrial laser processing applications fell 40 per cent year-on-year.
nLight CEO Scott told an investor conference call discussing the latest results that the company was making good progress on a number of fronts in the race to develop laser weapons, saying:
“Another critical program is the [US] Army's DE M-SHORAD effort, which is to develop a 50 kilowatt high-energy laser for short-range air defense.
“On this program, nLight is responsible for delivering a 50 kilowatt high-energy laser to a prime contractor. And during the third quarter, we finalized the design and began delivering some of the most critical hardware components of this beam combined laser.”
Iron Beam engagement
Commenting on recent news of the $500 million contract awarded to key players Rafael and Elbit Systems for the Iron Beam effort, he noted: “Israel's announcement is another example of how directed energy is increasingly being viewed as a critical part of a layered defense strategy.
“Directed energy lasers offer a significant operating cost advantage compared to traditional kinetic weapons and a deep magazine.”
And in response to a specific question on that project, he added: “We are a supplier into Iron Beam, and we are deeply engaged with not only the current products but the future development there.
“Funding for Iron Beam is very solid, and we are deeply engaged with the key players supporting that new technology.”
Turning to the commercial side of the business, Keeney also confirmed that nLight was no longer manufacturing products at its location in Shanghai, telling investors:
“While we continue to maintain a presence in China…manufacturing that has been performed in this region is now being performed at a contract manufacturer in Thailand [i.e. Fabrinet] or at our automated facility in the US.”
Additive launch
Although the industrial laser sector remains plagued by overcapacity in China and weak demand for electric vehicles, the CEO did highlight one brighter spot in the form of additive manufacturing, although growth there will not be sufficient to offset the anticipated decline elsewhere.
On that front, nLight has just launched the “Corona AFX-2000” specialized 2 kW laser that is said to boost productivity in laser powder bed fusion for metal additive manufacturing.
“The AFX-2000 has undergone successful commercial validation with a leading customer servicing aerospace and defense and automotive markets,” Keeney pointed out. “Using aluminum alloys, this customer is now achieving print speeds up to three times faster when compared to today's leading large-format printers.”
• In their outlook for the closing quarter of 2024, Keeney and his executive team predicted that sales would come in somewhere between $49 million and $54 million.
That implies a full-year total of around $203 million, down from $210 million last year and $242 million in 2022, and reflecting the overcapacity malaise in the industrial laser sector.
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