nLIGHT reports second quarter results and ‘favorable’ business mix

06 Aug 2024

Laser maker’s $50.5M revenues at upper end of guidance, but down on last year’s equivalent.

nLIGHT, a provider of high-power semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets, has reported its financial results for the second quarter (Q2) of 2024.

“Second quarter revenue of $50.5 million was at the upper end of our guidance range and increased 13% compared to the first quarter,” commented Scott Keeney, nLIGHT’s President and CEO.

“Strong execution in directed energy and in existing laser sensing programs resulted in 26% quarter-over-quarter growth in our Aerospace & Defense business. We also announced a strategic partnership with EOS, an industry leader in additive manufacturing. Additive manufacturing remains a key growth area and we believe our work with EOS positions us better for long-term growth in this market.”

Keeney continued, “Higher volumes and a more favorable mix of business during the second quarter enabled us to increase products gross margin to 30%, above the high end of our guidance range. We generated approximately $7 million from cash flow from operations during the first six months of the year and we ended the quarter with approximately $115 million of cash and investments with no debt.”

Q2 highlights

Revenues of $50.5 million for Q2, 2024 were down 5.2% compared to $53.3 million for Q2, 2023. Gross margin was 23.5% for Q2, 2024 compared to 22.7% for Q2, 2023.

Non-GAAP net loss for the second quarter of 2024 was $4.6 million, or $0.10 per diluted share, compared to non-GAAP net loss of $0.9 million, or $0.02 per diluted share, for Q2, 2023.

For the third quarter of 2024, nLIGHT expects revenues to be in the range of $53 million to $58 million. The midpoint of $55.5 million includes Laser Products revenue of approximately $39.5 million and Advanced Development revenue of approximately $16 million.

The company stated that it expects overall gross margin to be in the range of 22% to 26%, with Laser Products gross margin in the range of 28% to 32% and Advanced Development gross margin of approximately 8%. Adjusted EBITDA is forecast to be in the range of ($2) million to $1 million.

The results announcement added, “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.”