News Details

View all news

nLIGHT, Inc. Announces Second Quarter 2022 Results

08/04/2022

Revenues of $60.8 million and gross margin of 25.3% for the second quarter of 2022

CAMAS, Wash.--(BUSINESS WIRE)-- 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 second quarter of 2022.

“We delivered a solid quarter despite the significant operational challenges caused by a prolonged COVID-related lockdown in Shanghai,” commented Scott Keeney, nLIGHT’s President and Chief Executive Officer. “43% year-over-year growth in sales to Industrial customers outside of China and continued strong demand in Microfabrication enabled us to generate product revenue at the midpoint of our guidance range. In Directed Energy, we delivered new products to multiple customers and continued to make good progress in our core development programs.”

Mr. Keeney continued, “Favorable product mix and solid execution towards our strategic revenue growth objectives helped drive gross margins above the high end of guidance and, as a result, we are pleased to report positive Adjusted EBITDA for the quarter. Our strong balance sheet and focus on core strategic markets gives us confidence in achieving our long-term growth objectives.”

“I am also pleased to announce that Chris Schechter has joined our team as Chief Operating Officer. Chris most recently served as VP Operations, Aerospace and Defense at Celestica and brings a strong manufacturing background to support our continued growth.”

Second Quarter 2022 Financial Highlights

 

Three Months Ended June 30,

 

 

(In thousands, except percentages)

2022

 

2021

 

% Change

Revenues

$

60,827

 

 

$

69,113

 

 

(12.0

)%

Gross margin

 

25.3

%

 

 

29.4

%

 

 

Loss from operations

$

(10,317

)

 

$

(9,014

)

 

(14.5

)%

Operating margin

 

(17.0

)%

 

 

(13.0

)%

 

 

Net loss

$

(10,342

)

 

$

(7,890

)

 

(31.1

)%

Adjusted EBITDA(1)

$

168

 

 

$

6,287

 

 

(97.3

)%

Adjusted EBITDA, as percentage of revenues

 

0.3

%

 

 

9.1

%

 

 

(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 $60.8 million for the second quarter of 2022 were down 12.0% compared to $69.1 million for the second quarter of 2021. Gross margin was 25.3% for the second quarter of 2022 compared to 29.4% for the second quarter of 2021. GAAP net loss for the second quarter of 2022 was $(10.3) million, or net loss of $(0.23) per diluted share, compared to net loss of $(7.9) million, or net loss of $(0.19) per diluted share, for the second quarter of 2021. Non-GAAP net loss for the second quarter of 2022 was $(3.3) million, or non-GAAP net loss of $(0.07) per diluted share, compared to non-GAAP net income of $4.4 million, or non-GAAP net income of $0.09 per diluted share, for the second quarter of 2021. 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 third quarter of 2022, nLIGHT expects revenues to be in the range of $60 million to $66 million, gross margin to be in the range of 21% to 25%, and Adjusted EBITDA to be in the range of $(1) 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, August 4, 2022

Parties interested in listening to nLIGHT’s quarterly conference call may do so by dialing 1-833-535-2198 (U.S., toll-free) or +1-412-902-6775 (international and toll), with the conference title: nLIGHT Second Quarter 2022 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 and non-GAAP net income 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 financial 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 loss 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, 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 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; disruptions, such as the COVID-19 pandemic, and their effect on our business, financial condition, or results of operations; our manufacturing capacity and operations and their suitability for future levels of demand; 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 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 1,200 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 June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

Products

$

48,180

 

 

$

53,561

 

 

$

99,241

 

 

$

100,896

 

Development

 

12,647

 

 

 

15,552

 

 

 

26,045

 

 

 

29,562

 

Total revenue

 

60,827

 

 

 

69,113

 

 

 

125,286

 

 

 

130,458

 

Cost of revenue:

 

 

 

 

 

 

 

Products

 

33,683

 

 

 

34,240

 

 

 

69,451

 

 

 

64,635

 

Development

 

11,759

 

 

 

14,548

 

 

 

24,273

 

 

 

27,853

 

Total cost of revenue(1)

 

45,442

 

 

 

48,788

 

 

 

93,724

 

 

 

92,488

 

Gross profit

 

15,385

 

 

 

20,325

 

 

 

31,562

 

 

 

37,970

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

 

13,788

 

 

 

14,282

 

 

 

27,499

 

 

 

25,992

 

Sales, general, and administrative(1)

 

11,914

 

 

 

15,057

 

 

 

22,689

 

 

 

26,771

 

Total operating expenses

 

25,702

 

 

 

29,339

 

 

 

50,188

 

 

 

52,763

 

Loss from operations

 

(10,317

)

 

 

(9,014

)

 

 

(18,626

)

 

 

(14,793

)

Other income (expense):

 

 

 

 

 

 

 

Interest income (expense), net

 

71

 

 

 

(32

)

 

 

71

 

 

 

(106

)

Other income (loss), net

 

(106

)

 

 

118

 

 

 

(77

)

 

 

144

 

Loss before income taxes

 

(10,352

)

 

 

(8,928

)

 

 

(18,632

)

 

 

(14,755

)

Income tax expense (benefit)

 

(10

)

 

 

(1,038

)

 

 

333

 

 

 

(716

)

Net loss

$

(10,342

)

 

$

(7,890

)

 

$

(18,965

)

 

$

(14,039

)

Net loss per share, basic and diluted

$

(0.23

)

 

$

(0.19

)

 

$

(0.43

)

 

$

(0.34

)

Shares used in per share calculations:

 

 

 

 

 

 

 

Basic and diluted

 

44,178

 

 

 

42,313

 

 

 

43,919

 

 

 

41,187

 

(1)Includes stock-based compensation as follows:

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Cost of revenues

$

684

 

$

549

 

$

1,393

 

$

1,040

Research and development

 

3,117

 

 

3,708

 

 

6,239

 

 

6,626

Sales, general, and administrative

 

2,879

 

 

7,349

 

 

5,601

 

 

11,994

 

$

6,680

 

$

11,606

 

$

13,233

 

$

19,660

nLIGHT, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

 

 

As of

 

June 30, 2022

 

December 31, 2021

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

70,633

 

 

$

146,534

 

Marketable Securities

 

50,000

 

 

 

 

Accounts receivable, net of allowances of $300 and $303

 

45,944

 

 

 

41,574

 

Inventory

 

80,189

 

 

 

73,746

 

Prepaid expenses and other current assets

 

14,617

 

 

 

15,350

 

Total current assets

 

261,383

 

 

 

277,204

 

Restricted cash

 

250

 

 

 

250

 

Lease right-of-use assets

 

15,357

 

 

 

17,048

 

Property and equipment, net

 

62,248

 

 

 

56,101

 

Intangible assets, net

 

5,297

 

 

 

6,698

 

Goodwill

 

12,359

 

 

 

12,420

 

Other assets, net

 

3,580

 

 

 

3,897

 

Total assets

$

360,474

 

 

$

373,618

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

23,318

 

 

$

26,347

 

Accrued liabilities

 

13,138

 

 

 

14,730

 

Deferred revenue

 

2,034

 

 

 

1,629

 

Lease liabilities

 

3,032

 

 

 

3,066

 

Total current liabilities

 

41,522

 

 

 

45,772

 

Non-current income taxes payable

 

6,991

 

 

 

7,149

 

Long-term lease liabilities

 

14,117

 

 

 

14,612

 

Other long-term liabilities

 

3,990

 

 

 

3,952

 

Total liabilities

 

66,620

 

 

 

71,485

 

Stockholders' equity:

 

 

 

Common stock - $0.0001 par value; 190,000 shares authorized, 45,074 and 44,248 shares issued and outstanding at June 30, 2022, and December 31, 2021, respectively

 

15

 

 

 

15

 

Additional paid-in capital

 

483,410

 

 

 

470,760

 

Accumulated other comprehensive loss

 

(2,551

)

 

 

(587

)

Accumulated deficit

 

(187,020

)

 

 

(168,055

)

Total stockholders’ equity

 

293,854

 

 

 

302,133

 

Total liabilities and stockholders’ equity

$

360,474

 

 

$

373,618

 

 

nLIGHT, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

Cash flows from operating activities:

 

 

 

Net loss

$

(18,965

)

 

$

(14,039

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

Depreciation

 

5,214

 

 

 

4,290

 

Amortization

 

2,329

 

 

 

3,122

 

Reduction in carrying amount of right-of-use assets

 

1,571

 

 

 

1,632

 

Provision for (recoveries of) losses on accounts receivable

 

6

 

 

 

(72

)

Stock-based compensation

 

13,233

 

 

 

19,660

 

Deferred income taxes

 

(1

)

 

 

(11

)

(Gain) Loss on disposal of assets

 

 

 

 

3

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

(4,975

)

 

 

(4,849

)

Inventory

 

(7,383

)

 

 

(8,611

)

Prepaid expenses and other current assets

 

663

 

 

 

175

 

Other assets

 

(656

)

 

 

(905

)

Accounts payable

 

(1,726

)

 

 

3,335

 

Accrued and other long-term liabilities

 

(1,191

)

 

 

1,347

 

Deferred revenues

 

421

 

 

 

133

 

Lease liabilities

 

(409

)

 

 

(1,404

)

Non-current income taxes payable

 

104

 

 

 

(721

)

Net cash provided by (used in) operating activities

 

(11,765

)

 

 

3,085

 

Cash flows from investing activities:

 

 

 

Acquisition of business, net of cash acquired

 

 

 

 

(291

)

Purchases of property, plant and equipment

 

(12,893

)

 

 

(7,962

)

Capitalization of patents

 

(228

)

 

 

(216

)

Purchase of marketable securities

 

(50,000

)

 

 

 

Net cash used in investing activities

 

(63,121

)

 

 

(8,469

)

Cash flows from financing activities:

 

 

 

Proceeds from public offerings, net of offering costs

 

 

 

 

82,354

 

Principal payments on debt and financing leases

 

 

 

 

(399

)

Payment of contingent consideration related to acquisition

 

 

 

 

(326

)

Proceeds from employee stock plan purchases

 

1,201

 

 

 

750

 

Proceeds from stock option exercises

 

762

 

 

 

770

 

Tax payments related to stock award issuances

 

(2,546

)

 

 

(4,598

)

Net cash provided by (used in) financing activities

 

(583

)

 

 

78,551

 

Effect of exchange rate changes on cash

 

(432

)

 

 

(126

)

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

 

(75,901

)

 

 

73,041

 

Cash, cash equivalents and restricted cash, beginning of period

 

146,784

 

 

 

102,573

 

Cash, cash equivalents and restricted cash, end of period

$

70,883

 

 

$

175,614

 

Supplemental disclosures:

 

 

 

Cash paid for interest, net

$

 

 

$

103

 

Cash paid for income taxes

 

189

 

 

 

393

 

Operating cash outflows from operating leases

 

1,914

 

 

 

1,621

 

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

 

1,222

 

 

 

7,224

 

Accrued purchases of property, equipment and patents

 

1,650

 

 

 

2,139

 

 

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 June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Net loss

$

(10,342

)

 

$

(7,890

)

 

$

(18,965

)

 

$

(14,039

)

Income tax expense (benefit)

 

(10

)

 

 

(1,038

)

 

 

333

 

 

 

(716

)

Other (income) expense, net

 

106

 

 

 

(118

)

 

 

77

 

 

 

(144

)

Interest (income) expense, net

 

(71

)

 

 

32

 

 

 

(71

)

 

 

106

 

Depreciation and amortization

 

3,805

 

 

 

3,695

 

 

 

7,543

 

 

 

7,412

 

Stock-based compensation

 

6,680

 

 

 

11,606

 

 

 

13,233

 

 

 

19,660

 

Adjusted EBITDA

$

168

 

 

$

6,287

 

 

$

2,150

 

 

$

12,279

 

 

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

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2022

 

2021

 

2022

 

2021

Net loss

$

(10,342

)

 

$

(7,890

)

 

$

(18,965

)

 

$

(14,039

)

Add back:

 

 

 

 

 

 

 

Stock-based compensation(1)

 

6,680

 

 

 

11,606

 

 

 

13,233

 

 

 

19,660

 

Amortization of purchased intangibles(1)

 

407

 

 

 

718

 

 

 

879

 

 

 

1,435

 

Non-GAAP net income (loss)

 

(3,255

)

 

 

4,434

 

 

 

(4,853

)

 

 

7,056

 

 

 

 

 

 

 

 

 

GAAP weighted average shares outstanding

 

44,178

 

 

 

42,313

 

 

 

43,919

 

 

 

41,187

 

Participating securities

 

 

 

 

614

 

 

 

 

 

 

633

 

Non-GAAP weighted average number of shares, basic

 

44,178

 

 

 

42,927

 

 

 

43,919

 

 

 

41,820

 

Dilutive effect of common stock equivalents

 

 

 

 

4,334

 

 

 

 

 

 

4,462

 

Non-GAAP weighted average number of shares, diluted

 

44,178

 

 

 

47,261

 

 

 

43,919

 

 

 

46,282

 

 

 

 

 

 

 

 

 

Non-GAAP net income (loss) per share, basic

$

(0.07

)

 

$

0.10

 

 

$

(0.11

)

 

$

0.17

 

Non-GAAP net income (loss) per share, diluted

$

(0.07

)

 

$

0.09

 

 

$

(0.11

)

 

$

0.15

 

(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.

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

Source: nLIGHT, Inc.

Multimedia Files:

View all news