nLIGHT, Inc. Announces First Quarter 2023 Results
Revenues of
“Our continued strategic focus on the industrial market outside of
“The more favorable mix of business and our execution of cost control initiatives enabled us to generate
Mr. Keeney continued, “We are also pleased to announce today that we have been awarded an
First Quarter 2023 Financial Highlights
|
Three Months Ended March 31, |
|
|
|||||||
(In thousands, except percentages) |
2023 |
|
2022 |
|
% Change |
|||||
Revenues |
$ |
54,091 |
|
|
$ |
64,459 |
|
|
(16.1 |
)% |
Gross margin |
|
26.4 |
% |
|
|
25.1 |
% |
|
|
|
Loss from operations |
$ |
(8,207 |
) |
|
$ |
(8,309 |
) |
|
1.2 |
% |
Operating margin |
|
(15.2 |
)% |
|
|
(12.9 |
)% |
|
|
|
Net loss |
$ |
(7,730 |
) |
|
$ |
(8,623 |
) |
|
(10.4 |
)% |
Adjusted EBITDA(1) |
$ |
1,273 |
|
|
$ |
1,982 |
|
|
(35.8 |
)% |
Adjusted EBITDA, as percentage of revenues |
|
2.4 |
% |
|
|
3.1 |
% |
|
|
|
(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
Outlook
For the second quarter of 2023, nLIGHT expects revenues to be in the range of
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 4, 2023
Parties interested in listening to nLIGHT’s quarterly conference call may do so by dialing 1-844-282-4705 (
Use of Non-GAAP Financial Results
In addition to
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 gross profit as GAAP gross profit adjusted for stock-based compensation included in cost of revenue. 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 weighted-average 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, 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; widespread health crises, 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 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 and 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
nLIGHT, Inc. Consolidated Statements of Operations (In thousands, except per share data) (Unaudited) |
||||||||
|
Three Months Ended March 31, |
|
||||||
|
2023 |
|
2022 |
|
||||
Revenue: |
|
|
|
|
||||
Products |
$ |
41,107 |
|
|
$ |
51,061 |
|
|
Development |
|
12,984 |
|
|
|
13,398 |
|
|
Total revenue |
|
54,091 |
|
|
|
64,459 |
|
|
Cost of revenue: |
|
|
|
|
||||
Products |
|
27,526 |
|
|
|
35,768 |
|
|
Development |
|
12,302 |
|
|
|
12,514 |
|
|
Total cost of revenue(1) |
|
39,828 |
|
|
|
48,282 |
|
|
Gross profit |
|
14,263 |
|
|
|
16,177 |
|
|
Operating expenses: |
|
|
|
|
||||
Research and development(1) |
|
11,301 |
|
|
|
13,711 |
|
|
Sales, general, and administrative(1) |
|
11,169 |
|
|
|
10,775 |
|
|
Total operating expenses |
|
22,470 |
|
|
|
24,486 |
|
|
Loss from operations |
|
(8,207 |
) |
|
|
(8,309 |
) |
|
Other income (expense): |
|
|
|
|
||||
Interest income (expense), net |
|
337 |
|
|
|
— |
|
|
Other income (expense), net |
|
404 |
|
|
|
29 |
|
|
Loss before income taxes |
|
(7,466 |
) |
|
|
(8,280 |
) |
|
Income tax expense |
|
264 |
|
|
|
343 |
|
|
Net loss |
$ |
(7,730 |
) |
|
$ |
(8,623 |
) |
|
Net loss per share, basic |
$ |
(0.17 |
) |
|
$ |
(0.20 |
) |
|
Net loss per share, diluted |
$ |
(0.17 |
) |
|
$ |
(0.20 |
) |
|
Shares used in per share calculations: |
|
|
|
|
||||
Basic |
|
45,706 |
|
|
|
43,655 |
|
|
Diluted |
|
45,706 |
|
|
|
43,655 |
|
|
(1) Includes stock-based compensation as follows: |
Three Months Ended March 31, |
|||||
|
2023 |
|
2022 |
|||
Cost of revenues |
$ |
700 |
|
$ |
709 |
|
Research and development |
|
2,098 |
|
|
3,122 |
|
Sales, general and administrative |
|
2,705 |
|
|
2,722 |
|
|
$ |
5,503 |
|
$ |
6,553 |
|
nLIGHT, Inc. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) |
|||||||
|
As of |
||||||
|
March 31, 2023 |
|
December 31, 2022 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
48,402 |
|
|
$ |
57,826 |
|
Marketable Securities |
|
59,966 |
|
|
|
50,391 |
|
Accounts receivable, net |
|
36,140 |
|
|
|
37,913 |
|
Inventory |
|
67,157 |
|
|
|
67,600 |
|
Prepaid expenses and other current assets |
|
21,586 |
|
|
|
17,026 |
|
Total current assets |
|
233,251 |
|
|
|
230,756 |
|
Restricted cash |
|
253 |
|
|
|
252 |
|
Lease right-of-use assets |
|
13,900 |
|
|
|
13,893 |
|
Property, plant and equipment, net |
|
58,978 |
|
|
|
60,693 |
|
Intangible assets, net |
|
3,408 |
|
|
|
4,041 |
|
Goodwill |
|
12,388 |
|
|
|
12,376 |
|
Other assets |
|
7,586 |
|
|
|
7,222 |
|
Total assets |
$ |
329,764 |
|
|
$ |
329,233 |
|
|
|
|
|
||||
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
17,759 |
|
|
$ |
17,507 |
|
Accrued liabilities |
|
14,708 |
|
|
|
12,820 |
|
Deferred revenues |
|
1,271 |
|
|
|
1,407 |
|
Current portion of lease liabilities |
|
3,001 |
|
|
|
2,758 |
|
Total current liabilities |
|
36,739 |
|
|
|
34,492 |
|
Non-current income taxes payable |
|
6,920 |
|
|
|
6,699 |
|
Long-term lease liabilities |
|
12,576 |
|
|
|
12,852 |
|
Other long-term liabilities |
|
4,367 |
|
|
|
4,345 |
|
Total liabilities |
|
60,602 |
|
|
|
58,388 |
|
Stockholders' equity: |
|
|
|
||||
Common stock - par value |
|
16 |
|
|
|
16 |
|
Additional paid-in capital |
|
501,675 |
|
|
|
496,211 |
|
Accumulated other comprehensive loss |
|
(2,165 |
) |
|
|
(2,748 |
) |
Accumulated deficit |
|
(230,364 |
) |
|
|
(222,634 |
) |
Total stockholders’ equity |
|
269,162 |
|
|
|
270,845 |
|
Total liabilities and stockholders’ equity |
$ |
329,764 |
|
|
$ |
329,233 |
|
nLIGHT, Inc. Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
|||||||
|
|
||||||
|
Three Months Ended March 31, |
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(7,730 |
) |
|
$ |
(8,623 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation |
|
3,105 |
|
|
|
2,556 |
|
Amortization |
|
872 |
|
|
|
1,182 |
|
Reduction in carrying amount of right-of-use assets |
|
6 |
|
|
|
867 |
|
Provision for (recoveries of) losses on accounts receivable |
|
(2 |
) |
|
|
— |
|
Stock-based compensation |
|
5,503 |
|
|
|
6,553 |
|
Deferred income taxes |
|
— |
|
|
|
(4 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
1,905 |
|
|
|
4,690 |
|
Inventory |
|
662 |
|
|
|
(3,433 |
) |
Prepaid expenses and other current assets |
|
(4,549 |
) |
|
|
(5,061 |
) |
Other assets |
|
(540 |
) |
|
|
(317 |
) |
Accounts payable |
|
(411 |
) |
|
|
(3,019 |
) |
Accrued and other long-term liabilities |
|
1,855 |
|
|
|
(1,088 |
) |
Deferred revenues |
|
(142 |
) |
|
|
(647 |
) |
Lease liabilities |
|
(45 |
) |
|
|
(813 |
) |
Non-current income taxes payable |
|
155 |
|
|
|
153 |
|
Net cash provided by (used in) operating activities |
|
644 |
|
|
|
(7,004 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property, plant and equipment |
|
(684 |
) |
|
|
(5,019 |
) |
Capitalization of patents |
|
— |
|
|
|
(114 |
) |
Purchase of marketable securities |
|
(34,359 |
) |
|
|
— |
|
Proceeds from maturities and sales of marketable securities |
|
24,998 |
|
|
|
— |
|
Proceeds from sale of assets |
|
|
|
— |
|
||
Net cash used in investing activities |
|
(10,045 |
) |
|
|
(5,133 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from stock option exercises |
|
143 |
|
|
|
689 |
|
Tax payments related to stock award issuances |
|
(182 |
) |
|
|
(78 |
) |
Net cash provided by (used in) financing activities |
|
(39 |
) |
|
|
611 |
|
Effect of exchange rate changes on cash |
|
17 |
|
|
|
(59 |
) |
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
(9,423 |
) |
|
|
(11,585 |
) |
Cash, cash equivalents, and restricted cash, beginning of period |
|
58,078 |
|
|
|
146,784 |
|
Cash, cash equivalents, and restricted cash, end of period |
$ |
48,655 |
|
|
$ |
135,199 |
|
Supplemental disclosures: |
|
|
|
||||
Cash paid (received) for interest |
$ |
— |
|
|
$ |
— |
|
Cash paid for income taxes |
|
144 |
|
|
|
79 |
|
Operating cash outflows from operating leases |
|
923 |
|
|
|
1,097 |
|
Right-of-use assets obtained in exchange for lease liabilities |
|
731 |
|
|
|
1,470 |
|
Accrued purchases of property, equipment and patents |
|
697 |
|
|
|
2,268 |
|
nLIGHT, Inc. Reconciliation of GAAP to Non-GAAP Financial Measures (In thousands, except per share data) (Unaudited) |
|||||||
|
|||||||
Reconciliation of Net Loss to Adjusted EBITDA |
|||||||
|
Three Months Ended March 31, |
||||||
|
2023 |
|
2022 |
||||
Net loss |
$ |
(7,730 |
) |
|
$ |
(8,623 |
) |
Income tax expense |
|
264 |
|
|
|
343 |
|
Other (income) expense, net |
|
(404 |
) |
|
|
(29 |
) |
Interest (income) expense, net |
|
(337 |
) |
|
|
— |
|
Depreciation and amortization |
|
3,977 |
|
|
|
3,738 |
|
Stock-based compensation |
|
5,503 |
|
|
|
6,553 |
|
Adjusted EBITDA |
$ |
1,273 |
|
|
$ |
1,982 |
|
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share, Basic and Diluted |
|||||||
|
Three Months Ended March 31, |
||||||
|
2023 |
|
2022 |
||||
Net loss |
$ |
(7,730 |
) |
|
$ |
(8,623 |
) |
Add back: |
|
|
|
||||
Stock-based compensation(1) |
|
5,503 |
|
|
|
6,553 |
|
Amortization of purchased intangibles(1) |
|
435 |
|
|
|
472 |
|
Non-GAAP net loss |
$ |
(1,792 |
) |
|
$ |
(1,598 |
) |
|
|
|
|
||||
GAAP weighted-average shares outstanding |
|
45,706 |
|
|
|
43,655 |
|
Participating securities |
|
— |
|
|
|
— |
|
Non-GAAP weighted-average number of shares, basic |
|
45,706 |
|
|
|
43,655 |
|
Dilutive effect of common stock equivalents |
|
— |
|
|
|
— |
|
Non-GAAP weighted-average number of shares, diluted |
|
45,706 |
|
|
|
43,655 |
|
|
|
|
|
||||
Non-GAAP net loss per share, basic and diluted |
$ |
(0.04 |
) |
|
$ |
(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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230504005958/en/
Joseph Corso
Chief Financial Officer
nLIGHT, Inc.
(360) 566-4460
joe.corso@nlight.net
Source: nLIGHT, Inc.
