On August 1, 2024, nLight Inc (LASR, Financial) released its 8-K filing for the second quarter of 2024. The company, a leading provider of high-power semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications, reported revenues of $50.5 million, surpassing the analyst estimate of $49.15 million. However, the company faced a net loss of $11.7 million, or $0.25 per diluted share, compared to the analyst estimate of -$0.22 per share.
Company Overview
nLight Inc is a United States-based company engaged in providing semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. It designs, develops, and manufactures the critical elements of lasers through its vertically integrated business model to rapidly introduce innovative products, control costs, and protect intellectual property. The company operates in two segments: Laser Products and Advanced Development. The majority of its revenue is generated from the Laser segment, with geographical segments including North America, China, and the Rest of the world.
Performance and Challenges
nLight Inc reported a 13% increase in revenue compared to the first quarter of 2024, driven by strong execution in directed energy and existing laser sensing programs. The Aerospace & Defense business saw a 26% quarter-over-quarter growth. Despite these gains, the company faced a 5.2% decline in revenue compared to the same quarter last year, reflecting broader market challenges.
Gross margin improved to 23.5% from 22.7% in the same period last year, indicating better cost management and a favorable business mix. However, the net loss widened to $11.7 million from $8.8 million in Q2 2023, highlighting ongoing financial challenges.
Financial Achievements
nLight Inc achieved a gross margin of 30% for its products, exceeding the high end of its guidance range. The company generated approximately $7 million in cash flow from operations during the first six months of the year and ended the quarter with $115 million in cash and investments, with no debt. These achievements are crucial for maintaining financial stability and supporting future growth initiatives.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Revenue | $50.5 million | $53.3 million | -5.2% |
| Gross Margin | 23.5% | 22.7% | --- |
| Net Loss | $(11.7) million | $(8.8) million | -32.9% |
| Adjusted EBITDA | $(1.6) million | $(0.15) million | NM* |
* Not meaningful
Income Statement Highlights
For the second quarter of 2024, nLight Inc reported total revenue of $50.5 million, with $34.5 million from products and $16.1 million from development. The cost of revenue totaled $38.7 million, resulting in a gross profit of $11.9 million. Operating expenses were $24.5 million, leading to a loss from operations of $12.7 million. The net loss for the quarter was $11.7 million, or $0.25 per diluted share.
Balance Sheet and Cash Flow
As of June 30, 2024, nLight Inc had total assets of $294.3 million, including $49.4 million in cash and cash equivalents and $65.2 million in marketable securities. Total liabilities were $54.8 million, and stockholders' equity stood at $239.5 million. The company generated $7.1 million in cash from operating activities during the first six months of 2024.
Outlook
For the third quarter of 2024, nLight Inc expects revenues to be in the range of $53 million to $58 million, with a midpoint of $55.5 million. The company anticipates a gross margin of 22% to 26% and Adjusted EBITDA in the range of ($2) million to $1 million.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from nLight Inc for further details.
