nLight sales dip in latest quarter as firm battles ‘headwinds’

08 Aug 2023

CEO remains optimistic despite Q2 revenues of $53 million falling 12.4% on prior year's quarter.

nLight, a provider of high-power semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets, has reported financial results for the second quarter of 2023.

“Our second quarter performance reflects the continued progress towards our strategic growth initiatives, particularly in Aerospace & Defense,” commented Scott Keeney, nLight’s President and Chief Executive Officer.

“A&D revenue increased 9% year-over-year and we began work on the second phase of the HELSI program. In our commercial markets, we continue to leverage our unique Corona programmable fiber lasers to offer differentiated solutions across each of our Industrial applications. In addition, we saw increased adoption of our process monitoring solutions for EV battery applications,” said Keeney.

He continued, “Our focus on driving profitable growth resulted in second quarter revenue and Adjusted EBITDA above the mid-point of our guidance range. While we continue to face macroeconomic headwinds, recent defense program wins and continued adoption of our innovative semiconductor and fiber laser solutions make us optimistic for strong growth in subsequent quarters and into 2024.”

Q2 highlights

• Revenues of $53.3 million for the second quarter of 2023 were down 12.4% compared to $60.8 million for the second quarter of 2022.
• Gross margin was 22.7% for the second quarter of 2023 compared to 25.3% for the second quarter of 2022.
• Non-GAAP net loss for the second quarter of 2023 was $0.9 million, or $0.02 per diluted share, compared to non-GAAP net loss of $3.3 million, or $0.07 per diluted share, for the second quarter of 2022.

Outlook

For the third quarter of 2023, nLight expects revenues to be in the range of $47 million to $51 million. The midpoint of $49 million includes Laser Products' revenue of approximately $36 million and Advanced Development revenue of approximately $13 million. nLight expects overall gross margin to be in the range of 22% to 25%, with Laser Products gross margin in the range of 27% to 31% and Advanced Development gross margin of approximately 7%.