nLIGHT, Inc. (NASDAQ:LASR) Q4 2022 Results Conference Call February 23, 2023 5:00 PM ET Company Participants Scott Keeney - Chairman and Chief Executive Officer Joseph Corso - Chief Financial Officer Conference Call Participants Greg Palm - Craig-Hallum Capital Group Ruben Roy - Stifel Mark Miller - Benchmark Company Operator Hello and welcome to the nLIGHT Fourth Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. Please note, this event is being ...

| --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | Earnings Presentation Q3 2022 | | November 3, 2022 | | This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc. | Safe Harbor Statement Certain statements in this ...

nLIGHT, Inc. (NASDAQ:LASR) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Joseph Corso - Chief Financial Officer Scott Keeney - Chairman and CEO Conference Call Participants Greg Palm - Craig-Hallum Capital Group Mark Miller - The Benchmark Company Hans Chung - D.A. Davidson Ruben Roy - Stifel Operator Good afternoon. And welcome to the nLIGHT Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________ FORM 10-Q ________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38462 ___ ...

nLIGHT, Inc. (NASDAQ:LASR) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Joe Corso – Chief Financial Officer Scott Keeney – Chairman and Chief Executive Officer Conference Call Participants Greg Palm – Craig-Hallum Jim Ricchiuti – Needham & Company Patrick Ho – Stifel Hans Chung – D.A. Davidson Paretosh Misra – Berenberg Capital Markets Mark Miller – The Benchmark Company Operator Good day, and welcome to the nLIGHT Second Quarter 2022 Earnings Conference Call. All particip ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________ FORM 10-Q ________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-38462 ________ ...

| --- | |-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | | | | | | | | | | | | | Earnings Presentation Q1 2022 | | May 5, 2022 | | This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc. | Safe Harbor Statement Certain statements in th ...

nLIGHT, Inc. (NASDAQ:LASR) Q1 2022 Earnings Conference Call May 5, 2022 5:00 PM ET Company Participants Scott Keeney - Co-Founder and Chief Executive Officer Joseph Corso - Chief Financial Officer Conference Call Participants Greg Palm - Craig-Hallum Capital Group Patrick Ho - Stifel Brian Gesuale - Raymond James Hans Chung - D.A. Davidson Chris Grenga - Needham Paretosh Misra - Berenberg Capital Markets Mark Miller - Benchmark Company Operator Good day and welcome to the nLIGHT First Quarter 2022 Earnings ...

(Mark One) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________ FORM 10-Q ________________________________________________________ Delaware 91-2066376 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 4637 NW 18 Avenue th ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 or ☐ TRANSITION REPORT P ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) nLIGHT provides high-power semiconductor and fiber lasers for industrial, microfabrication, and defense markets - nLIGHT is a leading provider of high-power semiconductor and fiber lasers, operating in two segments: Laser Products and Advanced Development[12](index=12&type=chunk)[13](index=13&type=chunk) - The company serves three primary end markets: Industrial, Microfabrication, and Aerospace and Defense[13](index=13&type=chunk)[18](index=18&type=chunk) - As of December 31, 2021, the company had over **600 worldwide issued and pending patents**[28](index=28&type=chunk) - The top ten customers accounted for approximately **63% of revenues in 2021**, with key customers including the U.S. Government, Raytheon, and Northrop Grumman[34](index=34&type=chunk) **Backlog Information** | Date | Backlog (in millions) | | :--- | :--- | | Dec 31, 2021 | $115.9 | | Dec 31, 2020 | $135.8 | - As of December 31, 2021, the company had over **1,300 full-time employees** worldwide, with approximately 750 in the U.S. and 500 in China[47](index=47&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from competition, customer concentration, supply chain vulnerabilities, and net losses - The laser industry is highly competitive, with risks of **declining average selling prices (ASPs)** and pressure from larger competitors[52](index=52&type=chunk)[54](index=54&type=chunk) - The company has a history of **recurring net losses** and expects operating costs to increase, which may prevent it from achieving profitability[57](index=57&type=chunk) - The **COVID-19 pandemic** has disrupted operations, manufacturing, and supply chains, leading to increased costs and labor shortages[61](index=61&type=chunk)[62](index=62&type=chunk) - A small number of customers account for a **significant portion of revenues**, and the loss of any key customer could materially harm the business[65](index=65&type=chunk) - The company relies on internal production and **single or limited-source suppliers** for key components, creating manufacturing and supply chain risks[71](index=71&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - International operations, particularly in China, are subject to **regulatory changes, trade barriers, and political instability**[84](index=84&type=chunk)[85](index=85&type=chunk) - The company is subject to governmental **export and import controls**, which could impair its ability to compete in international markets[90](index=90&type=chunk)[91](index=91&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments [Properties](index=25&type=section&id=Item%202.%20Properties) The company owns its headquarters in Camas, WA, and leases key facilities in the US, Finland, and China **Principal Facilities** | Location | Ownership | Approx. Size (sq. ft.) | Primary Functions | | :--- | :--- | :--- | :--- | | Camas, WA | Owned | 164,600 | Corporate HQ, Manufacturing, R&D | | Vancouver, WA | Leased | 122,400 | Manufacturing, R&D, Service | | Hillsboro, OR | Leased | 30,200 | Manufacturing, Product Design | | Longmont, CO | Leased | 46,400 | R&D | | Lohja, Finland | Leased | 31,800 | Manufacturing, R&D | | Shanghai, China | Leased | 82,800 | Manufacturing, Service, Sales | [Legal Proceedings](index=25&type=section&id=Item%203.%20Legal%20Proceedings) The company reports no material legal proceedings as of the report date - The company is not currently involved in any **material legal proceedings**[118](index=118&type=chunk) [Mine Safety Disclosures](index=25&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable to the company's operations Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=25&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on Nasdaq (LASR), and a $10 million repurchase program remains fully available - The company's common stock trades on the Nasdaq Global Select Market under the ticker symbol **"LASR"**[121](index=121&type=chunk) - A **$10 million stock repurchase program** was authorized in November 2019, with the full amount remaining available as of 2021[122](index=122&type=chunk) [[Reserved]](index=27&type=section&id=Item%206.%20%5BReserved%5D) This item is intentionally left blank [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenues grew in 2021, but net loss widened due to increased stock-based compensation and operating expenses **Financial Performance Summary (2021 vs. 2020)** | Metric | 2021 | 2020 | | :--- | :--- | :--- | | Total Revenues | $270.1M | $222.8M | | Net Loss | ($29.7M) | ($20.9M) | **Revenues by End Market (in thousands)** | End Market | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Industrial | $94,795 | $84,478 | 12.2% | | Microfabrication | $70,412 | $51,649 | 36.3% | | Aerospace and Defense | $104,939 | $86,662 | 21.1% | | **Total** | **$270,146** | **$222,789** | **21.3%** | **Revenues by Segment (in thousands)** | Segment | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | Laser Products | $206,195 | $184,841 | 11.6% | | Advanced Development | $63,951 | $37,948 | 68.5% | | **Total** | **$270,146** | **$222,789** | **21.3%** | **Revenues by Geographic Region (in thousands)** | Region | 2021 | 2020 | % Change | | :--- | :--- | :--- | :--- | | North America | $143,232 | $107,624 | 33.1% | | China | $55,446 | $70,882 | (21.8)% | | Rest of World | $71,468 | $44,283 | 61.4% | | **Total** | **$270,146** | **$222,789** | **21.3%** | - **Gross margin increased to 28.6%** in 2021 from 26.6% in 2020, with the Laser Products segment improving to 36.8% due to better factory utilization[152](index=152&type=chunk)[153](index=153&type=chunk) - **Research and development expenses increased by 33.2%** to $54.8 million in 2021, driven by higher stock-based compensation and headcount[155](index=155&type=chunk) - **Sales, general, and administrative expenses increased by 34.3%** to $52.7 million in 2021, primarily due to a $7.6 million increase in stock-based compensation[157](index=157&type=chunk)[158](index=158&type=chunk) **Cash and Cash Equivalents** | Date | Amount (in millions) | | :--- | :--- | | Dec 31, 2021 | $146.5 | | Dec 31, 2020 | $102.3 | [Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks from interest rate fluctuations and foreign currency exchange rates - The company has a **$40.0 million revolving credit facility** with no outstanding balance as of December 31, 2021, subject to variable interest rates[184](index=184&type=chunk) - Significant portions of revenues and expenses are denominated in **Chinese RMB and the Euro**, creating foreign currency transaction risk[185](index=185&type=chunk) - A hypothetical **10% adverse change in foreign exchange rates** would result in a potential loss of approximately $0.6 million related to net investments[186](index=186&type=chunk) [Financial Statements and Supplementary Data](index=40&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the company's audited consolidated financial statements and the independent auditor's report **Consolidated Balance Sheet Data (in thousands)** | Account | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $146,534 | $102,282 | | Inventory | $73,746 | $54,706 | | Total Assets | $373,618 | $283,644 | | **Liabilities & Equity** | | | | Total Liabilities | $71,485 | $63,730 | | Total Stockholders' Equity | $302,133 | $219,914 | **Consolidated Statement of Operations Data (in thousands)** | Account | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Total Revenue | $270,146 | $222,789 | $176,619 | | Gross Profit | $77,307 | $59,364 | $52,339 | | Loss from Operations | ($30,217) | ($21,048) | ($9,909) | | Net Loss | ($29,669) | ($20,932) | ($12,884) | | Net Loss per Share | ($0.70) | ($0.55) | ($0.35) | **Consolidated Statement of Cash Flows Data (in thousands)** | Account | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($7,443) | $13,041 | ($4,241) | | Net cash used in investing activities | ($21,853) | ($24,539) | ($30,404) | | Net cash provided by (used in) financing activities | $73,742 | ($3,767) | $2,452 | - The independent auditor, KPMG LLP, identified the assessment of **excess and obsolete inventory** as a critical audit matter due to subjective judgment required[199](index=199&type=chunk)[200](index=200&type=chunk)[201](index=201&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=66&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants [Controls and Procedures](index=66&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded the company's disclosure controls and internal financial reporting controls were effective - Management concluded that the company's **disclosure controls and procedures were effective** as of December 31, 2021[301](index=301&type=chunk) - Based on an assessment using the COSO framework, management concluded that the company's **internal control over financial reporting was effective** as of December 31, 2021[306](index=306&type=chunk) [Other Information](index=67&type=section&id=Item%209B.%20Other%20Information) The company reports no other information [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=67&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This section is not applicable to the company Part III [Directors, Executive Officers and Corporate Governance](index=67&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This information is incorporated by reference from the company's upcoming 2022 proxy statement [Executive Compensation](index=68&type=section&id=Item%2011.%20Executive%20Compensation) This information is incorporated by reference from the company's upcoming 2022 proxy statement [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=68&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This information is incorporated by reference from the company's upcoming 2022 proxy statement [Certain Relationships and Related Transactions, and Director Independence](index=68&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) This information is incorporated by reference from the company's upcoming 2022 proxy statement [Principal Accountant Fees and Services](index=68&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) This information is incorporated by reference from the company's upcoming 2022 proxy statement Part IV [Exhibits, Financial Statement Schedules](index=68&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed with the report [Form 10-K Summary](index=72&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no Form 10-K summary