nLIGHT(LASR) - 2024 Q2 - Quarterly Report

Financial Performance - Revenues decreased to $95.0 million for the six months ended June 30, 2024, down from$107.4 million in the same period of 2023, primarily due to decreased sales in the Laser Products segment[73]. - The company reported a net loss of $25.5 million for the six months ended June 30, 2024, compared to a net loss of$16.6 million for the same period in 2023[73]. - Revenue from the Industrial market decreased by 31.8% to $24.9 million for the six months ended June 30, 2024, compared to$36.5 million in 2023[82]. - Revenue from the Aerospace and Defense market increased by 7.7% to $49.1 million for the six months ended June 30, 2024, compared to$45.6 million in 2023[82]. - The gross profit margin for the six months ended June 30, 2024, was 20.3%, down from 24.6% in the same period of 2023[81]. - Operating expenses increased to 49.2% of total revenue for the six months ended June 30, 2024, compared to 43.1% in the same period of 2023[81]. - Total revenue for the three months ended June 30, 2024, was $50,511 thousand, a decrease of$2,793 thousand (5.2%) compared to $53,304 thousand in 2023[86]. - Gross profit for Laser Products for the three months ended June 30, 2024, was$11,106 thousand, with a gross margin of 32.2%[88]. Research and Development - The company anticipates continued investment in research and development to achieve its technology and product roadmap[77]. - Research and Development expenses decreased by $268 thousand (2.2$1,323 thousand (3.9%) compared to the same period in 2023, driven by the Aerospace and Defense market[86]. Cash Flow and Liquidity - Cash and cash equivalents were $49.6 million as of June 30, 2024, a decrease from$53.5 million as of December 31, 2023[98]. - For the six months ended June 30, 2024, the company reported net cash provided by operating activities of $7.1 million, compared to a net cash used of$3.5 million in the same period of 2023[102]. - The company experienced a net loss of $25.5 million during the six months ended June 30, 2024, which was offset by increases in working capital of$10.5 million and non-cash expenses totaling $22.1 million[102]. - Net cash used in investing activities was$8.9 million, driven by net purchases of marketable securities of $5.2 million and capital expenditures of$3.7 million[103]. - Net cash used in financing activities was $1.8 million, consisting of taxes paid on stock awards of$3.3 million, partially offset by proceeds from stock option exercises and employee stock plan purchases of $1.5 million[104]. - The company has a$40.0 million revolving line of credit with Banc of California, which is secured by assets and expires on September 24, 2024[105]. - The company anticipates that its existing sources of liquidity will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months[99]. Future Outlook - The company may explore additional financing sources, including equity and debt financing arrangements, to support future capital requirements[99]. - The company may enter into arrangements to acquire or invest in complementary businesses, services, technologies, and intellectual property rights in the future[99]. - There were no material changes to the company's contractual obligations as previously disclosed in the Annual Report for the year ended December 31, 2023[106]. - The company does not believe inflation had a material effect on its business during the three and six months ended June 30, 2024[107].