nLIGHT(US:LASR)2024-11-08 18:11Financial Performance - Revenues decreased to $151.2 million for the nine months ended September 30, 2024, compared to $158.0 million for the same period in 2023, primarily due to decreased sales in the Laser Products segment [77]. - The net loss for the nine months ended September 30, 2024, was $35.8 million, compared to a net loss of $28.4 million for the same period in 2023 [77]. - Revenue from the Industrial market decreased by 40.9% to $11.6 million for the three months ended September 30, 2024, compared to $19.6 million in the same period of 2023 [85]. - Revenue from the Aerospace and Defense market increased by 59.1% to $30.3 million for the three months ended September 30, 2024, compared to $19.0 million in the same period of 2023 [85]. - The overall revenue for the three months ended September 30, 2024, was $56,129, reflecting a 10.9% increase compared to the same period in 2023 [88]. Profitability and Margins - The gross profit margin improved to 22.4% for the three months ended September 30, 2024, compared to 19.6% for the same period in 2023 [84]. - The gross profit for Laser Products in the three months ended September 30, 2024, was $12,475, resulting in a gross margin of 30.3% [96]. - The Advanced Development segment's gross profit varies with contract types and successful project execution, impacting overall profitability [82]. Research and Development - Research and development expenses were 20.2% of total revenue for the three months ended September 30, 2024, compared to 21.2% for the same period in 2023 [84]. - The company anticipates continued investment in research and development to achieve its technology and product roadmap [80]. - Research and Development expenses for the three months ended September 30, 2024, increased by 5.4% to $11,328 compared to the same period in 2023 [100]. Expenses - Sales, General and Administrative expenses for the three months ended September 30, 2024, increased by 11.1% to $13,021 compared to the same period in 2023 [101]. - Income tax expense for the three months ended September 30, 2024, was $261 thousand, an increase of $74 thousand, or 39.6%, from $187 thousand in the same period of 2023 [105]. - For the nine months ended September 30, 2024, income tax expense was $525 thousand, a significant increase of $1,530 thousand compared to a benefit of $(1,005) thousand in 2023, reflecting a 152.2% change [105]. Cash Flow and Liquidity - As of September 30, 2024, the company had cash and cash equivalents of $41.7 million, down from $53.5 million as of December 31, 2023, a decrease of $11.8 million [108]. - Net cash provided by operating activities for the nine months ended September 30, 2024, was $1.5 million, despite a net loss of $35.8 million [111]. - Net cash used in investing activities during the nine months ended September 30, 2024, was $10.9 million, primarily due to the net purchase of marketable securities and capital expenditures [112]. - The company believes existing sources of liquidity will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months [109]. Segment Performance - The company operates in two reportable segments: Laser Products and Advanced Development, serving three primary end markets: Industrial, Microfabrication, and Aerospace and Defense [76]. - Laser Products revenue for the three months ended September 30, 2024, increased by 7.9% to $41,132, while Advanced Development revenue rose by 19.7% to $14,997 compared to the same period in 2023 [88]. - For the nine months ended September 30, 2024, Laser Products revenue decreased by 11.7% to $104,960, while Advanced Development revenue increased by 17.8% to $46,207 compared to the same period in 2023 [88]. Market Insights - North America accounted for 64.7% of total revenue in the three months ended September 30, 2024, with revenue increasing by 16.0% to $36,332 compared to the same period in 2023 [90]. - The decrease in China revenue for the three months ended September 30, 2024, was driven by a decline in the Microfabrication and Industrial markets [92]. - The increase in Advanced Development revenue was primarily due to development contracts awarded in the second half of 2023, all included in the Aerospace and Defense market [89]. Other Income - Other income, net for the three months ended September 30, 2024, increased by $795 thousand, or 148.3%, compared to the same period in 2023, totaling $1,331 thousand [104]. - For the nine months ended September 30, 2024, other income, net rose by $597 thousand, or 29.9%, reaching $2,594 thousand compared to $1,997 thousand in 2023 [104]. Credit Facilities - The company had a $40.0 million revolving line of credit, which was amended to extend the maturity date to September 24, 2027 [114]. - No amounts were outstanding under the line of credit as of September 30, 2024, and the company was in compliance with all covenants [115].