nLIGHT, Inc. Announces Second Quarter 2019 Results

Loading...
Loading...

VANCOUVER, Wash., Aug. 05, 2019 (GLOBE NEWSWIRE) -- nLIGHT, Inc. LASR, a leading provider of high-power semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets, today reported financial results for the second quarter of 2019.

"During the quarter we saw growing customer interest in Corona, our programmable fiber laser solution, which contributed to the continued growth of our industrial end market outside of China," commented Scott Keeney, nLIGHT's President and Chief Executive Officer. "Within the Chinese industrial market, we began ramping sales of our 12kW fiber laser. These developments helped us execute to the financial outlook we provided back in May, despite a challenging environment in China.

"Sales in our microfabrication end market increased following a slower first quarter and aerospace and defense again delivered strong year-over-year growth. Our differentiated technology in each of our end markets positions us well for the favorable long-term trends we see in the adoption of high-power laser-based solutions."   

Second Quarter 2019 Financial Highlights

 Three Months Ended
June 30,
  
(In thousands, except percentages)2019 2018 % Change
Revenues$48,048  $51,705  (7.1)%
Gross margin33.0% 34.2%  
Income from operations$805  $5,549  (85.5)%
Operating margin1.7% 10.7%  
Net income (loss)$(155) $4,653  (103.3)%
Adjusted EBITDA(1)$5,455  $8,527  (36.0)%
Adjusted EBITDA, as percentage of revenues11.4% 16.5%  
(1) A reconciliation of the non-GAAP information provided here to the most directly comparable GAAP metric has been provided in the financial statement tables included in this release.

Revenues of $48.0 million for the second quarter of 2019 were down 7.1% compared to $51.7 million for the second quarter of 2018. Gross margin was 33.0% for the second quarter of 2019 compared to 34.2% for the second quarter of 2018. GAAP net loss for the second quarter of 2019 was $(0.2) million, or net loss of $0.00 per diluted share, compared to net income of $4.7 million, or net income of $0.11 per diluted share, for the second quarter of 2018. Excluding the impact of stock-based compensation and assuming the conversion of all outstanding convertible preferred stock in the period to common stock, non-GAAP net income for the second quarter of 2019 was $2.2 million, or non-GAAP net income of $0.05 per diluted share, compared to non-GAAP net income of $5.5 million, or non-GAAP net income of $0.14 per diluted share, for the second quarter of 2018.

Outlook

For the third quarter of 2019, nLIGHT expects revenues to be in the range of $42.0 million to $46.0 million, gross margin to be in the range of 29.0% to 32.0%, and Adjusted EBITDA to be in the range of $2.0 million to $4.0 million.

Investor Conference Call at 2:00 p.m. Pacific Time, Monday, August 5, 2019

Loading...
Loading...

Parties interested in listening to nLIGHT's quarterly conference call may do so by dialing 1-833-535-2198 (U.S., toll-free) or +1-412-902-6775 (international and toll), with the conference title: nLIGHT Second Quarter 2019 Earnings. The call can also be accessed via the web by going to nLIGHT's Investor Relations page at http://nlight.net/company/investors.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release also contains non-GAAP financial results, including Adjusted EBITDA, non-GAAP net income and non-GAAP net income per share, basic and diluted. Adjusted EBITDA, a non-GAAP financial metric, is used to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA is a meaningful measure of performance as it is commonly utilized by us and the investment community to analyze operating performance in our industry. Similarly, we believe that providing non-GAAP net income and non-GAAP net income per share, basic and diluted, is useful to our investors as it gives effect to both the conversion of all outstanding preferred stock to common stock, which occurred immediately prior to the closing of nLIGHT's initial public offering on April 30, 2018, as well as removing the effect of stock-based compensation expense, which we believe to be an informative view of our results during the period.

We define Adjusted EBITDA as net income adjusted for income tax expense, other non-operating expense or income, interest expense or income, depreciation and amortization, stock-based compensation and other special items as determined by management, as applicable. We define non-GAAP net income as GAAP net income adjusted for stock-based compensation. We define non-GAAP net income per share, basic and diluted, as non-GAAP net income divided by preferred and common weighted-average shares outstanding during the respective period plus the dilutive effect of any common stock equivalents during the period, if applicable.

Tables presenting the reconciliation of net income to Adjusted EBITDA, as well as the reconciliation of net income and net income per share, basic and diluted to non-GAAP net income and non-GAAP net income per share, basic and diluted, the two most directly comparable GAAP financial metrics, are included at the end of this press release.

We have not reconciled expectations of net income to Adjusted EBITDA because unrealized and realized foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Safe Harbor Statement

Certain statements in this release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Words such as "guidance," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions may identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected revenues, gross margin, and Adjusted EBITDA, our expectations to grow faster than the overall high-power laser market, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements, including but not limited to: (1) our ability to generate sufficient revenues to achieve or maintain profitability in the future as our operating costs increase, (2) the risk that our revenue growth rate in recent periods may not be indicative of our future performance, (3) downturns in the markets we serve could materially adversely affect our revenues and profitability, (4) our high levels of fixed costs and inventory levels may harm our gross profits and results of operations in the event that demand for our products declines or we maintain excess inventory levels, (5) the competitiveness of the markets for our products, (6) our substantial sales and operations in China, which expose us to risks inherent in doing business there, (7) the effect of potential tariffs and global trade policies on the cost of our products, (8) our manufacturing capacity and operations may not be appropriate for future levels of demand, (9) our reliance on a small number of customers for a significant portion of our revenues and (10) the risk that we may be unable to protect our proprietary technology and intellectual property rights. Additional information concerning these and other factors can be found in nLIGHT's filings with the Securities and Exchange Commission, including other risks, relevant factors and uncertainties identified in the "Risk Factors" section of nLIGHT's Annual Report on Form 10-K or subsequent filings with the Securities and Exchange Commission. nLIGHT undertakes no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

The nLIGHT logo, "nLIGHT," and "Corona" are registered trademarks or trademarks of nLIGHT, Inc. in various jurisdictions.

About nLIGHT

nLIGHT, Inc. is a leading provider of high-power semiconductor and fiber lasers for industrial, microfabrication, aerospace and defense applications. Our lasers are changing not only the way things are made but also the things that can be made. Headquartered in Vancouver, Washington, nLIGHT employs over 1,100 people with operations in the U.S., China and Finland. For more information, please visit www.nlight.net.

For more information, contact:
Jason Willey
Investor Relations and Corporate Development
nLIGHT, Inc.
(360) 567-4890
jason.willey@nlight.net

nLIGHT, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
 Three Months Ended
June 30,
 Six Months Ended
June 30,
 2019 2018 2019 2018
Revenues$48,048  $51,705  $89,909  $94,172 
Cost of revenues(1) 32,177   34,026   60,524   61,764 
Gross profit 15,871   17,679   29,385   32,408 
Operating expenses:               
Research and development(1) 6,494   4,898   12,916   9,181 
Sales, general, and administrative(1) 8,572   7,232   16,716   13,470 
Total operating expenses 15,066   12,130   29,632   22,651 
Income (loss) from operations 805   5,549   (247)  9,757 
Other income (expense):               
Interest income (expense), net 740   (6)  1,490   (225)
Other income (expense), net (907)  (42)  (87)  34 
Income before income taxes 638   5,501   1,156   9,566 
Income tax expense 793   848   2,546   1,997 
Net income (loss)$(155) $4,653  $(1,390) $7,569 
Less: Income allocated to participating securities    (1,499)     (4,415)
Net income (loss) attributable to common stockholders$(155) $3,154  $(1,390) $3,154 
Net income (loss) per share, basic$  $0.13  $(0.04) $0.23 
Net income (loss) per share, diluted$  $0.11  $(0.04) $0.17 
Shares used in per share calculations:               
Basic 37,065   24,491   36,880   13,761 
Diluted 37,065   29,756   36,880   18,797 
 
(1)Includes stock-based compensation as follows:
 


 Three Months Ended
June 30,

 Six Months Ended
June 30,

 2019
 2018
 2019
 2018
Cost of revenues$267  $62  $476  $84 
Research and development 711   200   1,269   225 
Sales, general and administrative 1,403   544   2,545   659 
 $2,381  $806  $4,290  $968 


 
nLIGHT, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
 June 30, December 31,
 2019 2018
Assets   
Current assets:   
Cash and cash equivalents$142,661  $149,478 
Accounts receivable, net30,752  26,528 
Inventory42,285  35,329 
Prepaid expenses and other current assets4,107  7,286 
Total current assets219,805  218,621 
Property and equipment, net24,650  21,462 
Intangible assets, net2,971  2,686 
Goodwill1,387  1,387 
Other assets6,776  5,974 
Total assets$255,589  $250,130 
    
Liabilities and Stockholders' Equity   
Current liabilities:   
Accounts payable$13,360  $12,068 
Accrued liabilities10,693  10,708 
Deferred revenues582  720 
Current portion of long-term debt78  91 
Total current liabilities24,713  23,587 
Non-current income taxes payable6,854  6,472 
Long-term debt17  18 
Other long-term liabilities2,068  2,270 
Total liabilities33,652  32,347 
Stockholders' equity:   
Preferred stock - par value   
Common stock - par value15  15 
Additional paid-in capital329,982  324,656 
Accumulated other comprehensive loss(2,100) (2,157)
Accumulated deficit(105,960) (104,731)
Total stockholders' equity221,937  217,783 
Total liabilities and stockholders' equity$255,589  $250,130 


 
nLIGHT, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 
 Six Months Ended June 30,
 2019 2018
Cash flows from operating activities:   
Net income (loss)$(1,390) $7,569 
Adjustments to reconcile net income (loss) to net cash used in operating activities:   
Depreciation3,205  2,936 
Amortization1,276  1,182 
Provision for losses on accounts receivable33  183 
Stock-based compensation4,290  968 
Loss on disposal of property and equipment5  11 
Changes in operating assets and liabilities:   
Accounts receivable, net(4,334) (8,711)
Inventory(6,987) (5,644)
Prepaid expenses and other current assets3,192  (3,458)
Other assets(1,800) (1,226)
Accounts payable1,111  3,539 
Other changes216  306 
Net cash used in operating activities(1,183) (2,345)
Cash flows from investing activities:   
Purchases of property, equipment and intangibles(6,916) (5,789)
Proceeds from sale of property and equipment  8 
Net cash used in investing activities(6,916) (5,781)
Cash flows from financing activities:   
Principal payments on debt and capital leases(50) (74)
Proceeds from public offering, net of offering costs  101,486 
Proceeds from employee stock plan purchases762   
Proceeds from stock option exercises915  123 
Tax payments related to stock award issuances(480)  
Net cash provided by financing activities1,147  101,535 
Effect of exchange rate changes on cash135  (371)
Net increase (decrease) in cash and cash equivalents(6,817) 93,038 
Cash and cash equivalents, beginning of period149,478  36,687 
Cash and cash equivalents, end of period$142,661  $129,725 


 
nLIGHT, Inc.
Reconciliation of GAAP Financial Metrics to Non-GAAP
(In thousands, except per share data)
(Unaudited)
 
Reconciliation of Net Income (Loss) to Adjusted EBITDA
 
 Three Months Ended
June 30,
 Six Months Ended
June 30,
 2019 2018 2019 2018
Net income (loss)$(155) $4,653  $(1,390) $7,569 
Income tax expense793  848  2,546  1,997 
Other (income) expense, net907  42  87  (34)
Interest (income) expense, net(740) 6  (1,490) 225 
Depreciation and amortization2,269  2,172  4,481  4,118 
Stock-based compensation2,381  806  4,290  968 
Adjusted EBITDA$5,455  $8,527  $8,524  $14,843 


 
Reconciliation of GAAP to Non-GAAP Net Income, and GAAP to Non-GAAP Net Income per Share, Basic and Diluted
 
 Three Months Ended
June 30,
 Six Months Ended
June 30,
 2019 2018 2019 2018
Net income (loss)$(155) $4,653  $(1,390) $7,569 
Add back:       
Stock-based compensation(1)2,381  806  4,290  968 
Non-GAAP net income2,226  5,459  2,900  8,537 
        
GAAP weighted average shares outstanding37,065  24,491  36,880  13,761 
Assumed conversion of convertible preferred stock to common stock  7,940    16,291 
Non-GAAP weighted average number of shares, basic37,065  32,431  36,880  30,052 
Dilutive effect of common stock equivalents4,391  5,265  4,487  5,036 
Non-GAAP weighted average number of shares, diluted41,456  37,696  41,367  35,088 
        
Non-GAAP net income per share, basic$0.06  $0.17  $0.08  $0.28 
Non-GAAP net income per share, diluted$0.05  $0.14  $0.07  $0.24 
 
(1) There is no income tax effect related to the stock-based compensation adjustment due to the full valuation allowance in the U.S.

Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsPress Releases
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...