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Exhibit 99.1


nLIGHT, Inc. Announces Third Quarter 2021 Results
Revenues of $72.2 million and gross margin of 29.6% for the third quarter of 2021

CAMAS, Wash., November 4, 2021 - nLIGHT, Inc. (Nasdaq: 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 third quarter of 2021.
“nLIGHT delivered another record revenue quarter and generated the highest products gross margin in our history as a public company,” commented Scott Keeney, nLIGHT’s President and Chief Executive Officer. “We increased revenue year-over-year in each of our end markets as demand for both our semiconductor and fiber lasers was strong throughout the quarter. Our performance in the third quarter reflects the execution of our strategy to increase our focus on customers outside of China and the diversity in our revenue base.”

Mr. Keeney continued, “As a result of a 17% year-over-year increase in revenue combined with a higher mix of business coming from outside of China, we increased our products gross margins by 490 basis year-over-year to a record 37.1%. Assuming the midpoint of our Q4 revenue guidance, we are again on track to deliver more than 20% year-over-year growth.”

Third Quarter 2021 Financial Highlights
Three Months Ended September 30,
(In thousands, except percentages)20212020% Change
Revenues$72,235 $61,732 17.0 %
Gross margin29.6 %27.8 %
Loss from operations$(6,759)$(3,976)(70.0)%
Operating margin(9.4)%(6.4)%
Net loss$(6,880)$(2,110)(226.1)%
Adjusted EBITDA(1)
$7,212 $6,211 16.1 %
Adjusted EBITDA, as percentage of revenues 10.0 %10.1 %
(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 $72.2 million for the third quarter of 2021 were up 17.0% compared to $61.7 million for the third quarter of 2020. Gross margin was 29.6% for the third quarter of 2021 compared to 27.8% for the third quarter of 2020. GAAP net loss for the third quarter of 2021 was $(6.9) million, or net loss of $(0.16) per diluted share, compared to net loss of $(2.1) million, or net loss of $(0.05) per diluted share, for the third quarter of 2020. Non-GAAP net income for the third quarter of 2021 was $3.9 million, or non-GAAP net income of $0.08 per diluted share, compared to non-GAAP net income of $5.3 million, or non-GAAP net income of $0.12 per diluted share, for the third quarter of 2020. Reconciliations of the non-GAAP information provided here to the most directly comparable GAAP metric have been provided in the financial statement tables included in this release.

Outlook
For the fourth quarter of 2021, nLIGHT expects revenues to be in the range of $66 million to $72 million, gross margin to be in the range of 25% to 28%, and Adjusted EBITDA to be in the range of $3 million to $5 million.

We have not reconciled our outlook for 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.



Investor Conference Call at 2:00 p.m. Pacific Time, Thursday, November 4, 2021

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 Third Quarter 2021 Earnings. The call can also be accessed via the web by going to nLIGHT’s Investor Relations page at http://investors.nlight.net.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release contains non-GAAP financial results, including Adjusted EBITDA, non-GAAP net income and non-GAAP net income per share, basic and diluted. We use Adjusted EBITDA 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 they present an informative supplemental view of our results from period to period by removing the effect of stock-based compensation expense and other non-recurring items. However, the non-GAAP financial measures presented herein are specific to us and may not be comparable to similar measures disclosed by other companies because of differing methods used by other companies in calculating them.

We define Adjusted EBITDA as net income (loss) adjusted for income tax expense (benefit), other non-operating income or expense, interest income or expense, depreciation and amortization, stock-based compensation, acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) as GAAP net income (loss) adjusted for stock-based compensation, amortization of purchased intangibles, acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) per share, basic and diluted, as non-GAAP net income (loss) divided by weighted-average shares outstanding during the respective period plus the dilutive effect of any common stock equivalents during the period in the case of non-GAAP net income (loss) per share, diluted.

Tables presenting the reconciliation of net loss to Adjusted EBITDA, as well as the reconciliation of GAAP loss to non-GAAP net income (loss) and GAAP to non-GAAP net income (loss) per share, basic and diluted, are included at the end of this press release.

Safe Harbor Statement

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as “outlook,” “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 and year-over-year revenue growth, gross margin, and Adjusted EBITDA and our expectations regarding customer demand for our products, operating results, and financial position, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our 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 from these forward-looking statements, including but not limited to: (1) our ability to compete successfully in the markets for our products, (2) changes in the markets we serve or in the global economy, (3) our ability to increase our volumes and decrease our costs to offset potential declines in the average selling prices of our products, (4) rapid technological change in the markets that we participate in and our ability to develop and maintain products that can achieve market acceptance, (5) our ability to generate sufficient revenues to achieve or maintain profitability in the future, (6) our high levels of fixed costs and inventory and their effect on our gross profits and results of operations if demand for our products declines or we maintain excess inventory levels, (7) disruptions including pandemics, such as COVID-19, and their effect on our business, financial condition, or results of operations, (8) our manufacturing capacity and operations and their suitability for future levels of demand, (9) our reliance on a small number of customers for a significant portion of our revenues, and (10) our ability to manage risks associated with international customers and operations, (11) the effect of current and


potential tariffs and global trade policies on the cost of our products, (12) our ability to protect our proprietary technology and intellectual property rights, and (13) fluctuations in our quarterly results of operations and other operating measures. Additional information concerning these and other factors can be found in nLIGHT's filings with the Securities and Exchange Commission (the “SEC”), including other risks, relevant factors and uncertainties identified in the “Risk Factors” section of nLIGHT's most recent Annual Report on Form 10-K or subsequent filings with the SEC. 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 and “nLIGHT” 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 Camas, Washington, nLIGHT employs over 1,200 people with operations in the U.S., China, Finland, Korea and Italy. For more information, please visit www.nlight.net.

For more information, contact:
Joseph Corso
VP, Corporate Development and Investor Relations
nLIGHT, Inc.
(360) 566-4460
joe.corso@nlight.net







nLIGHT, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenue:
Products$54,393 $51,117 $155,289 $133,151 
Development17,842 10,615 47,404 23,934 
Total revenue72,235 61,732 202,693 157,085 
Cost of revenue:
Products34,193 34,645 98,828 95,142 
Development16,647 9,927 44,500 22,226 
Total cost of revenue(1)
50,840 44,572 143,328 117,368 
Gross profit21,395 17,160 59,365 39,717 
Operating expenses:
Research and development(1)
14,838 11,126 40,830 29,136 
Sales, general, and administrative(1)
13,316 10,010 40,087 27,343 
Total operating expenses28,154 21,136 80,917 56,479 
Loss from operations(6,759)(3,976)(21,552)(16,762)
Other income (expense):
Interest income (expense), net(20)(96)(126)122 
Other income, net102 477 246 63 
Loss before income taxes(6,677)(3,595)(21,432)(16,577)
Income tax expense (benefit)203 (1,485)(513)(162)
Net loss$(6,880)$(2,110)$(20,919)$(16,415)
Net loss per share, basic $(0.16)$(0.05)$(0.50)$(0.43)
Net loss per share, diluted$(0.16)$(0.05)$(0.50)$(0.43)
Shares used in per share calculations:
Basic42,884 38,558 41,759 38,195 
Diluted42,884 38,558 41,759 38,195 
(1)Includes stock-based compensation as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Cost of revenues$740 $505 $1,780 $1,189 
Research and development3,782 2,545 10,408 6,602 
Sales, general, and administrative5,550 3,633 17,544 8,692 
$10,072 $6,683 $29,732 $16,483 



nLIGHT, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
As of
September 30, 2021December 31, 2020
Assets
Current assets:
     Cash and cash equivalents$165,584 $102,282 
     Accounts receivable, net36,490 31,820 
     Inventory70,683 54,706 
     Prepaid expenses and other current assets17,267 11,767 
          Total current assets290,024 200,575 
Restricted cash250 291 
Lease right-of-use assets17,187 12,302 
Property and equipment, net52,303 44,480 
Intangible assets, net5,580 8,345 
Goodwill12,437 12,484 
Other assets, net4,190 5,167 
          Total assets$381,971 $283,644 
Liabilities and Stockholders’ Equity
Current liabilities:
     Accounts payable$31,868 $21,057 
     Accrued liabilities15,742 15,321 
     Deferred revenue1,607 2,528 
     Lease liabilities2,858 2,273 
     Current portion of long-term debt— 184 
          Total current liabilities52,075 41,363 
Non-current income taxes payable6,988 7,556 
Long-term lease liabilities14,921 10,375 
Long-term debt— 215 
Other long-term liabilities3,989 4,221 
     Total liabilities77,973 63,730 
Stockholders' equity:
     Common stock - par value15 15 
     Additional paid-in capital464,090 358,544 
     Accumulated other comprehensive loss(802)(259)
     Accumulated deficit(159,305)(138,386)
          Total stockholders’ equity303,998 219,914 
          Total liabilities and stockholders’ equity$381,971 $283,644 










nLIGHT, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Nine Months Ended September 30,
20212020
Cash flows from operating activities:
Net loss$(20,919)$(16,415)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation6,670 5,614 
Amortization4,641 4,319 
Reduction in carrying amount of right-of-use assets2,435 2,162 
Provision for (recoveries of) losses on accounts receivable(70)84 
Stock-based compensation29,732 16,483 
Deferred income taxes(11)— 
Loss on disposal of assets3 — 
Changes in operating assets and liabilities:
Accounts receivable, net(4,580)4,094 
Inventory(16,169)(6,411)
Prepaid expenses and other current assets(5,542)(4,753)
Other assets(437)(2,418)
Accounts payable9,699 10,565 
Accrued and other long-term liabilities907 1,494 
Deferred revenues(925)1,405 
Lease liabilities(2,156)(2,120)
Non-current income taxes payable(591)591 
Net cash provided by operating activities2,687 14,694 
Cash flows from investing activities:
Acquisition of business, net of cash acquired(291)(168)
Purchases of property, plant and equipment(13,636)(19,395)
Capitalization of patents(303)(717)
Net cash used in investing activities(14,230)(20,280)
Cash flows from financing activities:
Proceeds from public offerings, net of offering costs82,354 — 
Proceeds from term loan— 15,000 
Principal payments on debt and financing leases(428)(15,126)
Payment of contingent consideration related to acquisition(326)— 
Proceeds from employee stock plan purchases750 685 
Proceeds from stock option exercises975 1,117 
Tax payments related to stock award issuances(8,265)(3,314)
Net cash provided by (used in) financing activities75,060 (1,638)
Effect of exchange rate changes on cash(256)373 
Net increase (decrease) in cash, cash equivalents and restricted cash63,261 (6,851)
Cash, cash equivalents and restricted cash, beginning of period102,573 117,294 
Cash, cash equivalents and restricted cash, end of period$165,834 $110,443 
Supplemental disclosures:
Cash paid (received) for interest, net$116 $(312)
Cash paid for income taxes434 1,015 
Right-of-use assets obtained in exchange for lease liabilities7,348 13,470 
Accrued purchases of property, equipment and patents2,287 1,294 






nLIGHT, Inc.
Reconciliation of GAAP Financial Metrics to Non-GAAP
(In thousands, except per share data)
(Unaudited)

Reconciliation of Net Loss to Adjusted EBITDA
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Net loss$(6,880)$(2,110)$(20,919)$(16,415)
Income tax expense (benefit)203 (1,485)(513)(162)
Other income, net(102)(477)(246)(63)
Interest (income) expense, net20 96 126 (122)
Depreciation and amortization3,899 3,504 11,311 9,933 
Stock-based compensation10,072 6,683 29,732 16,483 
Acquisition and integration-related costs— — — 50 
Adjusted EBITDA$7,212 $6,211 $19,491 $9,704 

Reconciliation of GAAP to Non-GAAP Net Income (Loss), and GAAP to Non-GAAP Net Income (Loss) per Share, Basic and Diluted

Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Net loss$(6,880)$(2,110)$(20,919)$(16,415)
Add back:
Stock-based compensation(1)
10,072 6,683 29,732 16,483 
Amortization of purchased intangibles(1)
718 696 2,153 2,008 
Acquisition and integration-related costs(1)
— — — 50 
Non-GAAP net income3,910 5,269 10,966 2,126 
GAAP weighted average shares outstanding42,884 38,558 41,759 38,195 
Participating securities774 629 681 508 
Non-GAAP weighted average number of shares, basic43,658 39,187 42,440 38,703 
Dilutive effect of common stock equivalents3,986 4,290 4,510 4,112 
Non-GAAP weighted average number of shares, diluted47,644 43,477 46,950 42,815 
Non-GAAP net income per share, basic$0.09 $0.13 $0.26 $0.05 
Non-GAAP net income per share, diluted$0.08 $0.12 $0.23 $0.05 
(1) There is no income tax effect related to the stock-based compensation, acquisition and integration-related costs, and amortization of purchased intangibles adjustments due to the full valuation allowance in the U.S.