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Exhibit 99.1

nLIGHT, Inc. Announces Fourth Quarter and Full Year 2021 Results
Revenues of $270.1 million and gross margin of 28.6% for the full year 2021
Revenues of $67.5 million and gross margin of 26.6% for the fourth quarter of 2021

CAMAS, Wash., February 17, 2022 - 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 fourth quarter and full year 2021.
“nLIGHT delivered 21% year-over-year revenue growth in 2021, which was driven by a 41% year-over-year increase in sales to customers outside of China and growth in each of our end markets.” commented Scott Keeney, nLIGHT’s President and Chief Executive Officer. “While our geographic focus has shifted, our strategy remains focused on leveraging our vertically integrated business model to enable key growth markets.”

“In the fourth quarter of 2021, approximately 89% of our revenue was from customers outside of China, which grew 27% year-over-year. Total revenue for the fourth quarter of 2021 increased 3% year-over-year to $67.5 million, despite a 60% decrease in revenue from customers in China. Gross margin and Adjusted EBITDA were within the guidance range we provided in November. We continue to believe we are well-positioned to grow faster than the overall industry in the long-term.”


Full Year 2021 Financial Highlights
Year Ended December 31,
(In thousands, except percentages)20212020% Change
Revenues$270,146 $222,789 21.3 %
Gross margin28.6 %26.6 %
Loss from operations$(30,217)$(21,048)(43.6)%
Operating margin(11.2)%(9.4)%
Net loss$(29,669)$(20,932)(41.7)%
Adjusted EBITDA(1)
$22,562 $18,151 24.3 %
Adjusted EBITDA, as a percentage of revenues 8.4 %8.1 %
(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 $270.1 million for the full year 2021 were up 21.3% compared to $222.8 million for the full year 2020. Gross margin was 28.6% for the full year 2021 compared to 26.6% for the full year 2020. GAAP net loss for the full year 2021 was $(29.7) million, or net loss of $(0.70) per diluted share, compared to net loss of $(20.9) million, or net loss of $(0.55) per diluted share, for the full year 2020. Non-GAAP net income for the full year 2021 was $10.7 million, or non-GAAP net income of $0.23 per diluted share, compared to non-GAAP net income of $7.3 million, or non-GAAP net income of $0.17 per diluted share, for the full year 2020. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metrics have been provided in the tables included at the end of this release.



Fourth Quarter 2021 Financial Highlights
Three Months Ended December 31,
(In thousands, except percentages)20212020% Change
Revenues$67,453 $65,704 2.7 %
Gross margin26.6 %29.9 %
Loss from operations$(8,665)$(4,286)(102.2)%
Operating margin(12.8)%(6.5)%
Net loss$(8,750)$(4,517)(93.7)%
Adjusted EBITDA(1)
$3,071 $8,447 (63.6)%
Adjusted EBITDA, as a percentage of revenues 4.6 %12.9 %
(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 $67.5 million for the fourth quarter of 2021 were up 2.7% compared to $65.7 million for the fourth quarter of 2020. Gross margin was 26.6% for the fourth quarter of 2021 compared to 29.9% for the fourth quarter of 2020. GAAP net loss for the fourth quarter of 2021 was $(8.8) million, or net loss of $(0.20) per diluted share, compared to net loss of $(4.5) million, or net loss of $(0.12) per diluted share, for the fourth quarter of 2020. Non-GAAP net loss for the fourth quarter of 2021 was $(0.2) million, or non-GAAP net loss of $(0.01) per diluted share, compared to non-GAAP net income of $5.2 million, or non-GAAP net income of $0.12 per diluted share, for the fourth quarter of 2020. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metrics have been provided in the tables included at the end of this release.

Outlook
For the first quarter of 2022, nLIGHT expects revenues to be in the range of $61 million to $67 million, gross margin to be in the range of 21% to 25%, and Adjusted EBITDA to be approximately break-even.

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, February 17, 2022

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 Fourth 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 (loss) and non-GAAP net income (loss) 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 (loss) and non-GAAP net income (loss) 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 metrics presented herein are specific to us and may not be comparable to similar metrics 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 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, gross margin, and Adjusted EBITDA, our business strategy and ability to grow our business, and our expectations regarding customer demand for our products, 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 and adversely 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, (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 1,300 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 December 31,Year Ended December 31,
2021202020212020
Revenue:
Products$50,906 $51,690 $206,195 $184,841 
Development16,547 14,014 63,951 37,948 
Total revenue67,453 65,704 270,146 222,789 
Cost of revenue:
Products34,039 33,113 132,867 128,255 
Development15,472 12,944 59,972 35,170 
Total cost of revenue(1)
49,511 46,057 192,839 163,425 
Gross profit17,942 19,647 77,307 59,364 
Operating expenses:
Research and development(1)
13,984 12,028 54,814 41,164 
Sales, general, and administrative(1)
12,623 11,905 52,710 39,248 
Total operating expenses26,607 23,933 107,524 80,412 
Loss from operations(8,665)(4,286)(30,217)(21,048)
Other income (expense):
Interest income (expense), net(37)(44)(163)78 
Other income, net90 315 336 378 
Loss before income taxes(8,612)(4,015)(30,044)(20,592)
Income tax expense (benefit)138 502 (375)340 
Net loss$(8,750)$(4,517)$(29,669)$(20,932)
Net loss per share, basic $(0.20)$(0.12)$(0.70)$(0.55)
Net loss per share, diluted$(0.20)$(0.12)$(0.70)$(0.55)
Shares used in per share calculations:
Basic43,277 38,877 42,142 38,367 
Diluted43,277 38,877 42,142 38,367 
(1)Includes stock-based compensation as follows:
Three Months Ended December 31,Year Ended December 31,
2021202020212020
Cost of revenues$725 $432 $2,505 $1,621 
Research and development3,025 3,101 13,433 9,703 
Sales, general, and administrative4,238 5,448 21,782 14,140 
$7,988 $8,981 $37,720 $25,464 




nLIGHT, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
As of
December 31, 2021December 31, 2020
Assets
Current assets:
     Cash and cash equivalents$146,534 $102,282 
     Accounts receivable, net41,574 31,820 
     Inventory73,746 54,706 
     Prepaid expenses and other current assets15,350 11,767 
          Total current assets277,204 200,575 
Restricted cash250 291 
Lease right-of-use assets17,048 12,302 
Property, plant and equipment, net56,101 44,480 
Intangible assets, net6,698 8,345 
Goodwill12,420 12,484 
Other assets, net3,897 5,167 
          Total assets$373,618 $283,644 
Liabilities and Stockholders’ Equity
Current liabilities:
     Accounts payable$26,347 $21,057 
     Accrued liabilities14,730 15,321 
     Deferred revenue1,629 2,528 
     Current portion of lease liabilities3,066 2,273 
     Current portion of long-term debt— 184 
          Total current liabilities45,772 41,363 
Non-current income taxes payable7,149 7,556 
Long-term lease liabilities14,612 10,375 
Long-term debt— 215 
Other long-term liabilities3,952 4,221 
     Total liabilities71,485 63,730 
Stockholders' equity:
     Common stock - par value15 15 
     Additional paid-in capital470,760 358,544 
     Accumulated other comprehensive loss(587)(259)
     Accumulated deficit(168,055)(138,386)
          Total stockholders’ equity302,133 219,914 
          Total liabilities and stockholders’ equity$373,618 $283,644 










nLIGHT, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Year Ended December 31,
20212020
Cash flows from operating activities:
Net loss$(29,669)$(20,932)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation9,179 7,710 
Amortization5,880 5,975 
Reduction in carrying amount of right-of-use assets3,253 2,916 
Provision for (recoveries of) losses on accounts receivable(70)88 
Stock-based compensation37,720 25,464 
Deferred income taxes37 (11)
Loss on disposal of assets16 — 
Changes in operating assets and liabilities:
Accounts receivable, net(9,509)(4,009)
Inventory(18,994)(6,937)
Prepaid expenses and other current assets(3,630)(3,442)
Other assets, net(570)(3,463)
Accounts payable3,463 7,306 
Accrued and other long-term liabilities(199)2,269 
Deferred revenues(909)1,800 
Lease liabilities(2,934)(2,820)
Non-current income taxes payable(507)1,127 
Net cash provided by (used in) operating activities(7,443)13,041 
Cash flows from investing activities:
Acquisition of business, net of cash acquired(291)(190)
Purchases of property, plant and equipment(19,317)(23,416)
Acquisition of intangible assets and capitalization of patents(2,245)(933)
Net cash used in investing activities(21,853)(24,539)
Cash flows from financing activities:
Proceeds from public offerings, net of offering costs82,354 — 
Proceeds from term loan— 15,000 
Principal payments on term loan, debt and financing leases(428)(15,115)
Payment of contingent consideration related to acquisition(326)— 
Proceeds from employee stock plan purchases1,603 1,393 
Proceeds from stock option exercises1,145 1,375 
Tax payments related to stock award issuances(10,606)(6,420)
Net cash provided by (used in) financing activities73,742 (3,767)
Effect of exchange rate changes on cash(235)545 
Net increase (decrease) in cash, cash equivalents and restricted cash44,211 (14,720)
Cash, cash equivalents and restricted cash, beginning of period102,573 117,293 
Cash, cash equivalents and restricted cash, end of period$146,784 $102,573 
Supplemental disclosures:
Cash paid (received) for interest, net$117 $(311)
Cash paid for income taxes526 647 
Operating cash outflows from operating leases3,513 2,919 
Right-of-use assets obtained in exchange for lease liabilities8,012 15,127 
Accrued purchases of property, equipment and patents2,522 788 






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 December 31,Year Ended December 31,
2021202020212020
Net loss$(8,750)$(4,517)$(29,669)$(20,932)
Income tax expense (benefit)138 502 (375)340 
Other income, net(90)(315)(336)(378)
Interest (income) expense, net37 44 163 (78)
Depreciation and amortization3,748 3,752 15,059 13,685 
Stock-based compensation7,988 8,981 37,720 25,464 
Acquisition and integration-related costs— — — 50 
Adjusted EBITDA$3,071 $8,447 $22,562 $18,151 


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 December 31,Year Ended December 31,
2021202020212020
Net loss$(8,750)$(4,517)$(29,669)$(20,932)
Add back:
Stock-based compensation(1)
7,988 8,981 37,720 25,464 
Amortization of purchased intangibles (1)
518 716 2,671 2,724 
Acquisition and integration-related costs (1)
— — — 50 
Non-GAAP net income (loss)(244)5,180 10,722 7,306 
GAAP weighted-average shares outstanding43,277 38,877 42,142 38,367 
Participating securities— 653 699 544 
Non-GAAP weighted-average number of shares, basic43,277 39,530 42,841 38,911 
Dilutive effect of common stock equivalents— 4,654 4,341 4,228 
Non-GAAP weighted-average number of shares, diluted43,277 44,184 47,182 43,139 
Non-GAAP net income (loss) per share, basic$(0.01)$0.13 $0.25 $0.19 
Non-GAAP net income (loss) per share, diluted$(0.01)$0.12 $0.23 $0.17 
(1) There is no income tax effect related to the stock-based compensation, amortization of purchased intangibles, and acquisition and integration-related cost adjustments due to the full valuation allowance in the U.S.