EX-99.1 2 exhibit991-q42022.htm EX-99.1 Document

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Exhibit 99.1

nLIGHT, Inc. Announces Fourth Quarter and Full Year 2022 Results
Revenues of $242.1 million for the full year 2022
Revenues of $56.7 million for the fourth quarter of 2022

CAMAS, Wash., February 23, 2023 - 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 2022.
“Our performance in 2022 reflects the continuing evolution of our business. Strong execution of our strategic growth initiatives enabled us to achieve 21% growth in Industrial and Microfabrication outside of China this year, which grew to a record $133 million, more than double the revenues we generated in these markets in 2020,” commented Scott Keeney, nLIGHT’s President and Chief Executive Officer. “We also achieved multiple milestones in Directed Energy – a key growth market for nLIGHT.” 

Mr. Keeney continued, “In the fourth quarter, led by record quarterly sales to Industrial customers outside of China, we delivered revenue above the mid-point of our previously announced guidance range. Although moving certain elements of our manufacturing out of China has been challenging, we made significant progress during the quarter. We completed installation of key automation equipment in our Camas facility and implemented a new ERP system as of January 1, 2023. We also executed a targeted reduction-in-force, and focused our product portfolio to better align with our near- and long-term growth opportunities. As a result, we incurred approximately $6 million of non-routine inventory charges and approximately $4 million of restructuring expenses during the quarter. Looking forward, we believe the strategic decisions we made in the fourth quarter better position us for long-term profitable growth.”

Full Year 2022 Financial Highlights
Year Ended December 31,
(In thousands, except percentages)20222021% Change
Revenues$242,058 $270,146 (10.4)%
Gross margin21.0 %28.6 %
Loss from operations$(55,102)$(30,217)(82.4)%
Operating margin(22.8)%(11.2)%
Net loss$(54,579)$(29,669)(84.0)%
Adjusted EBITDA(1)
$(8,754)$22,562 (138.8)%
Adjusted EBITDA, as a percentage of revenues (3.6)%8.4 %
(1) A reconciliation of the non-GAAP metrics presented here to the most directly comparable GAAP metric has been provided in the tables included at the end of this release.

Revenues of $242.1 million for the full year 2022 were down 10.4% compared to $270.1 million for the full year 2021. Gross margin was 21.0% for the full year 2022 compared to 28.6% for the full year 2021. GAAP net loss for the full year 2022 was $54.6 million, or $1.23 per diluted share, compared to net loss of $29.7 million, or $0.70 per diluted share, for the full year 2021. Non-GAAP net loss for the full year 2022 was $22.3 million, or $0.50 per diluted share, compared to non-GAAP net income of $10.7 million, or $0.23 per diluted share, for the full year 2021. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metric have been provided in the tables included at the end of this release.



Fourth Quarter 2022 Financial Highlights
Three Months Ended December 31,
(In thousands, except percentages)20222021% Change
Revenues$56,679 $67,453 (16.0)%
Gross margin10.2 %26.6 %
Loss from operations$(23,495)$(8,665)(171.1)%
Operating margin(41.5)%(12.8)%
Net loss$(22,659)$(8,750)(159.0)%
Adjusted EBITDA(1)
$(9,502)$3,071 (409.4)%
Adjusted EBITDA, as a percentage of revenues (16.8)%4.6 %
(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 $56.7 million for the fourth quarter of 2022 were down 16.0% compared to $67.5 million for the fourth quarter of 2021. Gross margin was 10.2% for the fourth quarter of 2022 compared to 26.6% for the fourth quarter of 2021. GAAP net loss for the fourth quarter of 2022 was $22.7 million, or $0.50 per diluted share, compared to net loss of $8.8 million, or $0.20 per diluted share, for the fourth quarter of 2021. Non-GAAP net loss for the fourth quarter of 2022 was $12.3 million, or $0.27 per diluted share, compared to non-GAAP net loss of $0.2 million, or $0.01 per diluted share, for the fourth quarter of 2021. 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 2023, nLIGHT expects revenues to be in the range of $50 million to $56 million. The midpoint of $53 million includes Laser Products revenue of approximately $41 million and Advanced Development revenue of approximately $12 million. nLIGHT expects overall gross margin to be in the range of 17% to 20%, with Laser Products gross margin in the range of 20% to 24% and Advanced Development gross margin of approximately 7%. nLIGHT expects Adjusted EBITDA to be in the range of $(4) million to $(1) 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, February 23, 2023

Parties interested in listening to nLIGHT’s quarterly conference call may do so by dialing 1-844-763-8274 (U.S., toll-free) or +1-412-717-9224 (international and toll), with the conference title: nLIGHT Fourth Quarter 2022 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 the weighted-average number of 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, and our business strategy and ability to grow our business, 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 our ability to compete successfully in the markets for our products; changes in the markets we serve or in the global economy; our ability to increase our volumes and decrease our costs to offset potential declines in the average selling prices of our products; rapid technological changes in the markets that we participate in; our ability to develop and maintain products that can achieve market acceptance; our ability to generate sufficient revenues to achieve or maintain profitability in the future; 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; widespread health crises, such as the COVID-19 pandemic, and their effect on our business, financial condition, or results of operations; our manufacturing capacity and operations and their suitability for future levels of demand; our reliance on a small number of customers for a significant portion of our revenues; our ability to manage risks associated with international customers and operations; the effect of government export and import controls on our ability to compete in international markets; our ability to protect our proprietary technology and intellectual property rights; fluctuations in our quarterly results of operations and other operating measures; and the effect on our business of claims, lawsuits, government investigations, other legal or regulatory proceedings, or commercial or contractual disputes that we are or may become involved in. 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 1,100 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
Chief Financial Officer
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,
2022202120222021
Revenue:
Products$45,375 $50,906 $192,658 $206,195 
Development11,304 16,547 49,400 63,951 
Total revenue56,679 67,453 242,058 270,146 
Cost of revenue:
Products40,471 34,039 145,272 132,867 
Development10,425 15,472 45,965 59,972 
Total cost of revenue(1)
50,896 49,511 191,237 192,839 
Gross profit5,783 17,942 50,821 77,307 
Operating expenses:
Research and development(1)
13,558 13,984 53,773 54,814 
Sales, general, and administrative(1)
11,828 12,623 48,258 52,710 
Restructuring3,892 — 3,892 — 
Total operating expenses29,278 26,607 105,923 107,524 
Loss from operations(23,495)(8,665)(55,102)(30,217)
Other income (expense):
Interest income (expense), net291 (37)529 (163)
Other income, net446 90 338 336 
Loss before income taxes(22,758)(8,612)(54,235)(30,044)
Income tax expense (benefit)(99)138 344 (375)
Net loss$(22,659)$(8,750)$(54,579)$(29,669)
Net loss per share, basic $(0.50)$(0.20)$(1.23)$(0.70)
Net loss per share, diluted$(0.50)$(0.20)$(1.23)$(0.70)
Shares used in per share calculations:
Basic45,039 43,277 44,436 42,142 
Diluted45,039 43,277 44,436 42,142 
(1)Includes stock-based compensation as follows:
Three Months Ended December 31,Year Ended December 31,
2022202120222021
Cost of revenues$572 $725 $2,677 $2,505 
Research and development2,267 3,025 11,675 13,433 
Sales, general, and administrative3,190 4,238 12,405 21,782 
$6,029 $7,988 $26,757 $37,720 




nLIGHT, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
As of
December 31, 2022December 31, 2021
Assets
Current assets:
     Cash and cash equivalents$57,826 $146,534 
     Marketable Securities50,391 — 
     Accounts receivable, net37,913 41,574 
     Inventory67,600 73,746 
     Prepaid expenses and other current assets17,026 15,350 
          Total current assets230,756 277,204 
Restricted cash252 250 
Lease right-of-use assets13,893 17,048 
Property, plant and equipment, net60,693 56,101 
Intangible assets, net4,041 6,698 
Goodwill12,376 12,420 
Other assets, net7,222 3,897 
          Total assets$329,233 $373,618 
Liabilities and Stockholders’ Equity
Current liabilities:
     Accounts payable$17,507 $26,347 
     Accrued liabilities12,820 14,730 
     Deferred revenue1,407 1,629 
     Current portion of lease liabilities2,758 3,066 
          Total current liabilities34,492 45,772 
Non-current income taxes payable6,699 7,149 
Long-term lease liabilities12,852 14,612 
Other long-term liabilities4,345 3,952 
     Total liabilities58,388 71,485 
Stockholders' equity:
     Common stock - par value16 15 
     Additional paid-in capital496,211 470,760 
     Accumulated other comprehensive loss(2,748)(587)
     Accumulated deficit(222,634)(168,055)
          Total stockholders’ equity270,845 302,133 
          Total liabilities and stockholders’ equity$329,233 $373,618 












nLIGHT, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Year Ended December 31,
20222021
Cash flows from operating activities:
Net loss$(54,579)$(29,669)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation11,085 9,179 
Amortization4,614 5,880 
Reduction in carrying amount of right-of-use assets3,000 3,253 
Provision for (recoveries of) losses on accounts receivable4 (70)
Stock-based compensation26,757 37,720 
Deferred income taxes4 37 
Loss on disposal of assets51 16 
Non-cash restructuring charges2,758 — 
Changes in operating assets and liabilities:
Accounts receivable, net2,757 (9,509)
Inventory4,623 (18,994)
Prepaid expenses and other current assets(1,753)(3,630)
Other assets, net(5,219)(570)
Accounts payable(5,904)3,463 
Accrued and other long-term liabilities(577)(199)
Deferred revenues(208)(909)
Lease liabilities(1,942)(2,934)
Non-current income taxes payable(13)(507)
Net cash used in operating activities(14,542)(7,443)
Cash flows from investing activities:
Acquisition of business, net of cash acquired(664)(291)
Purchases of property, plant and equipment(21,388)(19,317)
Acquisition of intangible assets and capitalization of patents(332)(2,245)
Purchase of marketable securities(99,985)— 
Proceeds from maturities and sales of marketable securities49,988 — 
Net cash used in investing activities(72,381)(21,853)
Cash flows from financing activities:
Proceeds from public offerings, net of offering costs— 82,354 
Principal payments on term loan, debt and financing leases— (428)
Payment of contingent consideration related to acquisition— (326)
Proceeds from employee stock plan purchases2,358 1,603 
Proceeds from stock option exercises1,197 1,145 
Tax payments related to stock award issuances(4,861)(10,606)
Net cash provided by (used in) financing activities(1,306)73,742 
Effect of exchange rate changes on cash(477)(235)
Net increase (decrease) in cash, cash equivalents and restricted cash(88,706)44,211 
Cash, cash equivalents and restricted cash, beginning of period146,784 102,573 
Cash, cash equivalents and restricted cash, end of period$58,078 $146,784 
Supplemental disclosures:
Cash paid (received) for interest, net$— $117 
Cash paid for income taxes442 526 
Operating cash outflows from operating leases3,925 3,513 
Right-of-use assets obtained in exchange for lease liabilities1,349 8,012 
Accrued purchases of property, equipment and patents207 2,522 






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,
2022202120222021
Net loss$(22,659)$(8,750)$(54,579)$(29,669)
Income tax expense (benefit)(99)138 344 (375)
Other income, net(446)(90)(338)(336)
Interest (income) expense, net(291)37 (529)163 
Depreciation and amortization4,072 3,748 15,699 15,059 
Stock-based compensation6,029 7,988 26,757 37,720 
Restructuring charges3,892 — 3,892 — 
Adjusted EBITDA$(9,502)$3,071 $(8,754)$22,562 


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,
2022202120222021
Net loss$(22,659)$(8,750)$(54,579)$(29,669)
Add back:
Stock-based compensation(1)
6,029 7,988 26,757 37,720 
Amortization of purchased intangibles (1)
435 518 1,674 2,671 
Restructuring charges3,892 — 3,892 — 
Non-GAAP net income (loss)(12,303)(244)(22,256)10,722 
GAAP weighted-average shares outstanding45,039 43,277 44,436 42,142 
Participating securities— — — 699 
Non-GAAP weighted-average number of shares, basic45,039 43,277 44,436 42,841 
Dilutive effect of common stock equivalents— — — 4,341 
Non-GAAP weighted-average number of shares, diluted45,039 43,277 44,436 47,182 
Non-GAAP net income (loss) per share, basic$(0.27)$(0.01)$(0.50)$0.25 
Non-GAAP net income (loss) per share, diluted$(0.27)$(0.01)$(0.50)$0.23 
(1) There is no income tax effect related to the stock-based compensation and amortization of purchased intangibles adjustments due to the full valuation allowance in the United States.