nLIGHT (LASR) 10-Q 6 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 03, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-38462
Entity Registrant Name	NLIGHT, INC.
Entity Incorporation, Date of Incorporation	DE
Entity Tax Identification Number	91-2066376
Entity Address, Address Line One	4637 NW 18th Avenue
Entity Address, City or Town	Camas
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98607
City Area Code	360
Local Phone Number	566-4460
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	LASR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Smaller Reporting Company	false
Emerging Growth	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		43,198,143
Entity Central Index Key	0001124796
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 175,364	$ 102,282
Accounts receivable, net of allowances of $298 and $367	36,829	31,820
Inventory	63,296	54,706
Prepaid expenses and other current assets	11,568	11,767
Total current assets	287,057	200,575
Restricted cash	250	291
Lease right-of-use assets	17,887	12,302
Property, plant and equipment, net of accumulated depreciation of $70,216 and $66,262	49,378	44,480
Intangible assets, net of accumulated amortization of $7,693 and $6,280	6,519	8,345
Goodwill	12,457	12,484
Other assets, net	5,026	5,167
Total assets	378,574	283,644
Current liabilities:
Accounts payable	25,677	21,057
Accrued liabilities	15,564	15,321
Deferred revenues	2,666	2,528
Current portion of lease liabilities	2,921	2,273
Current portion of long-term debt	0	184
Total current liabilities	46,828	41,363
Non-current income taxes payable	6,882	7,556
Long-term lease liabilities	15,505	10,375
Long-term debt	30	215
Other long-term liabilities	4,683	4,221
Total liabilities	73,928	63,730
Stockholders' equity:
Common stock - $0.0001 par value; 190,000 shares authorized, 43,181 shares issued and outstanding at June 30, 2021, and 39,793 shares issued and outstanding at December 31, 2020	15	15
Additional paid-in capital	457,480	358,544
Accumulated other comprehensive loss	(424)	(259)
Accumulated deficit	(152,425)	(138,386)
Total stockholders’ equity	304,646	219,914
Total liabilities and stockholders’ equity	$ 378,574	$ 283,644

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ 298	$ 367
Property and equipment, accumulated depreciation	70,216	66,262
Intangible assets, accumulated amortization	$ 7,693	$ 6,280
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	190,000	190,000
Common stock, shares issued (in shares)	43,181	39,793
Common stock, shares outstanding (in shares)	43,181	39,793

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Total revenue	$ 69,113	$ 52,138	$ 130,458	$ 95,353
Total cost of revenue	48,788	39,082	92,488	72,796
Gross profit	20,325	13,056	37,970	22,557
Operating expenses:
Research and development	14,282	9,472	25,992	18,010
Sales, general, and administrative	15,057	9,633	26,771	17,333
Total operating expenses	29,339	19,105	52,763	35,343
Loss from operations	(9,014)	(6,049)	(14,793)	(12,786)
Other income (expense):
Interest income (expense), net	(32)	(65)	(106)	218
Other income (expense), net	118	(298)	144	(414)
Loss before income taxes	(8,928)	(6,412)	(14,755)	(12,982)
Income tax expense (benefit)	(1,038)	418	(716)	1,323
Net loss	$ (7,890)	$ (6,830)	$ (14,039)	$ (14,305)
Net income (loss) per share, basic (in dollars per share)	$ (0.19)	$ (0.18)	$ (0.34)	$ (0.38)
Net income (loss) per share, diluted (in dollars per share)	$ (0.19)	$ (0.18)	$ (0.34)	$ (0.38)
Shares used in per share calculations, basic (in shares)	42,313	38,177	41,187	38,003
Shares used in per share calculations, diluted (in shares)	42,313	38,177	41,187	38,003
Products
Total revenue	$ 53,561	$ 45,104	$ 100,896	$ 82,034
Total cost of revenue	34,240	32,597	64,635	60,497
Development
Total revenue	15,552	7,034	29,562	13,319
Total cost of revenue	$ 14,548	$ 6,485	$ 27,853	$ 12,299

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (7,890)	$ (6,830)	$ (14,039)	$ (14,305)
Other comprehensive loss:
Foreign currency translation adjustments, net of tax	497	333	(165)	(163)
Comprehensive loss	$ (7,393)	$ (6,497)	$ (14,204)	$ (14,468)

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated other comprehensive loss	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2019		38,084
Beginning balance at Dec. 31, 2019	$ 216,608	$ 15	$ 336,732	$ (2,685)	$ (117,454)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(14,305)				(14,305)
Issuance of common stock pursuant to exercise of stock options (in shares)		518
Issuance of common stock pursuant to exercise of stock options	857		857
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)		209
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	(2,157)		(2,157)
Issuance of common stock under the employee stock purchase plan (in shares)		39
Issuance of common stock under the Employee Stock Purchase Plan	685		685
Stock-based compensation	9,800		9,800
Cumulative translation adjustment, net of tax	(163)			(163)
Ending balance (in shares) at Jun. 30, 2020		38,850
Ending balance at Jun. 30, 2020	211,325	$ 15	345,917	(2,848)	(131,759)
Beginning balance (in shares) at Mar. 31, 2020		38,473
Beginning balance at Mar. 31, 2020	212,947	$ 15	341,042	(3,181)	(124,929)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(6,830)				(6,830)
Issuance of common stock pursuant to exercise of stock options (in shares)		145
Issuance of common stock pursuant to exercise of stock options	299		299
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)		193
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	(2,146)		(2,146)
Issuance of common stock under the employee stock purchase plan (in shares)		39
Issuance of common stock under the Employee Stock Purchase Plan	685		685
Stock-based compensation	6,037		6,037
Cumulative translation adjustment, net of tax	333			333
Ending balance (in shares) at Jun. 30, 2020		38,850
Ending balance at Jun. 30, 2020	$ 211,325	$ 15	345,917	(2,848)	(131,759)
Beginning balance (in shares) at Dec. 31, 2020	39,793	39,793
Beginning balance at Dec. 31, 2020	$ 219,914	$ 15	358,544	(259)	(138,386)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(14,039)				(14,039)
Proceeds from follow-on offering, net of offering costs (in shares)		2,537
Proceeds from follow-on offering, net of offering costs	$ 82,354		82,354
Issuance of common stock pursuant to exercise of stock options (in shares)	553	553
Issuance of common stock pursuant to exercise of stock options	$ 770		770
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)		265
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	$ (4,598)		(4,598)
Issuance of common stock under the employee stock purchase plan (in shares)	33	33
Issuance of common stock under the Employee Stock Purchase Plan	$ 750		750
Stock-based compensation	19,660		19,660
Cumulative translation adjustment, net of tax	$ (165)			(165)
Ending balance (in shares) at Jun. 30, 2021	43,181	43,181
Ending balance at Jun. 30, 2021	$ 304,646	$ 15	457,480	(424)	(152,425)
Beginning balance (in shares) at Mar. 31, 2021		42,783
Beginning balance at Mar. 31, 2021	304,055	$ 15	449,496	(921)	(144,535)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(7,890)				(7,890)
Offering costs	(1)		(1)
Issuance of common stock pursuant to exercise of stock options (in shares)		101
Issuance of common stock pursuant to exercise of stock options	196		196
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares)		264
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax	(4,567)		(4,567)
Issuance of common stock under the employee stock purchase plan (in shares)		33
Issuance of common stock under the Employee Stock Purchase Plan	750		750
Stock-based compensation	11,606		11,606
Cumulative translation adjustment, net of tax	$ 497			497
Ending balance (in shares) at Jun. 30, 2021	43,181	43,181
Ending balance at Jun. 30, 2021	$ 304,646	$ 15	$ 457,480	$ (424)	$ (152,425)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net loss	$ (14,039)	$ (14,305)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	4,290	3,614
Amortization	3,122	2,815
Reduction in carrying amount of right-of-use assets	1,632	1,425
Provision for (recoveries of) losses on accounts receivable	(72)	62
Stock-based compensation	19,660	9,800
Deferred income taxes	(11)	0
Loss on disposal of assets	3	0
Changes in operating assets and liabilities:
Accounts receivable, net	(4,849)	3,012
Inventory	(8,611)	(4,457)
Prepaid expenses and other current assets	175	(1,801)
Other assets	(905)	(2,131)
Accounts payable	3,335	7,400
Accrued and other long-term liabilities	1,347	1,243
Deferred revenues	133	1,519
Lease liabilities	(1,404)	(1,428)
Non-current income taxes payable	(721)	234
Net cash provided by operating activities	3,085	7,002
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(291)	0
Purchases of property, plant and equipment	(7,962)	(17,040)
Capitalization of patents	(216)	(628)
Net cash used in investing activities	(8,469)	(17,668)
Cash flows from financing activities:
Proceeds from public offerings, net of offering costs	82,354	0
Proceeds from term loan	0	15,000
Principal payments on debt and financing leases	(399)	(45)
Payment of contingent consideration related to acquisition	(326)	0
Proceeds from employee stock plan purchases	750	685
Proceeds from stock option exercises	770	857
Tax payments related to stock award issuances	(4,598)	(2,157)
Net cash provided by financing activities	78,551	14,340
Effect of exchange rate changes on cash	(126)	(27)
Net increase in cash, cash equivalents, and restricted cash	73,041	3,647
Cash, cash equivalents, and restricted cash, beginning of period	102,573	117,293
Cash, cash equivalents, and restricted cash, end of period	175,614	120,940
Supplemental disclosures:
Cash paid (received) for interest, net	103	(316)
Cash paid for income taxes	393	1,015
Right-of-use assets obtained in exchange for lease liabilities	7,224	12,408
Accrued purchases of property, equipment and patents	$ 2,139	$ 993

Basis of Presentation and New A

Basis of Presentation and New Accounting Pronouncements	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation and New Accounting Pronouncements	Basis of Presentation and New Accounting Pronouncements Basis of Presentation The accompanying consolidated financial statements of nLIGHT, Inc. and our wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K. Critical Accounting Policies Our critical accounting policies have not materially changed during the six months ended June 30, 2021 from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020. New Accounting Pronouncements ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05 and ASU 2020-03 The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , in June 2016. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For assets measured at amortized cost, the new standard requires that the income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 was amended in November 2018, April 2019 and March 2020. We adopted ASU 2016-13, as amended, on January 1, 2021 on a prospective basis. The adoption did not have a material impact on our financial position, results of operations or cash flows. ASU 2019-12 The FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , in December 2019. ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. We adopted ASU 2019-12 on January 1, 2021 on a prospective basis. The adoption did not have a material impact on our financial position, results of operations or cash flows.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions OPI On July 30, 2020, we acquired the outstanding shares of OPI Photonics S.r.l. (OPI), an Italian limited liability company, for cash consideration of approximately $1.6 million, of which $0.2 million was paid at closing with the remaining $1.4 million to be paid over the next 24 months. The acquisition price was allocated to the tangible and identified intangible assets acquired and liabilities assumed as of the closing date of the acquisition based upon their respective fair values, and the excess of purchase price over the fair value amounts representing goodwill. The fair values assigned to assets acquired and liabilities assumed were based on management’s best estimates and assumptions as of the reporting date and are considered preliminary. Changes to amounts recorded as assets or liabilities may result in corresponding adjustments to goodwill. Pro forma financial information has not been provided for the purchase as it was not material to our overall financial position. During the three and six months ended June 30, 2021, accrued acquisition consideration of $0.3 million and $0.6 million, respectively, was paid to the sellers of OPI.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue	Revenue The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands): Sales by End Market Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Industrial $ 24,907 $ 22,630 $ 46,307 $ 38,620 Microfabrication 20,274 14,300 35,489 24,719 Aerospace and Defense 23,932 15,208 48,662 32,014 $ 69,113 $ 52,138 $ 130,458 $ 95,353 Sales by Geography Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 North America $ 33,095 $ 20,494 $ 64,229 $ 41,540 China 18,759 21,495 34,336 33,537 Rest of World 17,259 10,149 31,893 20,276 $ 69,113 $ 52,138 $ 130,458 $ 95,353 Sales by Timing of Revenue Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Point in time $ 50,123 $ 45,273 $ 97,117 $ 82,203 Over time 18,990 6,865 33,341 13,150 $ 69,113 $ 52,138 $ 130,458 $ 95,353 Our contract assets and liabilities are as follows (in thousands): Balance Sheet Classification As of June 30, 2021 December 31, 2020 Contract assets Prepaid expenses and $ 6,880 $ 5,680 Contract liabilities Deferred revenue and other long-term liabilities 3,152 2,985 During the three and six months ended June 30, 2021, we recognized revenue of $2.3 million and $3.7 million, respectively, that was included in the deferred revenue balances at the beginning of the periods as the performance obligations under the associated agreements were satisfied.

Concentrations of Credit and Ot

Concentrations of Credit and Other Risks	6 Months Ended
	Jun. 30, 2021
Risks and Uncertainties [Abstract]
Concentrations of Credit and Other Risks	Concentrations of Credit and Other Risks The following customers accounted for 10% or more of our revenues for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 U.S. Government 20% 12% 20% 11% Quick Laser Technology Co., Ltd. (1) 15% (1) 12% Raytheon Technologies (1) 11% (1) 13% (1) Represents less than 10% of total revenues

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying amounts of certain of our financial instruments, including cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities are shown at cost which approximates fair value due to the short-term nature of these instruments. The fair value of our term and revolving loans approximates the carrying value due to the variable market rate used to calculate interest payments. We do not have any other significant financial assets or liabilities that are measured at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: • Level 1 Inputs: Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date. • Level 2 Inputs: Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 Inputs: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our financial instruments that are carried at fair value consist of Level 1 assets which include highly liquid investments and bank drafts classified as cash equivalents. Our fair value hierarchy for our financial instruments consists of cash equivalents as follows (in thousands): June 30, 2021 Level 1 Level 2 Level 3 Total Money market securities $ 156,893 $ — $ — $ 156,893 Commercial paper 1,873 — — 1,873 Total $ 158,766 $ — $ — $ 158,766 December 31, 2020 Level 1 Level 2 Level 3 Total Money market securities $ 74,084 $ — $ — $ 74,084 Commercial paper 1,584 — — 1,584 Total $ 75,668 $ — $ — $ 75,668

Inventory

Inventory	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
Inventory	Inventory Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Inventory consisted of the following (in thousands): As of June 30, 2021 December 31, 2020 Raw materials $ 25,289 $ 21,410 Work in process and semi-finished goods 23,061 21,320 Finished goods 14,946 11,976 $ 63,296 $ 54,706

Property, Plant and Equipment

Property, Plant and Equipment	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment consist of the following (in thousands): As of Useful life (years) June 30, 2021 December 31, 2020 Automobile 3 $ 113 $ 34 Computer hardware and software 3-5 5,806 4,840 Manufacturing and lab equipment 2-7 73,360 69,849 Office equipment and furniture 5-7 1,849 1,605 Leasehold and building improvements 2-12 25,675 21,934 Buildings 30 9,392 9,081 Land N/A 3,399 3,399 119,594 110,742 Accumulated depreciation (70,216) (66,262) $ 49,378 $ 44,480

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible Assets and Goodwill Intangibles The details of amortizing intangible assets are as follows (in thousands, except for estimated useful lives): Estimated useful life As of June 30, 2021 December 31, 2020 Patents 3 - 5 $ 5,887 $ 6,199 Development programs 2 - 4 7,200 7,200 Developed technology 5 1,125 1,226 14,212 14,625 Accumulated amortization (7,693) (6,280) $ 6,519 $ 8,345 Estimated amortization expense for future years is as follows (in thousands): Remainder of 2021 $ 1,883 2022 2,402 2023 1,720 2024 378 2025 136 $ 6,519 Goodwill The carrying amount of goodwill by segment was as follows (in thousands): Laser Products Advanced Development Totals Balance, December 31, 2020 $ 2,236 $ 10,248 $ 12,484 Currency exchange rate adjustment (27) — (27) Balance, June 30, 2021 $ 2,209 $ 10,248 $ 12,457

Accrued Liabilities

Accrued Liabilities	6 Months Ended
	Jun. 30, 2021
Payables and Accruals [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following (in thousands): As of June 30, 2021 December 31, 2020 Accrued payroll and benefits $ 12,293 $ 10,770 Product warranty, current 2,246 2,122 Income tax payable 53 401 Other accrued expenses 972 2,028 $ 15,564 $ 15,321

Product Warranties

Product Warranties	6 Months Ended
	Jun. 30, 2021
Guarantees and Product Warranties [Abstract]
Product Warranties	Product Warranties We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs. Product warranty liability activity was as follows for the periods presented (in thousands): Six Months Ended June 30, 2021 2020 Product warranty liability, beginning $ 4,711 $ 2,984 Warranty charges incurred, net (1,132) (1,531) Provision for warranty charges, net of adjustments 1,779 2,271 Acquired warranty — 100 Product warranty liability, ending 5,358 3,824 Less: current portion of product warranty liability (2,246) (1,918) Non-current portion of product warranty liability $ 3,112 $ 1,906

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases See Note 12. Legal Matters From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. As of June 30, 2021, and as of the filing of this Quarterly Report on Form 10-Q, we were not involved in any material legal proceedings.

Leases

Leases	6 Months Ended
	Jun. 30, 2021
Leases [Abstract]
Leases	Leases We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space. Facilities-related operating leases have remaining terms of 0.3 to 13.9 years, and some leases include options to extend up to 15 years. Other leases for automobiles, manufacturing and office and computer equipment have remaining lease terms of 0.1 to 4.9 years. These leases are primarily operating leases; financing leases are not material. We did not include any renewal options in our lease terms for calculating the lease liabilities as we are not reasonably certain we will exercise the options at this time. The weighted-average remaining lease term for the lease obligations was 9 years at June 30, 2021, and the weighted-average discount rate was 3.6%. The components of lease expense related to operating leases were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease expense: Operating lease expense $ 1,092 $ 651 $ 1,966 $ 1,420 Short-term lease expense 210 31 283 118 Variable and other lease expense 235 107 357 253 $ 1,537 $ 789 $ 2,606 $ 1,791 Future minimum payments under our non-cancelable lease obligations were as follows as of June 30, 2021 (in thousands): Remainder of 2021 $ 1,819 2022 3,299 2023 2,479 2024 2,345 2025 1,896 Thereafter 10,011 Total minimum lease payments 21,849 Less: interest (3,423) Present value of net minimum lease payments 18,426 Less: current portion of lease liabilities (2,921) Total long-term lease liabilities $ 15,505

Stockholders' Equity and Stock-

Stockholders' Equity and Stock-Based Compensation	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Stockholders' Equity and Stock-Based Compensation	Stockholders' Equity and Stock-Based Compensation Public Offering In March 2021, we closed a follow-on public offering in which we issued and sold approximately 2.5 million shares of common stock (including approximately 0.3 million shares sold pursuant to the full exercise of the underwriters option to purchase additional shares) at an offering price of $34.00 per share, resulting in aggregate net proceeds to us of approximately $82.4 million after deducting underwriting discounts, commissions and offering costs. Restricted Stock Awards and Units Restricted stock award (RSA) and restricted stock unit (RSU) activity under our equity incentive plan was as follows (in thousands, except weighted-average grant date fair values): Number of Restricted Stock Awards Weighted-Average Grant Date Fair Value RSAs at December 31, 2020 653 $ 21.30 Awards granted — — Awards vested (124) 21.88 RSAs at June 30, 2021 529 $ 21.16 Number of Restricted Stock Units Weighted-Average Grant Date Fair Value RSUs at December 31, 2020 2,800 $ 20.54 Awards granted 125 35.12 Awards vested (420) 23.17 Awards forfeited (19) 22.51 RSUs at June 30, 2021 2,486 $ 20.81 The total fair value of RSAs and RSUs vested during the six months ended June 30, 2021 was $2.7 million and $9.7 million, respectively. Awards outstanding as of June 30, 2021 include 0.7 million performance-based awards that will vest upon meeting certain performance criteria. Stock Options The following table summarizes our stock option activity during the six months ended June 30, 2021 (in thousands, except weighted-average exercise prices): Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, December 31, 2020 3,358 $1.53 5.3 $104,510 Options exercised (553) $1.39 Options canceled (2) $4.10 Outstanding, June 30, 2021 2,803 $1.55 4.9 $97,345 Options exercisable at June 30, 2021 2,416 $1.18 4.7 $84,789 Options vested as of June 30, 2021 and expected to vest after June 30, 2021 2,803 $1.55 4.9 $97,345 Total intrinsic value of options exercised for the six months ended June 30, 2021 and 2020 was $17.8 million and $8.8 million, respectively. We received proceeds of $0.8 million and $0.9 million from the exercise of options for each of the six months ended June 30, 2021 and 2020. Employee Stock Purchase Plan Information related to activity under our Employee Stock Purchase Plan (ESPP) was as follows (in thousands, except weighted average per share prices): Six Months Ended June 30, 2021 Shares issued 33 Weighted-average per share purchase price $ 22.41 Weighted-average per share discount from the fair value of our common stock on date of issuance $ 3.95 Stock-Based Compensation Total stock-based compensation expense was included in our consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenues $ 549 $ 339 $ 1,040 $ 684 Research and development 3,708 2,275 6,626 4,057 Sales, general and administrative 7,349 3,423 11,994 5,059 $ 11,606 $ 6,037 $ 19,660 $ 9,800 Unrecognized Compensation Costs As of June 30, 2021, total unrecognized stock-based compensation was $53.2 million, which will be recognized over an average expected recognition period of 2.3 years. Common Stock Repurchase Plan On November 14, 2019, our Board of Directors authorized the repurchase of up to $10.0 million of our outstanding shares of common stock. As of June 30, 2021, no repurchases had been executed under the program.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Segment Information	Segment Information We operate in two reportable segments consisting of the Laser Products segment and the Advanced Development segment. The following table summarizes the operating results by reportable segment for the periods presented (dollars in thousands): Three Months Ended June 30, 2021 Laser Products Advanced Development Corporate and Other Totals Revenue $ 53,561 $ 15,552 $ — $ 69,113 Gross profit $ 19,871 $ 1,004 $ (550) $ 20,325 Gross margin 37.1 % 6.5 % NM 29.4 % Six Months Ended June 30, 2021 Laser Products Advanced Development Corporate and Other Totals Revenue $ 100,896 $ 29,562 $ — $ 130,458 Gross profit $ 37,302 $ 1,709 $ (1,041) $ 37,970 Gross margin 37.0 % 5.8 % NM 29.1 % Three Months Ended June 30, 2020 Laser Products Advanced Development Corporate and Other Totals Revenue $ 45,104 $ 7,034 $ — $ 52,138 Gross profit $ 12,846 $ 549 $ (339) $ 13,056 Gross margin 28.5 % 7.8 % NM 25.0 % Six Months Ended June 30, 2020 Laser Products Advanced Development Corporate and Other Totals Revenue $ 82,034 $ 13,319 $ — $ 95,353 Gross profit $ 22,221 $ 1,020 $ (684) $ 22,557 Gross margin 27.1 % 7.7 % NM 23.7 % Corporate and Other is unallocated expenses related to stock-based compensation. There have been no material changes to the geographic locations of our long‑lived assets, net, based on the location of the assets, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2020.

Net Loss per Share

Net Loss per Share	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Net Loss per Share	Net Loss per Share Basic and diluted net loss and the number of shares used for basic and diluted net loss calculations were the same for all period presented because we were in a loss position. The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Restricted stock units and awards 2,057 2,293 2,182 2,260 Employee stock purchase plan 3 20 6 — Common stock options 2,803 3,711 2,803 3,711 4,863 6,024 4,991 5,971

Basis of Presentation and New_2

Basis of Presentation and New Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements of nLIGHT, Inc. and our wholly owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2020 Annual Report on Form 10-K.
New Accounting Pronouncements	New Accounting Pronouncements ASU 2016-13, ASU 2018-19, ASU 2019-04, ASU 2019-05 and ASU 2020-03 The Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , in June 2016. ASU 2016-13 replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For assets measured at amortized cost, the new standard requires that the income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. ASU 2016-13 was amended in November 2018, April 2019 and March 2020. We adopted ASU 2016-13, as amended, on January 1, 2021 on a prospective basis. The adoption did not have a material impact on our financial position, results of operations or cash flows. ASU 2019-12 The FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , in December 2019. ASU 2019-12 simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. We adopted ASU 2019-12 on January 1, 2021 on a prospective basis. The adoption did not have a material impact on our financial position, results of operations or cash flows.
Inventory	Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis.
Product Warranties	We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Schedule of Sales by End Market	The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands): Sales by End Market Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Industrial $ 24,907 $ 22,630 $ 46,307 $ 38,620 Microfabrication 20,274 14,300 35,489 24,719 Aerospace and Defense 23,932 15,208 48,662 32,014 $ 69,113 $ 52,138 $ 130,458 $ 95,353
Schedule of Sales by Geography	Sales by Geography Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 North America $ 33,095 $ 20,494 $ 64,229 $ 41,540 China 18,759 21,495 34,336 33,537 Rest of World 17,259 10,149 31,893 20,276 $ 69,113 $ 52,138 $ 130,458 $ 95,353
Schedule of Sales by Timing of Revenue	Sales by Timing of Revenue Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Point in time $ 50,123 $ 45,273 $ 97,117 $ 82,203 Over time 18,990 6,865 33,341 13,150 $ 69,113 $ 52,138 $ 130,458 $ 95,353
Schedule of Contract Assets and Liabilities	Our contract assets and liabilities are as follows (in thousands): Balance Sheet Classification As of June 30, 2021 December 31, 2020 Contract assets Prepaid expenses and $ 6,880 $ 5,680 Contract liabilities Deferred revenue and other long-term liabilities 3,152 2,985

Concentrations of Credit and _2

Concentrations of Credit and Other Risks (Tables)	6 Months Ended
	Jun. 30, 2021
Risks and Uncertainties [Abstract]
Schedule of Concentration of Credit	The following customers accounted for 10% or more of our revenues for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 U.S. Government 20% 12% 20% 11% Quick Laser Technology Co., Ltd. (1) 15% (1) 12% Raytheon Technologies (1) 11% (1) 13%

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Schedule of Fair Value Hierarchy for Its Cash Equivalents	Our fair value hierarchy for our financial instruments consists of cash equivalents as follows (in thousands): June 30, 2021 Level 1 Level 2 Level 3 Total Money market securities $ 156,893 $ — $ — $ 156,893 Commercial paper 1,873 — — 1,873 Total $ 158,766 $ — $ — $ 158,766 December 31, 2020 Level 1 Level 2 Level 3 Total Money market securities $ 74,084 $ — $ — $ 74,084 Commercial paper 1,584 — — 1,584 Total $ 75,668 $ — $ — $ 75,668

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
Schedule of Components of Inventory	Inventory consisted of the following (in thousands): As of June 30, 2021 December 31, 2020 Raw materials $ 25,289 $ 21,410 Work in process and semi-finished goods 23,061 21,320 Finished goods 14,946 11,976 $ 63,296 $ 54,706

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Summary of Property and Equipment	Property, plant and equipment consist of the following (in thousands): As of Useful life (years) June 30, 2021 December 31, 2020 Automobile 3 $ 113 $ 34 Computer hardware and software 3-5 5,806 4,840 Manufacturing and lab equipment 2-7 73,360 69,849 Office equipment and furniture 5-7 1,849 1,605 Leasehold and building improvements 2-12 25,675 21,934 Buildings 30 9,392 9,081 Land N/A 3,399 3,399 119,594 110,742 Accumulated depreciation (70,216) (66,262) $ 49,378 $ 44,480

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets	The details of amortizing intangible assets are as follows (in thousands, except for estimated useful lives): Estimated useful life As of June 30, 2021 December 31, 2020 Patents 3 - 5 $ 5,887 $ 6,199 Development programs 2 - 4 7,200 7,200 Developed technology 5 1,125 1,226 14,212 14,625 Accumulated amortization (7,693) (6,280) $ 6,519 $ 8,345
Schedule of Estimated Future Amortization Expense	Estimated amortization expense for future years is as follows (in thousands): Remainder of 2021 $ 1,883 2022 2,402 2023 1,720 2024 378 2025 136 $ 6,519
Schedule of Goodwill	The carrying amount of goodwill by segment was as follows (in thousands): Laser Products Advanced Development Totals Balance, December 31, 2020 $ 2,236 $ 10,248 $ 12,484 Currency exchange rate adjustment (27) — (27) Balance, June 30, 2021 $ 2,209 $ 10,248 $ 12,457

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
	Jun. 30, 2021
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): As of June 30, 2021 December 31, 2020 Accrued payroll and benefits $ 12,293 $ 10,770 Product warranty, current 2,246 2,122 Income tax payable 53 401 Other accrued expenses 972 2,028 $ 15,564 $ 15,321

Product Warranties (Tables)

Product Warranties (Tables)	6 Months Ended
	Jun. 30, 2021
Guarantees and Product Warranties [Abstract]
Schedule of Reconciliation of the Changes in the Aggregate Product Warranty Liability	Product warranty liability activity was as follows for the periods presented (in thousands): Six Months Ended June 30, 2021 2020 Product warranty liability, beginning $ 4,711 $ 2,984 Warranty charges incurred, net (1,132) (1,531) Provision for warranty charges, net of adjustments 1,779 2,271 Acquired warranty — 100 Product warranty liability, ending 5,358 3,824 Less: current portion of product warranty liability (2,246) (1,918) Non-current portion of product warranty liability $ 3,112 $ 1,906

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2021
Leases [Abstract]
Schedule of Components of Lease Expense	The components of lease expense related to operating leases were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Lease expense: Operating lease expense $ 1,092 $ 651 $ 1,966 $ 1,420 Short-term lease expense 210 31 283 118 Variable and other lease expense 235 107 357 253 $ 1,537 $ 789 $ 2,606 $ 1,791
Schedule of Future Minimum Payments Under Non-cancelable Lease Obligations	Future minimum payments under our non-cancelable lease obligations were as follows as of June 30, 2021 (in thousands): Remainder of 2021 $ 1,819 2022 3,299 2023 2,479 2024 2,345 2025 1,896 Thereafter 10,011 Total minimum lease payments 21,849 Less: interest (3,423) Present value of net minimum lease payments 18,426 Less: current portion of lease liabilities (2,921) Total long-term lease liabilities $ 15,505

Stockholders' Equity and Stoc_2

Stockholders' Equity and Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
Schedule of Restricted Stock Awards and Units	Restricted stock award (RSA) and restricted stock unit (RSU) activity under our equity incentive plan was as follows (in thousands, except weighted-average grant date fair values): Number of Restricted Stock Awards Weighted-Average Grant Date Fair Value RSAs at December 31, 2020 653 $ 21.30 Awards granted — — Awards vested (124) 21.88 RSAs at June 30, 2021 529 $ 21.16 Number of Restricted Stock Units Weighted-Average Grant Date Fair Value RSUs at December 31, 2020 2,800 $ 20.54 Awards granted 125 35.12 Awards vested (420) 23.17 Awards forfeited (19) 22.51 RSUs at June 30, 2021 2,486 $ 20.81
Schedule of Stock Option Activity	The following table summarizes our stock option activity during the six months ended June 30, 2021 (in thousands, except weighted-average exercise prices): Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, December 31, 2020 3,358 $1.53 5.3 $104,510 Options exercised (553) $1.39 Options canceled (2) $4.10 Outstanding, June 30, 2021 2,803 $1.55 4.9 $97,345 Options exercisable at June 30, 2021 2,416 $1.18 4.7 $84,789 Options vested as of June 30, 2021 and expected to vest after June 30, 2021 2,803 $1.55 4.9 $97,345
Schedule of Employee Stock Purchase Plan	Information related to activity under our Employee Stock Purchase Plan (ESPP) was as follows (in thousands, except weighted average per share prices): Six Months Ended June 30, 2021 Shares issued 33 Weighted-average per share purchase price $ 22.41 Weighted-average per share discount from the fair value of our common stock on date of issuance $ 3.95
Schedule of Stock-based Compensation Expense	Total stock-based compensation expense was included in our consolidated statements of operations as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenues $ 549 $ 339 $ 1,040 $ 684 Research and development 3,708 2,275 6,626 4,057 Sales, general and administrative 7,349 3,423 11,994 5,059 $ 11,606 $ 6,037 $ 19,660 $ 9,800

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Summary of Operating Results by Reportable Segment	The following table summarizes the operating results by reportable segment for the periods presented (dollars in thousands): Three Months Ended June 30, 2021 Laser Products Advanced Development Corporate and Other Totals Revenue $ 53,561 $ 15,552 $ — $ 69,113 Gross profit $ 19,871 $ 1,004 $ (550) $ 20,325 Gross margin 37.1 % 6.5 % NM 29.4 % Six Months Ended June 30, 2021 Laser Products Advanced Development Corporate and Other Totals Revenue $ 100,896 $ 29,562 $ — $ 130,458 Gross profit $ 37,302 $ 1,709 $ (1,041) $ 37,970 Gross margin 37.0 % 5.8 % NM 29.1 % Three Months Ended June 30, 2020 Laser Products Advanced Development Corporate and Other Totals Revenue $ 45,104 $ 7,034 $ — $ 52,138 Gross profit $ 12,846 $ 549 $ (339) $ 13,056 Gross margin 28.5 % 7.8 % NM 25.0 % Six Months Ended June 30, 2020 Laser Products Advanced Development Corporate and Other Totals Revenue $ 82,034 $ 13,319 $ — $ 95,353 Gross profit $ 22,221 $ 1,020 $ (684) $ 22,557 Gross margin 27.1 % 7.7 % NM 23.7 %

Net Loss per Share (Tables)

Net Loss per Share (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
Schedule of Potentially Dilutive Shares Not Included in Calculation of Diluted Shares	The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Restricted stock units and awards 2,057 2,293 2,182 2,260 Employee stock purchase plan 3 20 6 — Common stock options 2,803 3,711 2,803 3,711 4,863 6,024 4,991 5,971

Acquisitions (Details)

Acquisitions (Details) - USD ($) $ in Thousands	Jul. 30, 2020	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition [Line Items]
Payment of contingent consideration liability for acquisition-date fair value			$ 326	$ 0
OPI Photonics
Business Acquisition [Line Items]
Acquisition consideration, cash	$ 1,600
Acquisition paid	200
Remaining amount	$ 1,400
Payment period	24 months
Payment of contingent consideration liability for acquisition-date fair value		$ 300	$ 600

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Total revenue	$ 69,113	$ 52,138	$ 130,458	$ 95,353
Point in time
Disaggregation of Revenue [Line Items]
Total revenue	50,123	45,273	97,117	82,203
Over time
Disaggregation of Revenue [Line Items]
Total revenue	18,990	6,865	33,341	13,150
North America
Disaggregation of Revenue [Line Items]
Total revenue	33,095	20,494	64,229	41,540
China
Disaggregation of Revenue [Line Items]
Total revenue	18,759	21,495	34,336	33,537
Rest of World
Disaggregation of Revenue [Line Items]
Total revenue	17,259	10,149	31,893	20,276
Industrial
Disaggregation of Revenue [Line Items]
Total revenue	24,907	22,630	46,307	38,620
Microfabrication
Disaggregation of Revenue [Line Items]
Total revenue	20,274	14,300	35,489	24,719
Aerospace and Defense
Disaggregation of Revenue [Line Items]
Total revenue	$ 23,932	$ 15,208	$ 48,662	$ 32,014

Revenue - Contract Assets and L

Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract assets	$ 6,880	$ 5,680
Contract liabilities	$ 3,152	$ 2,985

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue recognized, previously included in customer advances and deferred revenue	$ 2.3	$ 3.7

Concentrations of Credit and _3

Concentrations of Credit and Other Risks (Details) - Customer Concentration Risk	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Sales Revenue | U.S. Government
Concentration Risk [Line Items]
Concentration risk, percentage	20.00%	12.00%	20.00%	11.00%
Sales Revenue | Quick Laser Technology Co., Ltd.
Concentration Risk [Line Items]
Concentration risk, percentage		15.00%		12.00%
Sales Revenue | Raytheon Technologies
Concentration Risk [Line Items]
Concentration risk, percentage		11.00%		13.00%
Accounts Receivable | Two Customers
Concentration Risk [Line Items]
Concentration risk, percentage			34.00%		43.00%

Fair Value of Financial Instr_3

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	$ 158,766	$ 75,668
Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	158,766	75,668
Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	0	0
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	0	0
Money market securities
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	156,893	74,084
Money market securities | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	156,893	74,084
Money market securities | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	0	0
Money market securities | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	0	0
Commercial paper
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	1,873	1,584
Commercial paper | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	1,873	1,584
Commercial paper | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	0	0
Commercial paper | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents, fair value	$ 0	$ 0

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw materials	$ 25,289	$ 21,410
Work in process and semi-finished goods	23,061	21,320
Finished goods	14,946	11,976
Inventory	$ 63,296	$ 54,706

Property, Plant and Equipment_2

Property, Plant and Equipment (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 119,594	$ 110,742
Accumulated depreciation	(70,216)	(66,262)
Property and equipment, net	$ 49,378	44,480
Automobile
Property, Plant and Equipment [Line Items]
Useful life (years)	3 years
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 113	34
Computer hardware and software
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 5,806	4,840
Computer hardware and software | Minimum
Property, Plant and Equipment [Line Items]
Useful life (years)	3 years
Computer hardware and software | Maximum
Property, Plant and Equipment [Line Items]
Useful life (years)	5 years
Manufacturing and lab equipment
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 73,360	69,849
Manufacturing and lab equipment | Minimum
Property, Plant and Equipment [Line Items]
Useful life (years)	2 years
Manufacturing and lab equipment | Maximum
Property, Plant and Equipment [Line Items]
Useful life (years)	7 years
Office equipment and furniture
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 1,849	1,605
Office equipment and furniture | Minimum
Property, Plant and Equipment [Line Items]
Useful life (years)	5 years
Office equipment and furniture | Maximum
Property, Plant and Equipment [Line Items]
Useful life (years)	7 years
Leasehold and building improvements
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 25,675	21,934
Leasehold and building improvements | Minimum
Property, Plant and Equipment [Line Items]
Useful life (years)	2 years
Leasehold and building improvements | Maximum
Property, Plant and Equipment [Line Items]
Useful life (years)	12 years
Buildings
Property, Plant and Equipment [Line Items]
Useful life (years)	30 years
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 9,392	9,081
Land
Property, Plant and Equipment, Net [Abstract]
Property and equipment, gross	$ 3,399	$ 3,399

Intangible Assets and Goodwil_2

Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 14,212	$ 14,625
Accumulated amortization	(7,693)	(6,280)
Net value	6,519	8,345
Patents
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	5,887	6,199
Development programs
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 7,200	7,200
Developed technology
Finite-Lived Intangible Assets [Line Items]
Average amortization period	5 years
Gross carrying amount	$ 1,125	$ 1,226
Minimum | Patents
Finite-Lived Intangible Assets [Line Items]
Average amortization period	3 years
Minimum | Development programs
Finite-Lived Intangible Assets [Line Items]
Average amortization period	2 years
Maximum | Patents
Finite-Lived Intangible Assets [Line Items]
Average amortization period	5 years
Maximum | Development programs
Finite-Lived Intangible Assets [Line Items]
Average amortization period	4 years

Intangible Assets and Goodwil_3

Intangible Assets and Goodwill - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2021	$ 1,883
2022	2,402
2023	1,720
2024	378
2025	136
Net value	$ 6,519	$ 8,345

Intangible Assets and Goodwil_4

Intangible Assets and Goodwill - Goodwill (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2021USD ($)
Goodwill [Roll Forward]
Goodwill	$ 12,484
Currency exchange rate adjustment	(27)
Goodwill	12,457
Laser Products
Goodwill [Roll Forward]
Goodwill	2,236
Currency exchange rate adjustment	(27)
Goodwill	2,209
Advanced Development
Goodwill [Roll Forward]
Goodwill	10,248
Currency exchange rate adjustment	0
Goodwill	$ 10,248

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued payroll and benefits	$ 12,293	$ 10,770
Product warranty, current	2,246	2,122
Income tax payable	53	401
Other accrued expenses	972	2,028
Total accrued liabilities	$ 15,564	$ 15,321

Product Warranties (Details)

Product Warranties (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Movement in Standard Product Warranty Accrual [Roll Forward]
Product warranty liability, beginning	$ 4,711	$ 2,984
Warranty charges incurred, net	(1,132)	(1,531)
Provision for warranty charges, net of adjustments	1,779	2,271
Acquired warranty	0	100
Product warranty liability, ending	5,358	3,824
Less: current portion of product warranty liability	(2,246)	(1,918)
Non-current portion of product warranty liability	$ 3,112	$ 1,906

Leases - Narrative (Details)

Leases - Narrative (Details)	Jun. 30, 2021
Lessee, Lease, Description [Line Items]
Weighted-average remaining lease term for operating leases	9 years
Weighted-average discount rate for operating leases	3.60%
Operating Leases, Excluding Automobiles
Lessee, Lease, Description [Line Items]
Renewal lease term	15 years
Operating Leases, Excluding Automobiles | Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	3 months 18 days
Operating Leases, Excluding Automobiles | Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	13 years 10 months 24 days
Operating Leases, Automobiles | Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term	1 month 6 days
Operating Leases, Automobiles | Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term	4 years 10 months 24 days

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases [Abstract]
Operating lease expense	$ 1,092	$ 651	$ 1,966	$ 1,420
Short-term lease expense	210	31	283	118
Variable and other lease expense	235	107	357	253
Lease expense	$ 1,537	$ 789	$ 2,606	$ 1,791

Leases - Future Minimum Payment

Leases - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Remainder of 2021	$ 1,819
2022	3,299
2023	2,479
2024	2,345
2025	1,896
Thereafter	10,011
Total minimum lease payments	21,849
Less: interest	(3,423)
Present value of net minimum lease payments	18,426
Less: current portion of lease liabilities	(2,921)	$ (2,273)
Long-term lease liabilities	$ 15,505	$ 10,375

Stockholders' Equity and Stoc_3

Stockholders' Equity and Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	1 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Nov. 14, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Intrinsic value of options exercised		$ 17,800	$ 8,800
Proceeds from the exercise of options		770	$ 857
Unrecognized expense		$ 53,200
Period for recognition		2 years 3 months 18 days
Common stock repurchase plan, authorized					$ 10,000
Number of shares repurchased (in shares)		0
Restricted Stock Awards (RSAs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested, fair value		$ 2,700
Awards outstanding (in shares)		529		653
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested, fair value		$ 9,700
Awards outstanding (in shares)		2,486		2,800
Performance Restricted Stock Awards and Performance Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards outstanding (in shares)		700
Follow-on Public Offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued (in shares)	2,500
Sale of stock, price per share (in dollars per share)		$ 34
Net proceeds received	$ 82,400
Underwriters Option to Purchase
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued (in shares)	300

Stockholders' Equity and Stoc_4

Stockholders' Equity and Stock-Based Compensation - Summary of Restricted Stock Award and Restricted Stock Unit Activity (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Restricted Stock Awards
Number of restricted shares
Balance, beginning (in shares) | shares	653
Granted (in shares) | shares	0
Vested (in shares) | shares	(124)
Balance, ending (in shares) | shares	529
Weighted-Average Grant Date Fair Value
Balance, beginning (in dollars per share) | $ / shares	$ 21.30
Granted (in dollars per share) | $ / shares	0
Vested (in dollars per share) | $ / shares	21.88
Balance, ending (in dollars per share) | $ / shares	$ 21.16
Restricted Stock Units
Number of restricted shares
Balance, beginning (in shares) | shares	2,800
Granted (in shares) | shares	125
Vested (in shares) | shares	(420)
Forfeited (in shares) | shares	(19)
Balance, ending (in shares) | shares	2,486
Weighted-Average Grant Date Fair Value
Balance, beginning (in dollars per share) | $ / shares	$ 20.54
Granted (in dollars per share) | $ / shares	35.12
Vested (in dollars per share) | $ / shares	23.17
Forfeited (in dollars per share) | $ / shares	22.51
Balance, ending (in dollars per share) | $ / shares	$ 20.81

Stockholders' Equity and Stoc_5

Stockholders' Equity and Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021USD ($)$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares
Number of Options
Outstanding, beginning of period (in shares) | shares	3,358
Options exercised (in shares) | shares	(553)
Options canceled (in shares) | shares	(2)
Outstanding, end of period (in shares) | shares	2,803	3,358
Weighted-Average Exercise Price
Outstanding, beginning of period (in dollars per share) | $ / shares	$ 1.53
Options exercised (in dollars per share) | $ / shares	1.39
Options canceled (in dollars per share) | $ / shares	4.10
Outstanding, end of period (in dollars per share) | $ / shares	$ 1.55	$ 1.53
Outstanding, Weighted average remaining contractual term (years)	4 years 10 months 24 days	5 years 3 months 18 days
Outstanding, Aggregate intrinsic value | $	$ 97,345	$ 104,510
Options exercisable at end of period
Options exercisable (in shares) | shares	2,416
Weighted average exercise price (in dollars per share) | $ / shares	$ 1.18
Weighted average remaining contractual term (years)	4 years 8 months 12 days
Aggregate intrinsic value | $	$ 84,789
Options vested as of end of period and expected to vest after end of period
Options vested and expected to vest (in shares) | shares	2,803
Weighted average exercise price (in dollars per share) | $ / shares	$ 1.55
Weighted-Average Remaining Contractual Term (Years)	4 years 10 months 24 days
Aggregate Intrinsic Value | $	$ 97,345

Stockholders' Equity and Stoc_6

Stockholders' Equity and Stock-Based Compensation - Employee Stock Purchase Program (Details) shares in Thousands	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Equity [Abstract]
Shares issued (in shares) | shares	33
Weighted average per share purchase price (in dollars per share)	$ 22.41
Weighted average per share discount from the fair value of our common stock on date of issuance (in dollars per share)	$ 3.95

Stockholders' Equity and Stoc_7

Stockholders' Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 11,606	$ 6,037	$ 19,660	$ 9,800
Cost of revenues
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	549	339	1,040	684
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,708	2,275	6,626	4,057
Sales, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 7,349	$ 3,423	$ 11,994	$ 5,059

Segment Information - Narrative

Segment Information - Narrative (Details)	6 Months Ended
	Jun. 30, 2021segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Information - Operating

Segment Information - Operating Results (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Segment Reporting Information [Line Items]
Revenue	$ 69,113	$ 52,138	$ 130,458	$ 95,353
Gross profit	$ 20,325	$ 13,056	$ 37,970	$ 22,557
Gross margin	29.40%	25.00%	29.10%	23.70%
Operating Segments | Laser Products
Segment Reporting Information [Line Items]
Revenue	$ 53,561	$ 45,104	$ 100,896	$ 82,034
Gross profit	$ 19,871	$ 12,846	$ 37,302	$ 22,221
Gross margin	37.10%	28.50%	37.00%	27.10%
Operating Segments | Advanced Development
Segment Reporting Information [Line Items]
Revenue	$ 15,552	$ 7,034	$ 29,562	$ 13,319
Gross profit	$ 1,004	$ 549	$ 1,709	$ 1,020
Gross margin	6.50%	7.80%	5.80%	7.70%
Corporate and Other
Segment Reporting Information [Line Items]
Revenue	$ 0	$ 0	$ 0	$ 0
Gross profit	$ (550)	$ (339)	$ (1,041)	$ (684)

Net Loss per Share - Antidiluti

Net Loss per Share - Antidilutive Securities Excluded From Dilutive Shares (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	4,863	6,024	4,991	5,971
Restricted stock units and awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2,057	2,293	2,182	2,260
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	3	20	6	0
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities (in shares)	2,803	3,711	2,803	3,711