LASR - Earnings call transcript Q4 2020

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Operator

Good day, and welcome to the nLIGHT Fourth Quarter 2020 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Joseph Corso, Vice President, Corporate Development and Investor Relations. Please go ahead, sir.

Joseph Corso

Thank you, and good afternoon, everyone.

I and Corso, Investor said, of Vice operator Development Corporate Relations. the am nLIGHT’s Joe President As Scott Keeney, on Chief Bareket, Chief Executive Officer of Officer, be nLIGHT; will the speakers today’s Financial call. and Ran

me earnings investors.nlight.net. any section questions of Investor today’s call, them copy If you are at release available after A and have joe.corso@nlight.net. press Relations at presentation please our the direct website to slide earnings the of on

In of today’s addition, call, you statements an focus access will related from for and objectives. forward-looking our future today’s In pandemic, factors, website. contain archived version discussion strategic expanding and and projections, penetrating call about our of growth the ongoing can statements, markets financial addressable trends our prospects business including potential COVID-XX impact and

many subject are uncertainties described Forward-looking to which control, the in uncertainties, time filings. to and risks our risks of including are SEC from and our beyond statements time

materially no law. today’s differ required on by from projected update may statement as forward-looking to results any obligation Our except those undertake We call. publicly

certain discussed call. be on financial non-GAAP measures this Additionally, will

go of section non-GAAP We can reconciliations earnings found which most to our turn now investor measures environment then the serve. in financials these who will current I GAAP website. provided financial our an release, the measures be and call the on directly of have our comparable Scott, Relations to through financial on we provide will Ran the over outlook. update will and markets the

to will take questions. then your We be glad

Scott Keeney

generated hope were COVID-XX XXXX. record year, challenges we the in over compound was with which to team global with recovery line while increase an pandemic. XX% the XX%. long-term ended XXXX year future strategy able million the we run, the year, us Thank growth only operate revenue. and crisis, than our or with to annual of We QX long-term In unprecedented year, greater growth the I global we but safely, XX% also historical We a enable you, subject And QX the revenue $XXX factors, to XXXX. the not uncertainty we our annual exceed profound of of this in of met Throughout a XXXX, and that faced be our will manufacturing was the XXXX our forget. X. difficult rate growth started growth the of we over revenue, with But global Joe. a on not year rate after early long will our over meet Slide believe XX%. will Starting historical exited macroeconomic compound of of

Turning to marked aerospace revenues our million aerospace contribution Slide fourth from organic defense. when we an XX% down X. XXXX year-over-year with and by including We the the I revenue market, Nutronics. grew of annual and growth begin year and grew on business. basis, Breaking consecutive XXX% XXXX in end defense will $XX.X

have We and defense dual-use since a aerospace we decades ourselves X company. technology as nLIGHT and market ago, we founded been view serving the

cost-effective advantage a with directed through represents of to which an our Confirming of Today, a company laser laser competitive are the we that from the lasers programs offers anniversary critical applications. nLIGHT lasers energy we for control to level semiconductor of supplying November fundamental Nutronics, long-term in that believe and being high-power the applications integrated vertically are expected as is energy us directed X-year vertical move energy and to important happy required to programs this developing work record. integration, only mission-critical have integration long-running We and of our has of being directed thesis, opportunity. of gone history I’m the marked well. Nutronics report into long acquisition our

market. the Turning end industrial to

differentiated today, in customers our particularly growth Our In higher We that continues continue industrial solutions. saw global The migration value XXXX. potential. their China lower and at in customers and contrast, laser in as the offer programmable operate grew XX% long-term demand we’ve industrial technology. levels quite secured our sales continued customers significant design cycle year-over-year of power power mid-XXXX business towards wins is growth generally long our beginning these for global laser many

excited have also about We’re laser. AFX our we programmable metal the additive with single-mode opportunities manufacturing in introduced XXXX newly

XXXX, year-over-year. Turning by our to XX% microfabrication. declined In microfabrication sales

the business in bottoming our fabrication in QX, our a in microfabrication by that we continued in after comparable However, second versus XX% beginning in increased market saw XXXX. revenues throughout rebound quarter year. the the period QX, And

our the power, require growing electronics that we the lasers, improve us lasers. costs from demand will and of to reduce high performance which a enable high-brightness manufacturing applications believe use semiconductor continue broad of of meet We to base

that be advanced improvements market electronics the as continued circuits of next-generation other applications. in consumer displays in as XG will flexible applications and expect driven We networks the use applications, printed electronics devices, microfabrication by medical and well increased handsets in

revenue outside million, In our all our grew revenue total versus our XX% Slide $XX.X XXXX XXXX. of increased representing year-over-year China grew XXXX year XX% of to in China, to X. to sales In year-over-year we customers Turning Full revenue XXXX, XX% to XX% in geographies. million. $XXX.X

million, Nutronics. basis with we markets. defense the Turning year-over-year and executing defense, with ongoing year-over-year and organic aerospace and XXX%, by of driven revenue to all XX% Beginning in quarter revenues aerospace energy Slide an including had grew end record with and and the our the our direct $XX.X quarter, quarterly we X. grew In revenue long-term against development was we growth customers $XX million on A&D in core contracts work. fourth of contribution XX% from

in and in industrial business for across programmable geographies fourth our demand high-power lasers was year-over-year increase. driven all both Growth grew as to XX% quarter. the business industrial Our continue fiber

Finally, with fourth within microfabrication, our XXXX. sales increased XX% the quarter of compared

a positive trends across applications. of demand range saw we quarter, multiple from the microfabrication During customers wide

$XX.X China to quarter financial discuss year representing $XX.X XX% to to Moving versus XX% In X, of will revenue China, sales Fourth revenue QX Ran in turn to year-over-year now total outside grew to our nLIGHT’s discuss the call million. of our full to results. XX% Slide quarterly year-over-year XXXX. I geography. XX% by QX over million, and customers revenue to grew

Ran Bareket

Thank and year organic revenue fourth Beginning X. Total and record you, both year contribution the everyone. in up the for XXXX and from for Full $XX.X year-over-year revenue million the $XXX.X up of full of Nutronics. $XX.X for $XX.X XX% XX% high million was and from quarter. on revenue Fourth and contribution revenue. year-over-year good XX% revenue includes of of $XX.X outlook, inorganic revenue adjusting on up when quarter $XX Slide Scott, the development and product million million Total and up when development revenue. of nLIGHT of basis afternoon, adjusting revenue million includes $XX.X XXXX an our above XX% delivered Nutronics. $XXX.X was revenue million million million end organic of product

of in gross XX.X% Gross XX% of XX.X% margin margin the year period in Product full was the to in in gross fourth year XXXX. XX.X% in of the Product to year XXXX. margin XX.X% margin the was XX.X% quarter For compared with first with compared quarter was for was full fourth XXXX. quarter full the in compared XXXX, year gross XXXX XX.X% compared comparable XX.X% the XXXX. of

to margins. X detail and is margin more XX nLIGHT provide in Slide It gross our gross to product important into to development. segments: that revenue reports remember Turning and its

government, the with margin preliminary associated U.S. are margins November to gross including Prior for the XXXX, we Nutronics. segment. of performed advanced technology development projects business a the Nutronics single development we in reported gross work acquisition our Our in at and

to margin our development programs, technology advanced on is product worked with margin of Therefore, always gross Nutronics XXXX. over gross gross X,XXX what higher in our trends material. quarter, classified important overall gross not of we margin were in revenues points In the compare our last product have XX%, margin gross we QX fourth evaluating which QX to than margin basis today product While we were generated acquisition those prior approximately it year. programs time, approximately from the as when

is our strategic increased our of those level, semiconductor X to China expansion product of and some with gross higher and for margin is performance lasers. product improvement gross outside revenue industrial of customer cost improvement margin the sales product continued primary associated aerospace drivers While our in

we experience our gross be growth improve will above outside forward that commercial China, product growing in with and our of margin XX%. customer improvement to As proportion to continued and future, margin core further fluctuation gross time. the not quarter-over-quarter. expand on defense China, over believe will of strategic believe our our We our the look of we we enable linear sales can This to focus a the high-power us in market business will success that segments

$XX XXXX. fourth million without stock-based compensation were XX. million Slide compared expenses to quarter during QX in with Turning Operating the $XX.X

growth set to continue we on we focused and opportunities. remain operating to expanding research expenses, on organic development an capitalize our controlling in While invest of

compared of loss share a Turning during million $X.X On during compares loss was loss EPS income Non-GAAP quarter XX.X% compared $X.XX diluted million of was adjusted million was or GAAP $X.XX loss XX. $X.X XXXX million EBITDA share diluted was with $X.XX quarter million for GAAP a This $X.XX XXXX. year $X.X sales for XXXX. basis, for was for the a the Full the with year sales. quarter during QX $X.XX of compared fourth compared fourth basis, a XXXX net full of This Non-GAAP with XXXX of per million Fourth XXXX. full with the was Non-GAAP income EPS quarter a fourth adjusted million per of compared full the during net million a loss quarter of year XXXX. of $X.X XXXX. $X.XX quarter or XXXX. share to of diluted $X.XX per per compared or loss EPS X.X% year Slide $X.X Non-GAAP compared EPS fourth to in with shares On for a EBITDA in X.X% a revenues. of was with XXXX $XX.X of $X.X $X.X loss of quarter was XXXX. of fourth a during $X.XX in with XXXX. for the fourth

in Our operating a improvement leverage generate expenses control. result and we It full incremental in product margin strong higher year adjusted the of the EBITDA operating in and also was both gross sales. demonstrates QX from

cash $X.X million in XXXX. During million $XX use operating of a of XXXX, we versus generated approximately

consumed did $X.X balance maintaining the growth. quarter, While our our appropriate we flow on to cash of million cash, of the to our we capital support basis, in it fourth fluctuate on when working sheet focus operating operating amount as continue on a strong will quarterly

expenditures that capital used in $XX.X $XX.X approximately Camas in the we were million year of early is Our XXXX. to for this facility number XXXX full million. our purchase Included

as our Excluding Camas expenditure X%. of a on approximately facility, CapEx was percentage our sales

in to manufacturing to automation, related CapEx to invest continue mainly facility and capacity. expect We infrastructure

$XXX of the equivalents Slide Turning fourth the DSO inventory. We days. million. with total days XX. cash cash quarter Inventory to representing QX XXX end XX million, $XX at was for ended of the and in quarter was

days and with relatively DSO of consistent quarter. prior Our inventory remained

for growth million. to At expected midpoint QX. the of year-over-year available and approximately this XX%. expect product XX% we XXXX The is QX range implied XXXX gross margin XX development $XX for gross QX on $XX sales. Turning to expectation mix, range for current to on range XX%. Based of million XX%. of margin $XX midpoint approximately the the today, to a million $XX revenues be $XX see product the guidance in Page we outlook of to in Based our million, of XX% million includes in sales be revenue for of of the our of to Product of information

development to margin X.X%. be approximately gross We expect

the quarter, million. to For million we EBITDA to adjusted of be the range $X expect $X first in

OpEx and approximately range is amortization EBITDA depreciation assume that adjusted and QX $X.X slightly, without will stock-based increase Our million. compensation

XX.X turn expect that, to be We will back average the basis QX share I to call approximately Scott. million. With

Scott Keeney

Ran. you, Thank

continue lasers are a We the broader believe Law technologies. growth we be to improve Moore’s long-term cadence, opportunities positioned will the outgrow lasers like first, well enable to that technology fiber driven growth will semiconductor continue in to to displace and continue will factors: market the believe market. by to for X legacy We which in that and key

infrastructure that including demand, secular XG drive use applications. manufacturing Second, end and for aerospace there from drivers and range defense are additive market broad next-generation will new catalysts handsets production, a series of adoption electric and long-term vehicles, of

model and core is is semiconductor and market. well our vertically our to focused differentiator. business this provided Our that solely increase growing high-power of we positions strategy share on lasers, believe critical nLIGHT fiber us a integrated

customer of industrial to traction, to product attractive continue new and we our We going global which the X growth key and a portfolio, will technology focus drive markets The and opportunities. are combination aerospace defense and on forward. commitment areas the product our markets, growth believe offers these that introductions

and to we of our have and thank year past business. global like year grow performance turn high-power I’d shaped in for be XX focused important the With promise marks over all our on safely I year to the to last what for which the lasers, exceptional an will a the history. call a up back challenging remained tenaciously and in years, Over of operate their questions. employees the to very that, operator

Operator

And Instructions] come [Operator Marchetti first Stifel. the from with question will John

John Marchetti

the of that. you there, the through [indiscernible] talk just strength power the color where it a was weaker, by a And little take really would provide just the if came I could little through in bit you of appreciate Scott some the the low-power different high-power a around bit breakdown dynamics levels. moment end. at gave and -- looked maybe And deck, like

Scott Keeney

John, problem. Sure, it’s No Scott.

didn’t So of little line a growth here because swamping The emphasize the the was outside more our in power. power growth bottom yes, gets it the complex. China we is high

the So industrial as provide. in extreme on recall, there’s focus customers power high we China, China, outside and there’s whereas for high-performance the less in use programmability global notably more the relatively powers tendency and fiber focus the higher on to a lasers that cutting; of you

China, that average So of as grow brings that we outside down.

different to continue and X the see, expansion a in the just levels world. relative of rest the general It’s both in We China between are that the nevertheless, high-power today.

John Marchetti

it. Got

When about product think so guidance or in last quarter. and can. did your margin mix the How step I side, that to driven? that mix? curious if of the coming given quarter XX% do And non-GAAP about volume it in color Is I then largely margin Ran, off the sort outlook. of for next of from XX%, for I midpoint the function on just Is Okay. Just you Is quarter down this that there? driven? a it think of this XX% some a most gross

Ran Bareket

sure. -- is and It it’s It both. volume-driven, driven. mix is It is a

Operator

Greg Craig-Hallum from come will Capital. question Palm next The with

Greg Palm

Nice results. thus order you by on an areas of that either kind or to mean, far love for out? QX. Maybe of any just to starting want would commentary your I get strength, thoughts off, segment call geography

Scott Keeney

throughout microfab. Scott Thanks, Yes. out improvements nothing all We’ve seen really really XXXX right in here. Greg. see We’ve Yes, areas. calling in now. continued improvements to

year, the through the we it As through said, the growth was accelerating year.

seen to continue. we’ve that So

Year always have uncertainty. New You the QX, Chinese

shorten New think travel, far underneath that, of you of as reduce know, side I year, never on may but the this this in Chinese that. year you China, other there’s know less which you’re the and Year probably impact will until

and strength. So the we with promise certainly in of a general, certainly in of heading acceleration XXXX, our continued markets year anticipating this all saw throughout vaccine, into

Greg Palm

I in last year going typically mean, that Okay. takes. Maybe I upon But remind last recall low out, bit as all expand building unique guidance. I year. the if year mean, answer throughout shake point could few seasonal QX trends years, year. how just sort us you starting I how with just about don’t a The I know you’re I a terms been the the think, might of Maybe have this thinking full little give cadence X, of in off back kind puts the of and of the

Scott Keeney

Yes.

seen. and upgrades there. typically cycles there QX is complex the market the gets that’s, Chinese softest dramatic in of And it Chinese what some you you, we then we’ve New extent of a industrial me to other in New as more little the and one to QX growth Let cadence, But the a out tends around that’s remind quarters is Year. come fold whatnot, of Year. And typically, conversely, microfabrication be because more

has You layer different in, in each defense. segment dynamics aerospace and

on cycle. We’re budget the working government

order, there’s see. we QX I a the it’s bit stronger softer, of it’s of little So typically there. pronounced first industrial, because trend the But that probably most think, QX sort

Operator

from Jim come question Company. with next & Needham The will Ricchiuti

Jim Ricchiuti

that I for you programmable could maybe the applications a you key -- industrial the Where seeing bit you’re bit, Scott, outside expand about where getting some China little little just strength about the in you’re a traction? wondering of lasers. is talk if of could

Scott Keeney

Jim. Absolutely,

with a in design smaller few that I cutting, the start market long we important. we’ve are see I’ll to a process there. Let’s to it’s the our -- segments share get it’s think, things. instrumental designed in And design cutting. market in. date. It’s that X last introduction years. worked had fiber programmable over been All where really a a lasers, X through the our of wins In And has

with we’ve make market key customers. in So that larger to continued progress

this ahead Europe look in be think we at will the tech, Jim, U.S. and there, big fab the as least show year, follow thereafter. think I trade I would then

good And very I’d so markets, traction now. wins information that of because in battery markets, there’ll more think welding more we’ve in this we in manufacturing been as market. different high that the aren’t to is much through for about the we our tend But much year. to not of our big laser finally, say the from continue we’ve our new AFX programmable large. make space wins level And programmability. But Similarly, to But some a there fragmented. more fragmented fiber working launched design There be is product, markets. additive and which be EV And later for OEMs, QX, then design many it’s set in years as got there.

attitude niche And into think market. that volume and the It’s such advantages some is of product smallest our applications. higher that that but X seeing going really inflect, some productivity where that markets, really really one launch starting applications important is that to is we’re we’re demonstrating think is the beyond the it the expectations. I fundamental I in exceeded has pretty really

there. make traction continue So to

those of a all that’s we really short going on. see So markets, what summary

Jim Ricchiuti

again, That’s QX. looking beyond quarter, us out necessarily in helpful, the can let back just a beyond as up seeing. business. a and the on for Scott. give And microfabrication Well, the looking And But to characterize you’re business, me second. guidance visibility to the just microfabrication industrial not business you sense what

are business? pickup is still stronger seeing instance, as a relatively of smartphone in of you part a microfabrication? result the For Or cycle any the small that

Scott Keeney

Yes. Good, Jim.

term in the limited. In visibility. So is sort industrial high-level Probably it microfabrication again. the is best outlook. more of although sense, just finally, then kind much defense, the of longest of we And terms probably have visibility, some is second, visibility, least

We That’s new of have consumer indications that laser little a expansion because market opening talked and back and are lasers things But an broad in it’s we’ve where electronics that we’re also of the then And that channel, so But focus going see space. number continued ways. going. other goes And that are is see is on the in in by continue in fragmented, about we go a using driven applications. into bit some that see. forward, yes, more again, that, a new XG pickup. Having believe proliferating market on are lasers up into go large market. the we that we what read the we quite And we to to a based It’s past. part area that clear that seeing that where market. we get systems new medical to of difficult very semiconductor said

Jim Ricchiuti

saw or microfabrication, in more you was in expectations? your QX, the that that growth with that XX% less that was What in line

Scott Keeney

think QX, with expectations. was -- a expecting better than it line our in I but bit think Oh, QX, certainly of for we out boy, were not I

Operator

with Canaccord from The question Dorsheimer Genuity. will come next Jed

Jed Dorsheimer

Congrats on the quarter.

perspective, First the manufacturing, upstream. product a your offering not on I’m range on is across from curious frequency just doubling? the the what materials one, wavelength

Scott Keeney

Jed. Good, Yes.

And opposite it’s boy, at pretty niche would -- we, under the niche. really to go wavelength. XXX-odd again, So extreme, then nanometers, niche be just really at down X-micron

little micron for a today. have very what of applications. a But we do niche blue, X vast the we wavelengths bit pretty again, The that range we of well, So the broad majority We cover. in most really do around is, actually. of do

Jed Dorsheimer

from just being particularly do around that Got the a area as it. the expansion aerospace focus and you asking business, perspective, being think on it upstream? and with a be that you the And see or that will that do defense potential is kind area do wavelength directed you terms reason of have? tight in of -- around range -- I’m you the Or think energy,

Scott Keeney

Good. Yes.

nanometers So micron. it’s directed or -- energy, in X longer There and the applications are defense in generally, generally in wavelengths, wavelengths particularly "eye-safe" -- defense for X,XXX in so. around of

large, around some there there, are energy directed and by applications So X are applications micron. but the

get X to some volume other today future do classified applications. and and micron. wavelengths other You around you applications, for in into But the quickly the get is likely

Jed Dorsheimer

Got it.

to that not eye-safe, the And phosphide -- so using achieve doubling? you’re some other that would indium you if Or a require material? on with is it are able

Scott Keeney

There’s of been to X semiconductor a that in at is One lasers, indium long Jed. ways Yes. leader a phosphide have with sort there, and quite guess least time. we for space

with own So semiconductor we directly lasers. do our that

rare -- fiber one -- way with The lasers earths. well, there through other different other get is to through

thulium of one be So would that. is another. erbium example

can you applications. semiconductor get it, call fiber pump typical wavelengths lasers these longer so at, wavelengths let’s for laser And more those to those

Jed Dorsheimer

Got you -- the the vertical end going have, of further greater do there’s it. some question the of sort or benefits application that of pull integration from that industry be a an changes there’s perspective not? going from on the that to discussion you the and One With around need here. around from think last downstream

Scott Keeney

with hard is fundamental there Obviously, lasers. we let’s X things matter to philosophically, believe level. Well, a are speculate I on lot what outcomes at on One the and that, focus lot But going see. be. and matters that no pun that will a what think intended that is

high-power semiconductor and on fiber directly semiconductor the by focused base lasers well, lasers. semiconductor lasers solely pump lasers, are We

that that do. that do think that are technologies for Point was that, thesis vertical whole associated integration And focused means that to systems sort are is that important. that and of Nutronics this in combination on of a really acquired do in set through the believe firmly we core why all really chip principles. business both point that. be sort And optimize those there a we solely in That’s And believe that That’s and indeed is of sure make We’re from market. that with optimize to to do was chain the X that that was were vertical we that across we case, no value there integration X. control required to breaks really high-power focus. the we beam

so see critical. that’s industry evolves what’s that’s on. -- to going But core we’ll with really And how the what is we believe

Operator

next The will Diffely come Tom question from D.A. with Davidson.

Tom Diffely

regards kind guidance there looking advanced with that Is just that Ran, on well. to being of business? in we’re the down business the quarterly the your seasonality at? lumpiness Or development part is First, of as normal defense

Ran Bareket

No, lumpiness. is with in There defense it’s seasonality no the quarterly general.

Tom Diffely

in similar at kind earlier. is your growth XXXX? your component you was fiber And semi-laser to Scott, laser When what Great. then Jim of think you bigger Okay. business which look versus a one asking of business, do

Scott Keeney

players the the the semiconductor on really For application remember the there. to defense focused what driven majority to is beyond is fiber be of and those also that we’re in Similarly, going global driven in lasers. fiber by lasers. Important laser ‘XX industrial will technology directed critical and energy be vast is for market by that

end supports key but lasers. So fiber product on that, product development working the that are growth for there’s X areas really we’re those important that

Tom Diffely

come margin the lasers Okay. And then you semi fiber to for lasers and between the question structure -- has and down? that, related final then

Scott Keeney

margins. very dodge across and We to much it’s -- the there lower but is because question and their -- that want more there’s margins it fiber complex. don’t -- commoditized that break margin higher some categories certain where have are the laser don’t I out

showing adoption our is So to across over primary about the really direct few there’s in we Having key said about. less those comes a quarters, our those we’re margins associated energy to R&D before, markets margins. continue talking on right product with meaningful improvements it we’re dispersion we’ve that, anticipate revenue especially the to, in and And and that past focus growth improvement and continued both little continued talked in margin when now. make product is as

Tom Diffely

Okay. I should in the the unexpected impact snowstorm area? any ask, from

Scott Keeney

snow the by bit. region. side our Yes, bit. But employees we’re power are side, but -- Washington had struggling it. the we and one Portland in Luckily, we Yes, of a had still here Yes, a Portland little on on ice a getting few little the

Operator

from Capital Markets. with The will next Berenberg question come Paretosh Misra

Paretosh Misra

Great.

your just provide how seeing? if color as year? on curious what you time book is order And versus to any So could it this you’re last

Scott Keeney

a term Yes. of don’t to make see we our with the bookings. across I’ve years, as year will not the traction and we’re I out that I them. visibility. of in before, we in We longer said funnel all in continue to new we markets, of Chinese -- there’s have getting But this, serve, the break much say strong all it’s visibility. we opportunities difficult really all of markets across do and acceleration our markets will throughout that continued QX did say good But always

Paretosh Misra

industrial. battery that And for all guessing like is -- on then have is thoughts within if you you could that, Any could the ask maybe I sense one And the business, big electric the right I’m any within for automotive it. business big you? you Got it’s more. now? how how --

Scott Keeney

of basis, Yes. Good. exposure On is a sort automotive relatively relative our to modest.

and car battery it’s cars, again, that relatively up for that automotive goes both probably us. for as space there’s new from it the parts applications. the but opened we opportunities fragmented are you more exposure. some penetrated new through more through to, And of world China, the for Korea, as set notably are using a do cutting Obviously, it’s EV And developing to in cutting, welding are Asia, really some manufacturers, less alluded new OEMs market. indeed, has that welding. there’s But into exposure. mentioned, lasers And have our We around the pretty I the the

for we space. and to a significant products have And a to in grow. continue in It’s a opening number lasers. markets, applications positioned that room have market it’s are is room that I that to for new our we grow market think key to well of those of continue a expanding. up number It is

Operator

with next from Our Instructions] question will [Operator Miller Mark Company. come The Benchmark

Mark Miller

of laser do X sales, was this breakout weaker? terms kilowatts did I above wondering just Yes. they how of quarter in the fiber or that was stronger

Scott Keeney

out Yes. you And find above quarter, the little a can Mark, the relative We lower. X-kilowatt a out, on basis, break this did was it there. detail,

Ran, think do -- yes. sorry, the in numbers? jump to I want I mean -- you

Ran Bareket

was, or versus XX% this was in QX Mark, QX. in it it Yes. XX% quarter XX%

Scott Keeney

Yes.

across said, the I as industry, it’s really that saw and So we too, interesting.

we mentioned in there’s as use world. a You before, lasers in as power China, to global basis Mark, can note a And the the over rest the -- grow on fiber higher of I relative that. tendency

As dampened see into the globe. a that rest continued trend the average be do of power higher bit. across we world, But we the the go to would

Mark Miller

the In the terms -- and situation at stabilized that Chinese of pricing? terms has lower market in of

Scott Keeney

there. dramatic see changes don’t We

have hard I few of some think the know and where space power to lower we gone. that struggle players seen in them a have of

number we dramatic that expanding. there, we level So don’t market. And see the changes of don’t in the of competitors see -- certainly, that

Mark Miller

of couple issues. housekeeping a Just

XXXX? we tax been jumping has rate estimate Your around. should for What

Ran Bareket

$XXX,XXX roughly $XXX,XXX on basis, should to estimate a expense So quarterly quarter. a you

Mark Miller

million. be around quarter, stock-based And Is to it’s a $X around that’s million $X been this lower compensation, to -- good going Okay. going or be that estimate? it’s

Ran Bareket

No.

around it quarter, remain should was This and for XXXX as that estimate well. $X million,

Mark Miller

$X first million this year in also? So, the it quarter of will be

Ran Bareket

Roughly.

Operator

to the turn go over Please question-and-answer Joseph conference any session. back closing Corso would remarks. This I ahead, sir. concludes to like for our

Joseph Corso

during the like a to for in joining We’d great Have thank today the speaking with and nLIGHT, everybody the to look you and Yes. we all afternoon. interest forward quarter. call

Operator

now concluded. for attending conference presentation. The today’s you has Thank

disconnect. now may You

nLIGHT (LASR) 18 Feb 212020 Q4 Earnings call transcript