Earnings call transcript Q1 2023

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Operator

Good afternoon, and welcome to the nLIGHT First Quarter 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Joseph Corso, Chief Financial Officer. Please go ahead.

Joseph Corso

afternoon, good and you, everyone. Thank nLIGHT’s I’m Officer. Financial Joe Corso, Chief Chairman Scott With is nLIGHT’s and me today Keeney, CEO.

will financial for projections discussion and Today’s contain plans our forward-looking business. statements, including

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

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

discussing During the measures. will non-GAAP be certain call, financial we

non-GAAP these comparable of Relations measures to in reconciliations earnings directly provided have our can Investor financial the most on GAAP our website. We section of the measures financial be release, which found

turn the now to over will Scott. I call

Scott Keeney

ended than QX Thank margin finally, $XX.X $XXX debt. the good range. of positive of cash for EBITDA midpoint our our XX% and adjusted million and guidance was quarter $X.X million was to above better above the start gross with expectations. we a Product no generated you, guidance of range. both the cash Revenue the nLIGHT. Joe. were year of with And were of flow Financial million results over

and our we growth addition critical strong areas progress objectives. progress to programs growth. made we In well in revenue In to In three significant industrial, key profitable initiatives made of excellent range key we results, enable financial aerospace And in defense, applications. applications strategic to to executed position generate on a in operationally, that continue ourselves outside and we of China. us will

detailed produce progress a prototype energy. of Scaling we to follow that brief have pleased Defense that as and HELSI. Today’s a quarter. energy turn and of we’ve High Joe produce is a contract defense, high in high be the award afternoon, announced Initiative, first report class I’m $XX energy award received a each XXX Earlier initiatives the the more made laser million In of million $XX then Laser review of will XXXX kilowatt we Energy to these laser call phase update of directed awarded significant to support HELSI. on financial been a aerospace to on provide new of in a to this over three to for the Department the part in I

we and that In architecture. commence late exceeding combining our award late scalability quarter a We beam is to providing XXXX, in Today’s performance. program of believe capable and technology is our power scaling expected demonstrate XXXX. both healthy objectives is coherent of higher part program the development the third powers higher multi-year to of of

million, and revenue. turning X% the XX% Now year-over-year declined total Aerospace to to first $XX.X representing revenue quarter. defense of

defense quarter development revenue revenue was approximately million, products was First $XX million. $X.X and

and in energy we directed We we about to continue believe market. opportunities are in the excited see directed this to continue positioned We in energy. we invest that remain uniquely

directed energy portfolio strategically of products us fiber across and the energy amplifiers, ecosystem. with combined market broad enables and domestic international includes entire Our lasers control to this directed beam beam solutions. And engage for partners the diodes,

products. it high see to it’s we the demand predict and for a this each modernization increased Although of difficult for to as continue foreign our market, timing of ultimate allies priority U.S. government the our remains

ramp revenue In and quarter began defense number a outside of doing new to increasingly we revenue expected to to of in quarters. the directed programs the in they on revenue contribute offer calendar programs several we from which energy, expect to transfer are these XXXX. first these when long-term to opportunities to currently Moreover, over the we optimistic Development about are work development programs. be expected production, next are is

impact on past, development can have programs our timing be a of revenue. the uncertain in and the mentioned all significant we’ve As of quarterly

percentage in revenue decreased first million. industrial $XX.X Turning the year-over-year a of X% to industrial first representing Outside quarter basis, of XXXX, the On declined to of customers increased compared industrial from end in revenue XX% quarter the China, quarter revenue. XXXX. million, revenue revenue outside in total first of to the year-over-year industrial XX% and to XX% $XX.X XX% of market, of first to China XX% quarter the in

In cutting, solutions customers. deliver lasers our to we high leverage fiber continue all power innovative our to programmable to

continually quarter, and in higher thicker better enables XX Our power laser customers and increasing first a productivity metals. number XX In kilowatt of record kilowatt processing orders we purchase, which of are received average for the lasers.

e-mobility In the market. continue welding, on to we focus

for and single-mode process lasers portfolio electric solutions at of vehicle with directly shaping beam cell both level provide customers and systems monitoring our Our lasers, welding the OEMs.

May exhibiting be and process June monitoring XX Stuttgart, in which programmable showcasing XX, battery to our Detroit our battery the welding laser will ALAW beam at at through solutions, in XXth EV show shaping feature XXth, and We system.

Additive be continues bright for to a spot nLIGHT.

Corona for kilowatt the X.X laser mode introduced this the higher including quarter we’ve XXXX. Over power market, several in a lasers last multiple of single fourth AFX programmable years,

nLIGHT’s powder our build laser. to continues announced week beam tools the control to programmable release uniquely RAPID Trade the DMG at customers cost. fusion we multi-laser adaptive in tools, mode This market with As the that overall Chicago, single shift exclusively reduce Show design enable to a remain bed MORI toward using of positioned per machine new part

in in that approximately such of to marking offer processes semiconductor by pulse we are brightness million lasers, manufacturing the flexible many $XX.X lasers semiconductor range solid-state short electronics XX% including power, drilling sapphire. circuits, high declined total leading and world’s first applications of In XXXX of or to revenue glass XX% In laser Microfabrication, enabled as systems There lasers to year-over-year which high Microfabrication, revenue, cutting companies. our UV a revenue. the wide are of of quarter represented

where dermatological therapeutic In from aesthetic used are to lasers addition, we applications applications for also medical surgical enable procedures. ranging

globe the a through work demand than which their to we this the as market, a broader of continue remains that is environment, typical revenue to and function believe higher continue performance muted We are in inventories. leader customers across current largely

we are from seeing signs customers recovery. However, China quarter-over-quarter. Revenue some of grew outside of XX%

we of adoption of as Microfabrication part continue released medical end targeted strong market, which are lasers urological our experience reported In our newly to applications. applications,

We are multiple We revenue are to engaged customers on several product and in growth track actively from others. this and from generate currently remain we with generating XXXX beyond.

Turning to operations.

excellent We of continue on our the to during U.S. facilities automation the make progress the quarter. in first manufacturing

a risk. supply As the over and output both more in past, our supplier markets in we’ve enhance control U.S. U.S. to the to automation the as discussed defense exert strategic and position our manufacturing in industrial will us key enable chain reduce overall greater

we’ve equipment installing at increasing we and of greater yield on the our several of last utilization automated equipment, quarters, been XX% the our the and U.S. automated in than focused rate installed Over currently are

make and expect improvements coming over the to further We efficiency quarters. yield

revenue spending were Last align important reducing able the long-term quarter, quarter XXXX. we announced of our year expenses operating to plan first we overall compared approximately and our with million non-GAAP By by our of that fourth quarter most spending, and engineering to better executed the to teams refocusing reduce for opportunities. a we $X material project XXXX

our remain long-term we growth summary, about highly prospects. In optimistic

it next move of phase are of to term, immediate trajectory advantage and markets. aerospace to and strategic healthy trends continued lasers growth on both industrial excited take we XXXX. of what in our for the China Our make be strong as outside growth core defense and the initiatives, second well defense us the secular and the to entering the means and half very year two to of development focus positioned In growth we industrial into

I turn will now the over Joe. to call

Joseph Corso

with quarter end Thank business the you, the and of and and above respectively. Scott. drove nLIGHT execution first midpoint revenue guidance solid during profitability our financial high

growth, invest enabled operating expenses past what also carefully important we’ve over continues without and profitable and to growth. programs the challenging sacrificing improvements be environment. that overall We continue are The capital expenditures to managing opportunity several made have reduce cost to long-term the quarters most the to our in us a structure products drive operational macroeconomic while for in

compared first the revenue of quarter across quarter Revenue the million first of to Total was revenue the was $XX.X the the first Product million, XXXX. and XXXX of lower to of of due to of primarily also guidance, projects. $XX.X quarter demand the timing million year-over-year markets $XX.X development XXXX. midpoint of for end for million guidance compared above quarter decreased above $XX.X all for for XXXX midpoint first the

compared Sales margin lower first in Gross revenue XXXX. less sales manufacturing of products by of XX% Products for customers XX% Products was total costs. margin first for for X% mix, of the quarter range gross of XXXX. gross for margin the first impacted XX.X% XXXX to represented the in quarter to quarter China to first above period XXXX. product compared lower than margin and favorable comparable sales guidance quarter decreased was for of the of first was positively XX.X% the of overall quarter the XXXX industrial the

business Non-GAAP in operating million of decrease of a expenses of XXXX. million a $X were quarter fourth driven of $X.X which decrease expenses head in a to restructuring for The the $XX.X the first reductions compared project XXXX, R&D XXXX. $XX.X were in million the were of the decrease spending for of lower operating of quarter XXXX, and compared million result of first both to quarter count, by and executed quarter fourth the

compared diluted quarter the million per to was to the share, for or of a $X.X per or per million $X.X for XXXX, operating million diluted million of quarter $XX.X of share for on expenses Net net quarter $X.X basis per XXXX basis, for of XXXX. GAAP the loss $X.X or share was a quarter or net first of a million loss the for XXXX. basis quarter $X.XX a million for the first decrease compared XXXX. of quarter GAAP share, $X.XX On first with a Net million on $X $X.XX non-GAAP the of first loss of a were loss compared XXXX first of $X.XX first $XX.X

for quarter the by EBITDA EBITDA the million, million first Adjusted adjusted for million overall in of Improvements first to was the adjusted negative cost to $X.X quarter of $X.X reductions were compared driven our gross and to EBITDA quarter. margins higher XXXX $X structure. of quarter first and last XXXX

to the operations used million first $X for compared million quarter the $XXX,XXX compared of the $X for quarter quarter for quarter for Capital were expenditures cash from to the of first operations XXXX. of flows $XXX,XXX XXXX. Cash for first first were

While in CapEx levels. below be we capital during XXXX quarters, will XXXX subsequent expect overall significantly to increase expenditures

Turning to the sheet. balance

no quarter of remains equivalents, to which as balance end the first and of the XXXX strong we cash cash, Our and million investments with compared represents debt, $XXX,XXX XXXX. sheet cash ended $XXX.X of of increase an restricted

XX representing quarter was of first was the end quarter the million, and for DSO inventory. days, $XX.X of days at the Our inventory XXX

guidance. to Turning

quarter of first to year. continue signals the are that the relatively We see demand with consistent

remains in our forecast both terms While the execution. of internally as macroeconomic of relates continued environment externally uncertainties, a QX as revenue number subject to it well to as

revenue quarter be optimistic of revenue HELSI second and of available of announcement, improvements of $XX opportunities operational expect product The the range and to today, growth Today’s million million the half for midpoint better $XX the million continued the $XX make to on million other we second of us approximately profitability for revenue XXXX million. exciting $XX the Based in development information year. in revenue. includes of $XX approximately and several

Turning to margin. gross

XX%. is XX%. to development an in margin the products overall And to range gross range quarter Second be to to in X%, be approximately XX% resulting gross of margin of margin gross XX% expected

of expect of $X adjusted $X we to range to positive EBITDA million be second million. quarter Finally, negative the in for approximately XXXX the

that, the for operator the turn questions. With to will over call I

Operator

ahead. [Operator go Please of Instructions] from question Roy And comes our Ruben Stifel. first

Ruben Roy

couple with the the to that congrats Joe, the the over is next existing Hi. it. directed to of we playing about just you. questions where wondering, be a talk for little here. et Thank of guess, contract. power – extent Thank how any And milestones the a program. helpful? how like if Scott new this programs could the idea Thanks out And more in I you years extent look detail, you I more you on again, and about or can couple imagine letting on of of there. the conjunction other bit And we energy this ratings, that could sits a running what would little you see cetera? bit any me you. in you roadmap start us the the might talk give this Scott, ask terms

Scott Keeney

Absolutely, Ruben.

the contract an received. yes, So we’ve ever that it’s exciting award. largest It’s

And and hard so real validation done. the highlight we’ve work great of that

laser program of that thus to As the scale this we’re to power high power and the XXX lasers. we’ve exceeded the improve objectives for and we in kilowatt the have HELSI the the class work performance said, new both – continue doing contract extends far, contract

continuation years, we’ve work far. on fair And to it’s so done thus building whole many And lot this the at and for an actually are detail, that a really power we’ve extension that the more is on able years. last not stage, hard we’re work exciting scale been say of at we to to last few continuing but it provide what

Ruben Roy

the yes, And yes, Scott That’s see. the Joe is that the of tough a into year. helpful understood on or great that. and to understood. guidance, Thanks gauge next Scott macro little to a area guess was for to wanted I bit, I half it’s either delve first the

bit little sort that helpful. microfab, the of from hearing of et cetera you QX? for companies, out a playing you. terms how industrial, of segments, can breakdown how the seeing you in be a a us that various lot see That’d of of We’re you’re Thank but give

Joseph Corso

sure, Yes, Ruben.

that describe today. as minus work we do we’re but the holding would are continue that are and trajectory we to as and QX, right what think has saw that But with look about getting we design We both it’s opportunities work holding, longer we demand or today. similar So forecast kind industrial sort plus good think now the industrial customers, relatively of and I wins from in term it’s we environment we at right high level changed. that certainly of now customers to micro be in in the at that levels to just for where don’t

I the in quarter you’ve year. business say the bit business, of been that I got first is China, think would where a by the at again micro the In look to it’s Outside that sort little geography. of of

where sit less far the we end in sort demand chain. be have customer of We value into of visibility because

China. we’ve On note, China micro. was the below see we way positive did in where improvement historically some in been

that And has at two that been got look then again, to on improving you’ve So of somewhat. defense the sort in side, ways.

from You’ve development perspective. got product that and at perspective to look a a

a side, to we product the execute we’ve that on. great right, few continue On got programs,

the take might development obviously rate quarter-over-quarter. that we’re new You the the seen. can see energy that side, on directed encouraged change award And then we’ve by

move saw year, that But development. much we a And back in the so half to be quarter we more number through not think of specific positive the probably right, expect towards second biased there’s guide as opportunity, gave in you the and we as the year. we the growth in

Ruben Roy

we all I for thinking Thanks detail, industrial point Joe, the data great. and the smaller level helpful. about some one cutting That’s clearly, you is very but us question then in on of out for orders, thinking see little Scott Okay. sneak welding that also could around record competitors numbers about your If of one a high welding. starting to And numbers are of very here. a driving side, something from gave number strong and think the is more maybe little in industrial, term, is welding like cutting in perspective those your about Maybe terms how on could perspective? on thinking kind look seems you us there’s forward markets faster, term in high longer-term of it longer But opportunity, investments level this you’re welding. bit and growth if to a longer a just we, about give two of going them again, lot that

Scott Keeney

cover in Yes, industrial answer And all fulsome frankly, question in three a segments absolutely, your to me way. Ruben. let of more the

certainly Corona more see industrial and growing well, that other to there the remain So but not the laser single segments, served market. has fast market continue And as opportunities to is the and opportunities in there us Albeit Technology expand we first, largest continue to in do the to cutting mature today segment. as expand.

is But the the which battery as is and very are forward. that fastest the Chicago. growing is of differentiated the is AFX segments a chain rapidly positioned we’re used opportunities have we highly metal grow to the our poised which noted, technology faster EV there three well conference technology drive for to And it’s other do really OEM XD in see And from lasers some and and DMG segment, information an certainly And that an is And segment and growth. Corona in from we just welding, is in of you certainly But the attractive printing third market leading growing are growing area that additive, But the RAPID our growth for about space. one again, clearly back is that supply that being segment. to pleased there. announcement lasers smallest further today. with and as we see the

we and as attractiveness see us. terms in that and do important of all So, three growth in segments order for

Ruben Roy

Got it. Thanks guys.

Scott Keeney

you. Thank

Operator

Co. from Needham go & The ahead. next question Jim of Ricchiuti comes Please

Jim Ricchiuti

Good Hi. award. you could little talked if as Congratulations that about the have about be way I’m could past. international in it to for by markets do afternoon. part focused, the allies just our Scott, Thank might with wondering talk the you’ve for in the catalyst the you. bit well that on of you your this what a a does this potential business? the I’m wondering, this, And

Scott Keeney

Yes. to? Jim, that’s I the what market refer energy Good. the international directed presume yes, you applications, And for in

Jim Ricchiuti

That’s right. That’s correct. That’s right.

Scott Keeney

Good. Yes.

where but about, what laser allies different in So but not enhanced yes, with we’re in that we that complete of a the the has have history power something, we work engaged talk can And stack do, this didn’t done demonstrated certainly and of doing we this technology number it’s deeply countries. highest lot a well our have. we’ve only technology

in only or whether at level. not abroad participate the the integrated to component positioned well we’re that, the be at of U.S., level it result a also, laser as but And

that performance is And allies other the viewed progress think in in good is made And we beam that this is coherent so, countries that forward upon yes, have that I based the as which likely we approach, leadership a then further key with also. very one combining have. technology, path

So see opportunity, yes, this U.S. as we DoD but a also we only not opportunities internationally. see

Jim Ricchiuti

XXXX award, award, development in what in to Okay. again, this? correct? this is for question is maybe little Revenues a thinking I’m but extent how generate, with be And line And how the is the HELSI the does could to somewhat be on you this we quarter, Multi-year this it’s a that this for calendar judge vague. begin scale. you. tricky normally to about wondering should us Joe, third going margins

Joseph Corso

Yes.

On part the a yes, it’s Jim, plus fee contract. second cost fixed

will margins typical That’s development our be margins. correct. type So

Scott Keeney

Yes. fantastic. critical are And very U.S. a That’s biggest contract, of in that’s financial things validation just side for think allies. we’ve technology to $XX build on not our It’s Jim, I I positioned more contract some this announcement that. that, lead look the And only the good. is, to of But take in think support lot the is to work further position received. ever to I validation for while is you space. this that’s contract this and have million There’s continue from away we is certainly exciting a continued important, forward. the do take works but core And to what well top to will mission of very the of we leadership This the our forward. and in area priority market, our of drive as support this that know, this

Jim Ricchiuti

Okay.

some mentioned I’m momentum additive. seeing also in as though, you And that some the you’re your order of you you customers and capital for switching of about the on seeing the with concern that budgets. industrial In some of if the that or in trends in signs that? current gears guys wondering, business this of environment the tighter Just matter part there’s well. side, in Are seeing are cutting

Scott Keeney

looking that interesting, you displacing way improve at is sort affecting expected directly not legacy look the To It’s there. in Certainly technology see the of then looking material work we for welding people what and reading we’re reports And to faster be that’s all Jim. particular, seeing a macro that those that than and that technologies. continuing us honest, signs signals read additive, of we’re when doing. say, therefore and for is in

their And in so think particular. their tailwind lot I you is news I definitely these supply going that to think helping exciting And There’s chains on the of as in improve companies were that’s in at improve a RAPID look us markets. additive manufacturing, to show. a

Jim Ricchiuti

that in And side. the final there as product position to think on question What – the what to is. in me you much been you with you on well? you is to trying with what automation doing? Yes, improvement to about as Joe, of been of the how the is for just for And that you’ve respect the function extent directed the that are of additional where doing a lines? we is How saw manufacturing margin China your some you, I’m getting processes you’ve are leverage refine realigning understand, laser could

Joseph Corso

which as part side. mix last lowered really of But And aside to think lower that business broadly quarter of call forward the inventory Shanghai. better base Yes, us you better of last in one big But there’s had putting gross part think of revenue leverage that just optimize a manufacturing drive spending to took be at already still we I to nice U.S. to charges a we of at our going think fixed the – quarter first the cost growth I more for going can What comes plan. margins utilization, charges the you we the the some largely that was a look saw leverage here larger driver the spending, through as Jim, sequentially overall right, on expenses, Rick, is some to in quarter, the – we – base. leverage do year. this is automation that better mix reductions we’ve I’ll it made. further that, the time right, I point of and opportunity in

better gross leverage we margin we to that expect today. fixed we though, really cost think the profitability be drive to have as base able I

Jim Ricchiuti

it. much. Thanks Got very

Joseph Corso

you. Thank

Operator

of Capital Palm The comes Greg question from next go Group. Please ahead. Craig-Hallum

Greg Palm

Yes, the more the start a and the If what Congrats thanks two-part with it’s kind where for and guess are of importantly, question. taking I I’m programs I there, size other in importance? can energy for help or out and not as other terms what going of you But after necessarily programs maybe out director But instance, there this of same going other could win in are on sort well? improved that specific maybe the win. results questions. is, there of HELSI does, this programs

Scott Keeney

Yes, absolutely, Greg.

is somewhat some there. to information let there information best me So out can. the It’s provide limited, try but we

with first of new I on to is be the that answer which for which enable the much contract kilowatt over applications journey to program and we us second that better are in ongoing it further applications. XXX level the require positioned especially continuing strategic critical just been higher to will to absolutely, date that powers question, think your taking technology had, leading all, taking forward the much HELSI absolutely and has

and the that In XXXX HELSI programs report provides President’s is came that terms this that large and that’s And programs. I future well, the for of taking Secretary those highlights The program last the in growth Navy There’s we are month will certainly there. of large the the out look Navy. of have other seeing over more supports Army a further think out about also. GAO Army transition the the FY program at Office are that other Defense, into both the that work information the data the And roadmap years. budget technology a focused glimpse there, offers ramp and the a from the current how programs notably on those also it through going is worth coming more

than in there’s U.S. core the the more industrial program. are industrial is just So U.S. providing this. technology here and And base develop the in strong HELSI committed the really for we a to the HELSI program that develop the absolutely program base yes, to But critical the

Greg Palm

on market, of you’re guess, QX. you guide the kind is I gears the is market, to more up I’m Joe, could I If Yes. relatively, kind to demand at. back characterize Makes you sense. that bit QX think that to of quite the I trying trends a industrial a talked tie versus it what shift normally because stable seeing. about

to a And a missing that the what seasonality normal so whole tying bit stable I back am below lot some? guide is of quite make was a doesn’t sense,

Scott Keeney

I I’m sure China, Greg. missing got But Yes, factor you’ve you’re right. a think anything, not in

look sequentially back right? in revenue saw XXXX, pretty China good at to pickup QX you [indiscernible] If going XXXX even QX. to from We sequentially until really from

the So of that just we percent represents revenue, our that of seven-ish overall business like in see now China level don’t used seasonality we to.

Joseph Corso

Yes. And represented went China over remember, public that, our just to Greg, when highlight of we XX% revenue.

a shut for month it Chinese QX. on order that down And was the because and material were the that QX reason of seasonality so recall during companies was of New Year. was for when soft

seasonality had and to you, that QX China. help Greg? was Does this you that unique So

Greg Palm

That’s good makes Yes. No, that sense. a reminder.

we surprising, talked is expenses. you few what even your But on ago? gross margin upside a In EBITDA, [ph] of little much about million can how operating sitting bit quarter I’m just depending of expectations and thinking out not most maybe of terms what relative And guess of margin, of lower gross it just think, you sure the a dig more QX. the what’s I a in coming at were Joe, $XX essentially break which I what, sort last versus were And months point breakeven quite $XX guiding for bit you’re around a mix. improvement midpoint million the here versus an to on is and a million $XX to

Joseph Corso

can up. modeled, and of couple the the our slightly industrial where segment, we overall customer, of application, industrial inside geography, really slightly a have – industrial about a, better a guided a about We’ve than higher this the mix a the depends a it a profile. the the the industrial. think things, in were segment, In product, it’s then of more Greg, you on that the I margin had we of Yes, think we mix forecasted. and on had did so we sales features, a than We swing historically combination favorable even have we talked as better where ended of inside business,

think of other manufacturing expenses. I was, piece manufacturing both expenses, The lower better utilization it but of just those

did a I well. product. is utilization. spending. bit And already a doing from thing then about a did third lower think we better costs some of just quarter little I the the talked the shipping we’re there see we our We it that in costs. then see lower So piece job is pickup the a overhead was other some as better And had manufacturing

So we as line scrap inside you of a new you’re at we you better high using bit than tech manufacturing kind the type the and we a excursions thought. are did both little when of quarter, other that have can and products look

what the right, when your point, down to add can So those right? things EBITDA adjusted line, three really up then that flow to you performance. that’s the drove better And

the because operating meaningful our we either need add in side that the revenue or OpEx going going on to support leverage answered forward. there continue be to EBITDA. quarters we don’t earlier, going And little good where driving bit we’re grow a model may of about to side But adjusted we feel in – growth pretty revenue So, are terms to you’re question where the as believe breakeven the as a see we really to pretty to start manufacturing where the I to other we’re the way. right,

Greg Palm

Best sense. Makes questions. Thank All you the luck. for of right.

Joseph Corso

Thank sir. you,

Operator

Please come go And from Instructions] of The next Company. will Miller ahead. Mark question our [Operator Benchmark

Mark Miller

kilowatt on win Congratulations energy orders the directed and record for XX and lasers. XX also your contract

your program, to over. significantly as In even terms that years how you an ramps, margins many increase as expect ramps? development know development it’ll revenue, of like we in energy though program appreciable looks Would it don’t be directed this the increase it’s

Joseph Corso

I we’re No, to margins going don’t think development increase. see

I it. of there this think fee by by fixed a nature associated contract, is nature of – the with

relatively side. expect period consistent So to Mark, throughout we the on that the development be

Mark Miller

the loaded? of end from the is you’re program, or loaded, back it end Are the front getting the is fees throughout linear it length program,

Joseph Corso

– should No, it it be, planning in linear. should be it

Mark Miller

Okay.

excluding at least give contract? you orders, that appreciable feeling had XX directed us your seen you In like, increase for Can an a terms backlog in XX, has noted of, have the I energy you record kilowatts.

Joseph Corso

I’m we programmable forecast for backlog say Mark, is seen in but power an we’ve our seen lasers not I appreciable an sure. firm customers. from higher I think increase what we’ve in and have would the increase seen

as towards of inside looking mix cutting programmable the where we’re particularly the And the at say just quarter, question margins can it and address of earlier, towards from, just is side, happens and a skew so coming growth So continues be to, on right, would that the powers, right? better. to talking sort I higher the the extent about skew

Mark Miller

just I for kilowatt sales wondering finally, also you than lasers for if And power, less greater two with and power could percentages? kilowatt than six out percentages these break fiber sales

Joseph Corso

Yes, sure.

power five two XX%, quarter, kilowatt than six was Mark. XX%, was greater was to and So, this low XX%

Mark Miller

you. Thank

Joseph Corso

Thank you.

Operator

question-and-answer This concludes back conference our to the for closing session. over Corso Joe would turn I any remarks. to like

Joseph Corso

forward Thanks. to look course interest your quarter. for the thank and nLIGHT. you We joining in over you speaking with Yes, of the today everyone for

Operator

The you now disconnect. and attending for concluded. may conference is today’s now Thank you presentation

nLIGHT (LASR) 4 May 232023 Q1 Earnings call transcript