LASR - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the nLIGHT, Inc.

Third Quarter 2024 Earnings Call. [Operator Instructions] Please note today's call will be recorded.

I will now turn the call over to John Marchetti. Please go ahead, sir.

John Marchetti

afternoon, good and you, everyone. Thank nLIGHT's I'm Head Corporate and of Investor John Relations. Marchetti, of Development VP With the CFO. and CEO; me nLIGHT's and Keeney, on Joe call today Corso, nLIGHT's Scott are Chairman

financial Today's contain our business, of from risks are discussion which SEC time the plans our including uncertainties forward-looking including filings. some control, will beyond and for projections statements, to our and described in time

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

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

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

and Keeney. I CEO, Scott will the nLIGHT's now turn Scott? call over Chairman to

Scott Keeney

John. you, Thank

was midpoint $XX.X our sequentially Third of range XX% of and and year-over-year. quarter revenue above the grew both million guidance

revenue. aerospace business A&D Our defense and product XX% year-over-year record by driven grew

includes sequentially. were end our Our of microfabrication XX.X% range. commercial both and margin which overall margins and gross our XX.X% guidance Products business, gross industrial XX% within increased markets, of

strong, we Our remains no with $XXX million and investments sheet ended and debt. quarter the cash balance and third of

another our and for start review me a which of business. and overall remains our quarter of with business, defense delivered a Let key driver strong results aerospace growth

cost-effective need advanced, operations Ongoing directed Middle energy, for In interest weapon East the in full solutions in the military increasing Ukraine our to grow. technology. and continues components and highlight defensive

To update the discussed in past. you our have on programs we

develop expected XXXX. laser the in X program, multiyear our $XXX program, X-megawatt HELSI which continue with to a We DoD-funded still make sometime good is million completion date in progress to a

develop some the for during we which combined high-energy the M-SHORAD hardware a began effort, And delivering a design for responsible components XX-kilowatt finalized of air is laser most this beam program, the for of Army's nLIGHT short-range prime delivering third is a contractor. the is Another On and critical defense. XX-kilowatt high-energy to program critical this nLIGHT laser DE to laser. quarter,

the integration directed once have components these performance The successful to vertical enabling highlights of energy in these the again high designed specifically the laser. of the importance our optimize been delivery of energy market components where strategy

it's just benefits potential U.S. of sees And energy which military the not the systems. directed

how Just a week, of increasingly it defense Israel's aerial Israel's would system being for critical over Israeli announcement drones that is laser viewed IRON Ministry million a target example spend BEAM, during last date towards threats, announced energy Defense delivery of strategy. XXXX. mortars, of missiles, is directed including ground-based with as against a and defense rockets, $XXX layered an another part

to advantage the lasers Directed traditional to offer customers a combined weapons magazine. semiconductor cost and continues chips to from U.S. significant through a lasers beam leverage energy overseas. and its compared deep integration vertical operating kinetic in nLIGHT address

allies. have government, We energy revenue us and in contractors every makes foreign generated prime U.S. vertical the other nearly an directed the market, supplier at to level ideal integration of which

quarter strong Our laser A&D. contributor was a to record sensing revenue business a also in

detect to use are measure laser and and in land, As a wide applications. of and air lasers a reminder, space sensing products used range objects sea,

missile defense sensing contract for finding in have against began million several existing shipping $XX range program, the quarter, detection, this and been laser new we missile programs. Our a incorporated and countermeasures guidance, award and announced include and quarter. significant products into we third long-running an proximity long-running Last

qualifying meets building, these shipped or ensure programs. solution continued to a programs, focused requirements. testing We've the one is all of handful EMD phase to manufacturing EMD, of first on In engineering also and it our progress we development, excellent on make and classified operational unit.

the that suggests for latter start in should rate program this production forecast initial XXXX. the low customers' half Our of

our commercial a to overall on of review ago, to on provide process manufacturing an upon reliance years in reduce turning markets, a Shanghai we our China. our embarked Before update I'd Several facility. our activities like to manufacturing

While the Manufacturing the of a ceased quarter, in operations that we formally manufacturing at being at in we performed Thailand performed contract Shanghai. manufacturer in this the automated continue a beginning is all presence fourth China, has to in by or maintain been now in facility U.S. region our

this quarters with to still back we the will pleased to transition it we While last take to operational are and transition significant production from a believe levels, ramp represents normalized the date, China. few

now diode of on few many high-power commercial minutes solid-state a semiconductor a world's provide we vendors, Let are brightness, used lasers me applications. laser wide spend across leading pulse the microfabrication, to range high our markets. which In of

microfabrication million. quarter sequentially revenue to $XX grew Third XX%

pleased are we this we choppy. the expect business demand as in in with continue to volatility quarter, our While overall remains revenue

end XXXX. challenges into industrial, portion remains case the demand of to year calendar business, overall we In weak, this growth our remain. industrial which the cutting, remain the remains and In the largest of expect through and

is our laser Our almost exclusively needs. proprietary market Chinese to in lasers, customers' continue gain lasers. standard while continue we to programmable demanding most cutting innovate And revenue high-power our share by now to driven suppliers meet

in for example, we is introduced our which quarter, the new product, optimized complex precision third metal cutting thick For nfinity applications.

fuel to much years EV that demand. overall delayed the over installed continues as muted capacity expected remains be solutions welding be manufacturing softer on advanced is and of cell for to coming the Demand battery

potential quarter, We on are and feedback the welding WELDform receiving from ProcessGuard. positive namely products APT, last new released existing customers and

markets. across strategic we that per printing the continues challenges additive focused to working address multiple nLIGHT metal time manufacturing most many part. that reduce To are driving of the additive pain We industry-wide overall increase one point, the and industry and on partners to this manufacturing, is In believe facing printing critical introduce products manufacturing broad speed adoption overall of build are with that of end new committed customers tools. XD flexibility additive to and cost the technologies

detail making the mode versatile most refined for printing, laser features efficient dynamic market. the and AFX additive manufacturing while offering utilizing available ring beam rates, Our build high-resolution also it power, allows for faster shaping stable technology

lasers drive fusion. Higher-power productivity powder laser more in bed

for not higher melt kilowatt of additive allow However, introducing today the pool. the X lasers amounts powers available in untenable instability for do than manufacturing without

AFX Corona with energy to a the into it of Our to high-quality distribute parts. required making family shape, move stability produce to higher-power ring possible processes the lasers

Earlier The AFX-XXXX, this Xx servicing today's manufacturing. week, we laser defense customer announced leading leading a large-format is launch when compared Using the alloys, has with markets. achieving our to validation a in this now and and to automotive up aluminum X-kilowatt aerospace print productivity faster to metal undergone speeds fusion printers. new customer commercial specialized for powder of produce bed Corona additive proven successful AFX-XXXX laser

in in remain the metal summary, market, printing. our In about industrial enthusiastic we long-term XD opportunities

persist expect quarter and we defense, positions continue However, we us to the in to significant near- strategic aerospace and growth it well our in well we commercial and In markets, expect XXXX. into headwinds continue, for long-term we in the both third excellent experience which to market. made progress this

the call discuss turn results. I'll financial Joe to quarter that, third to over With

Joseph Corso

Thank you, Scott.

to third results. Turning quarter the

of revenue quarter XXXX third in of third quarter $XX.X $XX.X XX% for the the above the Total was of compared midpoint guidance. million million, and increase to the an

the increase of third million X% compared revenue $XX.X was an to $XX.X Products for quarter million, of XXXX. the

XX% third the in Development million an compared of increase $XX.X revenue XXXX. the of was million, quarter to $XX

quarter a $XX.X in of third and increase also sequentially. total XXXX. revenue Aerospace record and XX% million, million, $XX.X XX% and an of XXX% defense A&D high quarter quarter growing a third revenue to XX% third was product for was record the the of compared the revenue year-over-year at

of ramp of an in initial performance by program was long-running a energy program. directed key product continued sensing driven execution A&D strong the laser Our a into sales and

was the quarter Microfabrication revenue the of of year ago. million, for and $XX.X increase total third XX% an compared a XX% quarter to same revenue

quarter remains more limited. typical a of for was most quarter QX us, Although the

the decrease Industrial of revenue compared $XX.X the third XXXX. for XX% third revenue million, was quarter quarter of a total of and to XX%

key to has to customers our continue continued the market, Chinese with our our muted. market Moreover, sales manufacturers fiber overall competition programmable While differentiated from to we continue in laser significant lasers, demand cutting lasers. had, a of each on and expected strategic is several is segments have, standard domestic in of impact X serve

within gross same and a compared was range, gross margin. period third guidance to Turning the XX%, X XX% to the points ago. Total in margin percentage year quarter up in our

by specific customer increase for The increase the XXXX. increased quarter to in absorption product points approximately in resulted pricing margin which Product were and in third gross These quarter XXX inventory fixed compared better offset an margin our partially of XX% write-off driven $XXX,XXX of third costs. the by to an was industrial in basis a volumes, sales gross mix, market. XX% for overall product or favorable a improvements of in

in same a the quarter Development decreased increase estimated gross driven compared of the price high margin contract intermediate ago. significant the in quarter in margin gross X% gross range period lower our year an to the lower-than-expected to the in over in margin quarter, development The term. the was of single-digit development cost to a third completion expect continue we fixed margin on by to the the X% development XXXX. third remain Despite in

industrial $X.X million market. expenses compared related were OpEx. as of costs compared quarter $XX.X to research in debt a quarter well GAAP project-related to operating an The increase employee to On and bad expenses million operating quarter increase $XX.X XXXX. third basis, a our increase to third a specific and of the driven spending an were as Non-GAAP of charge the million, million expenses million, in in in $X.X of XXXX. $X operating Turning were increase of in by an development customer the approximately

XXXX. third of basis share million $X.XX a million Net Net for the of compared loss or million XXXX. loss or per $X.XX quarter or $X.X $XX.X net per third or $X.XX for loss $X.XX basis non-GAAP share $XX.X quarter share was share on per of on of million with a loss net a the was GAAP to compared per a $X.X

compared XXXX customer related a the inventory Adjusted previously discussed. to includes the third was specific million quarter negative for third for and of bad a EBITDA quarter Adjusted EBITDA the XXXX. as debt $X negative $X.X of a million write-off to charge

debt. the sheet. Turning cash balance We cash, quarter and now cash no the equivalents, of restricted total ended third with investments $XXX approximately million to and

XXXX working compared the inventory of We of the XXX improve the DSO XXXX. continue XX of to to and the $XX.X million, of Average at during inventory the end capital XXX management XX was at days representing third end compared at days days days to our of improved end to quarter quarter.

a in $X.X used the the quarter Year-to-date, third million. to for compared the is Cash flow cash operations CapEx in $X.X by operations $X.X million positive XXXX. million was of in $X.X was provided million quarter third quarter.

and management a enabled sound CapEx quarters, the remains spending key growth balance objectives. strong sheet prior us balance our we coupled maintaining working in Tight sheet to a of a achieve company. maintain noted that capital has controls, to investment, believe enable As us with long-term focus will

the the approximately $XX.X of Turning available million of approximately $XX now expect information we includes to revenue to $XX.X quarter to midpoint $XX fourth be range today, revenue development The Based million of for in on million. and revenue. the million of $XX million product guidance.

Included in that energy-related in keep to are delivery sequential backlog our directed XXX% products. the particularly our innovative dealing growth for be fourth of in important we our fourth quarter as A&D the and is with uncertain, but our A&D of already expectation in of continued mind revenue is backlog, that new guidance quarter can products. timing It's

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

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

breakeven estimate the million to to adjusted $XX quarterly in continue We revenue range. million with EBITDA $XX

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

Operator

& first [Operator from Needham Instructions] Ricchiuti will question Our with Jim come Company.

James Ricchiuti

could that talk looking you is us sight product product QX your revenue to understanding begin a to in we line there could to highlighted beyond scaling. begin of some look way the several I about QX. give out you of develop? revenue that A&D better it sounds how beyond business was But us wondering Scott, if to as like potentially any could areas

Scott Keeney

Thanks for Jim. your Absolutely, Yes. question.

in a highlights saw think on the record for our for particular, defense of was that the defense revenue you're we I products a is but topic. the there driver growth in in and the getting key key business. Certainly, one in overall, QX

mentioned, Joe As strong a have do we backlog. very

growth directed in continued for into are visibility good all got we've so And our the defense. products in of energy in segments key sensing. in they and And both

where The backlog. have And important mentioned, our in it's related as terms programs of to the new technology. Joe deliveries we guidance, are certainly

So growth visibility have the we be timing of that an there. issue, continued revenue strong but can into very

for Anything with you to I'll particular hand Joe, add to that, it maybe topics want to And Joe. Jim?

Joseph Corso

think No, captured you that Scott. you. Thank I well,

James Ricchiuti

it's because to Israel, level working a including IRON talk about are engagement with primes in able bit in the of the the Scott, much, And you BEAM the news you project? those us on so some been defense are that of have to little

Scott Keeney

Yes.

that deep. think it's say engagement I fair is to very our

talked supplier and are And future we a but we've that the the IRON not only past. we think about products I engaged BEAM, bit a are the into deeply with current development there. in

gets bit the there's the Certainly, news little a $XXX difficult. Beyond million more that, it about award.

supplemental was addition a $X.X in bill to that, there's billion recall, You'll that passed.

that new solid. yes, very we So engaged BEAM the supporting key with deeply are the for players technology. funding And IRON is

James Ricchiuti

commercial business. final had the I And quick on just question one

improvement I curious that I'm to was coming it's the highlighted from? market, and know uneven, be You where but going in some microfabrication just

Scott Keeney

was existing yes, we that was in long-term in prepared probably an quarter from to biggest was overly coming remarks, want That a that. customer the who the we highlight. not as that of for long-term customer. source said Yes, signal that orders that the is But

Operator

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

Greg Palm

suggests with last And you revenue. of a commercial the I Starting know, guide in think I business, guided the year. for Joe, year-over-year and significant sequential quarter, implied towards both the decline million $XXX directionally pretty sort

So puts below that. you the QX well guide

that there? where guide amount what's a but So you're such that that out I had not relative target is, you of in se shortfall guess to question of a the per such seeing happened time sort short

Joseph Corso

our the quarter-over-quarter have basis, year Yes, about to pretty we simple, has would go lack talked good talked the the business that uncertain. about If Greg, I the visibility us. very on Scott somewhat business back right? we been commercial the of it's right? and can think volatility we that in defense shape how a we defense be up, a year of thought for timing

we overall business great progress from So made in an defense. perspective

a for, hoped there So pretty had but we less bit trajectory. little what our with we're was than happy

And then that in the quarter we particularly visibility lack that of in and last commercial talked about as signs the and product past, We X level business. We better the the we've have seeing of about of quarter in guidance in beyond right, business. life really, in of we've don't a We continued some of very side micro QX the to had repeat portfolio. non-programmable seen good the QX. pressure expect business, on QX, talked industrial

Greg Palm

challenged sense. low staying Yes. remaining QX? into That And levels term in it near guide fiscal to Or makes that about sort Scott, the is compared does of thought get for at levels? worse the QX comments 'XX, your just to expect implies your commercial that mean the

Scott Keeney

say given Yes. out hard to I mean all it's news the there.

a China lasers. bit underlying of headwind. capacity As beyond we've a I in the headwinds excess every just about, talked just one sector see can massive of That's is across here

number opposite the results who guiding that may for we I of the I that means customers market flow and for terms want is But side, that. industrial waiting of The driver what just orders from are that. not growth the the think On election to in in that growth there to be that certainly about driver clear were us. knows were A&D. the a being

Joseph Corso

bit what little just me And just Scott said. let a of add Yes. Greg, color to

implied we our rebound those by in expect business, XXXX. QX levels commercial the be significant down is will So don't any really as and from guide,

but not decline the full our great offset Now to the year still provide we And annual visibility that's formal additive business. be to guidance. basis don't of business, we good are don't into some why then commercial enough have going progress our keep in in in of seeing expected mind, is a other any we areas

Greg Palm

potential could Chinese think I'm whether or And of this U.S. Okay. light that or they that competitive in how in I the not. and tariffs curious, could on in impact And of the you here impactful that ask specifically, business put terms at point? be suppliers are

Scott Keeney

visibility way going dynamics So the are guess markets to say, competition into Greg, their customers and customers, it, specific excess than the are I'd that U.S. affected just quite there's capacity by say, in the from, look other is I shifting it's broader our or capacity our into Yes. the because Mexico complex. that's elsewhere, customers U.S. in at right?

customers certainly just I is by think theme our certainly, could some in of driven massive U.S. in the China. it's the underlying the more one complex higher is with than that tariffs excess But ultimately margin, I that. think capacity And on help

Greg Palm

levels, lot again. guide segment aerospace that year on but the Last enough. growth in defense, business, assumes backlog timing, knowing in also on spot XX% really Based nice the least a this visibility Fair of in basis. for you've one, XXXX? year-over-year Okay. at your and Is a that got cognizant better bright the repeatable

Joseph Corso

Yes, let me take that one.

we earlier right? they our our to right, is short is expect pushing some side, alluded are the that, difficult we What and fully Scott to Greg, by in to answer quarter edge really the these of what build to or the that not business pinpoint product So be defense go products is going plan come XXXX is really covered aerospace backlog are particularly either certain into as as as exactly are call, that in it's on in. we And technology, of the building, building.

continue just even to exactly being take right, piece, going other company, you long-term them, we wins, of we growth best think call is we've quite period all we the have, answer That XXXX. being how a XXXX give level the to to and going the are I'll in it the uncertainty them of piece is able that's we do about actually the customer beyond. business the whether or when then to of as the what A&D it's creates outlined, of our call XX% when well. I'll going it, said, up design though And the throughout And in build direct expect

Operator

next Our will question Stifel. with from come Roy Ruben

Ruben Roy

wondering you back just growth. you of could backlog show the strong and sort Are know yet? has progressed guess. I'm seeing especially data of I progressed, the with that just kind I coming was what of year can off in some maybe kind you light backlog go how little if backlog in you to a I if about very the now. Scott, of that's And bit. we directionally points some talk said backlog out up started wondering how with of

Scott Keeney

mean, summary, specifically I were in are in we your seeing Yes. talking about the our of And it's answer answer there think to manifest progressing. backlog. short The I yes. news is what question, some

so in business. the programs the directed in And wins in energy expansion and in design expansion orders, we both are sensing seeing for critical

growth in in And the Joe we're yes, But of those specific for metrics, sectors. both terms you. those seeing let I'll highlight directionally,

Joseph Corso

Yes. the have we ceiling, components, sort into Ruben, think we on, the of contract a vehicles sort have down way those of about lot about a it. really is lot value of one that That's opportunity right? couple and deliver you piece a broken that we are When to contracts. think against backlog of we different working of of

we have backlog are contract fully we funded inside Then against. those executing that vehicles, do firm

good doing. POs, maybe follow-on right, form chances winning, that and the today have that commercial We an been right, we've got been of we executing some design And obviously, wins, of in we've in we in the a to and side, believe really others the we've defense what RFQ, it's have on, side. then firm

along quite dimensions, So and measure nicely. when those business progress things our progressing are our we

Ruben Roy

I follow-up at. that's Yes, quick business. a commercial was just on helpful. the very getting That's what And

normalized for QX the back will it, September, Just the about and sort again we're level thinking million to think that's of that, call after of through? customer-specific saw of thinking kind down step what through guidance is way run to revenue rate, perhaps that you so and or a sort it, in the as down that, a let's $XX that

of figure flatlining. maybe industrial trying you And and to to of different about Joe, sort of of think a level of sort and I'm are for and back microfab? about rate potentially Are sort year Or just normalized should I'm asking next we year? comments for that seeing both the types next because out, run type baseline other that weakness on we

Joseph Corso

we range. been of great a it's right? $XX question, and the the the in No, where back enjoyed to to And it over it that that nice the at But expect of to sort is we microfabrication last exactly in We of get we the Yes. million. it's that if fourth has about going right? we fact talked couple you $XX quarters, quarter thinking it's about Ruben, you're that a what $XX part in Our right, million levels had in early million lumpy. look were business, right, bump back down those QX been year,

suffering. seeing industrial environment, right, guide that end again, also competitors' of frankly, light by we business, in right? pressure customers business, customers, don't uncertain many But of our again, market. The an our specifically are in are so we macroeconomic And and

so on And into continued and move QX do as in that we see business XXXX. pressure we

Ruben Roy

one the comments. had I manufacturing on Okay. one last

about and over guys then something cease had did while this move just formally accelerate Thailand? and You part Fabrinet Shanghai of that? to U.S. in back. Or now kind of everything Is to a talked

Joseph Corso

It right, to move of Ruben. just No, was that, part the it was certain part plan, of SKUs.

one it do all can't at obviously You time.

of we sake, a argument's puzzle. that the piece moved the it, in complete. workover, is call rolling the just bulk From the was And that let's And true the XX last last so line components now really of off for this months. Shanghai,

We facility. in of components assembly at our Fabrinet. have in manufacturing and of That exited U.S. done the now Shanghai the is the or all either components

with of plan. back as little a bringing or the the it in whether period all that it ramp Fabrinet a a to CM but going There's like manufacturing we're facility, was that's time, right? last a some of you're new that to take part that migrating right, Now U.S., bit, through it will bit still still establishing Thailand

Operator

Jensen Cantor will Troy Fitzgerald. next with question Our from come

Troy Jensen

the nice Congrats results. on

Scott Keeney

Thanks, troy.

Joseph Corso

Troy. Thanks,

Troy Jensen

of Scott, hoping you give the couple there looking components questions I'm us? us just range the Is So just size a low could if you back great. way, of I is, end, platform energy on out what directed in quick to And content you get of end, any win at a can. the opportunity to of as as guys energy. you for guess dollar a for the in like high system? much couple win be Or directed any would you a Can the you help or

Scott Keeney

try certainly has my billion the around markets best. funding Israel now $X Yes, been the million And of U.S. funding has Israel from directed by direct and Look, the it's for with a the been the biggest spend sort dollar I'll and year energy online, a multi-hundred supplemental but spend. year. #X, energy from supported U.S., Historically, are dramatically with coming U.S. obviously, has in Israel U.S. in grown

And our participate in ability on to then that what depends level.

participate So that across at single-digit at component level, the level, really percent and board we of the the it's level. at that lowest

level systems. the But have have all high stack into components to integration. very the that up of leading We a energy way a that we goes go of directed technology

And capture is. that have whatever amount the the we too, at programs so that program basically of level, full

on the a range single depending a and it's percent get there's But technology. the into broad single-digit digit, double-digit there's range. low certainly, there, and percent, more adoption of quite you So than

the are in programs development So we will programs phase. information still be specific putting out the Troy, to as we forward, because move more disclose

implemented said, out I with XXXX. as think the in be an they've will system, Israel first

information be will more it available. there as so is And

Troy Jensen

know currently guys Okay. power the what you Perfect. energy? us Can maximum laser let directed produce for is you

Scott Keeney

lower program. in That the it's part kilowatts. of of proud that of the program, allow XXX very a to to noted, fraction contract programs on we then have to and we to the are fact to continue power. enhances world, the that typical we're up won megawatt applications. track that, we we're but the Yes, scale power going as technology, us power. programs be Absolutely. was the the even we The will HELSI develop those which over the but power that laser And highest scale on And a

Troy Jensen

there Was the expect Okay. a next any Last question. year? in have And you to quarter? do customer XX%

Joseph Corso

have U.S. expect XX% quarter We've the U.S. effectively forward. that move mean we do I Yes. in or the ones to of are continue government the range, are in right, that the customers had around government, been as Troy, that have prime that and contractors the a typically XX% been serving couple we level.

Operator

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

Mark Miller

Your low power fairly of weakness as quarters. the low percent sales, total a What is several soft that's been power? driving for in

Joseph Corso

power at additive manufacturing Yes. of kilowatt manufacturing below. Most is for lasers, is market to the related additive The low the Mark. a really largely or

If you XXXX low-power go those to lasers of frame, all for the way lot time a back the used XXXX, were cutting.

as the was XXXX, you pretty a is low see of revenue good the percentage industrial that for And it's power You the that cutting. manufacturing of that as to up additive off tailed revenue related in the power then because can really saw, moving most the was cutting and read-through business. curve was it

Mark Miller

or of Is you've about your backlog. that wondering margin same just the recently reporting? been less profile I'm than the what better,

Joseph Corso

well. profile the backlog of what we've now than are generated the better we past. revenue in right in or in us great look we margin that challenge generate, fact the lower in that levels, question, When forecast all costs our these The not that revenue got we've are absorbing for It's is we fixed to that the at a it's Mark. expecting at

well dollar that absorption the customers It's new look this products whether in see higher different margins margin just we year-over-year, or the start to the doing about defense commercial it's gross us to portion that of and if sold at point tend our are to in we customers through. products. fall the same until at same be the introducing, for either products we're So or margin business, profit

Mark Miller

what loaded it's me. last or linear or to your in Just comes question going revenues? of out backlog Is all backlog for front-end, back-end the be

Joseph Corso

It No. linear, really hard Mark. to depends. It's say. certainly It's not

doing, folks talk in development HELSI to million We you're quarters. programs. backlog. than quarters program. quarters biggest more contributors are receiving That not on announced There more in as material working X got contract for some in other because where you've just are $XXX the what is you're Let's about the and are linear certain certain other integrating other work that than quarters,

So to basis. talk from a linear it's difficult that really about

program, portfolio them of of look us we you should pin to to difficult bit programs, when little if way those Now any just sequentially. that of business linearity to give effect expect at the that particular it But roll confidence the grow off all does the you a defense the will.

Operator

would questions like to showing any I At remarks. call in or back for turn further this time, Joe I'm to the now closing additional queue. no Corso

Joseph Corso

we Yes. and joining afternoon. coming for speaking Have to to Thanks, over the a quarter. great us look you forward everybody, today,

Operator

nLIGHT, Thank you. This Inc. does conclude the

Third Quarter XXXX Call. Earnings

time, You at day. your a wonderful may and line have disconnect this

nLIGHT (LASR) 7 Nov 242024 Q3 Earnings call transcript