Nlight, Inc. · NASDAQ:LASR
Nlight — Q2 2020 Earnings Presentation
20 slides from Nlight's earnings presentation, Aug 5, 2020
Slide 1: Earnings Presentation Q2 2020
EXHIBIT 99.2 Earnings Presentation Q2 2020 August 5, 2020 This presentation contains nLIGHT, Inc. proprietary information. No part of it may be circulated, quoted, or reproduced for distribution without prior written approval from nLIGHT, Inc.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Wo
Slide 3: Q2 Business Highlights
Q2 20 Business Highlights • Record revenues and financial results at or above the high-end of our outlook • Strong demand in China across industrial and microfabrication • Commercial market demand remained resilient globally • Solid performance from core aerospace and defense customers and growth at
Slide 4: Revenue by End Market
Revenue | By end market Quarterly Revenue $ Millions $60 $52 $51 $52 Revenue by Market $50 $48 Q220 vs. Q219 Change $46 $44 $43 $42 $42 $43 41% 43% $40 $37 $37 49% $35 38% 44% Industrial 37% 43% +8% 45% 43% 43% $29 $30 $30 42% 44% $25 $26 40% 38% $22 38% Microfabrication 33% 24% 27% 35% 39% -21% $20
Slide 5: Fiber Laser Power: Sales shifting to higher power fiber lasers
Fiber Laser Power | Sales shifting to higher power fiber lasers Fiber Laser Revenue by Power - Quarterly Percent of total fiber laser sales 100% Low Power 12% 11% 17% 14% 90% 22% 19% 20% < 2kW 27% 34% 32% 80% 43% 51% 49% 35% 70% 60% 59% 61% 58% 64% 39% 39% Medium Power 2kW – 5kW 60% 48% 39% 51% 57%
Slide 6: Revenue by Geography
Revenue | By geography Quarterly Revenue $ Millions $60 $52 $51 $52 $50 $48 $46 $44 $43 $42 $42 $43 33% 41% 46% $40 $37 $37 32% 38% $35 28% 36% 33% 40% 35% China $30 $29 38% $30 40% $25 $26 43% $22 40% 40% 40% $20 29% 41% 67% 68% 72% 59% 67% 62% 64% 54% 60% 65% ROW 60% 62% $10 57% 60% 60% 71% 59% 60
Slide 7: Well Positioned for Future Growth
Well Positioned for Future Growth Market Growing market driven by improvement in laser technology Strategy Vertically integrated with leading technology focused on rest of world industrial and aerospace and defense markets Financials Track record of growth and strong operating leverage 7
Slide 8: Financial Update
Financial Update
Slide 9: Q2 Financial Highlights
Q2 20 Financial Highlights • Q2 2020 Revenues of $52.1 million – Products revenues of $45.1 million – Development revenues of $7.0 million • Includes revenues from Nutronics of $5.7 million • Q2 2020 Gross Margin of 25.0% – Products gross margin of 27.7% – Development gross margin of 7.8% • Q2 2020
Slide 10: Gross Margin
Gross Margin Revenue and Gross Margin - Quarterly $ Millions; % of Revenue Revenue GM% $60 50% 45% $50 40% 35.4% 35.8% $40 34.7% 33.8% 34.2% 32.8% 32.3% 33.0% 35% 30.8% 30.0% 29.6% $30 29.3% 30% 23.3% 25.0% 23.9% 21.8% 25% $20 22.0% 20% 14.6% $10 15% $0 10% Q116 Q216 Q316 Q416 Q117 Q217 Q317 Q417 Q1
Slide 11: Operating Expense
Operating Expense Operating Expense Trend Excluding Stock-based Compensation Expense* $ Millions $16 15.0 13.4 $14 13.0 12.9 12.5 12.9 12.8 $12 11.4 11.2 10.4 7.8 6.2 $10 6.1 6.7 7.0 7.2 6.9 SG&A $8 6.7 6.3 6.1 $6 R&D $4 7.2 6.8 7.2 5.8 5.9 5.8 6.0 5.0 $2 4.3 4.7 $0 Q118 Q218 Q318 Q418 Q119 Q219 Q31
Slide 12: Profitability Summary
Profitability Summary $ Millions, except per share data Q2 2020 Q2 2019 2019 2018 Net Income (6.8) (0.2) (12.9) 13.9 Non-GAAP Net Income* (0.1) 2.2 1.1 18.7 EPS (diluted) (0.18) (0.00) (0.35) 0.32 Non-GAAP EPS (diluted)* (0.00) 0.05 0.03 0.49 Adjusted EBITDA (non-GAAP)* 3.3 5.5 9.9 30.2 Cash Flow fr
Slide 13: Strong Balance Sheet and Working Capital Management
Strong Balance Sheet and Working Capital Management Cash and Debt Position ($M) Accounts Receivable ($M) and Inventory ($M) and Days Sales Outstanding (DSO) Days of Inventory (DOI) $200 $50 70 $70 140 128 126 128 61 61 121 $175 $168 $45 59 116 57 60 $60 115 120 56 109 $149 $40 $51 $150 $142 $143 $13
Slide 14: Outlook
Outlook • Q3 2020 Revenues of $54 million to $60 million; midpoint of $57 million – Laser Products: approximately $46.5 million at midpoint – Advanced Development: approximately $10.5 million at midpoint • Q3 2020 Gross Margin of 22.0% to 26.0% – Includes approximately $600,000 of stock-based compen
Slide 15: Simply brilliant
Ve eeceee Simply brilliant
Slide 16: Appendix
Appendix
Slide 17: Key Revenue Metrics
Key Revenue Metrics (unaudited, USD in thousands) FY 2016 Q117 Q217 Q317 Q417 FY 2017 Q118 Q218 Q318 Q418 FY 2018 Q119 Q219 Q319 Q419 FY 2019 Q120 Q220 Revenues by end market Industrial 34,674 11,268 13,828 15,208 16,318 56,622 19,146 25,251 20,890 17,476 82,762 18,124 20,920 18,977 18,647 76,669 15
Slide 18: GAAP to Non-GAAP Reconciliation
GAAP to Non-GAAP Reconciliation (unaudited, in thousands, except per share data) FY 2016 Q117 Q217 Q317 Q417 FY 2017 Q118 Q218 Q318 Q418 FY 2018 Q119 Q219 Q319 Q419 FY 2019 Q120 Q220 Stock-based compensation included in following: Cost of revenues 9 6 15 16 46 22 62 183 189 456 209 267 340 385 1,201
Slide 19: Reporting Segments Results for Quarter Ended June 30, 2020
Reporting Segments Results for Quarter Ended June 30, 2020 $ Thousands Laser Products Advanced Development Revenue $45,104 $7,034 Gross Profit* $12,507 $549 Gross Margin 27.7% 7.8% Laser Products Advanced Development • Sales of our semiconductor lasers, fiber lasers, • Revenue earned from research a
Slide 20: COVID-19 Crisis Management Priorities
COVID-19 Crisis Management Priorities 1 Protect health of our employees and support our community 2 Maintain operations and service to support our customers Implement new remote engagement processes for sales, supply chain, internal 3 management 20