Nlight, Inc. · NASDAQ:LASR
Nlight — Q3 2020 Earnings Presentation
23 slides from Nlight's earnings presentation, Nov 5, 2020
Slide 1: Earnings Presentation Q3 2020
EXHIBIT 99.2 Earnings Presentation Q3 2020 November 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: Q3 20 Business Highlights
Q3 20 Business Highlights • Record revenues and financial results above the high-end of our outlook – Growth (y-o-y) in all market segments (Microfabrication, Industrial, Aerospace and Defense) – Improving gross margins and profitability • Demand from our customers remain strong despite uncertain ma
Slide 4: Revenue | By geography
Revenue | By geography Quarterly Revenue $ Millions $70 $62 $60 $52 $51 $52 31% $48 China $50 $46 $44 $42 $42 $43 $43 33% 41% $40 $37 $37 46% 32% 38% $35 28% 36% 33% 40% 35% $30 $29 38% $30 40% $25 $26 43% $22 40% 40% 40% 69% $20 29% 41% ROW 67% 68% 62% 72% 59% 64% 54% 67% 60% 65% 60% 62% 57% $10 60
Slide 5: Revenue | By end market
Revenue | By end market Quarterly Revenue $ Millions $70 $62 Revenue by Market Q320 vs. Q319 Change $60 $52 $51 $52 $48 35% $50 $46 Industrial $44 +15% $42 $42 $43 $43 41% 43% $40 $37 $37 49% $35 38% 44% 43% 37% $30 45% 43% 43% 23% Microfabrication $29 +6% $30 42% 44% $25 $26 40% 38% $22 38% 33% 24%
Slide 6: Industrial | Sales shifting to higher power fiber lasers
Industrial | Sales shifting to higher power fiber lasers Fiber Laser Revenue by Power - Quarterly Percent of total fiber laser sales 100% 12% 11% 9% Low Power 17% 14% < 2kW 90% 22% 19% 20% 27% 34% 32% 80% 43% 51% 49% 34% 59% 58% 35% 70% 60% 61% 39% 64% 39% Medium Power 2kW – 5kW 60% 48% 39% 51% 57%
Slide 7: Industrial – Welding | Expanded in Europe and Midwest
Industrial – Welding | Expanded in Europe and Midwest Acquisition of OPI in Turin, Italy – Acquired privately-held OPI Photonics, based in the Italian industrial manufacturing sector – Strong team and technology for complementary optical beam- delivery accessories – Enhances competitiveness of our p
Slide 8: Industrial – Additive Manufacturing | Programmable Fiber Lasers for AM
Industrial – Additive Manufacturing | Programmable Fiber Lasers for AM AFX: the first fiber laser that can switch between a true single-mode beam and other beam profiles – Faster build rates – Better part quality – Lower tool cost These improved economics pave the way for metal additive series produ
Slide 9: Financial Update
Financial Update
Slide 10: Q3 Financial Highlights
Q3 20 Financial Highlights • Q3 2020 Revenues of $61.7 million – Products revenues of $51.1 million – Development revenues of $10.6 million • Includes revenues from Nutronics of $9.2 million • Q3 2020 Gross Margin of 27.8% – Products gross margin of 32.2% – Development gross margin of 6.5% • Q3 2020
Slide 11: Gross Margin
Gross Margin Revenue and Gross Margin - Quarterly $ Millions; % of Revenue Revenue GM% $70 45% 40% $60 35.8% 34.7% 35.4% 33.8% 34.2% 32.8% 32.3% 33.0% 35% 30.8% 29.6% $50 29.3% 30.0% 27.8% 30% 23.3% 25.0% $40 23.9% 21.8% 25% 22.0% $30 14.6% 20% 15% $20 10% $10 5% $0 0% Q116 Q216 Q316 Q416 Q117 Q217
Slide 12: Operating Expense
Operating Expense Operating Expenses* $ Millions; % of Revenue $16 40% $15.0 $15.0 SG&A 35% $14 $13.4 35% $12.9 $13.0 $12.9 R&D $12.5 $12.8 29% 30% $12 $11.4 $11.2 30% 31% $10.4 26% 24% 27% 24% $10 27% 25% 22% 22% 6.4 $8 7.8 6.2 20% 6.1 6.7 7.0 6.9 $6 7.2 15% 6.7 6.3 6.1 $4 8.6 10% 7.2 6.8 7.2 5.8 5
Slide 13: Profitability Summary
Profitability Summary $ Millions, except per share data Q3 2020 Q3 2019 2019 2018 Net Income (Loss) (2.1) (0.8) (12.9) 13.9 Non-GAAP Net Income* 5.3 0.3 1.1 18.7 EPS (diluted) (0.05) (0.02) (0.35) 0.32 Non-GAAP EPS (diluted)* 0.12 0.01 0.03 0.49 Adjusted EBITDA (non-GAAP)* 6.2 2.7 9.9 30.2 Cash Flow
Slide 14: 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) $175 $168 $50 70 $70 140 128 126 128 61 61 121 115 $149 $45 59 116 $150 $142 $143 57 60 $60 105 120 $139 56 109 $40 $53
Slide 15: Outlook | Q4 2020
Outlook | Q4 2020 • Q4 2020 Revenues of $59 million to $65 million; midpoint of $62 million – Laser Products: approximately $51 million at midpoint – Advanced Development: approximately $11 million at midpoint • Q4 2020 Gross Margin of 25% to 29% – Includes approximately $600,000 of stock-based comp
Slide 16: Revenue | Track Record of Success and Industry Leading Growth
Revenue | Track Record of Success and Industry Leading Growth nLIGHT Revenue $ Millions $219 CAGR >20% $200 $191 $177 $150 $139 $101 $100 $87 $63 $50 $0 2014 2015 2016 2017 2018 2019 2020E Note: 2020E based on actual results for Q1-Q3 plus the mid-point of Q4 guidance. 16
Slide 17: Board of Directors | Camille Nichols has joined the nLIGHT Board
Board of Directors | Camille Nichols has joined the nLIGHT Board • Adds relevant Aerospace & Defense experience that will help nLIGHT continue its growth and expansion in the A&D market • Camille had a distinguished career in the U.S. Army with over 20 years of experience in Department of Defense ac
Slide 18: Simply brilliant
Ve eeceee Simply brilliant
Slide 19: Appendix
Appendix
Slide 20: 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 Q320 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 76,6
Slide 21: 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 Q320 Stock-based compensation included in following: Cost of revenues 9 6 15 16 46 22 62 183 189 456 209 267 340 385
Slide 22: Reporting Segments Results for Quarter Ended September 30, 2020
Reporting Segments Results for Quarter Ended September 30, 2020 $ Thousands Laser Products Advanced Development Revenue $51,117 $10,615 Gross Profit* $16,472 $688 Gross Margin 32.2% 6.5% Laser Products Advanced Development • Sales of our semiconductor lasers, fiber lasers, • Revenue earned from rese
Slide 23: 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 23