nLIGHT, Inc. (NASDAQ:LASR) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET

Company Participants

Joseph Corso - Chief Financial Officer

Scott Keeney - Chairman and CEO

Conference Call Participants

Greg Palm - Craig-Hallum Capital Group

Mark Miller - The Benchmark Company

Hans Chung - D.A. Davidson

Ruben Roy - Stifel

Operator

Good afternoon. And welcome to the nLIGHT Third Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [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

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

Today’s discussion will contain forward-looking statements, including financial projections and plans for our business. Forward-looking statements are subject to risks and uncertainties, many of which are beyond our control, including the risks and uncertainties described from time-to-time in our SEC filings. Our results may differ materially from those projected on today’s call and we undertake no obligation to update publicly any forward-looking statement except as required by law.

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

I will now turn the call over to Scott.

Scott Keeney

Thank you everyone for joining us this afternoon. Starting on slide three, nLIGHT’s third quarter revenue was within the range of guidance provided in August. Products revenue was slightly below the midpoint, a lower than expected project base from development revenue resulted in overall revenue at the low end of the range. But products and overall gross margins were within the guidance range, but adjusted EBITDA was below the bottom end.

Operationally, we continue to increase the level of automation in the U.S. We have added incremental capacity to each of the lines we established earlier this year and we are in the process of adding one additional line to our facility in Camas, Washington.

With the installation of this equipment, we will have installed enough capacity to support our anticipated growth over the next several years. Beyond capacity, we are focused on further improving our yields and the overall efficiency of our newly installed capacity. We expect to have installed the majority of our automated capacity in the U.S. sometime in the first half of 2023.