nLIGHT Inc. recently held its second quarter 2024 earnings call, highlighting a strong quarter with growth in aerospace and defense, as well as strategic partnerships in the additive manufacturing sector. The call was led by Chief Financial Officer, Joseph Corso, and CEO, Scott Keeney, who provided insights into the company's financial performance and strategic initiatives.
Financial Highlights
The company reported a total revenue of $50.5 million in the second quarter, a 13% increase compared to the first quarter and an 11% decrease from the same quarter last year. The revenue breakdown showed that aerospace and defense accounted for 54% of total revenue, with industrial and microfabrication contributing 26% and 20%, respectively.
Gross margins improved to approximately 24% in the second quarter, with products gross margin expanding to approximately 30%. This was a positive sign, highlighting the company's ability to increase profitability as revenue grows. The company ended the quarter with cash equivalents and investments of $115 million, with no debt, signaling a strong financial position.
Aerospace and Defense
The aerospace and defense sector continued to be a significant growth opportunity for nLIGHT, with revenue up 26% sequentially. The company's directed energy business, which includes laser sensing and directed energy solutions, saw strong growth, particularly in the U.S. and foreign military operations. This underscores the increasing need for advanced, cost-effective defensive weapons technology and the potential of directed energy lasers as a critical part of defense strategies.
Strategic Partnerships
nLIGHT also announced a significant partnership with EOS, an industry leader in additive manufacturing, to optimize the additive manufacturing light engine. This partnership is expected to drive productivity gains and lower costs per part for EOS' metal 3D printing systems, further enhancing nLIGHT's presence in the additive manufacturing sector.
Moving Forward
The company's outlook for the second half of 2024 is positive, with expectations of continued sequential revenue growth in the range of $53 million to $58 million. The focus is on profitable growth in 2025 and beyond, with optimism about business momentum and the potential for growth in the defense and industrial sectors.
In conclusion, nLIGHT's Q2 earnings call highlighted the company's strength in the aerospace and defense sector, particularly in directed energy solutions, and the strategic partnership with EOS in additive manufacturing. The company's financial performance, with improved gross margins and a strong balance sheet, positions it well for continued growth and profitability in the future.