Business Wire | Feb 17, 2021 04:07PM EST

nLIGHT, Inc. Announces Fourth Quarter and Full Year 2020 Results

Feb. 17, 2021

VANCOUVER, Wash.--(BUSINESS WIRE)--Feb. 17, 2021--nLIGHT, Inc. (Nasdaq: LASR), a leading provider of high-power semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets, today reported financial results for the fourth quarter and full year 2020.

"In 2020, nLIGHT delivered 26% year-over-year growth, which resulted in the highest annual revenues in the Company's history," commented Scott Keeney, nLIGHT's President and Chief Executive Officer. "We successfully executed our strategy of expanding sales with strategic customers outside of China and in the aerospace and defense market, which included a full year of revenues from our November 2019 acquisition of Nutronics."

"In the fourth quarter, led by another strong quarter in aerospace and defense, we achieved year-over-year growth in each of our end markets. As a result of higher revenues and a more favorable mix of business, our fourth quarter results exceeded the high-end of our revenue, gross margin and Adjusted EBITDA guidance. Looking forward, we believe we are well positioned to continue to outpace industry growth."

Full Year 2020 Financial Highlights

Year Ended December 31,

(In thousands, except percentages) 2020 2019 % Change

Revenues $ 222,789 $ 176,619 26.1 %

Gross margin 26.6 % 29.6 %

Loss from operations $ (21,048 ) $ (9,909 ) (112.4 )%

Operating margin (9.4 )% (5.6 )%

Net loss $ (20,932 ) $ (12,884 ) (62.5 )%

Adjusted EBITDA^(1) $ 18,151 $ 9,855 84.2 %

Adjusted EBITDA, as percentage of 8.1 % 5.6 % revenues

(1)

A reconciliation of the non-GAAP information provided here to the most directly comparable GAAP metric has been provided in the financial statement tables included in this release.

Revenues of $222.8 million for the full year 2020 were up 26.1% compared to $176.6 million for the full year 2019. Gross margin was 26.6% for the full year 2020 compared to 29.6% for the full year 2019. GAAP net loss for the full year 2020 was $(20.9) million, or net loss of $(0.55) per diluted share, compared to net loss of $(12.9) million, or net loss of $(0.35) per diluted share, for the full year 2019. Non-GAAP net income for the full year 2020 was $7.3 million, or non-GAAP net income of $0.17 per diluted share, compared to non-GAAP net income of $1.1 million, or non-GAAP net income of $0.03 per diluted share, for the full year 2019. Reconciliations of the non-GAAP information provided here to the most directly comparable GAAP metric have been provided in the financial statement tables included in this release.

Fourth Quarter 2020 Financial Highlights

^ A reconciliation of the non-GAAP information provided here to the most(1) directly comparable GAAP metric has been provided in the financial statement tables included in this release.

Revenues of $222.8 million for the full year 2020 were up 26.1% compared to $176.6 million for the full year 2019. Gross margin was 26.6% for the full year 2020 compared to 29.6% for the full year 2019. GAAP net loss for the full year 2020 was $(20.9) million, or net loss of $(0.55) per diluted share, compared to net loss of $(12.9) million, or net loss of $(0.35) per diluted share, for the full year 2019. Non-GAAP net income for the full year 2020 was $7.3 million, or non-GAAP net income of $0.17 per diluted share, compared to non-GAAP net income of $1.1 million, or non-GAAP net income of $0.03 per diluted share, for the full year 2019. Reconciliations of the non-GAAP information provided here to the most directly comparable GAAP metric have been provided in the financial statement tables included in this release.

Fourth Quarter 2020 Financial Highlights

Three Months Ended December 31,

(In thousands, except percentages) 2020 2019 % Change

Revenues $ 65,704 $ 42,896 53.2 %

Gross margin 29.9 % 23.3 %

Loss from operations $ (4,286 ) $ (8,966 ) 52.2 %

Operating margin (6.5 )% (20.9 )%

Net loss $ (4,517 ) $ (10,716 ) 57.8 %

Adjusted EBITDA^(1) $ 8,447 $ (1,365 ) 718.8 %

Adjusted EBITDA, as percentage of 12.9 % (3.2 )% revenues

(1)

A reconciliation of the non-GAAP information provided here to the most directly comparable GAAP metric has been provided in the financial statement tables included in this release.

Revenues of $65.7 million for the fourth quarter of 2020 were up 53.2% compared to $42.9 million for the fourth quarter of 2019, which included $2.6 million from Nutronics. Gross margin was 29.9% for the fourth quarter of 2020 compared to 23.3% for the fourth quarter of 2019. GAAP net loss for the fourth quarter of 2020 was $(4.5) million, or net loss of $(0.12) per diluted share, compared to net loss of $(10.7) million, or net loss of $(0.29) per diluted share, for the fourth quarter of 2019. Non-GAAP net income for the fourth quarter of 2020 was $5.2 million, or non-GAAP net income of $0.12 per diluted share, compared to non-GAAP net loss of $(2.1) million, or non-GAAP net loss of $(0.06) per diluted share, for the fourth quarter of 2019. Reconciliations of the non-GAAP information provided here to the most directly comparable GAAP metric have been provided in the financial statement tables included in this release.

Outlook

For the first quarter of 2021, nLIGHT expects revenues to be in the range of $56 million to $62 million, gross margin to be in the range of 25% to 29%, and Adjusted EBITDA to be in the range of $3 million to $6 million.

Investor Conference Call at 2:00 p.m. Pacific Time, Wednesday, February 17, 2021

Parties interested in listening to nLIGHT's quarterly conference call may do so by dialing 1-833-535-2198 (U.S., toll-free) or +1-412-902-6775 (international and toll), with the conference title: nLIGHT Fourth Quarter 2020 Earnings. The call can also be accessed via the web by going to nLIGHT's Investor Relations page at http://investors.nlight.net.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release contains non-GAAP financial results, including Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted. We use Adjusted EBITDA to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA is a meaningful measure of performance as it is commonly utilized by us and the investment community to analyze operating performance in our industry. Similarly, we believe that providing non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted, is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of stock-based compensation expense and other non-recurring items. However, the non-GAAP financial measures presented herein are specific to us and may not be comparable to similar measures disclosed by other companies because of differing methods used by other companies in calculating them.

We define Adjusted EBITDA as net income (loss) adjusted for income tax expense, other non-operating income or expense, interest income or expense, depreciation and amortization, stock-based compensation, acquisition and integration-related costs, and other special items as determined by management, as applicable. We define non-GAAP net income (loss) as GAAP net income (loss) adjusted for stock-based compensation, amortization of purchased intangibles, acquisition and integration-related costs, and other special items as determined by management, as applicable. We define non-GAAP net income (loss) per share, basic and diluted, as non-GAAP net income (loss) divided by common weighted-average shares outstanding during the respective period plus the dilutive effect of any common stock equivalents during the period, if applicable.

Tables presenting the reconciliation of Adjusted EBITDA to net income (loss), as well as the reconciliation of non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted, to net income (loss) and net income (loss) per share, basic and diluted, respectively, the two most directly comparable GAAP financial metrics, are included at the end of this press release.

We have not reconciled our outlook for Adjusted EBITDA because unrealized and realized foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Safe Harbor Statement

Certain statements in this release 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. Words such as "outlook," "guidance," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions may identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected revenues, gross margin, and Adjusted EBITDA and our expectations regarding customer demand for our products, operating results, and financial position, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements, including but not limited to: (1) the impact on our sales and operations of public health crises in China, the United States or internationally, including the COVID-19 pandemic, (2) our ability to generate sufficient revenues to achieve or maintain profitability in the future, (3) fluctuations in our quarterly results of operations and other operating measures, (4) downturns in the markets we serve could materially adversely affect our revenues and profitability, (5) our high levels of fixed costs and inventory levels may harm our gross profits and results of operations in the event that demand for our products declines or we maintain excess inventory levels, (6) the competitiveness of the markets for our products, (7) our substantial sales and operations in China, which expose us to risks inherent in doing business there, (8) the effect of current and potential tariffs and global trade policies on the cost of our products, (9) our manufacturing capacity and operations may not be appropriate for future levels of demand, (10) our reliance on a small number of customers for a significant portion of our revenues, and (11) the risk that we may be unable to protect our proprietary technology and intellectual property rights. Additional information concerning these and other factors can be found in nLIGHT's filings with the Securities and Exchange Commission (the "SEC"), including other risks, relevant factors and uncertainties identified in the "Risk Factors" section of nLIGHT's most recent Annual Report on Form 10-K or subsequent filings with the SEC. nLIGHT undertakes no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

The nLIGHT logo and "nLIGHT" are registered trademarks or trademarks of nLIGHT, Inc. in various jurisdictions.

About nLIGHT

nLIGHT, Inc. is a leading provider of high-power semiconductor and fiber lasers for industrial, microfabrication, aerospace and defense applications. Our lasers are changing not only the way things are made but also the things that can be made. Headquartered in Vancouver, Washington, nLIGHT employs over 1,200 people with operations in the U.S., China, Finland, Korea and Italy. For more information, please visit www.nlight.net.

^ A reconciliation of the non-GAAP information provided here to the most(1) directly comparable GAAP metric has been provided in the financial statement tables included in this release.

Revenues of $65.7 million for the fourth quarter of 2020 were up 53.2% compared to $42.9 million for the fourth quarter of 2019, which included $2.6 million from Nutronics. Gross margin was 29.9% for the fourth quarter of 2020 compared to 23.3% for the fourth quarter of 2019. GAAP net loss for the fourth quarter of 2020 was $(4.5) million, or net loss of $(0.12) per diluted share, compared to net loss of $(10.7) million, or net loss of $(0.29) per diluted share, for the fourth quarter of 2019. Non-GAAP net income for the fourth quarter of 2020 was $5.2 million, or non-GAAP net income of $0.12 per diluted share, compared to non-GAAP net loss of $(2.1) million, or non-GAAP net loss of $(0.06) per diluted share, for the fourth quarter of 2019. Reconciliations of the non-GAAP information provided here to the most directly comparable GAAP metric have been provided in the financial statement tables included in this release.

Outlook

For the first quarter of 2021, nLIGHT expects revenues to be in the range of $56 million to $62 million, gross margin to be in the range of 25% to 29%, and Adjusted EBITDA to be in the range of $3 million to $6 million.

Investor Conference Call at 2:00 p.m. Pacific Time, Wednesday, February 17, 2021

Parties interested in listening to nLIGHT's quarterly conference call may do so by dialing 1-833-535-2198 (U.S., toll-free) or +1-412-902-6775 (international and toll), with the conference title: nLIGHT Fourth Quarter 2020 Earnings. The call can also be accessed via the web by going to nLIGHT's Investor Relations page at http://investors.nlight.net.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release contains non-GAAP financial results, including Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted. We use Adjusted EBITDA to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA is a meaningful measure of performance as it is commonly utilized by us and the investment community to analyze operating performance in our industry. Similarly, we believe that providing non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted, is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of stock-based compensation expense and other non-recurring items. However, the non-GAAP financial measures presented herein are specific to us and may not be comparable to similar measures disclosed by other companies because of differing methods used by other companies in calculating them.

We define Adjusted EBITDA as net income (loss) adjusted for income tax expense, other non-operating income or expense, interest income or expense, depreciation and amortization, stock-based compensation, acquisition and integration-related costs, and other special items as determined by management, as applicable. We define non-GAAP net income (loss) as GAAP net income (loss) adjusted for stock-based compensation, amortization of purchased intangibles, acquisition and integration-related costs, and other special items as determined by management, as applicable. We define non-GAAP net income (loss) per share, basic and diluted, as non-GAAP net income (loss) divided by common weighted-average shares outstanding during the respective period plus the dilutive effect of any common stock equivalents during the period, if applicable.

Tables presenting the reconciliation of Adjusted EBITDA to net income (loss), as well as the reconciliation of non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted, to net income (loss) and net income (loss) per share, basic and diluted, respectively, the two most directly comparable GAAP financial metrics, are included at the end of this press release.

We have not reconciled our outlook for Adjusted EBITDA because unrealized and realized foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Safe Harbor Statement

Certain statements in this release 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. Words such as "outlook," "guidance," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions may identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected revenues, gross margin, and Adjusted EBITDA and our expectations regarding customer demand for our products, operating results, and financial position, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements, including but not limited to: (1) the impact on our sales and operations of public health crises in China, the United States or internationally, including the COVID-19 pandemic, (2) our ability to generate sufficient revenues to achieve or maintain profitability in the future, (3) fluctuations in our quarterly results of operations and other operating measures, (4) downturns in the markets we serve could materially adversely affect our revenues and profitability, (5) our high levels of fixed costs and inventory levels may harm our gross profits and results of operations in the event that demand for our products declines or we maintain excess inventory levels, (6) the competitiveness of the markets for our products, (7) our substantial sales and operations in China, which expose us to risks inherent in doing business there, (8) the effect of current and potential tariffs and global trade policies on the cost of our products, (9) our manufacturing capacity and operations may not be appropriate for future levels of demand, (10) our reliance on a small number of customers for a significant portion of our revenues, and (11) the risk that we may be unable to protect our proprietary technology and intellectual property rights. Additional information concerning these and other factors can be found in nLIGHT's filings with the Securities and Exchange Commission (the "SEC"), including other risks, relevant factors and uncertainties identified in the "Risk Factors" section of nLIGHT's most recent Annual Report on Form 10-K or subsequent filings with the SEC. nLIGHT undertakes no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

The nLIGHT logo and "nLIGHT" are registered trademarks or trademarks of nLIGHT, Inc. in various jurisdictions.

About nLIGHT

nLIGHT, Inc. is a leading provider of high-power semiconductor and fiber lasers for industrial, microfabrication, aerospace and defense applications. Our lasers are changing not only the way things are made but also the things that can be made. Headquartered in Vancouver, Washington, nLIGHT employs over 1,200 people with operations in the U.S., China, Finland, Korea and Italy. For more information, please visit www.nlight.net.

nLIGHT, Inc.

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

Three Months Ended Year Ended December 31, December 31,

2020 2019 2020 2019

Revenue:

Products $ 51,690 $ 40,336 $ 184,841 $ 174,059

Development 14,014 2,560 37,948 2,560

Total revenue 65,704 42,896 222,789 176,619

Cost of revenue:

Products 33,113 30,637 128,255 122,013

Development 12,944 2,267 35,170 2,267

Total cost of revenue^(1) 46,057 32,904 163,425 124,280

Gross profit 19,647 9,992 59,364 52,339

Operating expenses:

Research and development^(1) 12,028 8,819 41,164 28,137

Sales, general, and 11,905 10,139 39,248 34,111 administrative^(1)

Total operating expenses 23,933 18,958 80,412 62,248

Loss from operations (4,286 ) (8,966 ) (21,048 ) (9,909 )

Other income (expense):

Interest income (expense), net (44 ) 454 78 2,609

Other income, net 315 532 378 535

Loss before income taxes (4,015 ) (7,980 ) (20,592 ) (6,765 )

Income tax expense 502 2,736 340 6,119

Net loss $ (4,517 ) $ (10,716 ) $ (20,932 ) $ (12,884 )

Net loss per share, basic $ (0.12 ) $ (0.29 ) $ (0.55 ) $ (0.35 )

Net loss per share, diluted $ (0.12 ) $ (0.29 ) $ (0.55 ) $ (0.35 )

Shares used in per share calculations:

Basic 38,877 37,463 38,367 37,119

Diluted 38,877 37,463 38,367 37,119

^(1)Includes stock-based compensation as follows:

Three Months Ended Year Ended December 31, December 31,

2020 2019 2020 2019

Cost of revenues $ 432 $ 385 $ 1,621 $ 1,201

Research and development 3,101 1,606 9,703 3,299

Sales, general, and 5,448 2,370 14,140 5,230 administrative

$ 8,981 $ 4,361 $ 25,464 $ 9,730

nLIGHT, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

As of

December 31, 2020

December 31, 2019

Assets

Current assets:

Cash and cash equivalents

$

102,282

$

117,252

Accounts receivable, net

31,820

27,126

Inventory

54,706

46,131

Prepaid expenses and other current assets

11,767

8,084

Total current assets

200,575

198,593

Restricted cash

291

41

Lease right-of-use assets

12,302

-

Property, plant and equipment, net

44,480

27,747

Intangible assets, net

8,345

10,006

Goodwill

12,484

9,872

Other assets, net

5,167

3,707

Total assets

$

283,644

$

249,966

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

21,057

$

12,700

Accrued liabilities

15,321

11,605

Deferred revenue

2,528

679

Current portion of lease liabilities

2,273

-

Current portion of long-term debt

184

51

Total current liabilities

41,363

25,035

Non-current income taxes payable

7,556

6,429

Long-term lease liabilities

10,375

-

Long-term debt

215

-

Other long-term liabilities

4,221

1,894

Total liabilities

63,730

33,358

Stockholders' equity:

Common stock - par value

15

15

Additional paid-in capital

358,544

336,732

Accumulated other comprehensive loss

(259

)

(2,685

)

Accumulated deficit

(138,386

)

(117,454

)

Total stockholders' equity

219,914

216,608

Total liabilities and stockholders' equity

$

283,644

$

249,966

nLIGHT, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

As of

December 31, 2020 December 31, 2019

Assets

Current assets:

Cash and cash equivalents $ 102,282 $ 117,252

Accounts receivable, net 31,820 27,126

Inventory 54,706 46,131

Prepaid expenses and other current assets 11,767 8,084

Total current assets 200,575 198,593

Restricted cash 291 41

Lease right-of-use assets 12,302 -

Property, plant and equipment, net 44,480 27,747

Intangible assets, net 8,345 10,006

Goodwill 12,484 9,872

Other assets, net 5,167 3,707

Total assets $ 283,644 $ 249,966



Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 21,057 $ 12,700

Accrued liabilities 15,321 11,605

Deferred revenue 2,528 679

Current portion of lease liabilities 2,273 -

Current portion of long-term debt 184 51

Total current liabilities 41,363 25,035

Non-current income taxes payable 7,556 6,429

Long-term lease liabilities 10,375 -

Long-term debt 215 -

Other long-term liabilities 4,221 1,894

Total liabilities 63,730 33,358

Stockholders' equity:

Common stock - par value 15 15

Additional paid-in capital 358,544 336,732

Accumulated other comprehensive loss (259 ) (2,685 )

Accumulated deficit (138,386 ) (117,454 )

Total stockholders' equity 219,914 216,608

Total liabilities and stockholders' $ 283,644 $ 249,966 equity

nLIGHT, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Year Ended December 31,

2020

2019

Cash flows from operating activities:

Net loss

$

(20,932

)

$

(12,884

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation

7,710

6,583

Amortization

5,975

2,981

Reduction in carrying amount of right-of-use assets

2,916

-

Provision for losses on accounts receivable

88

83

Stock-based compensation

25,464

9,730

Deferred income taxes

(11

)

3,041

Gain on disposal of assets

-

(483

)

Changes in operating assets and liabilities:

Accounts receivable, net

(4,009

)

(395

)

Inventory

(6,937

)

(10,670

)

Prepaid expenses and other current assets

(3,442

)

(111

)

Other assets

(3,463

)

(2,669

)

Accounts payable

7,306

844

Accrued and other long-term liabilities

2,269

92

Deferred revenues

1,800

(178

)

Lease liabilities

(2,820

)

-

Non-current income taxes payable

1,127

(205

)

Net cash provided by (used in) operating activities

13,041

(4,241

)

Cash flows from investing activities:

Acquisition of business, net of cash acquired

(190

)

(17,400

)

Purchases of property, plant and equipment

(23,416

)

(12,403

)

Capitalization of patents

(933

)

(1,229

)

Proceeds from sale of assets

-

628

Net cash used in investing activities

(24,539

)

(30,404

)

Cash flows from investing activities:

Proceeds from term loan

15,000

-

Principal payments on term loans and financing leases

(15,115

)

(55

)

Proceeds from employee stock plan purchases

1,393

1,471

Proceeds from stock option exercises

1,375

1,560

Tax payments related to stock award issuances

(6,420

)

(524

)

Net cash provided by (used in) financing activities

(3,767

)

2,452

Effect of exchange rate changes on cash

545

(33

)

Net decrease in cash, cash equivalents and restricted cash

(14,720

)

(32,226

)

Cash, cash equivalents and restricted cash, beginning of period

117,293

149,519

Cash, cash equivalents and restricted cash, end of period

$

102,573

$

117,293

Supplemental disclosures:

Cash received for interest

$

311

$

2,802

Cash paid for income taxes

647

2,335

Accrued purchases of property, equipment and patents

788

828

Accrued acquisition consideration

1,441

-

Supplemental disclosure of noncash investing and financing activities:

Right-of-use assets obtained in exchange for lease liabilities

$

15,127

$

-

nLIGHT, Inc.

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

Year Ended December 31,

2020 2019

Cash flows from operating activities:

Net loss $ (20,932 ) $ (12,884 )

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Depreciation 7,710 6,583

Amortization 5,975 2,981

Reduction in carrying amount of right-of-use assets 2,916 -

Provision for losses on accounts receivable 88 83

Stock-based compensation 25,464 9,730

Deferred income taxes (11 ) 3,041

Gain on disposal of assets - (483 )

Changes in operating assets and liabilities:

Accounts receivable, net (4,009 ) (395 )

Inventory (6,937 ) (10,670 )

Prepaid expenses and other current assets (3,442 ) (111 )

Other assets (3,463 ) (2,669 )

Accounts payable 7,306 844

Accrued and other long-term liabilities 2,269 92

Deferred revenues 1,800 (178 )

Lease liabilities (2,820 ) -

Non-current income taxes payable 1,127 (205 )

Net cash provided by (used in) operating activities 13,041 (4,241 )

Cash flows from investing activities:

Acquisition of business, net of cash acquired (190 ) (17,400 )

Purchases of property, plant and equipment (23,416 ) (12,403 )

Capitalization of patents (933 ) (1,229 )

Proceeds from sale of assets - 628

Net cash used in investing activities (24,539 ) (30,404 )

Cash flows from investing activities:

Proceeds from term loan 15,000 -

Principal payments on term loans and financing leases (15,115 ) (55 )

Proceeds from employee stock plan purchases 1,393 1,471

Proceeds from stock option exercises 1,375 1,560

Tax payments related to stock award issuances (6,420 ) (524 )

Net cash provided by (used in) financing activities (3,767 ) 2,452

Effect of exchange rate changes on cash 545 (33 )

Net decrease in cash, cash equivalents and restricted (14,720 ) (32,226 )cash

Cash, cash equivalents and restricted cash, beginning 117,293 149,519 of period

Cash, cash equivalents and restricted cash, end of $ 102,573 $ 117,293 period

Supplemental disclosures:

Cash received for interest $ 311 $ 2,802

Cash paid for income taxes 647 2,335

Accrued purchases of property, equipment and patents 788 828

Accrued acquisition consideration 1,441 -

Supplemental disclosure of noncash investing and financing activities:

Right-of-use assets obtained in exchange for lease $ 15,127 $ - liabilities

nLIGHT, Inc.

Reconciliation of GAAP Financial Metrics to Non-GAAP

(In thousands, except per share data)

(Unaudited)

Reconciliation of Net Loss to Adjusted EBITDA

Three Months Ended

December 31,

Year Ended

December 31,

2020

2019

2020

2019

Net loss

$

(4,517

)

$

(10,716

)

$

(20,932

)

$

(12,884

)

Income tax expense

502

2,736

340

6,119

Other income, net

(315

)

(532

)

(378

)

(535

)

Interest (income) expense, net

44

(454

)

(78

)

(2,609

)

Depreciation and amortization

3,752

2,770

13,685

9,564

Stock-based compensation

8,981

4,361

25,464

9,730

Acquisition and integration-related costs

-

470

50

470

Adjusted EBITDA

$

8,447

$

(1,365

)

$

18,151

$

9,855

Reconciliation of GAAP to Non-GAAP Net Income (Loss), and GAAP to Non-GAAP Net Income (Loss) per Share, Basic and Diluted

Three Months Ended

December 31,

Year Ended

December 31,

2020

2019

2020

2019

Net loss

$

(4,517

)

$

(10,716

)

$

(20,932

)

$

(12,884

)

Add back:

Stock-based compensation(1)

8,981

4,361

25,464

9,730

Valuation allowance on foreign deferred tax assets

-

3,423

-

3,423

Amortization of purchased intangibles (1)

716

328

2,724

328

Acquisition and integration-related costs (1)

-

470

50

470

Non-GAAP net income (loss)

5,180

(2,134

)

7,306

1,067

GAAP weighted-average shares outstanding

38,877

37,463

38,367

37,119

Participating securities

653

-

544

319

Non-GAAP weighted-average number of shares, basic

39,530

37,463

38,911

37,438

Dilutive effect of common stock equivalents

4,654

-

4,228

4,360

Non-GAAP weighted-average number of shares, diluted

44,184

37,463

43,139

41,798

Non-GAAP net income (loss) per share, basic

$

0.13

$

(0.06

)

$

0.19

$

0.03

Non-GAAP net income (loss) per share, diluted

$

0.12

$

(0.06

)

$

0.17

$

0.03

nLIGHT, Inc.

Reconciliation of GAAP Financial Metrics to Non-GAAP

(In thousands, except per share data)

(Unaudited)

Reconciliation of Net Loss to Adjusted EBITDA

Three Months Ended Year Ended December 31, December 31,

2020 2019 2020 2019

Net loss $ (4,517 ) $ (10,716 ) $ (20,932 ) $ (12,884 )

Income tax expense 502 2,736 340 6,119

Other income, net (315 ) (532 ) (378 ) (535 )

Interest (income) expense, 44 (454 ) (78 ) (2,609 )net

Depreciation and 3,752 2,770 13,685 9,564 amortization

Stock-based compensation 8,981 4,361 25,464 9,730

Acquisition and - 470 50 470 integration-related costs

Adjusted EBITDA $ 8,447 $ (1,365 ) $ 18,151 $ 9,855

Reconciliation of GAAP to Non-GAAP Net Income (Loss), and GAAP to Non-GAAP NetIncome (Loss) per Share, Basic and Diluted

Three Months Ended Year Ended December 31, December 31,

2020 2019 2020 2019

Net loss $ (4,517 ) $ (10,716 ) $ (20,932 ) $ (12,884 )

Add back:

Stock-based compensation^ 8,981 4,361 25,464 9,730 (1)

Valuation allowance onforeign deferred tax - 3,423 - 3,423 assets

Amortization of purchased 716 328 2,724 328 intangibles^ (1)

Acquisition andintegration-related costs - 470 50 470 ^(1)

Non-GAAP net income (loss) 5,180 (2,134 ) 7,306 1,067



GAAP weighted-average 38,877 37,463 38,367 37,119 shares outstanding

Participating securities 653 - 544 319

Non-GAAP weighted-average 39,530 37,463 38,911 37,438 number of shares, basic

Dilutive effect of common 4,654 - 4,228 4,360 stock equivalents

Non-GAAP weighted-average 44,184 37,463 43,139 41,798 number of shares, diluted



Non-GAAP net income (loss) $ 0.13 $ (0.06 ) $ 0.19 $ 0.03 per share, basic

Non-GAAP net income (loss) $ 0.12 $ (0.06 ) $ 0.17 $ 0.03 per share, diluted

(1)

There is no income tax effect related to the stock-based compensation, amortization of purchased intangibles, and acquisition and integration-related cost adjustments due to the full valuation allowance in the U.S.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210217005945/en/

CONTACT: Joseph Corso VP, Corporate Development and Investor Relations nLIGHT, Inc. (360) 566-4460 joe.corso@nlight.net