nLIGHT Reports $13.8M Net Loss in Q1 2024

nLIGHT, Inc. has recently released its 10-Q report, providing insights into the company's financial performance and operations. nLIGHT, Inc. is a leading provider of high‑power semiconductor and fiber lasers for industrial, microfabrication, and aerospace and defense applications. The company operates in two segments: Laser Products and Advanced Development. In the first quarter of 2024, nLIGHT reported a net loss of $13.8 million, compared to a net loss of $7.7 million for the same period in 2023. Revenues decreased to $44.5 million in the three months ended March 31, 2024, compared to $54.1 million in the same period of 2023, primarily due to decreased sales in the Laser Products segment.

The company's performance is influenced by various factors, including demand for its semiconductor and fiber laser solutions, technology and new product development, manufacturing costs, gross margins, and seasonality. For the three months ended March 31, 2024, the company's revenue by end market showed a decrease in the Industrial and Microfabrication markets, while revenue from the Aerospace and Defense market increased due to new research and development contracts. The revenues by segment also reflected a decrease in Laser Products revenue and an increase in Advanced Development revenue.

Geographically, there was no significant change in North America revenue, while revenue from China and the Rest of the World decreased for the three months ended March 31, 2024, compared to the same period of 2023. The company's gross margin was impacted by lower production volumes on fixed manufacturing costs, resulting in a decrease in Laser Products gross margin, while the increase in Advanced Development gross margin was driven by changes in the composition of research and development contracts.

Operating expenses for research and development decreased by 5.7%, primarily due to a decrease in stock-based compensation. Sales, general, and administrative expenses increased by 3.4%, mainly driven by an increase in stock-based compensation. Interest income, net, increased by 35.0%, while other income, net, saw a significant increase, primarily attributable to realized gains and losses on the sale of marketable securities and changes in net realized and unrealized foreign exchange transactions resulting from currency rate fluctuations.

The market has reacted to these announcements by moving the company's shares 5.6% to a price of $12.21. If you want to know more, read the company's complete 10-Q report here.

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