Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | May 02, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38462 | |
Entity Registrant Name | NLIGHT, INC. | |
Entity Incorporation, Date of Incorporation | DE | |
Entity Tax Identification Number | 91-2066376 | |
Entity Address, Address Line One | 4637 NW 18th Avenue | |
Entity Address, City or Town | Camas | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98607 | |
City Area Code | 360 | |
Local Phone Number | 566-4460 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | LASR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 45,850,661 | |
Entity Central Index Key | 0001124796 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 48,402 | $ 57,826 |
Marketable securities | 59,966 | 50,391 |
Accounts receivable, net of allowances of $290 and $290 | 36,140 | 37,913 |
Inventory | 67,157 | 67,600 |
Prepaid expenses and other current assets | 21,586 | 17,026 |
Total current assets | 233,251 | 230,756 |
Restricted cash | 253 | 252 |
Lease right-of-use assets | 13,900 | 13,893 |
Property, plant and equipment, net | 58,978 | 60,693 |
Intangible assets, net | 3,408 | 4,041 |
Goodwill | 12,388 | 12,376 |
Other assets, net | 7,586 | 7,222 |
Total assets | 329,764 | 329,233 |
Current liabilities: | ||
Accounts payable | 17,759 | 17,507 |
Accrued liabilities | 14,708 | 12,820 |
Deferred revenues | 1,271 | 1,407 |
Current portion of lease liabilities | 3,001 | 2,758 |
Total current liabilities | 36,739 | 34,492 |
Non-current income taxes payable | 6,920 | 6,699 |
Long-term lease liabilities | 12,576 | 12,852 |
Other long-term liabilities | 4,367 | 4,345 |
Total liabilities | 60,602 | 58,388 |
Stockholders' equity: | ||
Common stock - $0.0001 par value; 190,000 shares authorized, 45,785 and 45,629 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively | 16 | 16 |
Additional paid-in capital | 501,675 | 496,211 |
Accumulated other comprehensive loss | (2,165) | (2,748) |
Accumulated deficit | (230,364) | (222,634) |
Total stockholders’ equity | 269,162 | 270,845 |
Total liabilities and stockholders’ equity | $ 329,764 | $ 329,233 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 290 | $ 290 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 190,000 | 190,000 |
Common stock, shares issued (in shares) | 45,785 | 45,629 |
Common stock, shares outstanding (in shares) | 45,785 | 45,629 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Total revenue | $ 54,091 | $ 64,459 |
Total cost of revenue | 39,828 | 48,282 |
Gross profit | 14,263 | 16,177 |
Operating expenses: | ||
Research and development | 11,301 | 13,711 |
Sales, general, and administrative | 11,169 | 10,775 |
Total operating expenses | 22,470 | 24,486 |
Loss from operations | (8,207) | (8,309) |
Other income: | ||
Interest income (expense), net | 337 | 0 |
Other income, net | 404 | 29 |
Loss before income taxes | (7,466) | (8,280) |
Income tax expense (benefit) | 264 | 343 |
Net loss | $ (7,730) | $ (8,623) |
Net loss per share, basic (in dollars per share) | $ (0.17) | $ (0.20) |
Net loss per share, diluted (in dollars per share) | $ (0.17) | $ (0.20) |
Shares used in per share calculations, basic (in shares) | 45,706 | 43,655 |
Shares used in per share calculations, diluted (in shares) | 45,706 | 43,655 |
Products | ||
Total revenue | $ 41,107 | $ 51,061 |
Total cost of revenue | 27,526 | 35,768 |
Development | ||
Total revenue | 12,984 | 13,398 |
Total cost of revenue | $ 12,302 | $ 12,514 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (7,730) | $ (8,623) |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustments | 369 | (96) |
Unrealized gains on available-for-sale securities | 214 | 0 |
Comprehensive loss | $ (7,147) | $ (8,719) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive loss | Accumulated deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 44,248 | ||||
Beginning balance at Dec. 31, 2021 | $ 302,133 | $ 15 | $ 470,760 | $ (587) | $ (168,055) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | (8,623) | (8,623) | |||
Issuance of common stock pursuant to exercise of stock options (in shares) | 423 | ||||
Issuance of common stock pursuant to exercise of stock options | 689 | 689 | |||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares) | 7 | ||||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax | (78) | (78) | |||
Restricted stock awards forfeited in connection with transition agreement (in shares) | (140) | ||||
Stock-based compensation | 6,553 | 6,553 | |||
Cumulative translation adjustment, net of tax | (96) | (96) | |||
Ending balance (in shares) at Mar. 31, 2022 | 44,538 | ||||
Ending balance at Mar. 31, 2022 | $ 300,578 | $ 15 | 477,924 | (683) | (176,678) |
Beginning balance (in shares) at Dec. 31, 2022 | 45,629 | 45,629 | |||
Beginning balance at Dec. 31, 2022 | $ 270,845 | $ 16 | 496,211 | (2,748) | (222,634) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net loss | $ (7,730) | (7,730) | |||
Issuance of common stock pursuant to exercise of stock options (in shares) | 117 | 117 | |||
Issuance of common stock pursuant to exercise of stock options | $ 143 | 143 | |||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax (in shares) | 39 | ||||
Issuance of common stock pursuant to vesting of restricted stock awards and units, net of stock withheld for tax | (182) | (182) | |||
Stock-based compensation | 5,503 | 5,503 | |||
Unrealized gains on available-for-sale securities | 214 | 214 | |||
Cumulative translation adjustment, net of tax | $ 369 | 369 | |||
Ending balance (in shares) at Mar. 31, 2023 | 45,785 | 45,785 | |||
Ending balance at Mar. 31, 2023 | $ 269,162 | $ 16 | $ 501,675 | $ (2,165) | $ (230,364) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (7,730) | $ (8,623) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 3,105 | 2,556 |
Amortization | 872 | 1,182 |
Reduction in carrying amount of right-of-use assets | 6 | 867 |
Recoveries of losses on accounts receivable | (2) | 0 |
Stock-based compensation | 5,503 | 6,553 |
Deferred income taxes | 0 | (4) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 1,905 | 4,690 |
Inventory | 662 | (3,433) |
Prepaid expenses and other current assets | (4,549) | (5,061) |
Other assets, net | (540) | (317) |
Accounts payable | (411) | (3,019) |
Accrued and other long-term liabilities | 1,855 | (1,088) |
Deferred revenues | (142) | (647) |
Lease liabilities | (45) | (813) |
Non-current income taxes payable | 155 | 153 |
Net cash provided by (used in) operating activities | 644 | (7,004) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (684) | (5,019) |
Acquisition of intangible assets and capitalization of patents | 0 | (114) |
Purchase of marketable securities | (34,359) | 0 |
Proceeds from maturities and sales of marketable securities | 24,998 | 0 |
Net cash used in investing activities | (10,045) | (5,133) |
Cash flows from financing activities: | ||
Proceeds from stock option exercises | 143 | 689 |
Tax payments related to stock award issuances | (182) | (78) |
Net cash (used in) provided by financing activities | (39) | 611 |
Effect of exchange rate changes on cash | 17 | (59) |
Net decrease in cash, cash equivalents, and restricted cash | (9,423) | (11,585) |
Cash, cash equivalents, and restricted cash, beginning of period | 58,078 | 146,784 |
Cash, cash equivalents, and restricted cash, end of period | 48,655 | 135,199 |
Supplemental disclosures: | ||
Cash paid for interest, net | 0 | 0 |
Cash paid for income taxes | 144 | 79 |
Operating cash outflows from operating leases | 923 | 1,097 |
Right-of-use assets obtained in exchange for lease liabilities | 731 | 1,470 |
Accrued purchases of property, equipment and patents | $ 697 | $ 2,268 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and New Accounting Pronouncements | Basis of Presentation and New Accounting Pronouncements Basis of Presentation The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. Critical Accounting Policies Our critical accounting policies have not materially changed during the three months ended March 31, 2023, from those disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. New Accounting Pronouncements None. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We recognize revenue upon transferring control of products and services and the amounts recognized reflect the consideration we expect to be entitled to receive in exchange for these products and services. We consider customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with a customer. As part of our consideration of the contract, we evaluate certain factors, including the customer's ability to pay (or credit risk). For each contract, we consider the promise to transfer products, each of which is distinct, as the identified performance obligations. We allocate the transaction price to each distinct product based on its relative standalone selling price. Master sales agreements or purchase orders from customers could include a single product or multiple products. Regardless, the contracted price with the customer is agreed to at the individual product level outlined in the customer contract or purchase order. We do not bundle prices; however, we do negotiate with customers on pricing for the same products based on a variety of factors (e.g., level of contractual volume). We have concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product. We often receive orders with multiple delivery dates that may extend across several reporting periods. We allocate the transaction price of the contract to each delivery based on the product standalone selling price and invoice for each scheduled delivery upon shipment or delivery and recognize revenues for such delivery at that point, when transfer of control has occurred. As scheduled delivery dates are generally within one year, under the optional exemption provided by ASC 606-10-50-14a revenues allocated to future shipments of partially completed contracts are not disclosed as performance obligations for point in time revenue. Further, the Company recognizes over time revenue as per ASC 606-10-55-18 (invoice practical expedient) for its cost plus contracts and, accordingly, elects not to disclose information related to those performance obligations under ASC 606-10-50-14b. Rights of return generally are not included in customer contracts. Accordingly, product revenue is recognized upon transfer of control at shipment or delivery, as applicable. Rights of return are evaluated as they occur. Revenues recognized at a point in time consist of sales of semiconductor lasers, fiber lasers and other related products. Revenues recognized over time generally consist of development arrangements that are structured based on our costs incurred. Because control transfers over time, revenue is recognized based on the extent of progress towards completion of the performance obligation. We generally use the cost-to-cost measure of progress for our contracts because it best depicts the transfer of control to the customer. Billing under these arrangements generally occurs within one month after the work is completed. The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands): Sales by End Market Three Months Ended March 31, 2023 2022 Industrial $ 19,902 $ 23,996 Microfabrication 13,058 17,319 Aerospace and Defense 21,131 23,144 $ 54,091 $ 64,459 Sales by Geography Three Months Ended March 31, 2023 2022 North America $ 29,103 $ 35,144 China 3,646 7,139 Rest of World 21,342 22,176 $ 54,091 $ 64,459 Sales by Timing of Revenue Three Months Ended March 31, 2023 2022 Point in time $ 40,272 $ 48,215 Over time 13,819 16,244 $ 54,091 $ 64,459 Our contract assets and liabilities are as follows (in thousands): Balance Sheet Classification As of March 31, 2023 December 31, 2022 Contract assets Prepaid expenses and $ 16,547 $ 10,377 Contract liabilities Deferred revenues and other long-term liabilities 2,511 2,455 Contract assets generally consist of revenue recognized on an over time basis where revenue recognition has been met, but the amounts are subsequently billed and collected in the following period. During the three months ended March 31, 2023 and 2022, we recognized revenue of $0.8 million and $1.4 million, respectively, that was included in the deferred revenue balances at the beginning of the period as the performance obligations under the associated agreements were satisfied. |
Concentrations of Credit and Ot
Concentrations of Credit and Other Risks | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit and Other Risks | Concentrations of Credit and Other Risks The following customers accounted for 10% or more of our revenues for the periods presented: Three Months Ended March 31, 2023 2022 U.S. Government 16% 17% Raytheon Technologies (1) 10% (1) Represents less than 10% of total revenues. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Marketable Securities | Marketable Securities Marketable securities consist primarily of highly liquid investments with original maturities of greater than 90 days when purchased. Our marketable securities are considered available-for-sale as they represent investments that are available to be sold for current operations. As such, they are included as current assets on our Consolidated Balance Sheets at fair value with unrealized gains and losses included in accumulated other comprehensive loss. Any unrealized gains and losses that are considered to be other-than-temporary are recorded in other income, net on our Consolidated Statements of Operations. Realized gains and losses on the sale of marketable securities are determined using the specific-identification method and recorded in other income, net on our Consolidated Statements of Operations. Realized gains were $0.4 million for three months ended March 31, 2023. Unrealized gains were $0.2 million for the three months ended March 31, 2023. These unrealized gains are considered temporary and are reflected in the Statements of Comprehensive Loss. There were no realized or unrealized gains or losses for the three months ended March 31, 2022. See Note 5 for additional information. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of certain of our financial instruments, including cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable and accrued liabilities are shown at cost which approximates fair value due to the short-term nature of these instruments. The fair value of our term and revolving loans approximates the carrying value due to the variable market rate used to calculate interest payments. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value which are the following: • Level 1 Inputs: Observable inputs, such as quoted prices (unadjusted) in active markets for identical assets or liabilities at the measurement date. • Level 2 Inputs: Observable inputs, other than Level 1 prices, such as quoted prices in active markets for similar assets and liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 Inputs: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Our financial instruments that are carried at fair value consist of Level 1 assets which include highly liquid investments and bank drafts classified as cash equivalents and marketable securities. Our fair value hierarchy for our financial instruments was as follows (in thousands): March 31, 2023 Level 1 Level 2 Level 3 Total Cash Equivalents: Money market securities $ 26,000 $ — $ — $ 26,000 Commercial paper 557 — — 557 26,557 — — 26,557 Marketable Securities: U.S. treasuries 59,966 — — 59,966 Total $ 86,523 $ — $ — $ 86,523 December 31, 2022 Level 1 Level 2 Level 3 Total Cash Equivalents: Money market securities $ 31,658 $ — $ — $ 31,658 Commercial paper 656 — — 656 $ 32,314 $ — $ — $ 32,314 Marketable Securities: U.S. treasuries 50,391 — — 50,391 Total $ 82,705 $ — $ — $ 82,705 Cash Equivalents The fair value of cash equivalents is determined based on quoted market prices for similar or identical securities. Marketable Securities We classify our marketable securities as available-for-sale and value them utilizing a market approach that uses observable inputs without applying significant judgment. |
Inventory
Inventory | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Inventory consisted of the following (in thousands): As of March 31, 2023 December 31, 2022 Raw materials $ 32,665 $ 32,515 Work in process and semi-finished goods 20,137 19,056 Finished goods 14,355 16,029 $ 67,157 $ 67,600 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consist of the following (in thousands): Useful life As of (years) March 31, 2023 December 31, 2022 Automobiles 3 $ 114 $ 110 Computer hardware and software 3 - 5 8,673 8,712 Manufacturing and lab equipment 2 - 7 90,153 89,230 Office equipment and furniture 5 - 7 2,482 2,410 Leasehold and building improvements 2 - 12 31,217 30,675 Buildings 30 9,392 9,392 Land N/A 3,399 3,399 145,430 143,928 Accumulated depreciation (86,452) (83,235) $ 58,978 $ 60,693 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible Assets The details of definite lived intangible assets were as follows (in thousands): Estimated useful life As of March 31, 2023 December 31, 2022 Patents 3 - 5 $ 6,334 $ 6,322 Development programs 2 - 4 7,200 7,200 Developed technology 5 2,960 2,930 16,494 16,452 Accumulated amortization (13,086) (12,411) $ 3,408 $ 4,041 Amortization related to intangible assets was as follows (in thousands): Three Months Ended March 31, 2023 2022 Amortization expense $ 654 $ 776 Estimated amortization expense for future years is as follows (in thousands): 2023 $ 1,581 2024 929 2025 593 2026 305 Thereafter — $ 3,408 Goodwill The carrying amount of goodwill by segment was as follows (in thousands): Laser Products Advanced Development Totals Balance, December 31, 2022 $ 2,128 $ 10,248 $ 12,376 Currency exchange rate adjustment 12 — 12 Balance, March 31, 2023 $ 2,140 $ 10,248 $ 12,388 |
Accrued Liabilities
Accrued Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consist of the following (in thousands): As of March 31, 2023 December 31, 2022 Accrued payroll and benefits $ 9,888 $ 8,233 Product warranty, current 2,540 2,601 Other accrued expenses 2,280 1,986 $ 14,708 $ 12,820 |
Product Warranties
Product Warranties | 3 Months Ended |
Mar. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranties | Product Warranties We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs. The current portion of our product warranty liability is included in the accrued liabilities and the long-term portion is included in other long-term liabilities in our Consolidated Balance Sheets. Product warranty liability activity was as follows for the periods presented (in thousands): Three Months Ended March 31, 2023 2022 Product warranty liability, beginning $ 5,441 $ 5,371 Warranty charges incurred, net (782) (1,490) Provision for warranty charges, net of adjustments 572 1,560 Product warranty liability, ending 5,231 5,441 Less: current portion of product warranty liability (2,540) (2,601) Non-current portion of product warranty liability $ 2,691 $ 2,840 |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | Stockholders' Equity and Stock-Based Compensation Restricted Stock Awards and Units There was no restricted stock award activity in the first quarter of 2023. Restricted stock unit ("RSU") activity under our equity incentive plan was as follows (in thousands, except weighted-average grant date fair values): Number of Restricted Stock Units Weighted-Average Grant Date Fair Value RSUs at December 31, 2022 2,784 $ 17.63 Awards granted 152 11.55 Awards vested (57) 18.09 Awards forfeited (223) 21.49 RSUs at March 31, 2023 2,656 16.95 The total fair value of RSUs vested during the three months ended March 31, 2023, was $1.0 million. Awards outstanding as of March 31, 2023 include 0.6 million performance-based awards that will vest upon meeting certain performance criteria. Stock Options The following table summarizes our stock option activity during the three months ended March 31, 2023 (in thousands, except weighted-average exercise prices): Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, December 31, 2022 1,827 $1.29 3.4 $16,156 Options exercised (117) 1.22 Outstanding, March 31, 2023 1,710 1.30 3.2 15,181 Options exercisable at March 31, 2023 1,710 1.30 3.2 15,181 Options vested as of March 31, 2023, and expected to vest after March 31, 2023 1,710 1.30 3.2 15,181 Total intrinsic value of options exercised for the three months ended March 31, 2023 and 2022, was $1.1 million and $6.4 million, respectively. We received proceeds of $0.1 million and $0.7 million from the exercise of options for the three months ended March 31, 2023 and 2022, respectively. Stock-Based Compensation Total stock-based compensation expense was included in our consolidated statements of operations as follows (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenues $ 700 $ 709 Research and development 2,098 3,122 Sales, general and administrative 2,705 2,722 $ 5,503 $ 6,553 Unrecognized Compensation Costs As of March 31, 2023, total unrecognized stock-based compensation was $34.8 million, which will be recognized over an average expected recognition period of 2.0 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases See Note 13. Legal Matters On March 25, 2022, Lumentum Operations LLC filed a complaint against nLIGHT, Inc. and certain of its employees in the U.S. District Court for the Western District of Washington. The complaint alleges that Lumentum is the partial or full owner of certain of our patents and requests corresponding relief from the court. We are vigorously defending against Lumentum’s allegations. Loss in this matter is not probable or reasonably estimable and, as such, no loss contingency has been recorded. From time to time, we may be subject to various other legal proceedings and claims in the ordinary course of business. As of March 31, 2023, we believe these matters will not have a material adverse effect on our consolidated financial statements. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases We lease real estate space under non-cancelable operating lease agreements for commercial and industrial space. Facilities-related operating leases have remaining terms of one month to 12.2 years, and some leases include options to extend up to 15 years. Other leases for automobiles, manufacturing and office and computer equipment have remaining lease terms of 0.2 to 4.3 years. These leases are primarily operating leases; financing leases are not material. We did not include any renewal options in our lease terms for calculating the lease liabilities as we are not reasonably certain we will exercise the options at this time. The weighted-average remaining lease term for the lease obligations was 8 years as of March 31, 2023, and the weighted-average discount rate was 3.6%. The weighted-average remaining lease term for the lease obligations was 8 years as of December 31, 2022, and the weighted-average discount rate was 3.6%. The components of lease expense related to operating leases were as follows (in thousands): Three Months Ended March 31, 2023 2022 Lease expense: Operating lease expense $ 921 $ 1,031 Short-term lease expense 93 121 Variable and other lease expense 225 194 $ 1,239 $ 1,346 Future minimum payments under our non-cancelable lease obligations were as follows as of March 31, 2023 (in thousands): 2023 $ 2,658 2024 3,232 2025 2,067 2026 1,654 2027 1,655 Thereafter 6,806 Total minimum lease payments 18,072 Less: interest (2,495) Present value of net minimum lease payments 15,577 Less: current portion of lease liabilities (3,001) Total long-term lease liabilities $ 12,576 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate in two reportable segments consisting of the Laser Products segment and the Advanced Development segment. The following table summarizes the operating results by reportable segment (dollars in thousands): Three Months Ended March 31, 2023 Laser Products Advanced Development Corporate and Other Totals Revenue $ 41,107 $ 12,984 $ — $ 54,091 Gross profit $ 14,281 $ 682 $ (700) $ 14,263 Gross margin 34.7 % 5.3 % NM* 26.4 % Three Months Ended March 31, 2022 Laser Products Advanced Development Corporate and Other Totals Revenue $ 51,061 $ 13,398 $ — $ 64,459 Gross profit $ 16,002 $ 884 $ (709) $ 16,177 Gross margin 31.3 % 6.6 % NM* 25.1 % Corporate and Other is unallocated expenses related to stock-based compensation. There have been no material changes to the geographic locations of our long-lived assets, net, based on the location of the assets, as disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share Basic and diluted net loss and the number of shares used for basic and diluted net loss calculations were the same for all periods presented because we were in a loss position. The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands): Three Months Ended March 31, 2023 2022 Restricted stock units and awards 845 1,313 Common stock options 1,574 2,090 2,419 3,403 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn May 4, 2023, we announced that we had been awarded an $86 million contract to produce a High Energy Laser (HEL) prototype for the next phase of development in support of the U.S. Department of Defense’s (DoD) High Energy Laser Scaling Initiative (HELSI). |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements of nLIGHT, Inc. and our wholly-owned subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) and pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). The unaudited financial information reflects, in the opinion of management, all adjustments necessary for a fair presentation of financial position, results of operations, stockholders’ equity, and cash flows for the interim periods presented. The results reported for the interim period presented are not necessarily indicative of results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. |
New Accounting Pronouncements | New Accounting Pronouncements None. |
Inventory | Inventory is stated at the lower of average cost (principally standard cost, which approximates actual cost on a first-in, first-out basis) and net realizable value. Inventory includes raw materials and components that may be specialized in nature and subject to obsolescence. On a quarterly basis, we review inventory quantities on hand in comparison to our past consumption, recent purchases, and other factors to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. At the point of loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. |
Product Warranties | We provide warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based on historical experience, any specifically identified failures, and our estimate of future costs. The current portion of our product warranty liability is included in the accrued liabilities and the long-term portion is included in other long-term liabilities in our Consolidated Balance Sheets. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Sales by End Market | The following tables represent a disaggregation of revenue from contracts with customers for the periods presented (in thousands): Sales by End Market Three Months Ended March 31, 2023 2022 Industrial $ 19,902 $ 23,996 Microfabrication 13,058 17,319 Aerospace and Defense 21,131 23,144 $ 54,091 $ 64,459 |
Schedule of Sales by Geography | Sales by Geography Three Months Ended March 31, 2023 2022 North America $ 29,103 $ 35,144 China 3,646 7,139 Rest of World 21,342 22,176 $ 54,091 $ 64,459 |
Schedule of Sales by Timing of Revenue | Sales by Timing of Revenue Three Months Ended March 31, 2023 2022 Point in time $ 40,272 $ 48,215 Over time 13,819 16,244 $ 54,091 $ 64,459 |
Schedule of Contract Assets and Liabilities | Our contract assets and liabilities are as follows (in thousands): Balance Sheet Classification As of March 31, 2023 December 31, 2022 Contract assets Prepaid expenses and $ 16,547 $ 10,377 Contract liabilities Deferred revenues and other long-term liabilities 2,511 2,455 |
Concentrations of Credit and _2
Concentrations of Credit and Other Risks (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Schedule of Concentration of Credit | The following customers accounted for 10% or more of our revenues for the periods presented: Three Months Ended March 31, 2023 2022 U.S. Government 16% 17% Raytheon Technologies (1) 10% (1) Represents less than 10% of total revenues. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Hierarchy for Its Cash Equivalents | Our fair value hierarchy for our financial instruments was as follows (in thousands): March 31, 2023 Level 1 Level 2 Level 3 Total Cash Equivalents: Money market securities $ 26,000 $ — $ — $ 26,000 Commercial paper 557 — — 557 26,557 — — 26,557 Marketable Securities: U.S. treasuries 59,966 — — 59,966 Total $ 86,523 $ — $ — $ 86,523 December 31, 2022 Level 1 Level 2 Level 3 Total Cash Equivalents: Money market securities $ 31,658 $ — $ — $ 31,658 Commercial paper 656 — — 656 $ 32,314 $ — $ — $ 32,314 Marketable Securities: U.S. treasuries 50,391 — — 50,391 Total $ 82,705 $ — $ — $ 82,705 |
Inventory (Tables)
Inventory (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventory | Inventory consisted of the following (in thousands): As of March 31, 2023 December 31, 2022 Raw materials $ 32,665 $ 32,515 Work in process and semi-finished goods 20,137 19,056 Finished goods 14,355 16,029 $ 67,157 $ 67,600 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property, plant and equipment consist of the following (in thousands): Useful life As of (years) March 31, 2023 December 31, 2022 Automobiles 3 $ 114 $ 110 Computer hardware and software 3 - 5 8,673 8,712 Manufacturing and lab equipment 2 - 7 90,153 89,230 Office equipment and furniture 5 - 7 2,482 2,410 Leasehold and building improvements 2 - 12 31,217 30,675 Buildings 30 9,392 9,392 Land N/A 3,399 3,399 145,430 143,928 Accumulated depreciation (86,452) (83,235) $ 58,978 $ 60,693 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The details of definite lived intangible assets were as follows (in thousands): Estimated useful life As of March 31, 2023 December 31, 2022 Patents 3 - 5 $ 6,334 $ 6,322 Development programs 2 - 4 7,200 7,200 Developed technology 5 2,960 2,930 16,494 16,452 Accumulated amortization (13,086) (12,411) $ 3,408 $ 4,041 |
Schedule of Finite-lived Intangible Assets Amortization Expense | Amortization related to intangible assets was as follows (in thousands): Three Months Ended March 31, 2023 2022 Amortization expense $ 654 $ 776 |
Schedule of Estimated Future Amortization Expense | Estimated amortization expense for future years is as follows (in thousands): 2023 $ 1,581 2024 929 2025 593 2026 305 Thereafter — $ 3,408 |
Schedule of Goodwill | The carrying amount of goodwill by segment was as follows (in thousands): Laser Products Advanced Development Totals Balance, December 31, 2022 $ 2,128 $ 10,248 $ 12,376 Currency exchange rate adjustment 12 — 12 Balance, March 31, 2023 $ 2,140 $ 10,248 $ 12,388 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): As of March 31, 2023 December 31, 2022 Accrued payroll and benefits $ 9,888 $ 8,233 Product warranty, current 2,540 2,601 Other accrued expenses 2,280 1,986 $ 14,708 $ 12,820 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Reconciliation of the Changes in the Aggregate Product Warranty Liability | Product warranty liability activity was as follows for the periods presented (in thousands): Three Months Ended March 31, 2023 2022 Product warranty liability, beginning $ 5,441 $ 5,371 Warranty charges incurred, net (782) (1,490) Provision for warranty charges, net of adjustments 572 1,560 Product warranty liability, ending 5,231 5,441 Less: current portion of product warranty liability (2,540) (2,601) Non-current portion of product warranty liability $ 2,691 $ 2,840 |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
Schedule of Restricted Stock Awards and Units | There was no restricted stock award activity in the first quarter of 2023. Restricted stock unit ("RSU") activity under our equity incentive plan was as follows (in thousands, except weighted-average grant date fair values): Number of Restricted Stock Units Weighted-Average Grant Date Fair Value RSUs at December 31, 2022 2,784 $ 17.63 Awards granted 152 11.55 Awards vested (57) 18.09 Awards forfeited (223) 21.49 RSUs at March 31, 2023 2,656 16.95 |
Schedule of Stock Option Activity | The following table summarizes our stock option activity during the three months ended March 31, 2023 (in thousands, except weighted-average exercise prices): Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, December 31, 2022 1,827 $1.29 3.4 $16,156 Options exercised (117) 1.22 Outstanding, March 31, 2023 1,710 1.30 3.2 15,181 Options exercisable at March 31, 2023 1,710 1.30 3.2 15,181 Options vested as of March 31, 2023, and expected to vest after March 31, 2023 1,710 1.30 3.2 15,181 |
Schedule of Stock-based Compensation Expense | Total stock-based compensation expense was included in our consolidated statements of operations as follows (in thousands): Three Months Ended March 31, 2023 2022 Cost of revenues $ 700 $ 709 Research and development 2,098 3,122 Sales, general and administrative 2,705 2,722 $ 5,503 $ 6,553 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense related to operating leases were as follows (in thousands): Three Months Ended March 31, 2023 2022 Lease expense: Operating lease expense $ 921 $ 1,031 Short-term lease expense 93 121 Variable and other lease expense 225 194 $ 1,239 $ 1,346 |
Schedule of Future Minimum Payments Under Non-cancelable Lease Obligations | Future minimum payments under our non-cancelable lease obligations were as follows as of March 31, 2023 (in thousands): 2023 $ 2,658 2024 3,232 2025 2,067 2026 1,654 2027 1,655 Thereafter 6,806 Total minimum lease payments 18,072 Less: interest (2,495) Present value of net minimum lease payments 15,577 Less: current portion of lease liabilities (3,001) Total long-term lease liabilities $ 12,576 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Results by Reportable Segment | The following table summarizes the operating results by reportable segment (dollars in thousands): Three Months Ended March 31, 2023 Laser Products Advanced Development Corporate and Other Totals Revenue $ 41,107 $ 12,984 $ — $ 54,091 Gross profit $ 14,281 $ 682 $ (700) $ 14,263 Gross margin 34.7 % 5.3 % NM* 26.4 % Three Months Ended March 31, 2022 Laser Products Advanced Development Corporate and Other Totals Revenue $ 51,061 $ 13,398 $ — $ 64,459 Gross profit $ 16,002 $ 884 $ (709) $ 16,177 Gross margin 31.3 % 6.6 % NM* 25.1 % |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Potentially Dilutive Shares Not Included in Calculation of Diluted Shares | The following potentially dilutive securities were not included in the calculation of diluted shares as the effect would have been anti‑dilutive (in thousands): Three Months Ended March 31, 2023 2022 Restricted stock units and awards 845 1,313 Common stock options 1,574 2,090 2,419 3,403 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 54,091 | $ 64,459 |
Point in time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 40,272 | 48,215 |
Over time | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 13,819 | 16,244 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 29,103 | 35,144 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3,646 | 7,139 |
Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 21,342 | 22,176 |
Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 19,902 | 23,996 |
Microfabrication | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 13,058 | 17,319 |
Aerospace and Defense | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 21,131 | $ 23,144 |
Revenue - Contract Assets and L
Revenue - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 16,547 | $ 10,377 |
Contract liabilities | $ 2,511 | $ 2,455 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized, previously included in customer advances and deferred revenue | $ 0.8 | $ 1.4 |
Concentrations of Credit and _3
Concentrations of Credit and Other Risks (Details) - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Sales Revenue | U.S. Government | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 16% | 17% |
Sales Revenue | Raytheon Technologies | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 10% | |
Accounts Receivable | Two customers | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 33% | 29% |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments, All Other Investments [Abstract] | ||
Realized gains | $ 0.4 | $ 0 |
Unrealized gains | $ 0.2 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | $ 26,557 | $ 82,705 |
Total | 86,523 | 32,314 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 26,557 | 32,314 |
Total | 86,523 | 82,705 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 0 | 0 |
Total | 0 | 0 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 0 | 0 |
Total | 0 | 0 |
Money market securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 26,000 | 31,658 |
Money market securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 26,000 | 31,658 |
Money market securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 0 | 0 |
Money market securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 0 | 0 |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 557 | 656 |
Commercial paper | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 557 | 656 |
Commercial paper | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 0 | 0 |
Commercial paper | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash Equivalents: | 0 | 0 |
U.S. treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable Securities: | 59,966 | 50,391 |
U.S. treasuries | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable Securities: | 59,966 | 50,391 |
U.S. treasuries | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable Securities: | 0 | 0 |
U.S. treasuries | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable Securities: | $ 0 | $ 0 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 32,665 | $ 32,515 |
Work in process and semi-finished goods | 20,137 | 19,056 |
Finished goods | 14,355 | 16,029 |
Inventory | $ 67,157 | $ 67,600 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 145,430 | $ 143,928 |
Accumulated depreciation | (86,452) | (83,235) |
Property and equipment, net | $ 58,978 | 60,693 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
(years) | 3 years | |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 114 | 110 |
Computer hardware and software | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 8,673 | 8,712 |
Computer hardware and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
(years) | 3 years | |
Computer hardware and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
(years) | 5 years | |
Manufacturing and lab equipment | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 90,153 | 89,230 |
Manufacturing and lab equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
(years) | 2 years | |
Manufacturing and lab equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
(years) | 7 years | |
Office equipment and furniture | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 2,482 | 2,410 |
Office equipment and furniture | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
(years) | 5 years | |
Office equipment and furniture | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
(years) | 7 years | |
Leasehold and building improvements | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 31,217 | 30,675 |
Leasehold and building improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
(years) | 2 years | |
Leasehold and building improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
(years) | 12 years | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
(years) | 30 years | |
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 9,392 | 9,392 |
Land | ||
Property, Plant and Equipment, Net [Abstract] | ||
Property and equipment, gross | $ 3,399 | $ 3,399 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 16,494 | $ 16,452 | |
Accumulated amortization | (13,086) | (12,411) | |
Net value | 3,408 | 4,041 | |
Amortization expense | 654 | $ 776 | |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 6,334 | 6,322 | |
Development programs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | $ 7,200 | 7,200 | |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (in years) | 5 years | ||
Gross carrying amount | $ 2,960 | $ 2,930 | |
Minimum | Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (in years) | 3 years | ||
Minimum | Development programs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (in years) | 2 years | ||
Maximum | Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (in years) | 5 years | ||
Maximum | Development programs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life (in years) | 4 years |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 1,581 | |
2024 | 929 | |
2025 | 593 | |
2026 | 305 | |
Thereafter | 0 | |
Net value | $ 3,408 | $ 4,041 |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 12,376 |
Currency exchange rate adjustment | 12 |
Ending balance | 12,388 |
Laser Products | |
Goodwill [Roll Forward] | |
Beginning balance | 2,128 |
Currency exchange rate adjustment | 12 |
Ending balance | 2,140 |
Advanced Development | |
Goodwill [Roll Forward] | |
Beginning balance | 10,248 |
Currency exchange rate adjustment | 0 |
Ending balance | $ 10,248 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued payroll and benefits | $ 9,888 | $ 8,233 |
Product warranty, current | 2,540 | 2,601 |
Other accrued expenses | 2,280 | 1,986 |
Total accrued liabilities | $ 14,708 | $ 12,820 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Product warranty liability, beginning | $ 5,441 | $ 5,371 |
Warranty charges incurred, net | (782) | (1,490) |
Provision for warranty charges, net of adjustments | 572 | 1,560 |
Product warranty liability, ending | 5,231 | 5,441 |
Less: current portion of product warranty liability | (2,540) | (2,601) |
Non-current portion of product warranty liability | $ 2,691 | $ 2,840 |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of Restricted Stock Units | |
Balance, beginning (in shares) | shares | 2,784 |
Awards granted (in shares) | shares | 152 |
Awards vested (in shares) | shares | (57) |
Awards forfeited (in shares) | shares | (223) |
Balance, ending (in shares) | shares | 2,656 |
Weighted-Average Grant Date Fair Value | |
Balance, beginning (in dollars per share) | $ / shares | $ 17.63 |
Awards granted (in dollars per share) | $ / shares | 11.55 |
Awards vested (in dollars per share) | $ / shares | 18.09 |
Awards forfeited (in dollars per share) | $ / shares | 21.49 |
Balance, ending (in dollars per share) | $ / shares | $ 16.95 |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-Based Compensation - Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value of options exercised | $ 1,100 | $ 6,400 | |
Proceeds from stock option exercises | 143 | $ 689 | |
Unrecognized expense | $ 34,800 | ||
Period for recognition (in years) | 2 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested, fair value | $ (1,000) | ||
Awards outstanding (in shares) | 2,656 | 2,784 | |
Performance-based Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards outstanding (in shares) | 600 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Number of Options | ||
Outstanding, beginning of period (in shares) | 1,827 | |
Options exercised (in shares) | (117) | |
Outstanding, end of period (in shares) | 1,710 | 1,827 |
Weighted-Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 1.29 | |
Options exercised (in dollars per share) | 1.22 | |
Outstanding, end of period (in dollars per share) | $ 1.30 | $ 1.29 |
Outstanding, Weighted average remaining contractual term (in years) | 3 years 2 months 12 days | 3 years 4 months 24 days |
Outstanding, Aggregate intrinsic value | $ 15,181 | $ 16,156 |
Options exercisable at end of period | ||
Options exercisable (in shares) | 1,710 | |
Weighted average exercise price (in dollars per share) | $ 1.30 | |
Weighted-Average Remaining Contractual Term (Years) | 3 years 2 months 12 days | |
Aggregate Intrinsic Value | $ 15,181 | |
Options vested as of end of period and expected to vest after end of period | ||
Options vested and expected to vest (in shares) | 1,710 | |
Weighted average exercise price (in dollars per share) | $ 1.30 | |
Weighted-Average Remaining Contractual Term (Years) | 3 years 2 months 12 days | |
Aggregate Intrinsic Value | $ 15,181 |
Stockholders' Equity and Stoc_6
Stockholders' Equity and Stock-Based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 5,503 | $ 6,553 |
Cost of revenues | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 700 | 709 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 2,098 | 3,122 |
Sales, general and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 2,705 | $ 2,722 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Lessee, Lease, Description [Line Items] | ||
Weighted-average remaining lease term for operating leases (in years) | 8 years | 8 years |
Weighted-average discount rate for operating leases (as a percent) | 3.60% | 3.60% |
Operating Leases, Facilities | ||
Lessee, Lease, Description [Line Items] | ||
Renewal lease term (in years) | 15 years | |
Operating Leases, Facilities | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 1 month | |
Operating Leases, Facilities | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 12 years 2 months 12 days | |
Operating Leases, Automobiles and Equipment | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 2 months 12 days | |
Operating Leases, Automobiles and Equipment | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term (in years) | 4 years 3 months 18 days |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 921 | $ 1,031 |
Short-term lease expense | 93 | 121 |
Variable and other lease expense | 225 | 194 |
Lease expense | $ 1,239 | $ 1,346 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments Under Non-Cancelable Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 2,658 | |
2024 | 3,232 | |
2025 | 2,067 | |
2026 | 1,654 | |
2027 | 1,655 | |
Thereafter | 6,806 | |
Total minimum lease payments | 18,072 | |
Less: interest | (2,495) | |
Present value of net minimum lease payments | 15,577 | |
Less: current portion of lease liabilities | (3,001) | $ (2,758) |
Total long-term lease liabilities | $ 12,576 | $ 12,852 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Information - Operating
Segment Information - Operating Results (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 54,091 | $ 64,459 |
Gross profit | $ 14,263 | $ 16,177 |
Gross margin | 26.40% | 25.10% |
Operating Segments | Laser Products | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 41,107 | $ 51,061 |
Gross profit | $ 14,281 | $ 16,002 |
Gross margin | 34.70% | 31.30% |
Operating Segments | Advanced Development | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 12,984 | $ 13,398 |
Gross profit | $ 682 | $ 884 |
Gross margin | 5.30% | 6.60% |
Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
Gross profit | $ (700) | $ (709) |
Net Loss per Share (Details)
Net Loss per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 2,419 | 3,403 |
Restricted stock units and awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 845 | 1,313 |
Common stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,574 | 2,090 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | May 04, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
SubsequentEventTable [Line Items] | |||
Contract with customer, liability | $ 2,511 | $ 2,455 | |
High Energy Laser Prototype | Subsequent Event | |||
SubsequentEventTable [Line Items] | |||
Contract with customer, liability | $ 86,000 |