Vancouver-based laser manufacturer nLIGHT posted its third-quarter earnings report, showing a 39.6 percent rise in revenue over the third quarter of 2017 with $4 million profit, or roughly 10 cents per share.
The company’s $51 million revenue for the quarter slightly exceeded the average estimate of $49.2 million.
That result fell 2 cents per share below the average earnings estimate reported by Yahoo Finance based on predictions from seven stock analysts. The range of estimates was 10 cents and 13 cents per share.
Monday’s report was the company’s third quarterly report since its IPO earlier this year. The Vancouver company was founded in 2000 and went public on April 26, selling 6 million shares and netting $100 million.
During a conference call with investors on Monday, nLIGHT CEO Scott Keeney placed significant emphasis on the company’s expansion into higher power laser products — characterized as lasers with an output power greater than 6 kilowatts — which he said will drive much of its future growth and allow it to maintain an edge over its competitors.
“We continue to generate growth that is outpacing the overall high power laser market,” he said.
The company has introduced a number of new products in the past month, including more compact versions of its lasers in the 3-10 kilowatt range and the new 5 kilowatt Corona Fiber Laser, which allows users to customize the shape of the beam. Keeney said the Corona laser has exceeded the company’s sales expectations, and that the company plans to introduce additional high-power laser products next year.
Keeney also discussed challenges facing the company in China, which he said was due to a combination of aggressive pricing from competitors and uncertainty caused by tariffs. But the company is still showing growth in China, which Keeney attributed to nLIGHT’s development of relationships with key strategic customers.
“Despite these headwinds, we were able to grow our presence in China 15 percent year over year,” he said.
Keeney also said he anticipated that the company would be able to weather the impact of tariffs due to its strong manufacturing capacity at its Vancouver facility. He also noted that sales of fiber lasers in China make less than a quarter of the company’s revenue, and the company is seeing strong growth in other markets as well.
The company’s stock, traded on Nasdaq, has had a volatile first six months, reaching as high as $42.79 in June and as low as $16.25 last month. Shares closed trading on Monday at $19.30, down $1.20, but jumped up $1.45 in after-hours trading.
