nLIGHT Inc (LASR) 2025 Q1 法說會逐字稿

Good evening, ladies and gentlemen, and welcome to the nLIGHT Incorporation first-quarter 2025 earnings conference call. (Operator Instructions) This call is being recorded on Thursday, May 8, 2025.

女士們、先生們，晚上好，歡迎參加 nLIGHT Incorporation 2025 年第一季財報電話會議。（操作員指示）本次通話於 2025 年 5 月 8 日星期四錄製。

I would now like to turn the conference over to John Marchetti, VP of Corporate Development and Head of Investor Relations.

現在，我想將會議交給企業發展副總裁兼投資者關係主管 John Marchetti。

Thank you, and good afternoon, everyone. I'm John Marchetti, nLIGHT's VP of Corporate Development and Head of Investor Relations. With me on the call today are Scott Keeney, nLIGHT's Chairman and CEO; and Joe Corso, nLIGHT CFO.

謝謝大家，下午好。我是 nLIGHT 企業發展副總裁兼投資者關係主管 John Marchetti。今天與我一起參加電話會議的還有 nLIGHT 董事長兼執行長 Scott Keeney；以及 nLIGHT 財務長 Joe Corso。

Today's discussion will contain forward-looking statements, including financial projections and plans for our business, some of which are beyond our control, including the risks and uncertainties described from time to time in our SEC filings. Our results may differ materially from those projected on today's call, and we undertake no obligation to update publicly any forward-looking statement, except as required by law.

今天的討論將包含前瞻性陳述，包括我們業務的財務預測和計劃，其中一些是我們無法控制的，包括我們向美國證券交易委員會提交的文件中不時描述的風險和不確定性。我們的結果可能與今天電話會議上預測的結果有重大差異，除非法律要求，否則我們不承擔公開更新任何前瞻性聲明的義務。

During the call, we will be discussing certain non-GAAP financial measures. We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in our earnings release and in our earnings presentation, both of which can be found on the Investor Relations section of our website.

在電話會議中，我們將討論某些非公認會計準則財務指標。我們在收益報告和收益報告中提供了這些非 GAAP 財務指標與最直接可比較的 GAAP 財務指標的對帳表，這兩個對帳表都可以在我們網站的「投資者關係」部分找到。

I will now turn the call over to nLIGHT's Chairman and CEO, Scott Keeney. Scott?

現在我將電話轉給 nLIGHT 董事長兼執行長 Scott Keeney。史考特？

Thank you, John. Our first-quarter results represent a strong start to 2025, with revenue, gross margin and adjusted EBITDA all above the high end of our guidance range. The outperformance was primarily driven by another quarter of record defense revenue, which represented more than 63% of total sales in the quarter, up from 49% in the same quarter a year ago. Furthermore, this growth was supported by significant expansion in our defense product sales, which grew more than 150% year over year.

謝謝你，約翰。我們第一季的業績代表 2025 年的強勁開局，營收、毛利率和調整後的 EBITDA 均高於我們預期範圍的高端。這一優異表現主要得益於國防收入再創紀錄，佔本季總銷售額的 63% 以上，高於去年同期的 49%。此外，國防產品銷售額的大幅成長也推動了這一成長，年成長超過 150%。

We are uniquely positioned to drive continued growth in A&D with leading high-power laser technology developed over the past two decades across the entire technology stack from chips to full laser systems, which is supported by our US manufacturing sites.

我們擁有獨特的優勢，可以推動 A&D 領域的持續成長，我們擁有過去二十年來開發的領先高功率雷射技術，涵蓋從晶片到完整雷射系統的整個技術堆疊，並由我們的美國製造基地提供支援。

Our products in A&D are also well aligned with many of the Department of Defense's most critical priorities, such as directed energy and laser sensing. And during the first quarter, we delivered strong results in each of these critical markets.

我們在 A&D 領域的產品也與國防部的許多最關鍵的優先事項一致，例如定向能和雷射感測。在第一季度，我們在每個關鍵市場都取得了強勁的業績。

Directed energy lasers complement traditional kinetic defenses by offering a deep magazine, low cost per engagement and speed of flight delivery. These systems can neutralize a wide range of targets, including drones, rockets, artillery, mortars and missiles, while also rebalancing the economics of protecting key assets.

定向能雷射器透過提供深厚的彈藥庫、較低的每次交戰成本和飛行速度來補充傳統的動能防禦。這些系統可以消滅各種目標，包括無人機、火箭、火砲、迫擊砲和飛彈，同時也能重新平衡保護關鍵資產的經濟效益。

We continue to make progress on our HELSI-2 program. As a reminder, this is a $171 million DoD program to develop a 1-megawatt high-energy laser with a completion date expected in 2026. The shipment of critical components towards this program was a significant driver of our record defense product revenue in the quarter and is expected to be a substantial contributor to the growth through the remainder of the year.

我們的 HELSI-2 計劃繼續取得進展。提醒一下，這是一項耗資 1.71 億美元的國防部計劃，旨在開發 1 兆瓦的高能量雷射器，預計於 2026 年完成。為該計劃運送的關鍵部件是我們本季創紀錄的國防產品收入的重要推動力，預計也將在今年剩餘時間內為成長做出重要貢獻。

Our work on the Army's DE M-SHORAD effort, which is a program to develop a 50-kilowatt high-energy laser for short-range air defense continues to progress, and we expect to complete our work on this contract in the middle of the year. The success we have achieved to date in key programs reinforces the importance of our vertical integration strategy in the directed energy market, where we leverage our entire technology stack to deliver the highest performing and most cost-effective high-energy lasers. This success has increased interest in our directed energy capabilities, both domestically and among our international allies.

我們在陸軍 DE M-SHORAD 專案中的工作正在繼續取得進展，該專案旨在開發用於短程防空的 50 千瓦高能雷射器，我們預計將在今年年中完成這項合約的工作。我們迄今為止在關鍵專案中取得的成功強化了我們在定向能市場垂直整合策略的重要性，我們利用我們的整個技術堆疊來提供性能最高、最具成本效益的高能量雷射。這項成功增加了國內和國際盟友對我們定向能能力的興趣。

In the US, we continue to respond to RFPs and RFQs associated with the President's Iron Dome Executive order, which specifically highlights non-kinetic missile defense capabilities as an area for development. With the mandate to build these systems in the United States, we believe we are well positioned to benefit from this effort over the coming years.

在美國，我們繼續回應與總統鐵穹行政命令相關的RFP和RFQ，該命令特別強調非動能飛彈防禦能力是一個發展領域。有了在美國建立這些系統的授權，我們相信，我們有能力在未來幾年內從這項努力中獲益。

Internationally, our work to support the Israeli Iron Beam program is progressing, and we have a growing pipeline of new opportunities that we expect to begin closing in the coming quarters. We have generated revenue at nearly every level of vertical integration in the direct energy market, and we have established ourselves as one of the most comprehensive suppliers to the US government, other prime contractors and foreign allies.

在國際上，我們支持以色列鐵樑計畫的工作正在取得進展，我們擁有越來越多的新機會，預計在未來幾個季度內開始實現。我們在直接能源市場幾乎每個垂直整合層面都創造了收入，並且已經成為美國政府、其他總承包商和外國盟友最全面的供應商之一。

We also continue to gain momentum in our laser sensing markets. Our laser sensing products include missile guidance, proximity detection, range finding and countermeasures and have been incorporated into several significant and long-running defense programs, all which remain key defense priorities under the current administration.

我們在雷射感測市場也持續獲得發展動力。我們的雷射感測產品包括飛彈導引、近距探測、測距和對抗措施，並已被納入多個重要且長期的國防計劃，這些計劃仍然是現任政府的國防重點。

Our historical performance on these programs and our early success on multiple classified programs have created many new opportunities for us in this market. Over the last several quarters, we have been on multiple new programs that have increased both the number of opportunities and the size of our sensing pipeline. In addition, further opportunities in the Golden Dome initiative have emerged and could become a significant contributor to our growth in defense in 2026 and beyond.

我們在這些項目上的歷史表現以及我們在多個機密項目上的早期成功為我們在這個市場上創造了許多新的機會。在過去的幾個季度中，我們開展了多個新項目，增加了機會的數量和感測管道的規模。此外，「金頂」計畫還出現了更多機遇，並可能對我們2026年及以後的國防成長做出重大貢獻。

The solid start to the year, combined with our growing pipeline of both directed energy programs and laser sensing opportunities gives me increased confidence that we can grow our revenue in aerospace and defense by at least 25% in 2025.

今年開局良好，加上我們不斷成長的定向能專案和雷射感測機會，讓我更有信心，到 2025 年，我們可以將航空航太和國防領域的收入成長至少 25%。

Turning to our commercial markets. Overall, our industrial and microfabrication markets remain challenging, but we did see some improvement compared to last quarter. The sequential growth in our commercial markets was driven by an increase in microfabrication sales as operations at our Thai contract manufacturing partner have stabilized, enabling us to satisfy customer demand.

轉向我們的商業市場。總體而言，我們的工業和微製造市場仍然面臨挑戰，但與上一季相比，我們確實看到了一些改善。由於我們泰國合約製造合作夥伴的營運已經穩定，微加工銷售額的成長推動了我們商業市場的連續成長，使我們能夠滿足客戶的需求。

While we are pleased with the stabilization of manufacturing, demand is expected to remain weak through the remainder of the year. Longer term, we remain optimistic about opportunities for growth in metal additive manufacturing, particularly within the aerospace and defense markets as they look to accelerate prototyping time lines and build resiliency into supply chains with domestic capabilities.

雖然我們對製造業的穩定感到高興，但預計今年剩餘時間內需求仍將保持疲軟。從長遠來看，我們仍然對金屬增材製造的成長機會持樂觀態度，特別是在航空航天和國防市場，因為他們希望加快原型製作時間表並利用國內能力增強供應鏈的彈性。

Before I turn the call over to Joe to review our first-quarter financial results, I'd like to briefly touch on the topic of tariffs. We have spent a significant amount of time over the last couple of months evaluating many different scenarios. And while there continues to be a significant amount of debate and uncertainty around what the tariff landscape will ultimately look like, the impact of these extraordinarily high tariffs on the overall economy, demand from our customers, and material costs for our products, there are a few comments I would like to make.

在我將電話轉給喬來回顧我們的第一季財務表現之前，我想先簡單談談關稅問題。在過去的幾個月裡，我們花了大量時間來評估許多不同的情況。儘管關於關稅格局最終會如何發展、這些超高關稅對整體經濟、客戶需求以及我們產品的材料成本的影響仍然存在大量爭論和不確定性，但我想發表一些評論。

First, we do not expect a significant impact on our business in defense over the long term. Over the short term, however, there may be some margin variability in our defense products as a result of the tariffs placed on some of the important materials used to manufacture these solutions. While the ultimate impact of tariffs on these products is still to be determined, we do not expect them to have a significant negative effect on our demand or long-term profitability of these solutions.

首先，我們預期長期來看我們的國防業務不會受到重大影響。然而，短期內，由於對用於製造這些解決方案的一些重要材料徵收關稅，我們的國防產品的利潤率可能會出現一些波動。雖然關稅對這些產品的最終影響仍有待確定，但我們預計它們不會對我們的需求或這些解決方案的長期獲利能力產生重大負面影響。

Outside of defense, we have shifted the production of our commercial lasers from Shanghai, which we closed in late 2024 to our automated facility in the Pacific Northwest and to our contract manufacturing partner in Thailand.

在國防之外，我們已將商用雷射的生產從上海（我們於 2024 年底關閉了上海）轉移到我們位於太平洋西北地區的自動化工廠和位於泰國的合約製造合作夥伴。

Our ability to shift manufacturing between the US and Thailand should enable us to better manage tariff associated risk. In summary, I'm pleased with the strong start to 2025, particularly around the ramp of our defense products, and I'm increasingly confident about the long-term growth in A&D based on our unique leadership across the technology stack for high-power lasers.

我們在美國和泰國之間轉移製造業的能力應該使我們能夠更好地管理與關稅相關的風險。總而言之，我對 2025 年的強勁開局感到滿意，特別是在我們的國防產品的增長方面，並且基於我們在高功率激光器技術領域的獨特領導地位，我對 A&D 的長期增長越來越有信心。

Let me now turn the call over to Joe to discuss our first-quarter financial results.

現在，我將電話轉給喬，討論我們的第一季財務表現。

Thank you, Scott. Total revenue in the first quarter of 2025 was $51.7 million, an increase of 16% compared to $44.5 million in the first quarter of 2024. Aerospace and Defense revenue was $32.7 million in the quarter, up 50.4% year over year and 8.6% sequentially.

謝謝你，斯科特。2025 年第一季總營收為 5,170 萬美元，較 2024 年第一季的 4,450 萬美元成長 16%。本季航空航太和國防收入為 3,270 萬美元，年增 50.4%，季增 8.6%。

Growth in the quarter was driven by increased defense products revenue, which increased more than 150% compared to the same quarter a year ago, primarily due to increased deliveries of components into our HELSI-2 direct energy laser program. We expect A&D revenue to grow sequentially in the second quarter of 2025. And as Scott mentioned earlier, we feel increasingly confident that full year revenue from our A&D market should grow at least 25% year over year.

本季的成長得益於國防產品收入的成長，與去年同期相比成長了 150% 以上，這主要歸因於我們 HELSI-2 直接能雷射計畫的零件交付量增加。我們預計 2025 年第二季 A&D 營收將季增。正如 Scott 之前提到的，我們越來越有信心，A&D 市場的全年收入將比去年同期成長至少 25%。

First-quarter revenue from our commercial markets, which includes industrial and microfabrication, was $19 million, a decrease of 16.8% year over year, but up 9.9% sequentially. Revenue from these markets was largely in line with expectations as industrial demand remained weak and the quarter-over-quarter improvement in microfabrication sales was largely the result of our manufacturing partner being able to satisfy orders that had been previously unable to ship.

第一季度，我們來自商業市場（包括工業和微加工）的收入為 1,900 萬美元，年減 16.8%，但環比成長 9.9%。這些市場的收入基本上符合預期，因為工業需求仍然疲軟，微加工銷售的環比增長主要是因為我們的製造合作夥伴能夠滿足之前無法發貨的訂單。

Product revenue for the first quarter was $35.7 million, an increase of 21.5% compared to $29.4 million in the first quarter of 2024. The year-over-year increase in product sales was due to growth in defense product revenue, partially offset by a decline in commercial revenue. Development revenue of $16 million in the first quarter increased 5.4% compared to the same quarter a year ago. Total gross margin in the first quarter was 26.7% compared to 16.8% in the first quarter of 2024.

第一季產品營收為 3,570 萬美元，較 2024 年第一季的 2,940 萬美元成長 21.5%。產品銷售額年增是由於國防產品收入的成長，但商業收入的下降部分抵消了這一增長。第一季開發收入為 1,600 萬美元，與去年同期相比成長 5.4%。第一季總毛利率為 26.7%，而 2024 年第一季為 16.8%。

First-quarter gross margin included approximately a $1.9 million benefit related to duty reclaim. Excluding the impact of this benefit, total gross margin for the first quarter would have been approximately 23%, which is still above the high end of our guidance range as both products gross margin and development gross margin were ahead of expectations.

第一季的毛利率包括約 190 萬美元的關稅退還相關收益。不計該收益的影響，第一季的總毛利率約為 23%，仍高於我們預期範圍的高端，因為產品毛利率和開發毛利率都超出預期。

Products gross margin in the first quarter was 33.5% compared to 20.9% in the first quarter of 2024. First-quarter products gross margin was positively impacted by higher product volumes, a favorable mix and duty reclaim. Development gross margin was 11.5% compared to 8.9% in the same quarter a year ago. The upside in development gross margin was largely a result of program mix in the quarter. Going forward, we still expect development gross margin to remain in the 8% range.

第一季產品毛利率為 33.5%，而 2024 年第一季為 20.9%。第一季產品毛利率受到產品產量增加、產品組合有利和關稅退還的正面影響。開發毛利率為 11.5%，去年同期為 8.9%。開發毛利率的上升主要是由於本季的項目組合。展望未來，我們仍預期開發毛利率將維持在8%左右。

Operating expenses were $23.4 million in the first quarter compared to $22.2 million in the first quarter of 2024. Non-GAAP operating expenses were $17.8 million in the first quarter, a slight increase compared to $17.2 million in the first quarter of 2024. GAAP net loss for the first quarter was $8.1 million or $0.16 per share compared to a net loss of $13.8 million or $0.29 per share in the same quarter a year ago. Adjusted EBITDA for the first quarter was $116,000 compared to a loss of $4.9 million in the first quarter of 2024.

第一季營運費用為 2,340 萬美元，而 2024 年第一季為 2,220 萬美元。第一季非公認會計準則營運費用為 1,780 萬美元，較 2024 年第一季的 1,720 萬美元略有增加。第一季 GAAP 淨虧損為 810 萬美元或每股 0.16 美元，去年同期淨虧損為 1,380 萬美元或每股 0.29 美元。第一季調整後 EBITDA 為 116,000 美元，而 2024 年第一季虧損 490 萬美元。

Turning to the balance sheet. We ended the first quarter with total cash, cash equivalents, restricted cash and investments of $117 million. During the quarter, we drew down $20 million from our $40 million line of credit. Given the ongoing uncertainty surrounding the impact of tariffs and our expectation for increased working capital needs to support the growth in our A&D markets, we thought it was prudent to put a cash buffer in place on our balance sheet. Inventory increased to $43.8 million at the first quarter compared to $40.8 million at the end of 2024. The increase in inventory is primarily to support the forecasted ramp in directed energy products.

轉向資產負債表。截至第一季末，我們的現金、現金等價物、受限現金和投資總額為 1.17 億美元。本季度，我們從 4000 萬美元的信用額度中提取了 2000 萬美元。鑑於關稅影響的持續不確定性以及我們預期增加營運資本需求以支持 A&D 市場的成長，我們認為在資產負債表上設立現金緩衝是明智之舉。第一季庫存增加至 4,380 萬美元，而 2024 年底為 4,080 萬美元。庫存增加主要是為了支持定向能產品的預測成長。

Turning to guidance. Based on the information available today, we expect revenue for the second quarter to be in the range of $53 million to $59 million. The midpoint of $56 million includes approximately $38 million of product revenue and $18 million of development revenue. We expect A&D revenue in the second quarter of 2025 to increase sequentially and year over year and weakness in our industrial and microfabrication markets to continue throughout the year.

轉向指導。根據今天掌握的信息，我們預計第二季的營收將在 5,300 萬美元至 5,900 萬美元之間。5,600 萬美元的中間值包括約 3,800 萬美元的產品收入和 1,800 萬美元的開發收入。我們預計 2025 年第二季的 A&D 收入將環比和同比增長，而工業和微製造市場的疲軟態勢將持續全年。

Turning to gross margin. Products gross margin in the second quarter are expected to be in the range of 27% to 33%, and we expect development gross margins to be approximately 8%, resulting in a total gross margin range of 19% to 25%. As we've mentioned previously, as a vertically integrated manufacturing business, gross margin is largely dependent on production volumes and absorption of fixed manufacturing costs.

轉向毛利率。預計第二季產品毛利率在27%至33%之間，我們預期開發毛利率約為8%，總毛利率範圍為19%至25%。正如我們之前提到的，作為一家垂直整合的製造企業，毛利率很大程度上取決於產量和固定製造成本的吸收。

In addition, we are navigating a highly uncertain global trade market. While we don't expect a significant negative impact to our margins in the second quarter, we could experience further margin pressure in subsequent quarters if the current structure and level of tariffs remain in place for the rest of the fiscal year.

此外，我們正在應對高度不確定的全球貿易市場。雖然我們預計第二季的利潤率不會受到重大負面影響，但如果目前的關稅結構和水平在本財年剩餘時間內保持不變，我們可能會在隨後的幾個季度面臨進一步的利潤率壓力。

Finally, we expect adjusted EBITDA for the second quarter to be in the range of approximately negative $4 million to positive $1 million. We continue to expect breakeven adjusted EBITDA with quarterly revenue in the $55 million to $60 million range.

最後，我們預計第二季調整後的 EBITDA 將在約負 400 萬美元至正 100 萬美元之間。我們繼續預期盈虧平衡調整後的 EBITDA 季度營收將在 5,500 萬美元至 6,000 萬美元之間。

With that, I will turn the call over to the operator for questions.

說完這些，我將把電話轉給接線生來回答問題。

(Operator Instructions) Jim Ricchiuti, Needham & Company.

（操作員說明）Jim Ricchiuti，Needham & Company。

Maybe to start off with. Can you talk to us about the line of sight you have to the product sales in A&D looking past Q2? I mean you've talked about the growth you're expecting in A&D for the full year. I'm just trying to get a sense as to what kind of visibility you have to product sales?

也許可以先從這裡開始。您能否與我們談談您對第二季之後 A&D 產品銷售的展望？我的意思是，您已經談到了對 A&D 全年成長的預期。我只是想了解一下您對產品銷售有什麼樣的了解？

Jim, can you hear me, Jim?

吉姆，你聽得到我說話嗎，吉姆？

I can. Scott, did you get that question? Should I repeat it?

我可以。史考特，你明白這個問題嗎？我應該重複一遍嗎？

I apologize for the audio problems. Thanks for the question, Jim. I think the -- as we noted in my comments, the HELSI program is certainly one of the drivers of the product revenue. And certainly, we have visibility with respect to that program.

對於音頻問題我深感抱歉。謝謝你的提問，吉姆。我認為——正如我們在評論中指出的那樣，HELSI 計劃無疑是產品收入的驅動因素之一。當然，我們對該計劃有清晰的認識。

We certainly have also increasing both orders and the funnel of opportunities and products that further contribute to our outlook to continue to improve defense broadly, but products in particular, and that 150% growth in the quarter was certainly one of the highlights for the quarter.

當然，我們也增加了訂單和機會及產品管道，這進一步促進了我們繼續全面改善防禦能力的前景，特別是產品，本季 150% 的成長無疑是本季的亮點之一。

On the tariff, the issue of tariffs, help us understand where you could be impacted more? Is it in the microfabrication business? Is it relating to the production in Thailand? Maybe just in broad strokes, how should we think about that going forward, assuming the situation doesn't change or improve?

關於關稅問題，您能幫助我們了解哪些方面會受到更大的影響嗎？它從事微加工業務嗎？這與泰國的生產有關嗎？也許只是從廣義上講，假設情況沒有改變或改善，我們該如何看待未來的發展？

Yeah. Jim, this is Joe. I'll take that one. The area where we will be affected most, frankly, is where the input costs are coming in from China today. And that is disproportionately affects our industrial fiber laser business. But remember, as we think about where we are right now, we're still sitting on some inventory and the like. And so we don't expect a big impact at all in the second quarter as we go throughout the year, depending on what the situation is and where these tariff rates ultimately shake out could have an impact in Q3 and Q4, but we're not talking about anything that we feel today is significant right on the order of a couple of hundred basis points.

是的。吉姆，這是喬。我要那個。坦白說，對我們影響最大的領域是當今來自中國的投入成本。這對我們的工業光纖雷射業務產生了嚴重的影響。但請記住，當我們思考我們現在所處的位置時，我們仍然有一些庫存等等。因此，我們預計第二季不會產生太大影響，因為從全年來看，這取決於具體情況以及這些關稅稅率最終會如何變化，可能會對第三季和第四季產生影響，但我們今天談論的並不是任何我們認為重大的影響，影響不會超過幾百個基點。

Okay. Are you more concerned in that about the potential indirect impact as it relates to just demand across some of the markets in the commercial side of the business?

好的。您是否更擔心與商業領域某些市場需求相關的潛在間接影響？

Yeah. I think that's the thing that gives us pause is just how are these dramatic increases in tariffs going to affect broader markets indirectly. And that's something that we can't possibly forecast. But our business with -- especially with the defense business, there's a relatively more insulated impact.

是的。我認為讓我們停下來思考的是，這些大幅提高的關稅將如何間接影響更廣泛的市場。這是我們無法預測的。但我們的業務，特別是國防業務，受到的影響相對較小。

Greg Palm, Craig-Hallum.

格雷格·帕爾姆、克雷格·哈勒姆。

I had some issues joining. So if you've already talked about some of this stuff, apologies. But you kept your A&D outlook the same, but I think you mentioned you're increasingly confident. So I guess what's changed in the last couple of months? And what would you need to happen or see for you to actually increase the full year guide at some point this year?

我在加入時遇到了一些問題。因此，如果您已經談論過其中一些內容，請原諒。但您對 A&D 的看法保持不變，但我認為您提到您越來越有信心。那麼我猜過去幾個月發生了什麼變化？那麼，您需要發生什麼事情或看到什麼情況才能在今年某個時候真正增加全年指南？

Yeah. Good. Thanks, Craig. Sorry about the audio problems and good question. We continue to see traction in not only the US, but also international markets for Trex Energy and our other applications.

是的。好的。謝謝，克雷格。抱歉，音頻出了問題。這個問題問得好。我們不僅在美國，而且在國際市場上也看到了 Trex Energy 和我們的其他應用的吸引力。

So I think that's a theme that we will continue to provide more information as we can release more information there. But as we just talked about, the tariffs certainly add some degree of uncertainty in the global environment, and it's just hard to determine what that's going to be.

所以我認為這是一個主題，我們將繼續提供更多信息，因為我們可以在那裡發布更多信息。但正如我們剛才談到的，關稅肯定會為全球環境增加一定程度的不確定性，而且很難確定會帶來什麼不確定性。

Again, it's not something that is going to directly affect us as much as perhaps others, but it certainly is a question mark in terms of how the overall economy continues to progress.

再說一遍，這不會像對其他人那樣直接影響我們，但對於整體經濟如何繼續發展而言，這無疑是一個問號。

Can you address what the tariff-related risk is specifically for A&D? I know you mentioned that the input cost in China on the -- I think more on the sort of the industrial fiber laser business. But is that something that impacts everything?

您能否具體說明一下 A&D 面臨的關稅相關風險是什麼？我知道您提到了中國的投入成本——我認為更多的是工業光纖雷射業務。但這會影響一切嗎？

Yeah. I mean, we think about certainly where we buy our products and certainly, we don't have significant exposure there from China, but our suppliers have secondary exposure, right? That's where you just -- it's difficult to fully address how those tariffs are going to flow through the broader supply chains. It's more than that.

是的。我的意思是，我們肯定會考慮在哪裡購買我們的產品，當然，我們在中國的產品曝光率不高，但我們的供應商有二次曝光率，對嗎？這就是你很難完全解決這些關稅將如何流經更廣泛的供應鏈的問題。還不止這些。

Okay. And just to be clear, I mean, whether it's you or some of your suppliers, I mean, are there secondary sources outside of China if the current tariff rate sticks? Like what's everybody doing to mitigate that risk?

好的。需要明確的是，無論是您還是您的一些供應商，如果當前的關稅稅率保持不變，是否有中國以外的次要來源？例如大家都在做什麼來降低這種風險？

Well, I mean, as we talked about in our comments, certainly, we're pleased that we have our operations running in Thailand. Things like that, certainly, we're doing, others are doing. And I think probably every management team out there is scrambling to try to figure out what to do. And -- but I do think that we have relatively limited exposure, especially with our A&D business.

嗯，我的意思是，正如我們在評論中談到的那樣，我們當然很高興我們的業務在泰國開展。類似這樣的事情，當然，我們正在做，其他人也在做。我想，可能每個管理團隊都在忙著想辦法。但我確實認為我們的曝光度相對有限，尤其是我們的 A&D 業務。

Okay. I guess lastly, just can you address the line of credit? I mean, without tapping that, you would have ended the quarter with close to $100 million of cash. I mean, that seems like a pretty good buffer to me even with all these uncertainties. So maybe you can give a little bit more color there?

好的。我想最後，您能談談信用額度的問題嗎？我的意思是，如果不利用這一點，你在本季末就會剩下近 1 億美元的現金。我的意思是，即使存在所有這些不確定性，這對我來說似乎也是一個很好的緩衝。那麼也許您可以給出更多的顏色？

Yeah, Greg, it's fairly simple. We are expecting that the business is going to grow in the second half of the year. We've talked about the 25% increase year-over-year in defense. In our remarks, we talked about we're getting more confident about that. We want to make sure that we are thinking about allocating capital appropriately.

是的，格雷格，這很簡單。我們預計下半年業務將會成長。我們討論過國防開支年增 25%。在我們的評論中，我們談到我們對此越來越有信心。我們希望確保我們正在考慮適當地分配資本。

We've got a really attractive credit line. The economy, the world is a little bit bumpy right now to be able to leverage that credit line to fund some of that working capital that gives us the ability to continue to do all the other things we're doing in the business is why we drew on it.

我們擁有非常有吸引力的信用額度。目前，世界經濟狀況有些不穩，我們能夠利用該信用額度來為部分營運資金提供資金，這使我們能夠繼續開展業務中的所有其他工作，這就是我們利用它的原因。

I mean is there a certain level of cash that you want on the balance sheet as a buffer no matter what? I mean is there a certain number that you're sort of looking at?

我的意思是，無論怎樣，您是否希望資產負債表上存在一定程度的現金作為緩衝？我的意思是，您是否正在關注某個特定的數字？

There's no magic number. I think we talk a lot internally about being more than adequately capitalized at around $100 million. But again, you have quarters in which you are going to need to invest in working capital or in CapEx that we want to try to make sure that we are funding that appropriately.

沒有什麼神奇的數字。我認為我們內部討論過很多關於資本充足率的問題，大約 1 億美元。但同樣，在某些季度，您將需要投資營運資金或資本支出，我們希望確保我們能夠為其提供適當的資金。

Yeah. Okay. All right. I know it's probably been a while since I've said it, but congrats on the quarter. It was a pretty impressive result.

是的。好的。好的。我知道我可能已經有一段時間沒有說過這句話了，但我還是要祝賀這個季度。這是一個相當令人印象深刻的結果。

Ruben Roy, Stifel.

魯本·羅伊（Ruben Roy），Stifel。

I also had some issues joining, but I guess the upside is I've got conference call music in my head for a few hours. So I guess the -- did you talk about -- it's great to hear, by the way, and congrats on continued visibility and execution around A&D. Did you give an update on the commercial markets in terms of full year? Has that changed kind of from the way you were looking at that business last quarter? I think you said maybe down 15% to 20%, a little -- those were, I think, the guidelines.

我在加入時也遇到了一些問題，但我想好處是我腦子裡已經有幾個小時的電話會議音樂了。所以我想 — — 您是否談到過 — — 順便說一句，很高興聽到這個消息，並祝賀 A&D 繼續保持知名度和執行力。您是否提供了全年商業市場的最新情況？這與您上個季度看待該業務的方式相比有什麼變化嗎？我想您說的是可能下降 15% 到 20%，稍微下降一點——我想這些就是指導方針。

But any update there, Joe?

但有更新嗎，喬？

No, Ruben, that's still where we think we are. We had a little bit of a better quarter this quarter, particularly in the microfabrication business as we were able to catch up with some pent-up demand to certain customers. So you saw a little bit of a better quarter in micro, but the general themes that we have been talking about in the broader commercial businesses are still the same. And then on top of that, we've got some incremental risk from demand related to tariffs and the like. But broadly speaking, no real change here.

不，魯本，我們仍然認為我們處於這個位置。本季我們的表現略有好轉，特別是在微加工業務方面，因為我們能夠滿足某些客戶的一些被壓抑的需求。因此，您會看到微型企業本季的表現略有好轉，但我們在更廣泛的商業業務中討論的整體主題仍然相同。除此之外，我們也面臨關稅等相關的需求所帶來的一些增量風險。但從廣義上講，這裡沒有真正的變化。

Okay. And then just a follow-up on the tariff discussion. Some companies -- and obviously, there's a lot of moving parts here and uncertainty, and it's been changing pretty rapidly. But a lot of companies have been telling us that they potentially could pass through some costs. It doesn't sound like that's an outcome that you guys are thinking that would be appropriate for your business.

好的。然後只是關於關稅討論的後續問題。一些公司——顯然，這裡有很多活動部件和不確定性，而且變化相當快。但許多公司告訴我們，他們可能會轉嫁一些成本。聽起來你們並不認為這個結果適合你們的業務。

Is that correct? And if so, again, are there some remedies? Or should we be thinking about some level of gross margin impact given that there are some tariffs and costs going up, I mean, even if we kind of stay steady state from here into the second half?

對嗎？如果是這樣，那麼有什麼補救措施嗎？或者，考慮到關稅和成本上漲，我們是否應該考慮一定程度的毛利率影響，我的意思是，即使我們從現在到下半年保持穩定狀態？

Yeah, Ruben, It's a very complex topic, obviously. Certainly, there are places where we can pass on costs and to mitigate. There's areas where we can shift production to mitigate. There's even some regulatory aspects of the A&D market where we can mitigate. So it's a complex set of topics that we're trying to grapple with and who knows what the assumption should be for where these tariffs will land.

是的，魯本，顯然這是一個非常複雜的話題。當然，有些地方我們可以轉嫁成本並減輕影響。我們可以轉移生產以緩解某些地區的影響。我們甚至可以緩解 A&D 市場的一些監管方面的問題。所以，這是我們正在努力解決的一系列複雜問題，而且誰也不知道這些關稅最終會落到什麼程度。

I think the broad outlook that we have, as Joe said, is that we don't see near term any dramatic effect on the business. Longer term, it just depends on how long they last and how it affects the broader economy. So that just gives us some pause about uncertainty in the world. But I don't think there's anything we can really comment on that's specific in terms of outlook. Joe, do you want to add anything?

正如喬所說，我認為我們的整體前景是，短期內不會對業務產生任何重大影響。從長遠來看，這只取決於它們持續多久以及對整體經濟的影響。所以這讓我們對世界上的不確定性感到有些擔憂。但我認為就前景而言我們無法發表任何具體的評論。喬，你還有什麼要補充嗎？

No. The only thing I would add, Ruben, is that it's caused us to think widen our margin range a little bit, but it's simply to account for some of that level of uncertainty, not more than that.

不。魯本，我唯一想補充的是，這讓我們考慮稍微擴大我們的保證金範圍，但這只是為了解釋部分不確定性，僅此而已。

Okay. Got it. And the last question, any update on funded and unfunded backlog progression there as you got through Q1?

好的。知道了。最後一個問題，在第一季中，有沒有關於有資金和無資金積壓進展的最新消息？

Yeah. No, Ruben, no major update. I think we're not in the position today where we're going to provide that update quarter over quarter. So -- but I would say that as we continue to execute on the programs, we still have the right level of funded backlog plus the unfunded portion. And then as Scott talked about, our activity around responding to proposals continues to increase and be at healthy levels.

是的。不，魯本，沒有重大更新。我認為我們現在還無法逐季度提供更新。所以——但我想說的是，隨著我們繼續執行這些計劃，我們仍然擁有適當的資金積壓和未獲資金的部分。正如斯科特所說，我們回應提案的活動持續增加並處於健康水平。

So generally speaking, we are pleased with the direction of the defense business in terms of backlog execution and the development of pipeline.

因此，總的來說，我們對國防業務在積壓訂單執行和管道開發方面的方向感到滿意。

Troy Jensen, Cantor Fitzgerald.

特洛伊·詹森、康托·費茲傑拉。

Congrats on the good results here. Joe, for you, I heard you say $1.9 million when you're talking about cost of goods sold. Did I hear that, is that an adjustment to get kind of a onetime event?

恭喜您取得如此好的成績。喬，我聽到您在談論銷售成本時說的是 190 萬美元。我聽到了嗎，這是為了獲得一次性事件而做出的調整？

Yeah, that's the way to think about it. I wouldn't say it's so much onetime, Troy. It was just obviously, in light of what's going on in the world with tariffs, right, we took a really hard look at opportunities this quarter, and we were able to effectively reclaim duties that were paid, and it had a nice benefit to margin during the quarter. We will continue to reclaim duties, but we don't expect it to be quite at that level as we move forward here in the near term.

是的，就是這樣思考的。我不會說這只是一次性的事情，特洛伊。顯然，鑑於全球關稅情勢的變化，我們認真審視了本季的機遇，並且能夠有效地收回已繳納的關稅，這對本季的利潤率產生了良好的影響。我們將繼續收回關稅，但我們預計短期內不會達到這一水平。

Now as tariffs either continue, they go up, they change, that will have an impact on what that duty reclaim number is. But we wanted to make sure that we called that out specifically to give you a sense for what normalized gross margin would be. And so that had an impact of, call it, 500 basis points or so.

現在，關稅要么繼續，要么上漲，要么變化，這將對關稅退還金額產生影響。但我們想確保我們明確地指出這一點，以便讓您了解標準化毛利率是多少。因此，這會產生大約 500 個基點的影響。

Can you kind of maybe talk us through what you think gross margins could look like here in the middle of the year?

您能否向我們介紹一下您認為今年年中的毛利率會是多少？

Yeah. I think we expect gross margins to continue to expand. If you look at the midpoint of the guidance, right? Our products gross margin is about 30%. That's a slight expansion from where we were in Q1. In Q1, the margin did what we hoped it would do as we drove higher volumes, our mix improved as we shipped more A&D product. We recovered in microfab, and we saw some benefit from duty reclaim.

是的。我認為我們預計毛利率將繼續擴大。如果您看一下指導的中點，對嗎？我們的產品毛利率約為30%。這比第一季的情況略有擴大。在第一季度，隨著我們提高了銷量，利潤率達到了我們所希望的水平，隨著我們運送了更多的 A&D 產品，我們的產品組合得到了改善。我們的微型晶圓廠業務恢復了元氣，並從關稅回收中獲得了一定的好處。

As we look to the second quarter, it's up a couple of hundred basis points. Some of that is continued growth in A&D, right? As we talked about, we don't expect to see the same revenue expansion in microfab. Microfab has pretty good margins. So we think as we continue to drive higher volumes, we'll get better absorption. The mix of business is at the right levels that we would expect directionally our margins to continue to progress and get better as we move throughout the year.

展望第二季度，它上漲了幾百個基點。其中一些是 A&D 的持續成長，對嗎？正如我們所討論的，我們預計微型晶圓廠的收入不會有同樣的成長。Microfab 的利潤率相當高。因此我們認為，隨著我們繼續提高產量，我們將獲得更好的吸收。業務組合處於正確的水平，我們預計我們的利潤率將隨著全年的發展而繼續增長並變得更好。

All right. Perfect. And just maybe to follow up on Greg's questions too about the line of credit. Is there any government customers that require you to have healthier balance sheets? Is that any chance a reason why you do this, too?

好的。完美的。也許只是為了跟進格雷格關於信用額度的問題。是否有政府客戶要求您擁有更健康的資產負債表？這是否也是您這樣做的原因？

No, not at all.

不，一點也不。

No.

不。

(Operator Instructions) Mark Miller, Benchmark.

（操作員指示）馬克·米勒，基準。

Just what we're hearing today and previously, it sounds like second half will be somewhat stronger than the first half. And can you -- is that a good assumption?

正如我們今天和之前所聽到的，聽起來下半年會比上半年稍微強勁一些。你能——這是一個好的假設嗎？

Mark, simply put, yes, it's a good assumption. We expect the second half to be better than the first.

馬克，簡單地說，是的，這是一個很好的假設。我們預計下半年會比上半年更好。

One of your competitors reported healthy results in additive manufacturing applications. I'm just wondering how additive business is going for you?

您的一位競爭對手報告了其增材製造應用方面的良好業績。我只是想知道您的添加劑業務進展如何？

We're making good progress in additive and -- but we are focused on customers in the US and Europe. And that's an area where there's more limited growth in the market relative to the markets in some other countries.

我們在積層製造方面取得了良好進展——但我們的重點是美國和歐洲的客戶。與其他一些國家的市場相比，這個領域的市場成長較為有限。

Ladies and gentlemen. That concludes our question-and-answer session. I will now turn the conference back over to John Marchetti.

女士們，先生們。我們的問答環節到此結束。現在我將會議交還給約翰·馬爾凱蒂。

Thank you, everyone, for joining us this afternoon and for your continued interest in nLIGHT. We will be participating in several investor conferences this quarter. We look forward to speaking with you during those events and throughout the quarter. Have a great afternoon.

感謝大家今天下午加入我們，並感謝你們對 nLIGHT 的持續關注。本季我們將參加幾場投資者會議。我們期待在這些活動期間以及整個季度與您交談。祝您下午愉快。

This concludes today's conference. Thank you for attending. You may now disconnect your lines.

今天的會議到此結束。謝謝您的出席。現在您可以斷開線路了。