Company: LASR
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0001124796-25-000053
Chunk: 16

Company: NLIGHT, INC.
Filing Date: 2025-05-09
Form: 10-Q
Item: Part I, Item 8
Chunk 16
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 The decrease in Asia Pacific revenue for the three months ended March 31, 2025 compared to the same period in 2024 was the result of decreased revenue from the Industrial and Microfabrication markets, partially offset by increased revenue from the Aerospace and Defense market. The increase in EMEA revenue for the three months ended March 31, 2025 compared to the same period in 2024 was due to increased revenue from the Microfabrication market and Aerospace and Defense market, partially offset by decreased revenue from the Industrial market.

Cost of Revenues and Gross Margin 

Cost of Laser Products revenue consists primarily of manufacturing materials, labor, shipping and handling costs, tariffs and manufacturing-related overhead. We order materials and supplies based on backlog and forecasted customer orders. We expense all warranty costs and inventory provisions as cost of revenues. 

Cost of Advanced Development revenue consists of materials, labor, subcontracting costs, and an allocation of indirect costs including overhead and general and administrative.

19

Our gross profit and gross margin were as follows for the periods presented (dollars in thousands):

Three Months Ended March 31, 2025Laser ProductsAdvanced DevelopmentCorporate and OtherTotalGross profit$12,524 $1,845 $(570)$13,799 Gross margin35.1 %11.5 %NM*26.7 %

Three Months Ended March 31, 2024Laser ProductsAdvanced DevelopmentCorporate and OtherTotalGross profit$6,680 $1,349 $(541)$7,488 Gross margin22.7 %8.9 %NM*16.8 %

*NM = not meaningful

The increase in Laser Products gross margin for the three months ended March 31, 2025 compared to the same period in 2024 was driven primarily by product sales mix and the impact of increased production volumes on fixed manufacturing costs due to the overall increase in sales as previously discussed. The first quarter of 2025 also benefited from an increase in duty reclaim.  The increase in Advanced Development gross margin for the three months ended March 31, 2025 compared to the same period in 2024 was primarily the result of an increase in revenue from fixed priced contracts that carried higher average gross margins than cost-plus fixed fee contracts. 

Operating Expenses  

Our operating expenses were as follows for the periods presented (dollars in thousands):

Research and Development

Three Months Ended March 31,Change20252024$%Research and development$11,