nLIGHT, Inc. (NASDAQ:LASR) Q3 2019 Earnings Conference Call - Final Transcript
Nov 04, 2019 • 05:00 pm ET
Good morning, good afternoon, and welcome to the nLIGHT Third Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode.
Please note, this event is being recorded.
I would now like to turn the conference over to Jason Willey. Please go ahead.
Thank you, and good afternoon, everyone. As the operator said, I am Jason Willey, nLIGHT's Senior Director of Investor Relations and Corporate Development. Scott Keeney, Chief Executive Officer of nLIGHT, and Ran Bareket, Chief Financial Officer, will be speakers on today's call. If you have any questions after the call, please direct them to me at (360) 567-4890 or firstname.lastname@example.org. A copy of today's earnings press release is available on our website at www.nlight.net.
In addition, you can access an archived version of today's call from our website. In today's call, our discussion will contain forward-looking statements, including statements about financial projections, future business growth, trends and related factors, prospects for expanding and penetrating addressable markets, and our strategic focus and objectives. Forward-looking statements are subject to risks and uncertainties, many of which are beyond our control, including the risks and uncertainties described from time to time in our SEC filings. As results may differ materially from those projected on today's call, we undertake no obligation to update publicly any forward-looking statement, except as required by law. Additionally, certain non-GAAP financial measures will be discussed on this call.
We have provided reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures in our earnings release, which can be found on the Investor Relations section of our website. I would also like to note that members of nLIGHT's senior management will be available to meet with analysts and investors at the FABTECH trade show in Chicago on Tuesday, November 12. If you are attending the show and are interested in meeting, please e-mail me at email@example.com.
I will now turn the call over to Ran to go through the financials and outlook. Scott will then provide additional color on the business. We will then be glad to take your questions.
Thank you, Jason, and good afternoon, everyone. Revenues for the third quarter were $43.8 million, down 14% year-over-year. During Q3, sales to the industrial end markets were $19 million, representing 43% of total revenues, and down 9% year-over-year. Sales to microfabrication end markets were $13.3 million or 30% of total revenues, and down 33% year-over-year. Aerospace and defense sales were $11.6 million or 26% of total revenues, and grew 13% compared with the third quarter of 2018. On geographic basis, sales to China were $17.4 million in the third quarter of 2019, or 40% of total revenues, up 4% compared with Q3 2018.
Sales in North America were $16.4 million, representing 37% of total revenues and down 19% year-over-year. Rest of the world sales were $10 million, down 30% compared with the third quarter of 2018 and were 23% of total revenues. The Chinese industrial end market represented approximately 25% of overall