14 August 2023
NUBURU more than doubles revenue in Q2 to $1.1m
For second-quarter 2023, NUBURU Inc of Centennial, CO, USA — which was founded in 2015 and develops and manufactures high-power industrial blue lasers for fast, laser materials processing — has reported revenue of $1.05m, more than doubling from $0.47m last quarter and compared with just $0.04m a year ago, driven by continued execution of product deliveries to commercial customers Essentium and GE Additive.
Specifically, it continued to deliver units to Essentium as part of a multi-year partnership focused on metal 3D printing for the aerospace, automotive and defense markets. The firm also delivered the first blue area printing head as part of the Small Business Innovation Research (SBIR) Phase II contract awarded in 2022 by AFWERX (an innovation arm of the US Department of the Air Force) to GE Additive for testing.
“Our heads-down approach in delivering the highest-quality and energy-efficient manufacturing solutions remains our top priority and is underpinned by the progress we’ve made in introducing additional product lines within our core technology portfolio,” says CEO & co-founder Dr Mark Zediker.
During the quarter, NUBURU:
- introduced the BL-1000 series, a next-generation 1kW blue laser technology, to target large, fast-growing electric vehicle (EV) battery production, metal 3D printing and consumer electronics markets;
- announced a contract from NASA to demonstrate the feasibility of power beaming using a blue laser suitable for deployment on the moon or Mars, showcasing the breadth of possible applications for NUBURU’s IP-protected technology;
- announced a subsequent private placement from existing and new investors increasing June’s capital raise to $9.2m.
“With the recent product launch of our new NUBURU BL Series Laser, our market positioning for long-term growth continues to develop,” says Zediker. “In tandem with the accelerating market demand we recognize for sustainable welding and 3D printing technologies, we’ve also witnessed an increased interest in our products by blue chip customers such as NASA.”
Operating expenses have almost doubled from $2.7m to $5m, due mainly to one-time professional fees associated with legal, compliance and accounting matters following the business combination and transitioning to being a public company, plus regular general and administrative costs associated with the firm’s status as a public company and increased costs for R&D of tooling and supplies related to the development of the BL product line.
EBITDA (earnings before interest, taxes, depreciation and amortization) has gone from –$3.75m a year ago and –$4.6m last quarter to –$6m.
Net cash used in operating activities during Q2/2023 has risen further, from $2.83m a year ago and $4.05m last quarter to $4.65m.
Driven by the increase in production capabilities to support additional product lines, capital expenditure (CapEx) has increased from $0.083m a year ago and $0.345m last quarter to $0.48m.
Free cash flow has hence worsened, from –$2.9m a year ago and –$4.4m last quarter to –$5.1m.
Despite this, cash and cash equivalents rose during the quarter from $1.52m to $6.6m due to the funds raised in the private placement.
“As we look forward to the remainder of the year, we remain cognizant of the supply chain conditions that present bottlenecks in the procurement process for scanner- and lens-related components,” says Zediker. “However, with alternative sourcing initiatives in place, we believe such material constraints will abate toward the end of the second half of this year,” he adds.
“As part of our top-down approach to boost gross margins and revenue expansion, our team consistently assesses opportunities for implementing operational efficiencies and cost-saving measures,” says Zediker.
NUBURU has hence reiterated its full-year 2023 guidance of revenue in excess of $3m, EBITDA (earnings before interest, taxes, depreciation and amortization) in the range –$21m to –$23m, and free cash flow in the range –$24m to –$26m. The firm believes that it has access to sufficient sources of capital to fund this business plan.