AES Semigas


30 November 2023

NUBURU’s Q3 hit by supply chain restrictions and delays in shipping products

For third-quarter 2023, NUBURU Inc of Centennial, CO, USA — which was founded in 2015 and develops and manufactures high-power industrial blue lasers — has reported revenue of $0.187m, down 78% on $0.868m a year ago, due mainly to a decrease in the number of laser system sales.

“Results reflect supply chain restrictions mostly in-line with our expectations entering the second half of 2023,” comments CEO Brian Knaley. “We however faced additional headwinds from the integration of our systems into customer applications and subsequently experienced delays in the shipment of our products. I’m confident that the solutions we have developed will not only enhance our BL-250 product offering but also streamline the manufacturing process to improve the application and integration of our technologies within their respective end-markets going forward,” he adds.

Gross margin was 497%, compared with –111% a year ago, driven by decreasing revenue but partially offset by lower cost of revenues following the retirement of the AO series.

Operating expenses have risen from $2.92m to $4.22m, due mainly to increased professional fees associated with legal, compliance and accounting matters associated with the cost of operating a public company, plus increased R&D personnel expenses and the addition of a new chief marketing & sales officer in March.

Net loss has increased from $3.92m ($0.71 per share) to $5.09m ($0.14 per share), primarily as a result of the rise in operating expenses.

EBITDA (earnings before interest, taxes, depreciation and amortization) of –$4.825m is up from–$3.783m a year ago, but cut from –$6m last quarter. 

Net cash used in operating activities has almost doubled from $2.56m to $4.56m. Driven mainly by the increase in production capabilities to support additional product lines, capital expenditure has risen from $0.097m a year ago to $0.317m. Free cash flow was hence –$4.88m, due mainly to the decreasing revenue and the increase in operating expenses. During the quarter, cash and cash equivalents fell from $5.1m to just $1.63m. However, subsequent to the quarter-end, NUBURU agreed a secured bridge loan worth $5.5m with existing investors and a new institutional investor in order to finance the firm until it secures long-term credit financing, which is anticipated in the near term.

During the quarter, NUBURU:

  • announced completion of a contract awarded by the US Air Force following successful demonstration of blue laser-based area printing, supported by GE Additive, to develop scalable 3D printing manufacturing systems;
  • was awarded a purchase order for delivery of a BL-250 laser from a major multi-national electronics manufacturer in an R&D capacity to demonstrate the integration of NUBURU’s laser welding capabilities;
  • positioned the executive management team to scale commercialization with the appointment of Brian Knaley as chief executive officer and Ron Nicol as executive chairman, following the addition of former National Security Advisor John Bolton to the board of directors.

“The purchase order we’ve received from a major multi-national electronics manufacturer stands as a testimony for the unbroken inbound of interest in our cutting-edge blue laser technology,” says executive chairman Ron Nicol. “Our focus is now on further strengthening our distribution network. Combining the current growing end-markets with our extensive IP and upcoming 1kW blue laser system, NUBURU is well positioned to drive commercial success and execute against its long-term growth strategy,” he reckons.

“With the anticipation of a rebound in deliveries of our laser systems during the fourth quarter of 2023, we have adjusted our full-year 2023 outlook accordingly and are eagerly awaiting the positive impact of our technological improvements,” says Knaley.

NUBURU has revised its 2023 outlook to revenue of $2.1m (rather than over $3m), EBITDA in the range of –$18m to –$21m (cut from –$21m to –$23m), and free cash flow of –$17m to –$20m (cut from –$24m to –$26m). The firm believes that it has access to sufficient sources of capital to fund this business plan.

See related items:

NUBURU wins purchase order from multi-national electronics manufacturer

NUBURU announces $5.5m bridge financing

NUBURU extends independent chairman’s role to executive chairman

NUBURU more than doubles revenue in Q2 to $1.1m

Tags: Blue laser diode


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