Q3 2023 Nuburu Inc Earnings Call
Good afternoon. Thank you for attending Dobruja Incorporated's third quarter 2023 financial results Conference call.
Speaker 1: Good afternoon. Thank you for attending the Bureau Incorporated's third quarter, of the journal All DataMP built by the Bureau's generous and generous donation of workshops andmental Nova Public Health.
Speaker 1: All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. I would now like to turn the conference over to your host, Ralph Esprin.
All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.
I would now like to turn the conference over to your host Ralph Srs external director of Investor Relations at <unk>.
Thank you you May proceed Mr. Edson.
Speaker 2: Thank you operator and thanks to everyone for joining us on the third quarter. 2023 earnings conference call joining the call today.
Thank you operator.
Joining us on the borders.
Sure.
John.
On the call today are Brian finale.
Okay.
Nichol executive Chairman.
Speaker 2: and run the call, Executive Chairman, to discuss a third quarter...
Resolved.
During this call certain statements.
Speaker 2: During this call, certain statements we make will be forward-looking. These statements are subject to risks and uncertainties, including those that work in our safe harbor provisions, perform something statements that can be found at the end of ourwid of transfer.
Okay.
Great.
<unk>.
Including Joseph.
Our safe Harbor provision.
These statements.
So.
Speaker 2: also in our form thank you that will be filed today and provide further details about the risks related to our business. Additionally, except as required by law, we undertake no obligation to update any forward booking state.
Also in our Form 10-Q.
Okay.
Okay.
Further details about the risks related to our business.
Italy.
As required by law.
No obligations.
Okay.
Okay.
Speaker 2: who also provide non-gab information regarding certain or historical interrogative results. To supplement the results provided in accordance with the
Also provide non-GAAP information regarding certain of our historical and targeted results.
The results provided in accordance with GAAP.
Speaker 2: This information should not be considered superior to or as a substitute for the comparable GAAP measures . Reconciliation of historical non- GAAP measures can be found in our third quarter polluting release published this afternoon in post-it on the Investor Relations section or website I am John DeBourreux.net. I will now learn to call over to Ron.
Sure.
Period.
Or as a substitute for comparable GAAP measures.
Installation of historical non-GAAP measures can be found in our third quarter earnings release published this afternoon.
On the Investor Relations section.
Right.
Sure.
Alright.
I will now.
Call over to Ron.
Thank you Ralph and thanks to everyone for joining us today for our third quarter 2023 earnings call.
Speaker 3: Thank you Ralph and thanks to everyone for joining us today for our third quarter 2023 earnings call.
Speaker 3: In light of recent corporate developments, I'd like to start today's discussion by reviewing the changes we've made to our executive management team to transition the company to its next stage of growth.
In light of recent corporate developments I'd like to start today's discussion by reviewing the changes we've made to our executive management team.
<unk> the company to its next stage of growth.
Following that I will turn it over to Brian discuss further operational updates.
Speaker 3: Following that, I will turn it over to Brian to discuss further operational updates.
The financial results for the quarter and our out year objectives at.
Speaker 3: At the halfway point of the year, the Board of Directors had very carefully assessed the current status of New Baruch.
At the halfway point of the year. The board of directors had very carefully assessed the current status of <unk>.
Speaker 3: Our cutting edge blue laser is at the forefront of technological advancements for manufacturers.
Our cutting edge blue laser is at the forefront of technological advancements for manufacturing.
Speaker 3: Since the inception of Nubaru in 2015, our focus was on developing blue lasers to leverage fundamental physics and their high brightness, high power, to...
Since the inception of <unk> in 2015, our focus was on developing blue lasers to leverage fundamental physics, and our high brightness high power design.
Speaker 3: I want to thank Mark Zettaker for his tireless efforts of the past years to lay the foundations for the company's success.
I want to thank Mark <unk> for his tireless efforts over the past years to lay the foundations for the company's success.
Speaker 3: Looking forward, our primary objectives were revolved around three central elements.
Looking forward, our primary objectives revolve around three central elements strengthening our commercial efforts scaling our production streamline streamlining our administrative functions.
Speaker 3: Drinking our commercial efforts, scaling our production, and streamlining our administrative.
Speaker 3: These actions are pivotable as we strive to not only ensure customer satisfaction, but also drive shareholder value growth as a public company.
These actions are pivotal as we strive to not only ensure customer satisfaction, but also drive shareholder value growth as a public company.
Speaker 3: As I step into my newly extended role as executive chairman, my key responsibilities will compass offering strategic guidance during this transformative phase, as well as serving as a valuable resource to Brian and his new position as chief executive officer. In addition to supporting the rest of our highly-
As I step into my newly extended role as executive Chairman My key responsibilities will compass offering strategic guidance. During this transformative phase as well as serving as a valuable resource to Brian.
His new position as Chief Executive Officer. In addition to supporting the rest of our highly talented management team.
Brian can alias is an accomplished and respected leader with over 25 years of experience in scaling and operating public companies.
The directors and myself, we're confident in his abilities to lead <unk> next phase of growth.
Now I'll turn the call over to Brian to update you on further operational highlights discuss our third quarter performance and out your strategic objectives Brian.
Thanks, Rod it's a great honor for me to lead <unk> next phase of growth as Chief Executive Officer, and I want to thank the board of directors for their trust in me and I'm looking forward to working with Rod The board and the excellent <unk> routine in this position as we continue to execute on the vast commercial opportunities that lay ahead of us.
Speaking of which I would like to start today's operational update with two very recent exciting examples earlier today, we announced fantastic news regarding our work with GE additive for the U S. Air Force the completion of the contract awarded by the U S. Air Force follows our successful demonstration of Blue laser based area of printing too.
Development scalable three D printing manufacturing systems.
Achieving this first ever milestone is critical to accelerate the implementation of blue laser technology into large scale additive manufacturing systems for defense Aerospace and several other critical markets.
This announcement comes on the heels of a purchase order we received from a major multinational electronics manufacturer with manufacturing capabilities across Asia, Latin America, Europe, and the U S. We.
We are excited about the opportunity to deliver our industry disrupting VL $2 54 next generation <unk> device manufacturing.
Our transformational Blue Blue laser technology will be utilized at the manufacturer and our research and development capacity to demonstrate the integration that Mitch laser welding capabilities as an alternative to conventional soldering manufacturing techniques.
As you can tell there is no shortage of interest in our technology and we are excited about the opportunities that lay ahead of us but.
But Q3 also came with challenges as mentioned on our second quarter earnings call going into the second half of the year, we were cognizant that the supply chain conditions presented bottlenecks in the procurement process for scanner components in particular, the scanner and lens related components, respectively associated with our <unk> product line.
While we've seen such material constraints abate through the throughout the third quarter largely attributable to our alternative sourcing initiatives that we have implemented we have seen a clear impact on our ability to ship systems to our customers.
The third quarter, we were also confronted with additional headwinds from the integration of our systems into customer applications and subsequently experienced further delays in the shipment of our products for those unaware of our sales cycle, while we benefit from deep integration into our customers' manufacturing processes, we need to customize our solutions specific.
Applications of their end markets I'm confident in the solutions that we've developed not only we will enhance our <unk> 50 product offerings, but also streamline the manufacturing process to improve the application and.
The integration of our technologies within their respective end markets going forward.
Turning now to our third quarter results further details on which can be found in our 10-Q that will be on file with the SEC. Our third quarter sales were <unk> $2 million, which is a 78% decrease compared to the third quarter of 2022, primarily due to a decrease in the number of laser system sales during the period.
As a result of the challenges I described earlier, our gross profit was eight.
<unk> $9 million loss compared to a loss of 1.0 dollars in the third quarter of 2022, primarily attributable to a decrease in cost of revenue. Following a decrease in the production of laser systems as the company focuses on the manufacturing at the BLS series and offset by the decrease in revenues are.
Our gross margin was a negative 497% compared to a gross margin of 100.
Compared to a gross margin of a negative 111% in the third quarter of 2022, primarily driven by decreasing revenue and partially offset by lower cost of revenues. Following the retirement of the series total.
Total operating expenses in the third quarter were.
2023 were $4 2 million.
Compared to $2 $9 million in the third quarter of 2022.
The increase was primarily attributed attributable to increased costs associated with becoming an operating a public company.
Further.
Contributors to the increase were increased research and development personnel expenses and the addition of a new chief marketing and sales officer in March of 2023.
Net loss was $5 $1 million or 14 cents per share compared to a net loss of $3 $9 million or <unk> 71 per share in the third quarter of 2022. This is primarily primarily related to the mentioned.
One time expenses detailed previously.
Our EBITDA was a negative $4 $8 million compared to a negative $3 8 million in the third quarter of 2022.
In the quarter, we had a free cash flow usage of $4 9 million compared to a usage of $2 $7 million, primarily attributable to decreasing revenue and an increase in total operating expenses.
As a result.
And as of September 32023 that the company had cash and cash equivalents of $1 6 million looking forward I am pleased to tell you that we are very well positioned to have updates forthcoming regarding our short term financing as well as longer term solutions.
Not quite ready to announce at this point.
But we will keep the market updated as we track as we are on track to bolster our balance sheet.
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 as such we are revising our full year 2023 outlook for total revenue to $2 1 million.
EBITDA to be in the range between negative $18 million and a negative $21 million and free cash flow to be in the range of negative $17 million and negative $20 million in closing while quarter. Three was without challenges. We are we are more than ever excited about the growth opportunities.
Out of us with growing commercial interest for Technologic technology, driven solutions, our market outlook remains robust with momentum and revenue generation accelerating in 2024 and beyond.
As we roll out more of our BL and SNL systems. Finally, we would like to thank our employees and our customers for their continued efforts and dedication to the company, which ultimately drives our success as an organization together, we're focused on driving innovation supporting the global transition to sustainable solutions and delivering strong profitable growth.
For our shareholders, we are entering a new phase as we transition toward the commercialization of our technology and I Hope you all are with US for the journal journey I will.
Now I'll turn the call back over to the operator, who will assist us in taking your questions operator.
Thank you.
Ladies and gentlemen, we will now begin the question and answer session should you have a question with star followed by the one on your Touchtone phone.
We'll hear retreat telecoms acknowledging your request questions will be taken in the order received could you wish to cancel your request. Please press the star followed up with you.
We are using a speakerphone lift your handset.
Thank you Amit.
Once again that is star one should you wish to ask a question.
Your first question is from Ananda Baruah from loop capital. Please ask your question.
Hey, Yeah. Thanks, guys. Good afternoon I appreciate it.
Yes, so a couple of things I jumped on that company's reporting this evening I jumped on a few minutes late could you just talk to you again.
What.
The source of that and I apologize for that.
Again.
The source of the constraints.
And what it is it sounds like you feel like you have your arms around it and the things that you things that are leading you to feel like you have your arms around like that contract would be super helpful.
Thanks for the question appreciate it.
As we said a little bit before.
And as we said in second quarter.
Summary.
We were experiencing supply chain restrictions on scanner and <unk>.
Ancillary type support.
Related to our peripherals.
And that supply chain. So we were experiencing that in coming out of the second quarter and into the third quarter here, we're seeing it abate a little bit.
Really for two reasons one.
Looking for alternative solutions, and we have identified a few as we move through as well as some of that.
Some of that shortfall or constraint is starting to abate.
Some of those lead times have come down.
But again that has not really happen until the end of the quarter.
Got it.
That's super helpful and is there is there.
Sort of.
The Genesis of the constraint is this isn't just solid market related or is there anything that sort of more specific end market related.
Not specific to us.
Ross really across the market in these critical referrals.
Okay Awesome awesome and.
This is more than sort of high level housekeeping question, I guess, but Brian are you I know.
Are you guys looking for.
<unk> standalone, DSO as well or what what's the switch that situations.
Absolutely.
We're going to and we're looking actively looking for a CFO now.
So my my role will transition straight into the CEO role.
And then.
Bringing a good CFO coming into the company.
Okay, Okay, great that's great to hear and.
I guess the last one for me for now is can you can you remind us yes.
The.
Theory retirement was that planned or is that.
Decision made intra quarter to do that.
That was planned as we as we brought on the VL $2 50, and one kilowatt that was that was plan to sunset.
Okay. Okay Awesome just wanted to.
Why is it.
I'll keep that I I appreciate it thanks guys.
Thanks for the questions.
Once again, please press star one should you wish to ask a question.
As there are no further questions at this time Sir Please proceed.
Thank you everybody for joining into quarter three.
Through earnings call, we look forward to talking to you in the next quarter.
Thank you ladies and gentlemen, the conference has now Andrea. Thank you all for joining you may all disconnect.
Yeah.