Danny Eggerichs's questions to NLIT leadership • Q2 2025
Question
Danny Eggerichs inquired about the specific drivers for the outperformance in Aerospace and Defense (A&D) revenue, sought updates on new laser sensing program wins and timelines, and asked for an explanation of the record-high product gross margin and the rationale for the guided sequential decrease.
Answer
CFO Joe Corso attributed the A&D strength to excellent execution on existing programs, particularly the ramp-up in amplifier sales for the HLSI-II program. He confirmed that new classified laser sensing programs are progressing, with one expected to enter a low-rate initial production (LRIP) phase in the second half of 2025. Regarding margins, Corso explained that Q2's record 38.5% product gross margin was driven by a combination of higher volumes, favorable mix, better factory absorption, and exceptional operational execution, noting the Q3 guidance is more conservative and does not assume a repeat of this level of outperformance.