"Is Overlapping Component" outputs both TRUE and FALSE

But all this aside… if you are using a particle emitter (beam) for the laser you can use laser start as a starting point.
Set the distance as a Parameter (in this example it’s called range.)

By some material tweaking and emitter tweaking you can get something like we have in Stellar Invaders:

As you can see the laser stops at where it collides and start the death event for those npcs.