IPG Photonics' 2Q 2014 revenue tops 14 percent due to continued high-power fiber laser sales growth

Oxford, MA - IPG Photonics (NASDAQ: IPGP) has reported financial results for its second quarter, which ended June 30, 2014.
The company posted record revenues of $192.2 million for the second quarter, which resulted from a strong increase in high-power fiber laser sales for materials processing applications, according to Dr. Valentin Gapontsev, IPG Photonics' CEO. "Materials processing sales increased 18 percent year over year, driven by strength in cutting and welding applications as well as growth in 3D printing, glass cutting, and cleaning applications. The increase in materials processing, which accounts for 96 percent of our revenue, shows the progress we continue to make in penetrating OEMs for key applications that represent significant growth opportunities. The 70 basis point year-over-year increase in gross margins to 54.2 percent and growth in net income of 16 percent demonstrated some leverage returning to our operating model," Gapontsev adds.

"We continue to see strong growth in high-power fiber laser sales, which increased by 22 percent," says Gapontsev. "Sales for medium-power lasers increased by 35 percent and quasi continuous-wave sales were up 44 percent year over year. While pulsed laser sales declined as expected by 19 percent year over year due to increased low-power competition in China, we are encouraged by a 12-percent increase from the sequential first quarter. We are also seeing fast-growing demand for our new generation of picosecond high-peak-power fiber lasers and multi-hundred-watt average power pulsed lasers and where we have technological advantages for new applications such as deep engraving, ablation, and cleaning."

The company reported strong sales growth in Europe and Asia, Gapontsev says. US sales and order flow remain positive; however, having shipped some large advanced applications and marking and engraving orders in 2Q 2013 resulted in an unfavorable year-over-year comparison, he adds.

The company expects revenue in the range of $190-205 million for the third quarter of 2014 and anticipates earnings per diluted share in the range of $0.88-1.03 based on 52,769,000 diluted common shares, which includes 52,068,000 basic common shares outstanding and 701,000 potentially dilutive options at June 30, 2014.

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