IPG Photonics reports record revenue of $172.2M in 3Q13
The main driver was sales for materials processing applications, which increased 19% over the prior year, says the CEO.
Oxford, MA - IPG Photonics Corp. has reported financial results for the 3Q ended September 30, 2013. Revenue for the 3Q was $172.2M, compared to the reported $168.2M in the 2Q of this year, and the 3Q revenue was a 10% increase over the $156.4 reported in the same period last year.
"Record revenue in the third quarter of 2013 was driven by a 19% increase in sales for materials processing applications, which account for 95% of our business," said Dr. Valentin Gapontsev, IPG Photonics' CEO. "We saw particularly strong demand for high-power lasers within materials processing. Gross margins of 53.9% were within our target range. EPS was flat with the year ago quarter and reflects the peak of our current investment cycle expanding manufacturing capacity, R&D and sales and marketing, which we believe will drive future revenue and earnings growth.
"Total revenue growth of 10% over last year came from increased demand in high-power lasers for cutting and welding applications, and in our mid-power and QCW product lines. However, the increases were offset by declines in pulsed laser sales for consumer electronic applications, which were strong last year, and declines in other applications," continued Gapontsev.
"Geographically, Asia was our strongest performing region, with a 40% increase in sales primarily due to growth in Chinese and Turkish sales, which increased by 57% and more than 100%, respectively. These increases were tempered by lower sales in Europe and North America.
"During the third quarter, IPG generated $36.7 million in cash from operations and used $14.1 million to finance capital expenditures. We ended the quarter with $398.4 million in cash and cash equivalents," said Gapontsev.
"While we expect fourth-quarter revenue to be seasonally weaker in certain areas and have reflected this in our guidance, we continue to believe that IPG still has a significant opportunity of profitable growth ahead for existing and new applications and product line expansion. As the technology pioneer and industry leader, we intend to continue to capitalize on the market we have created for reliable, flexible, high-performing and cost-effective fiber laser sources, while expanding our product line to capitalize on profitable new opportunities," concluded Dr. Gapontsev.
IPG Photonics expects revenue in the range of $155 million to $170 million for the 4Q13. The company anticipates earnings per diluted share in the range of $0.68 to $0.82 based on 52,367,000 diluted common shares, which includes 51,495,000 basic common shares outstanding and 872,000 potentially dilutive options at September 30, 2013.
Actual results may differ from this guidance due to various factors including, but not limited to, product demand, competition and general economic conditions. This guidance is subject to the risks outlined in the company's reports with the SEC, and assumes that exchange rates remain at present levels.
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