Oxford, MA - IPG Photonics Corp. has reported financial results for the second quarter ended June 30, 2013. Revenue for the 2Q was $168.2M, compared to the reported $141.9M in the 1Q of this year, a 15% increase, and the revenue was a 22% increase over the $137.9M in the same period last year.
"Strong demand for IPG's high-power lasers for materials processing applications, particularly in Asia and the U.S., drove a 22% year-over-year sales increase during the second quarter," said Dr. Valentin Gapontsev, IPG Photonics' CEO. "Gross margins of 53.5% were within our target range and net income increased 11%. The strong revenue growth during the quarter further demonstrates the increasing adoption rate of fiber laser technologies for various applications. Excluding foreign exchange rate gains, operating income grew by 12.6%. While this was lower than the growth in revenue, it reflects our investment in operating expenses to support IPG's future growth."
"Materials processing sales grew by 26% and accounted for approximately 94% of total sales," continued Dr. Gapontsev. "We continue to penetrate major OEMs and are gaining market share from conventional lasers for cutting and welding applications. High-power laser sales were up 38% year over year, driven by automotive and general manufacturing applications. Medium power lasers benefited from strong sales for welding and cutting of thinner materials, primarily for consumer electronics, resulting in 41% growth. We more than doubled our unit sales for QCW lasers during the quarter."
"Geographically, sales grew quarter over quarter across most regions," said Dr. Gapontsev. "China and Turkey led the Asian region, primarily with cutting OEMs, and the U.S. also experienced strong sales. Weak automotive sales in Germany slightly offset our otherwise solid growth in Europe."
"During the second quarter, IPG generated $35.3 million in cash from operations and used $16.5 million to finance capital expenditures. We ended the quarter with $369.5 million in cash and cash equivalents," Dr. Gapontsev said.
"We continue to see solid demand in most of our end markets, and we maintain a strong technological advantage over our competition," said Dr. Gapontsev. "Order flow in Q2 was strong and the book-to-bill ratio substantially exceeded 1. We continue to make significant investments to support the expected growth of our business, strengthen our competitive position and improve and develop new products to expand our offerings."
IPG Photonics expects revenue in the range of $165 million to $175 million for the third quarter of 2013. The company anticipates earnings per diluted share in the range of $0.77 to $0.87 based on 52,385,000 diluted common shares, which includes 51,462,000 basic common shares outstanding and 923,000 potentially dilutive options at June 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.