IPG Photonics (Oxford, MA) reports financial results for the second quarter ended June 30, 2018. During this time, the company delivered record quarterly revenue and net income driven by the rapid adoption of its high-power laser products, according to Dr. Valentin Gapontsev, IPG Photonics' CEO.
"Second-quarter revenue of $413.6 million increased 12% year over year," Gapontsev continues. "Depreciation of the Euro and Renminbi relative to the exchange rates assumed in our second-quarter guidance reduced revenue by $8.4 million. Materials processing sales increased 11% year over year and accounted for approximately 95% of total sales driven by strength in cutting and 3D printing applications. Sales to other markets increased 33% year over year. High-power CW laser sales increased 20% year over year, representing 64% of total revenue, with even stronger growth in sales of ultra-high power CW lasers with power levels of 6 kW and above. By region, sales increased 10% in China, 18% in Europe, 23% in North America, and declined 2% in Japan on a year-over-year basis."
During the second quarter, the company generated $109 million in cash from operations and capital expenditures totaled $57 million. The company ended the quarter with $1.13 billion in cash and cash equivalents and short-term investments, representing an increase of $9.6 million from December 31, 2017.
Safe Harbor Statement
Information and statements provided by IPG and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, strong order activity in North America and smaller regions, rapid growth from new products, revenue and earnings guidance for the second quarter and revenue guidance for the full year. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the strength or weakness of the business conditions in industries and geographic markets that IPG serves, particularly the effect of downturns in the markets IPG serves; uncertainties and adverse changes in the general economic conditions of markets; IPG's ability to penetrate new applications for fiber lasers and increase market share; the rate of acceptance and penetration of IPG's products; inability to manage risks associated with international customers and operations; changes in trade controls and trade policies; foreign currency fluctuations; high levels of fixed costs from IPG's vertical integration; the appropriateness of IPG's manufacturing capacity for the level of demand; competitive factors, including declining average selling prices; the effect of acquisitions and investments; inventory write-downs; asset impairment charges; intellectual property infringement claims and litigation; interruption in supply of key components; manufacturing risks; government regulations and trade sanctions; and other risks identified in IPG's SEC filings. Readers are encouraged to refer to the risk factors described in IPG's Annual Report on Form 10-K (filed with the SEC on February 28, 2018) and its periodic reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. IPG undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.