Good news continues with IPG Photonics Q2 financials

Aug. 3, 2010
Oxford, MA--Fiber laser and amplifier manufacturer IPG Photonics saw $67.3 million in Q2 revenue compared to $40.4 million in revenue for the same quarter last year, a 67% increase.

Oxford, MA--Adding to the strong financials for calendar Q2 reported by Newport Corporation and the good financial news from Coherent, fiber laser and amplifier manufacturer IPG Photonics also had impressive Q2 financial news--much improved over its Q1 results. For its second quarter of fiscal 2010 ended June 30, 2010, IPG saw $67.3 million in revenue compared to $40.4 million in revenue for the same quarter last year, a 67% increase. For the six months ended June 30, total revenue of $118.5 million was up 38% from those same six months in 2009.

“IPG reported stronger second-quarter financial results, continuing the momentum that has been building in 2010,” said Valentin Gapontsev, IPG Photonics’ CEO. “IPG’s revenue and earnings per share for the second quarter both exceeded the high end of our financial guidance. As a result of the operating leverage in our business model, coupled with 67% year-over-year sales growth and 31% sequential growth, gross and operating margins expanded to 45.3% and 23.4%, respectively.”

“Despite some underlying uncertainties in the global macro-economic environment during the second quarter many of our end markets are benefitting from a secular recovery,” said Gapontsev. “Materials processing had an outstanding quarter with sales increasing 91% year-over-year and 34% on a sequential basis. Demand for high-power cutting lasers and pulsed lasers for engraving and marking drove this strong performance as did sales to China, which more than tripled from the same period last year. Medical application sales continued to be strong, increasing 32% year-over-year and 29% sequentially, following solid first-quarter 2010 results. Advanced applications sales were 5% lower year-over-year and up 15% sequentially, and telecommunications sales decreased 24% year-over-year and improved 15% sequentially as customers began re-ordering.”

“Our book-to-bill ratio continues to be greater than one, and we have excellent sales momentum,” said Gapontsev. “In addition, with sales demand returning, we expect to continue to capitalize on the operating leverage in our business model. Going forward in 2010, we will continue to meet the increasing global demand for fiber lasers and related products, introduce new and innovative sources and laser-based tools, penetrate complementary markets, and capitalize on new opportunities to expand our customer base and displace existing laser and non-laser technologies in a wide range of applications.”

IPG Photonics expects revenues in the range of $69 million to $75 million for the third quarter of 2010. The company anticipates earnings per diluted share in the range of $0.19 to $0.25 based on 47,333,000 common shares, which includes 46,220,000 basic common shares outstanding and 1,113,000 potentially dilutive options at June 30, 2010. The EPS guidance includes higher planned legal expenditures related to the IMRA America patent trial scheduled to begin in August 2010.

SOURCE: IPG Photonics;

--Posted by Gail Overton; [email protected];

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