Oxford, MA - For the three months ended March 31, 2013 (1Q13), IPG Photonics reports revenue of $141.9 M, a 15% increase over the same period last year. Net income was $35.1 M, a 17% increase over the same period last year. Net sales for 4Q12 were reported as $145 M, and net income was $34.9 M.
Related story: IPG tops record sales in 3Q12, but gazes down for 4Q
"IPG's core materials processing business grew by 29% year-over-year and comprised 94% of our revenues," said Dr. Valentin Gapontsev, IPG Photonics' CEO. "Gross margins of 53.3% recovered from Q4 due to improved product mix, lower component costs and enhanced manufacturing efficiency. Order flow remains firm with a book-to-bill ratio solidly in excess of 1. The strong growth in our core materials processing applications was partially offset by lower sales in other applications."
"In materials processing, we reported a record quarter for high power laser sales, which increased 19% year-over-year," said Dr. Gapontsev. "Strong materials processing sales were also driven by growth across all regions, particularly, Asia and Europe. In addition, during Q1 we received our largest automotive contract in our history from a major German manufacturer."
"Cash and cash equivalents decreased from $384.1 million to $355.7 million due to the payment of German corporation taxes related to 2011 and 2012 of approximately $32 million and capital and acquisition related expenditures that totaled $23.3 million," Dr. Gapontsev said.
"The fundamentals that drive our business remain intact with strong order flow and sequentially improving margins. We are continuing to develop new industry-leading products and applications which should generate future growth. The core materials processing applications continue to drive growth as they gain significant market share from legacy technologies. Our scale, technological and cost advantages drive customer acceptance and make IPG the top choice for many laser processing applications. Our guidance for the second quarter takes into consideration these improving dynamics," concluded Dr. Gapontsev.
IPG Photonics expects revenue in the range of $155 million to $165 million for the second quarter of 2013. The company anticipates earnings per diluted share in the range of $0.72 to $0.82 based on 52,350,000 diluted common shares, which includes 51,407,000 basic common shares outstanding and 943,000 potentially dilutive options at March 31, 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.