Fiber laser demand drives IPG Photonics' 16-percent revenue growth in 3Q 2014

Oxford, MA - Pointing to industry demand for fiber lasers, IPG Photonics (NASDAQ: IPGP) has reported a 16-percent increase in revenue to a record $199.7 million for the third quarter ended September 30, 2014. Also, net income for the company rose 30 percent year-over-year.

Sales for materials processing applications grew 17 percent due to increased demand for metal cutting, marking and engraving, and additive manufacturing. Strong sales across the company's entire fiber laser product portfolio contributed to the year-over-year revenue growth. Sales of high-power lasers increased by 10 percent driven by very strong demand for cutting applications. Medium-power laser sales were up 45 percent and low-power sales grew 14 percent. Pulsed laser sales were up 11 percent, driven by traction in China, where the company recently launched a new low-power, low-cost pulsed laser. Quasi-continuous-wave (QCW) laser sales increased by 122 percent, partly driven by the company's penetration of OEMs for turbine blade drilling and, in particular, fine welding applications.

Geographically, the company achieved robust sales growth in Europe and China, with both up more than 20 percent from last year, as well as strong growth in Turkey and the rest of Asia, excluding Japan. Lower sales in the US and Japan partially offset the strong growth elsewhere.

The company generated $47.2 million in cash from operating activities and finished the quarter with cash and cash equivalents of $487.5 million after using $28.9 million to finance capital expenditures during the third quarter.