Demand pushes IPG numbers higher to start year

Photo/Matt Pilon The Oxford headquarters of IPG Photonics.

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IPG Photonics of Oxford started off the year with strong revenue growth and increases in net income thanks to strong demand for their high power fiber lasers, the company reported Tuesday.

In the first quarter, which ended March 31, IPG experienced 17 percent revenue growth over 2014, driven by an 18-percent jump in materials processing sales, the company said Tuesday. IPG said demand grew in cutting, welding, and additive manufacturing applications across a number of industries and markets. Meanwhile, sales of high-power fiber laser sales increased 14 percent and the company’s other laser systems sales also rose.

The increased revenues boosted the company’s net income by 29 percent, excluding the benefit from foreign exchange transaction gains, according to IPG.

Earnings per diluted share increased 40 percent to a record $1.08, and by 29% excluding a benefit of $0.11 related to foreign exchange on earnings. The growth in earnings per share was driven by the increase in revenue and an improvement in operating margins.

Meanwhile, IPG generated $52 million in cash from operations and used $13.7 million to finance capital expenditures and $5 million on an acquisition of a company that has a unique high power systems platform for large scale cutting, welding and cladding applications, according to IPG. IPG ended the quarter with $541.5 million in cash and cash equivalents, compared to $480.6 million in the first quarter of 2014.