IPG Declares One-Time Dividend
Citing strong financial performance and possible increases in taxes, IPG Photonics Corp. of Oxford has approved a one-time special cash dividend of 65 cents per share of stock, which will be paid to shareholders of record as of the close of business on Dec. 21.
"Given our confidence in the company's long-term growth prospects, our strong balance sheet and additional cash generated this year, the board (of directors) decided to reward our shareholders," said Chairman and CEO Valentin Gapontsev. "With the possibility of tax increases on dividends, this dividend provides a tax-efficient opportunity to return capital to all our shareholders." Many companies and individuals are closely watching negotiations in Washington between Congress and the White House regarding the so-called "fiscal cliff," and the potential impact on income tax rates for 2013 should the two sides fail to reach agreement. If tax cuts enacted 11 years ago under the administration of George W. Bush are not extended, the federal tax rate on dividends would jump from 15 percent to nearly 40 percent.
The manufacturer of high-power fiber lasers and amplifiers is on track to surpass its revenue expectations for 2012. In the third quarter, which ended Sept. 30, it brought in a record $156.4 million, 21 percent higher than its revenue for the same quarter in 2011. Profits, meanwhile, grew 29 percent.
Through the third quarter, IPG brought in $417.5 million revenue for the year. For all of 2011, it brought in $474.5 million. The company expects revenue of between $145 million and $155 million for the current quarter.
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