IPG Photonics Revenue Grows 15%

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By Rick Saia

Fiber-laser manufacturer IPG Photonics of Oxford continued its recent record of strong growth, with a 15-percent jump in first-quarter revenue and a 17-percent increase in profits, the company reported today.

IPG said it took in $141.9 million in revenue from January through March while recording $35.1 million in net income. Those figures were up from $123.2 million and $29.9 million, respectively, in the first quarter of 2012.

The company said its core materials processing business grew 29 percent and made up 94 percent of its revenue. The strong growth was partially offset by lower sales in other parts of the business, according to the company's CEO, Valentin Gapontsev.

Gapontsev said the gross margin of 53,3 percent recovered from the fourth quarter of last year due to an improved product mix, lower component costs and enhanced manufacturing efficiency.

The company's cash and cash equivalents dropped from $384.1 million to $355.7 million, due to the payment of taxes in Germany related to capital and acquisition expenditures in 2011 and 2012, Gapontsev said.

For the current quarter, IPG expects revenue in the range of $155 million to $165 million, which would represent another double-digit gain over the $137.9 million in revenue the company reported during the second quarter of 2012. It also anticipates earnings per diluted share (EPS) of between 72 and 82 cents. EPS in the second quarter of last year was 72 cents.

(Image credit: Freedigitalphotos.net)