IPG profits jump 67% after switch to high-power products

IPG Photonics, an Oxford manufacturer of laser products, saw its net income rise by 67 percent percent in the third quarter, while its revenue hit a company record of $393 million, the company announced Tuesday. 

Valentin Gapontsev, the IPG Photonics CEO, attributed the growth to a shift to high-power products and customers buying it largest productions more quickly than expected and over a larger geographic region. 

Net income was $116 million for the third quarter, leading to earnings per share to spike 64 percent to $2.11. Both exceeded the company’s projections for the quarter.

IPG makes lasers used in products in the automotive, aerospace, telecommunications and other industries. For automakers, its lasers help the cutting and welding processes. In medicine, IPG lasers are used for hair, tattoo or fat removal, among other uses. 

The company doesn’t expect quite the same high results for the fourth quarter, which began Oct. 1. IPG said it expects revenue of $330 million to $355 million, and earnings per diluted share of $1.55 to $1.80.