IPG sees better-than-expected numbers

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By Rick Saia

IPG Photonics of Oxford expects fourth-quarter 2014 revenue and earnings per share to finish ahead of its expectations, the fiber-laser manufacturer said today.

IPG said it expects to report revenue of about $207 million when it releases its fourth-quarter numbers on Feb. 20. Its previous guidance expected revenue to fall between $190 million and $205 million, the company said.

Meanwhile, it forecasts earnings per share in the range of $1.06 to $1.07, up from the original forecast range of 86 cents to $1.01.

CEO Valentin Gapontsev said IPG expects another record year of revenue and earnings, with a 25-percent jump in those key numbers for the quarter, compared with the fourth quarter of 2013. The company’s founder said the increased sales were due primarily to continued strong performance of materials processing and advanced applications. He also cited high- and medium-power lasers as key sales drivers.

The company released those preliminary numbers today amid a key industry gathering, the Photonics West Conference, which is being held this week in San Francisco.

In third quarter of last year, IPG saw a 16-percent jump in revenue and 30 percent in net income amid strong sales growth in Europe and China. The company reported third-quarter 2014 revenue of $199.7 million in the quarter that ended Sept. 30. That was up from $172.2 million in the same quarter in 2013. Meanwhile, net income soared to $55.2 million ($1.05 a share), up from $42.3 million (81 cents a share). For the first nine months of 2014, revenue was up 17 percent to $562.4 million while profits were up 21 percent, to $144 million.