Revenue, sales spike for IPG

Photo/Matt Pilon The Oxford headquarters of IPG Photonics.

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Sales climbed 14 percent and profits grew 16 percent during the second quarter for fiber-laser maker IPG Photonics of Oxford.

The increase in revenue, from $168.2 million in the second quarter of 2013 to $192.2 million, came in well above analysts’ expectations of $183.3 million. Meanwhile, reported earnings - $48.3 million, or 92 cents per share –topped predictions of 85 cents per share.

Sales for the company’s materials processing products grew 18 percent, driven by growth in newer applications such as 3-D printing, glass cutting and cleaning, according to CEO Valentin Gapontsev.

Strong growth was recorded in sales from Europe and Asia, Gapontsev added, but the shipment of some large American orders in spring 2013 resulted in an unfavorable year-over-year comparison stateside.

IPG’s stock price soared in response to the news, rising 11.2 percent from $62.95 per share at the end of trading Monday – before earnings were announced – to $70.03 per share as of Tuesday morning.

Looking ahead, IPG said it expects third-quarter revenue to land between $190 million and $205 million, in line with analysts’ expectations of $196.6 million. The company projects earnings per share between 88 cents and $1.03, compared with analysts’ predictions of 94 cents.

“We remain focused on generating profitable growth through expanding our business with existing and new OEMs (original equipment manufacturers), developing new applications and introducing new fiber laser-based products,” Gapontsev said in a statement.