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IPG Photonics: Materials Processing Drives Sales Up 29%

OXFORD, Mass., May 1, 2013 — Fiber laser maker IPG Photonics Corp. today reported a profit of $35 million, or 67 cents per share, for the first quarter of 2013. The total was up 17 percent from the same quarter a year ago, due largely to growth in materials processing, but fell short of analysts' expectations.

A Thomson Reuters poll of 11 analysts showed expected earnings of 70 cents per share for the quarter. IPG said in February that it expected Q1 revenue in the range of $145 million to $155 million, with earnings in the range of 65 to 75 cents per share.

IPG's revenue for the first quarter, which ended March 31, rose 15 percent year-over-year to $141.9 million. Some analysts estimated that revenue for the quarter would slightly exceed $150 million.

"IPG's core materials processing business grew by 29 percent year-over-year and comprised 94 percent of our revenues," said CEO Dr. Valentin Gapontsev. That strong growth "was partially offset by lower sales in other applications," he said, adding that "the core materials processing applications continue to drive growth as they gain significant market share from legacy technologies."

"In materials processing, we reported a record quarter for high-power laser sales, which increased 19 percent year-over-year," Gapontsev said. "Strong materials processing sales were also driven by growth across all regions, particularly Asia and Europe. In addition, during Q1 we received our largest automotive contract in our history from a major German manufacturer."

In its results for fiscal year 2012, IPG also reported double-digit growth in its primary sales market (See: Materials Processing Drives IPG Sales Growth).

Last week, laser market rival Coherent Inc. released its second quarter earnings, reporting record sales in materials processing (See: Industrial Fiber Laser Sales Boost Coherent’s Q2).

The company's book-to-bill ratio is "solidly in excess of 1," Gapontsev said.

In guidance for the second quarter, IPG said it expects revenue in the range of $155 million to $165 million, with earnings of between 72 and 82 cents per share.

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