by Melinda Rose, Senior Editor
OXFORD, Mass., Aug. 3, 2011 -— Driven by demand for high-power and pulsed fiber lasers for materials processing applications such as marking, welding and cutting, IPG Photonics Corp. reported that second-quarter revenue was up 81 percent year over year to $122 million, a record. The company's profit for the quarter tripled to almost $31 million, or 63 cents a share, up from earnings of 22 cents a share for the same quarter a year ago.
The first quarter of 2011 also was a positive one, with sales hitting $100 million as revenues surged 95 percent from the previous year. (See also: IPG Sales Increase 95% in Q1)
The company bested its own estimates for the second quarter, which it previously projected not to exceed $110 million, and also surpassed the expectations of Wall Street analysts.
"Materials processing represented 88 percent of our total sales in the second quarter of 2011," said IPG CEO Dr. Valentin Gapontsev. "The acceptance of fiber lasers has reached a tipping point in several of our end markets, particularly within materials processing. "Our goals now are to ensure that we have the ability to keep pace with demand, continue our technological superiority, reduce costs through research and develop new application labs for fiber lasers."
IPG's telecom market sales were up 175 percent, year over year, for the quarter, Gapontsev said, while advanced applications saw an increase of 16 percent. Medical market sales decreased 23 percent from last year. Sales to China were up 129 percent, while sales in Europe were up 87 percent and in North America up 60 percent.
Gapontsev said the company is on track to spend $50 million this year on additional manufacturing capacity, application labs and sales facilities.
IPG said it expects revenue for the third quarter to be in the range of $120 million to $130 million.
For more information, visit: www.ipgphotonics.com