News Article
IPG quarterly revenues rocket by 95%
The firm has reported strong quarterly sales of $100, much of it thanks to high demand for high power and pulsed lasers.
IPG Photonics Corporation has reported financial results for the first quarter of 2011 ended March 31, 2011.
"IPG's growth momentum continued through the first quarter of 2011," said Valentin Gapontsev, IPG Photonics' Chief Executive Officer. "This was another outstanding quarter of revenue growth as sales increased 95% to $100 million. Although growth is compared to the first quarter of 2010 when we were still feeling the effects of the global economic downturn, demand was strong in what is typically a seasonally slow quarter. We reported year-over-year sales increases in all geographies and product lines. We also achieved gross margins of 54% and grew earnings per diluted share to $0.47 from $0.07 in the first quarter of 2010."
"Sales for materials processing applications were up more than 100% year over year, driven primarily by purchases for marking, welding and cutting," continued Gapontsev. "Demand for high power and pulsed lasers continued to drive our product sales. Also, the growing number of OEM customers contributed to the sales increase in materials processing. Advanced applications and telecom sales were up 76% and 73%, respectively, and medical increased by 10% from last year. Geographically, sales increased in every region, with China and Europe the strongest performers with sales up 234% and 120%, respectively."
"IPG generated $13.8 million in cash from operations and ended the quarter with $160.6 million in cash, an increase of $12.8 million sequentially," said Gapontsev. "Capital expenditures for the first quarter of 2011 totalled $11.3 million as we invested in additional capacity, application development and sales facilities abroad."
Business Outlook and Financial Guidance
"IPG's order flow remains strong," said Gapontsev. "It has become clear that our fiber lasers are now well accepted in many applications, especially in materials processing, as potential customers recognize our brand and the value our products provide. In addition, we are seeing customers, especially OEMs, order products in significantly greater quantities. Given the leverage in our business model, our sales performance should result in impressive profitability for the year."
IPG Photonics expects revenues in the range of $102 million to $110 million for the second quarter of 2011. The Company anticipates earnings per diluted share in the range of $0.50 to $0.59 based on 48,690,000 common shares, which includes 47,099,000 basic common shares outstanding and 1,591,000 potentially dilutive options at March 31, 2011.
Conference Call
The Company will hold a conference call to review its financial results and business highlights on May 3, 2011 at 10:00 a.m. ET. The conference call will be webcast live and can be accessed on the "Investors" section of the Company's website at www.ipgphotonics.com.
The conference call also can be accessed by dialling
(877) 709-8155 or (201) 689-8881
Interested parties that are unable to listen to the live call may access an archived version of the webcast, which will be available for one year on IPG's website.
