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IPG Photonics Corporation (IPGP)

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163.26-1.76 (-1.07%)
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Neutralpattern detected
Previous Close165.02
Open164.54
Bid162.63 x 900
Ask174.40 x 900
Day's Range161.22 - 164.54
52 Week Range98.04 - 184.02
Volume383,209
Avg. Volume358,593
Market Cap8.695B
Beta (5Y Monthly)1.71
PE Ratio (TTM)68.65
EPS (TTM)N/A
Earnings DateN/A
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateDec 19, 2012
1y Target EstN/A
  • GlobeNewswire

    IPG Photonics Announces Second Quarter 2020 Financial Results

    Earnings Per Diluted Share of $0.71 Reduced by $0.20 from Foreign Exchange Loss and Charge for Restructuring and Asset ImpairmentOXFORD, Mass., Aug. 04, 2020 (GLOBE NEWSWIRE) --  IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the second quarter ended June 30, 2020.  Three Months Ended June 30,   Six Months Ended June 30,   (In millions, except per share data and percentages) 2020 2019 Change 2020 2019 Change Revenue $296.4   $363.8   (19)% $545.7   $678.8   (20)% Gross margin 46.0 % 49.5 %   43.9 % 48.5 %   Operating income $47.2   $91.1   (48)% $92.0   $159.4   (42)% Operating margin 15.9 % 25.0 %   16.9 % 23.5 %   Net income attributable to IPG Photonics Corporation $38.2   $72.3   (47)% $74.6   $127.4   (41)% Earnings per diluted share $0.71   $1.34   (47)% $1.39   $2.36   (41)% Management Comments "Despite the continued challenges to our business from the COVID-19 pandemic, we delivered second quarter results above our guidance range on better-than-expected performance in China and strength in new products," said Dr. Valentin Gapontsev, IPG Photonics' Chief Executive Officer. "Although our visibility is constrained in the current demand environment, we are demonstrating good progress in leading-edge solutions thanks to our technology differentiation and low cost production capabilities. We continue to believe that our strong balance sheet and free cash flow provide us ample flexibility to respond to business disruptions and emerge from the pandemic in a stronger competitive position."Financial HighlightsSecond quarter revenue of $296 million decreased 19% year over year. Currency depreciation relative to the exchange rates assumed in our second quarter guidance reduced revenue by approximately $2 million. Materials processing sales decreased 21% year over year due to lower sales in cutting, welding and marking applications, while sales into other applications increased 36% year over year on strength in advanced applications and devices used in medical procedures. Materials processing sales accounted for 92% of total revenue.Sales of high power continuous wave ("CW") lasers, representing 53% of total revenue, decreased 26% year over year due to the effects of COVID-19 on the global demand environment and lower average selling prices. Sales of fiber lasers at 6 kilowatts of power or greater were more than 50% of all high power CW laser sales. By region, sales decreased 11% in China, 24% in Europe, 16% in Japan and 16% in North America on a year over year basis.Earnings per diluted share ("EPS") of $0.71 decreased 47% year over year. Foreign exchange losses and a $1 million charge related to impairment of long-lived assets and other restructuring charges reduced EPS by $0.20. The effective tax rate in the quarter was 23%, which benefited from certain discrete tax items. During the second quarter, IPG generated $73 million in cash from operations. Capital expenditures were $20 million and stock repurchases totaled $16 million.Business Outlook and Financial Guidance"Second quarter book to bill was greater than 1.0, with strong bookings growth in China, offset by weaker order trends in other regions. As expected, the pace of order growth in China moderated as the second quarter progressed while we have seen modest improvement in order trends in other regions. However, visibility into a recovery in global demand remains uncertain at this time. We continue to benefit from near-term growth opportunities in ultra-high power cutting, electric vehicle battery processing and systems and devices for the medical industry. We believe the strides we are making in higher power products within our core materials processing business and new solutions will enable us emerge from the pandemic in a stronger competitive position," said Dr. Gapontsev.For the third quarter of 2020, IPG expects revenue of $280 million to $310 million. The Company expects the third quarter tax rate to be approximately 26%. IPG anticipates delivering earnings per diluted share in the range of $0.70 to $1.00, with 53.0 million basic common shares outstanding and 53.5 million diluted common shares outstanding. Financial guidance provided this quarter is subject to greater risk and uncertainty given the COVID-19 pandemic and its associated impacts to the global business environment, public health requirements and government mandates.As discussed in more detail in the "Safe Harbor" passage of this news release, actual results may differ from this guidance due to various factors including, but not limited to, government and company measures implemented to address the COVID-19 pandemic, product demand, order cancellations and delays, competition, tariffs, trade policy changes and general economic conditions. This guidance is based upon current market conditions and expectations, and is subject to the risks outlined in the Company's reports with the SEC, and assumes exchange rates relative to the U.S. Dollar of Euro 0.89, Russian Ruble 70, Japanese Yen 108 and Chinese Yuan 7.08, respectively.Supplemental Financial InformationAdditional supplemental financial information is provided in the unaudited Second Quarter 2020 Financial Data Workbook available on the investor relations section of the Company's website at investor.ipgphotonics.com.Conference Call ReminderThe Company will hold a conference call today, August 4, 2020 at 10:00 am ET. To access the call, please dial 877-407-6184 in the US or 201-389-0877 internationally. A live webcast of the call will also be available and archived on the investor relations section of the Company's website at investor.ipgphotonics.com.ContactJames Hillier Vice President of Investor Relations IPG Photonics Corporation 508-373-1467 jhillier@ipgphotonics.comAbout IPG Photonics CorporationIPG Photonics Corporation is the leader in high-power fiber lasers and amplifiers used primarily in materials processing and other diverse applications. The Company’s mission is to make its fiber laser technology the tool of choice in mass production. IPG accomplishes this mission by delivering superior performance, reliability and usability at a lower total cost of ownership compared with other types of lasers and non-laser tools, allowing end users to increase productivity and decrease costs. A member of the S&P 500® Index, IPG is headquartered in Oxford, Massachusetts and has more than 25 facilities worldwide. For more information, visit www.ipgphotonics.com.Safe Harbor StatementInformation and statements provided by IPG and its employees, including statements in this press release, that relate to future plans, events or performance are forward-looking statements. These statements involve risks and uncertainties. Any statements in this press release that are not statements of historical fact are forward-looking statements, including, but not limited to, our strong balance sheet and free cash flow helping us through the COVID-19 pandemic and business disruptions and emerge in a stronger competitive position, improvement in order trends in regions other than China, growth opportunities in ultra-high power cutting, electric vehicle battery processing and systems and devices for the medical industry, strides in higher power products enabling us to emerge from the pandemic in a stronger competitive position, impacts of COVID-19 on our business, the global economy and government policies, revenue, tax rate and earnings guidance for Q3 2020. Factors that could cause actual results to differ materially include risks and uncertainties, including risks associated with the strength or weakness of the business conditions in industries and geographic markets that IPG serves, particularly the effect of downturns in the markets IPG serves; uncertainties and adverse changes in the general economic conditions of markets; IPG's ability to penetrate new applications for fiber lasers and increase market share; the rate of acceptance and penetration of IPG's products; inability to manage risks associated with international customers and operations; changes in trade controls and trade policies; foreign currency fluctuations; high levels of fixed costs from IPG's vertical integration; the appropriateness of IPG's manufacturing capacity for the level of demand; competitive factors, including declining average selling prices; the effect of acquisitions and investments; inventory write-downs; asset impairment charges; intellectual property infringement claims and litigation; interruption in supply of key components; manufacturing risks; government regulations and trade sanctions; and other risks identified in IPG's SEC filings. Readers are encouraged to refer to the risk factors described in IPG's Annual Report on Form 10-K (filed with the SEC on February 24, 2020), Current Report on Form 8-K (filed with the SEC on May 5, 2020) and IPG's reports filed with the SEC, as applicable. Actual results, events and performance may differ materially. Readers are cautioned not to rely on the forward-looking statements, which speak only as of the date hereof. IPG undertakes no obligation to update the forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.IPG PHOTONICS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)  Three Months Ended June 30, Six Months Ended June 30,   2020 2019 2020 2019   (In thousands, except per share data) Net sales $296,411   $363,769   $545,653    $678,816   Cost of sales 159,962   183,532   306,328    349,668   Gross profit 136,449   180,237   239,325    329,148   Operating expenses:         Sales and marketing 17,326   20,663   36,009    39,938   Research and development 31,584   34,872   63,422    67,368   General and administrative 26,399   28,538   53,523    55,750   Impairment of long-lived assets and other restructuring charges 1,165   —   1,165    —   Loss (gain) on foreign exchange 12,766   5,074   (6,799)  6,687   Total operating expenses 89,240   89,147   147,320    169,743   Operating income 47,209   91,090   92,005    159,405   Other income, net:         Interest income, net 1,856   4,051   4,929    8,003   Other income, net 449   658   640    649   Total other income 2,305   4,709   5,569    8,652   Income before provision of income taxes 49,514   95,799   97,574    168,057   Provision for income taxes 11,148   23,278   22,442    40,620   Net income 38,366   72,521   75,132    127,437   Less: net income attributable to non-controlling interests 140   249   503    6   Net income attributable to IPG Photonics Corporation $38,226   $72,272   $74,629    $127,431   Net income attributable to IPG Photonics Corporation per share:         Basic $0.72   $1.36   $1.41    $2.40   Diluted $0.71   $1.34   $1.39    $2.36   Weighted average shares outstanding:         Basic 53,040   53,042   53,083    53,076   Diluted 53,530   53,848   53,628    53,915   IPG PHOTONICS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)  June 30, December 31,   2020 2019   (In thousands, except share and  per share data) ASSETS Current assets:     Cash and cash equivalents $747,859    $680,070   Short-term investments 501,040    502,546   Accounts receivable, net 203,568    238,479   Inventories 367,166    380,790   Prepaid income taxes 62,778    38,873   Prepaid expenses and other current assets 68,115    55,876   Total current assets 1,950,526    1,896,634   Deferred income taxes, net 30,544    31,395   Goodwill 81,911    82,092   Intangible assets, net 67,995    74,271   Property, plant and equipment, net 585,644    600,852   Other assets 42,116    45,192   Total assets $2,758,736    $2,730,436   LIABILITIES AND EQUITY Current liabilities:     Current portion of long-term debt $3,775    $3,740   Accounts payable 42,261    27,329   Accrued expenses and other current liabilities 148,226    149,782   Income taxes payable 1,024    11,053   Total current liabilities 195,286    191,904   Deferred income taxes and other long-term liabilities 90,073    98,121   Long-term debt, net of current portion 36,071    37,968   Total liabilities 321,430    327,993   Commitments and contingencies     IPG Photonics Corporation equity:     Common stock, $0.0001 par value, 175,000,000 shares authorized; 55,154,688 and 53,182,148 shares issued and outstanding, respectively, at June 30, 2020; 54,743,227 and 53,010,875 shares issued and outstanding, respectively, at December 31, 2019. 6    5   Treasury stock, at cost, 1,972,540 and 1,732,352 shares held at June 30, 2020 and December 31, 2019, respectively. (293,960)  (265,730) Additional paid-in capital 811,559    785,636   Retained earnings 2,103,248    2,028,734   Accumulated other comprehensive loss (184,501)  (146,919) Total IPG Photonics Corporation equity 2,436,352    2,401,726   Non-controlling interests 954    717   Total equity 2,437,306    2,402,443   Total liabilities and equity $2,758,736    $2,730,436   IPG PHOTONICS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)  Six Months Ended June 30,   2020 2019   (In thousands) Cash flows from operating activities:     Net income $75,132    $127,437   Adjustments to reconcile net income to net cash provided by operating activities:     Depreciation and amortization 47,350    47,486   Impairment of long-lived assets 671    —   Provisions for inventory, warranty & bad debt 24,484    22,697   Other 13,142    24,014   Changes in assets and liabilities that provided (used) cash, net of acquisitions:     Accounts receivable and accounts payable 46,256    (21,501) Inventories (15,160)  (40,789) Other (61,619)  (57,565) Net cash provided by operating activities 130,256    101,779   Cash flows from investing activities:     Purchases of property, plant and equipment (37,370)  (86,492) Proceeds from sales of property, plant and equipment 460    288   Purchases of short-term and long-term investments (421,321)  (339,828) Proceeds from short-term investments 422,912    334,680   Acquisitions of businesses, net of cash acquired —    (15,115) Other 115    209   Net cash used in investing activities (35,204)  (106,258) Cash flows from financing activities:     Principal payments on long-term borrowings (1,862)  (1,827) Proceeds from issuance of common stock under employee stock option and purchase plans less payments for taxes related to net share settlement of equity awards 8,271    (32) Purchase of treasury stock, at cost (28,230)  (2,284) Payment of purchase price holdback from business combination (1,650)  —   Net cash used in financing activities (23,471)  (4,143) Effect of changes in exchange rates on cash and cash equivalents and restricted cash (4,523)  (2,759) Net increase (decrease) in cash, cash equivalents and restricted cash 67,058    (11,381) Cash, cash equivalents and restricted cash — Beginning of period 682,984    544,358   Cash, cash equivalents and restricted cash — End of period $750,042    $532,977   Supplemental disclosures of cash flow information:     Cash paid for interest $1,061    $1,164   Cash paid for income taxes $53,670    $73,855   IPG PHOTONICS CORPORATION SUPPLEMENTAL SCHEDULE OF ACQUISITION RELATED COSTS AND OTHER CHARGES (UNAUDITED)  Three Months Ended June 30, Six Months Ended June 30,   2020 2019 2020 2019   (In thousands) Amortization of intangible assets:         Cost of sales $1,172   $1,488   $2,394   $2,834   Sales and marketing 1,777   2,000   3,555   3,810   Research and development —   160   133   320   Total acquisition related costs and other charges $2,949   $3,648   $6,082   $6,964                  IPG PHOTONICS CORPORATION SUPPLEMENTAL SCHEDULE OF STOCK-BASED COMPENSATION AND ACCOUNTING STANDARD IMPACTS TO NET INCOME AND EARNINGS PER SHARE (UNAUDITED)  Three Months Ended June 30, Six Months Ended June 30,   2020 2019 2020 2019   (In thousands) Cost of sales $2,507    $2,192    $5,039    $4,231    Sales and marketing 1,188    854    2,149    1,641    Research and development 2,475    2,063    4,547    3,920    General and administrative 3,092    3,963    5,966    7,418    Total stock-based compensation 9,262    9,072    17,701    17,210    Tax effect of stock-based compensation (2,123)  (2,131)  (4,059)  (4,047)  Net stock-based compensation $7,139    $6,941    $13,642    $13,163      Three Months Ended June 30, Six Months Ended June 30,   2020 2019 2020 2019   (In thousands) Excess tax benefit on exercise of stock options included in net income $1,776   $1,319   $4,694   $4,229

  • GlobeNewswire

    IPG Photonics to Participate in Upcoming Investor Conference

    Event to be webcast live on the IPG Photonics investor relations websiteOXFORD, Mass., July 29, 2020 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today announced that senior management will be presenting at the Canaccord Genuity 40th Annual Growth Conference on Wednesday, August 12, 2020, at 3:30 PM ET. A live webcast of the event will be available and archived on the investor relations section of the Company’s website at investor.ipgphotonics.com.About IPG Photonics CorporationIPG Photonics Corporation is the leader in high-power fiber lasers and amplifiers used primarily in materials processing and other diverse applications. The company’s mission is to make its fiber laser technology the tool of choice in mass production. IPG accomplishes this mission by delivering superior performance, reliability and usability at a lower total cost of ownership compared with other types of lasers and non-laser tools, allowing end users to increase productivity and decrease costs. A member of the S&P 500® Index, IPG is headquartered in Oxford, Massachusetts and has more than 25 facilities worldwide. For more information, visit www.ipgphotonics.com.ContactJames Hillier Vice President of Investor Relations IPG Photonics Corporation 508-373-1467 jhillier@ipgphotonics.com

  • GlobeNewswire

    IPG Photonics to Announce Second Quarter 2020 Financial Results on August 4

    OXFORD, Mass., July 21, 2020 -- IPG Photonics Corporation (NASDAQ: IPGP) will release its second quarter 2020 financial results before the market opens on Tuesday, August 4,.