Business
IPG Photonics Announces First Quarter 2020 Financial Results
Earnings Per Diluted Share of $0.68 Increased by $0.28 Due to Foreign Exchange Gains Company Increases Share Repurchase Program by $200 Million OXFORD, Mass.,
About this update from Ipg Photonics Corporation
[{"type":"text","content":"Earnings Per Diluted Share of $0.68 Increased by $0.28 Due to Foreign Exchange Gains\n Company Increases Share Repurchase Program by $200 Million OXFORD, Mass., May 05, 2020 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the first quarter ended March 31, 2020. Three Months Ended March 31, (In millions, except per share data and percentages) 2020 2019 ChangeRevenue $249.2 $315.0 (21)%Gross margin 41.3% 47.3% Operating income $44.8 $68.3 (34)%Operating margin 18.0% 21.7% Net income attributable to IPG Photonics Corporation $36.4 $55.2 (34)%Earnings per diluted share $0.68 $1.02 (33)% Management Comments \"We delivered first quarter revenue at the high end of our guidance range on a rebound in China-based demand during March and strength in new products,\" said Dr. Valentin Gapontsev, IPG Photonics' Chief Executive Officer. \"Our strategy in dealing with the effects of the COVID-19 pandemic is to ensure the well-being of our employees, to serve our customers from our global facilities and to focus on the long-term opportunities enabled by our laser technology and the financial strength of the Company.\" Financial Highlights First quarter revenue of $249 million decreased 21% year over year. Currency depreciation relative to the exchange rates assumed in our first quarter guidance reduced revenue by $2 million. Materials processing sales decreased 28% year over year due to lower sales in cutting, welding and marking applications, while sales into other applications increased 123% year over year on strength in advanced applications and devices used in medical procedures. Materials processing sales accounted for 87% of total revenue. Sales of high power continuous wave (\"CW\") lasers, representing 48% of total revenue, decreased 33% 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 approximately 50% of all high power CW laser sales. By region, sales decreased 40% in China, 15% in Europe, 12% in Japan and increased 4% in North America on a year over year basis. Earnings per diluted share (\"EPS\") of $0.68 decreased 33% year over year. Foreign exchange gains increased EPS by $0.28. The effective tax rate in the quarter was 23%, which benefited from certain discr...