Business
IPG Photonics Announces First Quarter 2023 Financial Results
Growth in Welding Revenue with Record Results in E-Mobility and LightWELD Diversification Efforts Offsetting Softer Demand in Cutting and Marking Applications
About this update from Ipg Photonics Corporation
[{"type":"text","content":"Growth in Welding Revenue with Record Results in E-Mobility and LightWELD Diversification Efforts Offsetting Softer Demand in Cutting and Marking Applications MARLBOROUGH, Mass., May 02, 2023 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the first quarter ended March 31, 2023. Three Months Ended March 31, (In millions, except per share data and percentages) 2023 2022 ChangeRevenue $347.2 $370.0 (6)%Gross margin 42.3% 46.4% Operating income $75.4 $93.1 (19)%Operating margin 21.7% 25.2% Net income attributable to IPG Photonics Corporation $60.1 $69.6 (14)%Earnings per diluted share $1.26 $1.31 (4)% Management Comments \"We were pleased with our continued strong results in welding, which were driven by record sales into EV battery applications and all-time high sales for LightWELD, our handheld welder,\" said Dr. Eugene Scherbakov, IPG Photonics' Chief Executive Officer. \"Despite muted general industrial activity, we saw increased demand in e-mobility and solar cell manufacturing across most geographies as well as higher sales in cleaning applications that are driven by investments in sustainable energy and eco-friendly solutions. Our diversification efforts and increased revenue in emerging growth products are successfully offsetting soft demand in general industrial applications such as cutting and marking.\" Financial Highlights First quarter revenue of $347 million decreased 6% year over year. The strong U.S. dollar reduced revenue by approximately $15 million or 4% and divestitures reduced revenue by approximately 1% compared to the same period last year. Materials processing sales accounted for 90% of total revenue and decreased 8% year over year with higher sales in welding, cleaning and solar cell applications offset by lower revenue in cutting and marking applications. Sales into other applications increased 10% year over year, driven by strength in advanced applications and medical, partially offset by the telecom divestiture. Emerging growth products sales continued to grow and accounted for 45% of total revenue. Revenue in high power continuous wave (CW) lasers declined 8% year over year as the strong growth in welding, driven by higher demand from e-mobility applications, was offset by lower demand in high power cutting applications. Sales of pulsed lasers declined 1...