Business
IPG Photonics Announces Fourth Quarter 2019 Financial Results
Fourth Quarter Revenue Exceeds Guidance; Company Generates $130 Million Operating Cash Flow Goodwill and Asset Impairment, Inventory Provision and
About this update from Ipg Photonics Corporation
[{"type":"text","content":" Fourth Quarter Revenue Exceeds Guidance; Company Generates $130 Million Operating Cash Flow\n Goodwill and Asset Impairment, Inventory Provision and Restructuring Charges Reduce Earnings Per Diluted Share by $0.99 OXFORD, Mass., Feb. 13, 2020 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the fourth quarter ended December 31, 2019. Three Months Ended December 31, Twelve Months Ended December 31, (In millions, except per share data and percentages) 2019 2018 Change 2019 2018 ChangeRevenue $306.6 $330.1 (7)% $1,314.6 $1,459.9 (10)%Gross margin 40.5 % 50.5 % 46.1 % 54.8 % Operating income $0.2 $96.1 (100)% $233.8 $523.4 (55)%Operating margin 0.1 % 29.1 % 17.8 % 35.9 % Net income attributable to IPG Photonics Corporation $(4.5) $75.6 (106)% $180.2 $404.0 (55)%Earnings per diluted share $(0.08) $1.40 (106)% $3.35 $7.38 (55)% Management Comments \"We delivered fourth quarter revenue slightly above our guidance range on strength in the US market and new products,\" said Dr. Valentin Gapontsev, IPG Photonics' Chief Executive Officer. \"The global macroeconomic backdrop and the competitive landscape in China both remain challenging. However, we are responding with product cost reductions and differentiated new features and accessories for our core products. Furthermore, we are leveraging one of the largest R&D investments in the laser industry to launch leading-edge laser products and systems for new markets. These new solutions, which represent about one-fifth of total sales, enhance our growth and margin profile and provide greater geographic and end market diversification.\" Financial Highlights Fourth quarter revenue of $307 million decreased 7% year over year. Currency depreciation relative to the exchange rates assumed in our fourth quarter guidance reduced revenue by approximately $2 million. Materials processing sales decreased 11% year over year while sales into other applications increased 42% year over year. Materials processing sales accounted for 90% of total revenue. The acquisition of Genesis Systems Group contributed $19 million during the quarter. Sales of high power continuous wave (CW) lasers, representing 51% of total revenue, decreased 15% year over year. Sales of fiber lasers at 6 kilowatts of power or greater were approximately 50% of all high power CW laser sales...