Business
IPG Photonics Announces Fourth Quarter 2020 Financial Results
Company Ends 2020 with Year-Over-Year Growth in Sales and Strong Bookings EPS of $0.92 Reduced by Additional Inventory Charge of $0.20 and Foreign Exchange
About this update from Ipg Photonics Corporation
[{"type":"text","content":"Company Ends 2020 with Year-Over-Year Growth in Sales and Strong Bookings EPS of $0.92 Reduced by Additional Inventory Charge of $0.20 and Foreign Exchange Loss of $0.07 OXFORD, Mass., Feb. 16, 2021 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the fourth quarter ended December 31, 2020. Three Months Ended December 31, Twelve Months Ended December 31, (In millions, except per share data and percentages) 2020 2019 Change 2020 2019 ChangeRevenue $336.6 $306.6 10% $1,200.7 $1,314.6 (9)%Gross margin 43.6% 40.5% 44.9% 46.1% Operating income $65.2 $0.2 32,500% $198.7 $233.8 (15)%Operating margin 19.4% 0.1% 16.5% 17.8% Net income attributable to IPG Photonics Corporation $49.3 $(4.5) NM $159.6 $180.2 (11)%Earnings per diluted share $0.92 $(0.08) NM $2.97 $3.35 (11)% NM - Not meaningful Management Comments \"We are very pleased with our fourth quarter results as we delivered revenue that was 10% higher than the fourth quarter 2019 and was above the top end of our guidance range,\" said Dr. Valentin Gapontsev, IPG Photonics' Chief Executive Officer. \"In addition, book-to-bill was above one in the fourth quarter as we saw the traction in order flow continue from the third quarter. We are benefiting from the advantages of our leading-edge products, technology differentiation, low-cost production capabilities and global footprint. Although gross margin was reduced by 410 basis points by an additional inventory charge of $14 million, we still achieved a 310 basis point year-over-year increase in gross margin driven by an increase in revenue, product cost reductions, and product mix. Despite numerous challenges in 2020 from COVID-19, we ended the year with a strong performance and are very well positioned as we enter 2021.\" Financial Highlights Fourth quarter revenue of $337 million increased 10% year over year. Materials processing, which is comprised of many different applications, accounted for 90% of total revenue, and increased 10% year over year primarily due to higher sales in cutting applications. Sales into other applications increased 12% year over year, driven by the strength in advanced applications and devices used in medical procedures. Sales of high power continuous wave (\"CW\") lasers, representing 55% of total revenue, increased 17% year over year. These sales benefited f...