Business
IPG Photonics Announces Fourth Quarter 2021 Financial Results and Record Annual Revenue
Strong Demand in Europe, North America and Japan Drives Sales Increasing Contribution from Emerging Growth Products Further Diversifies Revenue Authorization
About this update from Ipg Photonics Corporation
[{"type":"text","content":"Strong Demand in Europe, North America and Japan Drives Sales Increasing Contribution from Emerging Growth Products Further Diversifies Revenue Authorization of New $200 Million Stock Buyback Program OXFORD, Mass., Feb. 15, 2022 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the fourth quarter ended December 31, 2021. Three Months Ended December 31, Twelve Months Ended December 31, (In millions, except per share data and percentages) 2021 2020 Change 2021 2020 ChangeRevenue $364.5 $336.6 8% $1,460.9 $1,200.7 22%Gross margin 45.5% 43.6% 47.7% 44.9% Operating income $84.8 $65.2 30% $367.9 $198.7 85%Operating margin 23.3% 19.4% 25.2% 16.5% Net income attributable to IPG Photonics Corporation $65.1 $49.3 32% $278.4 $159.6 74%Earnings per diluted share $1.21 $0.92 32% $5.16 $2.97 74% Management Comments \"Growth in Europe, North America and Japan as well as higher sales in emerging growth products drove results in the fourth quarter allowing us to exceed our revenue guidance and grow year over year despite weakness in China,\" said Dr. Eugene Scherbakov, IPG Photonics' Chief Executive Officer. \"Sales outside of China increased to 69% of our total revenue, a level we have not seen in many years, showing our progress in achieving a better balance in our business. We continue to focus on new products and opportunities that diversify our revenue and position us to benefit from major macro trends such as automation, miniaturization, sustainability and energy efficiency.\" Financial Highlights Fourth quarter revenue of $364 million increased 8% year over year. Materials processing sales accounted for 87% of total revenue and increased 5% year over year with higher sales in welding, marking, 3D printing, and cleaning applications. Sales into Other applications increased 41% year over year, driven by the strength in medical, advanced applications and telecom. Emerging growth products sales were 38% of total revenue and increased 57% year over year in the fourth quarter. Strong revenue growth in welding globally and higher sales in cutting in North America and Europe were offset by softer demand in cutting applications in China resulting in a 19% year-over-year revenue decline in high power continuous wave (CW) lasers. Sales of medium power, pulsed and QCW lasers all improved significantly c...