Business
IPG Photonics Announces Second Quarter 2020 Financial Results
Earnings Per Diluted Share of $0.71 Reduced by $0.20 from Foreign Exchange Loss and Charge for Restructuring and Asset Impairment OXFORD, Mass., Aug. 04, 2020
About this update from Ipg Photonics Corporation
[{"type":"text","content":"Earnings Per Diluted Share of $0.71 Reduced by $0.20 from Foreign Exchange Loss and Charge for Restructuring and Asset Impairment\nOXFORD, Mass., Aug. 04, 2020 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the second quarter ended June 30, 2020.\n Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data and percentages) 2020 2019 Change 2020 2019 ChangeRevenue $296.4 $363.8 (19)% $545.7 $678.8 (20)%Gross margin 46.0 % 49.5 % 43.9 % 48.5 % Operating income $47.2 $91.1 (48)% $92.0 $159.4 (42)%Operating margin 15.9 % 25.0 % 16.9 % 23.5 % Net income attributable to IPG Photonics Corporation $38.2 $72.3 (47)% $74.6 $127.4 (41)%Earnings per diluted share $0.71 $1.34 (47)% $1.39 $2.36 (41)% Management Comments \"Despite the continued challenges to our business from the COVID-19 pandemic, we delivered second quarter results above our guidance range on better-than-expected performance in China and strength in new products,\" said Dr. Valentin Gapontsev, IPG Photonics' Chief Executive Officer. \"Although our visibility is constrained in the current demand environment, we are demonstrating good progress in leading-edge solutions thanks to our technology differentiation and low cost production capabilities. We continue to believe that our strong balance sheet and free cash flow provide us ample flexibility to respond to business disruptions and emerge from the pandemic in a stronger competitive position.\" Financial Highlights Second quarter revenue of $296 million decreased 19% year over year. Currency depreciation relative to the exchange rates assumed in our second quarter guidance reduced revenue by approximately $2 million. Materials processing sales decreased 21% year over year due to lower sales in cutting, welding and marking applications, while sales into other applications increased 36% year over year on strength in advanced applications and devices used in medical procedures. Materials processing sales accounted for 92% of total revenue. Sales of high power continuous wave (\"CW\") lasers, representing 53% of total revenue, decreased 26% 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 more than 50% of all high power CW la...