Business
IPG Photonics Announces Second Quarter 2022 Financial Results
Strong Performance in Electric Vehicle and Medical Applications Drives Sales Company Announces New $300 million Stock Repurchase Program After Completing
About this update from Ipg Photonics Corporation
[{"type":"text","content":" Strong Performance in Electric Vehicle and Medical Applications Drives Sales Company Announces New $300 million Stock Repurchase Program After Completing $312 million of Repurchases in the First Half of 2022 OXFORD, Mass., Aug. 02, 2022 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the second quarter ended June 30, 2022. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data and percentages) 2022 2021 Change 2022 2021 ChangeRevenue $377.0 $371.7 1% $747.0 $717.2 4%Gross margin 45.7% 48.6% 46.1% 48.0% Operating income $71.7 $92.3 (22) % $164.8 $181.1 (9) %Operating margin 19.0% 24.8% 22.1% 25.2% Net income attributable to IPG Photonics Corporation $57.0 $69.8 (18) % $126.5 $137.9 (8) %Earnings per diluted share $1.10 $1.29 (15) % $2.41 $2.55 (5) % Management Comments \"Strong sales in North America and Japan drove our revenue growth as we focus on opportunities that diversify our revenue across key geographies and applications, including e-mobility and medical,\" said Dr. Eugene Scherbakov, IPG Photonics' Chief Executive Officer. \"IPG's innovative solutions are generating increased laser adoption in welding applications, primarily in electric vehicle manufacturing, but also in general automotive and industrial applications with continued adoption of the LightWELD in handheld applications. We reached a significant milestone as revenue from welding applications surpassed high power cutting revenue in a number of key geographies. We are also seeing higher demand across many emerging growth products that help diversify our exposure across different applications, such as medical, battery welding and foil cutting applications.\" Financial Highlights Second quarter revenue of $377 million increased 1% year over year. Exchange rates were a meaningful headwind to revenue, reducing it by approximately $18 million on a constant currency basis. Materials processing sales accounted for 91% of total revenue and decreased 1% year over year with higher sales in welding and cleaning applications offset by lower revenue in cutting and solar cell manufacturing applications. Sales into Other applications increased 29% year over year, driven by the strength in medical. Emerging growth products sales accounted for 40% of total revenue. Revenue in high power contin...