Business
IPG Photonics Announces Second Quarter 2023 Financial Results
Continued Growth in Welding and Cleaning Applications Driven by E-Mobility Softer Demand in Industrial Markets Impacted Sales and Outlook MARLBOROUGH, Mass.,
About this update from Ipg Photonics Corporation
[{"type":"text","content":"Continued Growth in Welding and Cleaning Applications Driven by E-Mobility Softer Demand in Industrial Markets Impacted Sales and Outlook MARLBOROUGH, Mass., Aug. 01, 2023 (GLOBE NEWSWIRE) -- IPG Photonics Corporation (NASDAQ: IPGP) today reported financial results for the second quarter ended June 30, 2023. Three Months Ended June 30, Six Months Ended June 30, (In millions, except per share data and percentages) 2023 2022 Change 2023 2022 ChangeRevenue $340.0 $377.0 (10)% $687.1 $747.0 (8)%Gross margin 43.4% 45.7% 42.9% 46.1% Operating income $72.1 $71.7 1 % $147.5 $164.8 (10)%Operating margin 21.2% 19.0% 21.5% 22.1% Net income attributable to IPG Photonics Corporation $62.3 $57.0 9 % $122.5 $126.5 (3)%Earnings per diluted share $1.31 $1.10 19 % $2.57 $2.41 7 % Management Comments \"Our materials processing business, excluding China, performed well in the second quarter with continued strong demand in welding and cleaning applications, driven by e-mobility. We also saw a sequential improvement in flat sheet cutting sales across many regions despite macroeconomic uncertainties and competition in China,\" said Dr. Eugene Scherbakov, IPG Photonics' Chief Executive Officer. \"Adoption of fiber laser technology continues and we are proud that our solutions have become an industry standard in many industrial applications. We are exploring additional opportunities to replace laser and non-laser technologies with IPG fiber laser solutions across many new and existing markets and applications.\" Financial Highlights Second quarter revenue of $340 million decreased 10% year over year. Changes in foreign exchange rates reduced revenue by approximately $9 million or 2% and divestitures reduced revenue by approximately 1% compared to the same period last year. Materials processing sales accounted for 92% of total revenue and decreased 8% year over year with growth in welding, cleaning, 3D printing and solar cell manufacturing applications offset by lower revenue in cutting and marking applications. Sales into other applications decreased 23% year over year due to lower revenue in medical and advanced applications, as well as the telecom divestiture. Emerging growth products sales accounted for 41% of total revenue. Revenue in high power continuous wave (CW) lasers declined 10% year over year due to lower demand in flat sheet cutting applica...