IPG Photonics Profit Surges 167%

Fiber laser maker IPG Photonics Corp. today reported first quarter 2010 net income of $3.4 million, or 7 cents a share, more than double the $1.3 million it earned during the same time period a year ago.

Revenue for the quarter rose 13 percent to $51.2 million from $45.4 million in 2009, with the increase driven largely by materials processing applications.

“We are encouraged by our prospects for a recovery in 2010 as we see demand returning in our most significant applications and geographies, including low-power marking and engraving applications and increasing demand for high-power lasers particularly for cutting applications, which is the largest single application in the materials processing market,” said Dr. Valentin Gapontsev, IPG Photonics CEO. "We see signs that a macroeconomic recovery is underway across most geographic regions."

IPG said sales for materials processing applications increased 23 percent year-over-year and 4 percent sequentially, driven by increased sales of pulsed lasers for materials processing applications, particularly marking and engraving. Sales for medical applications achieved triple-digit year-over-year growth, although they were down 36 percent sequentially.

"The strength in materials processing and medical applications more than offset weaker sales in the telecommunications and advanced applications market which declined by 31% and 34%, respectively, year-over-year and 45% and 31%, respectively, on a sequential basis," Gapontsev said.

For the second quarter of 2010, IPG Photonics said it expects revenues in the range of $57 million to $62 million, with earnings in the range of 10 to 15 cents a share.

For more information, visit: www.ipgphotonics.com